Redwire Corporation (RDW) saw its shares edge higher on Wednesday following the announcement of two significant drone contracts. The stock climbed 0.6% to $13.99, trading within a range of $13.35 to $14.53 during the session.
The gains came after the company disclosed a $15 million follow-on order from the U.S. Army before the market opened. This follows news from the previous day of a larger, multi-year deal with an unnamed NATO country valued in the high eight figures.
Drone contracts highlight defense pivot
The U.S. Army order is for the Stalker unmanned aerial system (UAS), destined for the 1st Aviation Brigade at the U.S. Army Aviation Center of Excellence. This marks the third order from this customer in eight months, bringing the total to $24.8 million. Steve Adlich, head of Redwire Defense Tech, stated the Stalker system will enable the Army to “detect, identify, and track threats.”
Separately, Redwire secured a multi-year contract for its Penguin Mk3 tactical UAS from a NATO member country. Adlich noted the platform is built on “years of operational, combat experience.” The company plans to execute the contract through its European operations.
Edge Autonomy acquisition fuels growth
Redwire’s Edge Autonomy portfolio is taking center stage this week. The company completed its acquisition of Edge Autonomy in June 2025, adding field-proven UAS technology, more than 1,300 employees, and expanded manufacturing capabilities in the U.S. and Europe.
This acquisition is central to Redwire’s strategy of converting near-term contract wins into sustained revenue growth, particularly in the space and airborne defense sectors.
Financial performance and risks
Redwire reported first-quarter revenue of $97.0 million, a 57.9% increase year-over-year. The company’s contracted backlog stood at $498.1 million, and CEO Peter Cannito cited “very strong demand.” Redwire maintained its 2026 full-year revenue guidance of $450 million to $500 million, with a book-to-bill ratio of 1.92 for the quarter.
However, the company’s net loss widened to $76.5 million in the first quarter, highlighting ongoing execution and financing challenges. In a May 6 SEC filing, Redwire disclosed it may sell up to $350 million in common stock through an at-the-market program. The filing warned that such sales could dilute existing shareholders and potentially pressure the stock price.
Investors are closely watching Redwire’s ability to improve margins, stabilize cash burn, and convert its growing order book into consistent revenue. The stock’s performance on Wednesday lagged behind peers such as Rocket Lab (RKLB), up 4.6%, Kratos Defense (KTOS), up 3.5%, and the iShares U.S. Aerospace & Defense ETF (ITA), which gained 2.3%.
