Q1 2025 Redwire Corp Earnings Call
Greetings.
Operator: Welcome to the Redwire Corporation First Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. The question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone.
Greetings and welcome to the Red Wire Corporation first quarter 2025 earnings Conference call.
At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation.
And what should require operator assistance during the conference. Please press star zero on your telephone keypad. Please note. This conference is being recorded.
Operator: Please note, this conference is being.
Alex Curatolo: I will now turn the conference over to your host, Alex Curatolo, Senior Director of Investor Relations. Thank you. You may begin. Good morning, and thank you, Daryl.
Speaker Change: Now I'll turn the conference over to your House, Alex Kurtz, Hello, Senior director of Investor Relations. Thank you you may begin.
Speaker Change: Good morning, and thank you Daryl welcome to <unk> first quarter 2025 earnings call. We hope that you have seen our earnings release, which we issued earlier this morning.
Alex Curatolo: Welcome to Redwire's first quarter 2025 earnings call. We hope that you have seen our earnings release, which we issued earlier this morning. It has also been posted in the Investor Relations section of our website at redwirespace.com. Let me remind everyone that during the call, Redwire management may make forward-looking statements that reflect our beliefs, expectations, intentions, or predictions of the future. Our forward-looking statements are subject to risks and uncertainties that are described in more detail on slide 3. Additionally, to the extent we discuss non-GAAP measures during the call, please see slide four, our earnings release, or the investor presentation on our website for the calculation of these measures and their reconciliation to U.S.
Speaker Change: Also been posted in the Investor Relations section of our website at Fred Meyer space Dot Com.
Speaker Change: We remind everyone that during this call Rod wire management may make forward looking statements that reflect our beliefs expectations intentions or predictions of the future are forward looking statements are subject to risks and uncertainties that are described in more detail on slide <unk>.
Speaker Change: Additionally to the extent, we discuss non-GAAP measures during the call. Please see slide four our earnings release or the Investor presentation on our website for the calculation of these measures and their reconciliation to U S GAAP measures.
Alex Curatolo: GAAP measures.
Alex Curatolo: I am Alex Caratolo, Redwire's Senior Director of Investor Relations.
Alex Kurtz: I'm, Alex for Tullow, Rod wire senior director of Investor Relations. Joining me on today's call are Peter can eat off Broadway Herman and Chief Executive Officer, and Jonathan Banner right. When I was chief financial officer with that I would like to turn the call over to Pete Pete.
Peter Cannito: Joining me on today's call are Peter Cannito, Redwire's Chairman and Chief Executive Officer, and Jonathan Baliff, Redwire's Chief Financial Officer. With that, I would like to turn the call over to Pete. Pete? Thank you, Alex. During today's call, I will outline our key accomplishments during the first quarter of 2025, and Jonathan will then present the financial highlights for the same period. We will then discuss our 2025 outlook, after which we will open the call for Q&A. Please turn to slide 7.
Speaker Change: Thank you Alex during today's call I will outline our key accomplishments during the first quarter of 2025, and Jonathan will then present the financial highlights for the same period.
Alex Kurtz: We will then discuss our 2025 outlook after which we will open the call for Q&A. Please.
Alex Kurtz: Please turn to slide seven.
Peter Cannito: On our last earnings call, I introduced our 2025 growth strategy, which is centered around five key principles. Providing picks and shovels, which means delivering on our strong foundation of proven products with demonstrated flight heritage that form the building blocks of space missions for our customers. Delivering multi-domain platforms, which means executing our platform strategy by delivering highly differentiated space and airborne platforms for critical missions to include multi-domain missions. Exploring the Moon, Mars, and Beyond, which means capitalizing on our decades of experience in providing systems for space exploration and delivering on ambitious missions to the lunar surface, to Mars, and beyond.
Alex Kurtz: On our last earnings call I introduced our 2025 growth strategy, which is centered around five key principles.
Alex Kurtz: Providing picks and shovels, which means delivering on our strong foundation of proven products with demonstrated flight heritage that formed the building blocks of space missions for our customers.
