Redwire Corporation (NYSE: RDW) saw its shares surge 15.1% to close at $21.43 on Thursday, following the announcement of a contract to grow wild strawberries on the International Space Station using its commercial space greenhouse. The stock added approximately $600 million in market capitalization, according to Barron's, amid a volatile session for space-related equities.
The company revealed that Luxembourg-based Astrobiome Space has selected Redwire to conduct tests on a soil-enhancement product inside Redwire's ISS greenhouse. The biostimulant is designed to help plants grow or resist stress, and the project will involve cultivating the first wild strawberries in space. Marc Dielissen, Executive Vice President at Redwire Europe, described the award as an "exciting step forward" for "sustainable life-support systems beyond Earth." Astrobiome Space CEO Vera Mulyani noted that the first space-grown strawberry "will be tiny."
Redwire did not disclose the financial terms of the greenhouse deal, leading traders to interpret the news more as a signal of demand for the company's space infrastructure rather than an immediate revenue boost. The lack of a disclosed value has raised questions about the contract's material impact on the company's backlog and future earnings.
In addition to the space agriculture news, Redwire Defense secured a $15.9 million firm-fixed-price contract from the U.S. Department of War within the last 48 hours. The deal is for eight Stalker Block 35 unmanned aircraft systems, which are drones used for reconnaissance, surveillance, and target acquisition. This defense contract adds to Redwire's growing exposure to the military drone market, though a separate Army contract listing shows AeroVironment received a much larger $117.3 million award for P550 unmanned aircraft systems, indicating a broader Army procurement push.
The broader space stock sector showed mixed performance. Rocket Lab (NASDAQ: RKLB) finished 4.6% higher, while AST SpaceMobile (NASDAQ: ASTS) edged down 0.4%. The movements suggest that investor capital continues to flow into space stocks but is rotating between names. Redwire's dual focus on space infrastructure and defense drones appears to be resonating with the market, but the company still lacks consistent profitability.
Redwire reported first-quarter revenue of $97.0 million, a 57.9% year-over-year increase, and a record backlog of $498.1 million. Backlog, which represents contracted work not yet completed, is a key metric for future sales. CEO Peter Cannito highlighted "very strong demand" in May, and CFO Chris Edmunds reaffirmed the company's 2026 revenue target of $450 million to $500 million. However, risks remain elevated. Redwire posted a first-quarter net loss of $76.5 million, and its backlog is subject to potential terminations or contract modifications. The company also warns about stock-price volatility, customer concentration, launch risks, and the difficulty of converting backlog into revenue.
As Friday's trading session approaches, market participants will be watching to see if the strawberry headline can sustain momentum. Redwire is currently being treated as a hybrid play on space infrastructure and defense drones, a balance that is working in the current tape. However, until the company demonstrates consistent earnings, the stock remains a high-risk, high-reward proposition.