Alex Kurtz: Delivering multi domain platforms, which means executing our platform strategy by delivering highly differentiated space and airborne platforms for critical missions to include multi domain mission.
Alex Kurtz: Exploring the Moon, Mars and beyond which means capitalizing on our decades of experience in providing systems for space exploration and delivering an ambitious missions to the lunar surface tomorrow and beyond.
Peter Cannito: unlocking venture optionality, which means continuing to pursue breakthrough developments on advanced technologies that could unlock new markets with game changing potential. And finally, executing accretive M&A, which means continuing our proven track record of effectively creating enterprise value by acquiring technologically differentiated companies at accretive values, a key competitive advantage of Redwire, which enables us to continue to rapidly scale as a public platform.
Unlocking venture Optionality, which means continuing to pursue breakthrough developments on advanced technologies that could unlock new markets with game changing potential.
And finally executing accretive M&A, which means continuing our proven track record of effectively creating enterprise value by acquiring technologically differentiated companies add accretive values, a key competitive advantage of red wire, which enables us to continue.
Alex Kurtz: <unk> to rapidly scale as a public platform.
Peter Cannito: Over the next few slides, I will discuss a recent key success for each growth area to demonstrate how we are executing against these focus areas. Please turn to slide 8. Starting with PICS, providing PICS and shovels. During the quarter, Redwire was awarded a contract from Talas Alenia Space to provide four docking systems for the European Space Agency's IHAB habitation module. The Redwire system is branded as the International Berthing and Docking Mechanism, or IBDM. The IBDM will enable safe transfers of crew and cargo from the visiting spacecraft to IHAB, supporting continuous operations and missions within the Lunar Space Station.
Alex Kurtz: Over the next few slides I will discuss a recent key success for each growth area to demonstrate how we are executing against these focus areas.
Alex Kurtz: Please turn to slide eight.
Alex Kurtz: Starting with picks providing picks and shovels during the quarter Red wire was awarded a contract from Telus Alenia space to provide for docking systems for the European space Agency's I have habitation module the.
Alex Kurtz: The Red wire system is branded as the international Berthing and docking mechanism or IBD yeah.
Alex Kurtz: The IBD M will enable safe transfers of crew and cargo from the visiting spacecraft I have supporting continuous operations and missions within the lunar space station.
Peter Cannito: This is a mission-critical element of infrastructure that has applicability to space habitats and both crewed and uncrewed space capsules. Please turn to slide nine. Turning next to delivering multi-domain platforms, in February, Redwire announced the award of a study contract from ESA to develop the preliminary spacecraft design for the upcoming Arrakis Dark Matter mission that will image faint galaxies in the nearby universe and provide insight into the nature of dark matter. Redwire's solution is built around an adapted version of our flight-proven small satellite platform, Hammerhead, shown on the right of this slide. If selected for the implementation phase of the Arrakis mission, Redwire would integrate the full satellite in our state-of-the-art cleanroom facilities in Belgium, underscoring the maturity of our full mission systems capability in the European market.
Alex Kurtz: This is a mission critical element of infrastructure that has applicability to space habitats and both crude and Unscrewed space capsules.
Please turn to slide nine.
Alex Kurtz: Turning next to delivering multi domain platforms in February Red Wire announced the award of a study contract from <unk> to develop the preliminary spacecraft design for the upcoming a racket dark matter mission that will image faint galaxies in the nearby universe and provide insight into the nature of dark matter.
Alex Kurtz: <unk>.
Alex Kurtz: Red wire solution is built around an adapted version of our flight proven small satellite platform hammerhead showed on the rate shown on the right of this slide.
Alex Kurtz: If selected for the implementation phase of the rackets mission Red wire would integrate the full satellite in our state of the art clean room facilities in Belgium, underscoring the maturity of our full mission systems capability and the European market.
Peter Cannito: These first quarter successes illustrate that Redwire is proudly building on decades of flight heritage, and we continue to play a critical role in developing organic capabilities for the European market as it pivots toward increased independence in space and defense. Please turn to slide 10. Moving next to exploring the Moon, Mars, and beyond, in early April, Redwire and iSpace US signed a memorandum of understanding to jointly pursue commercial lunar exploration and science missions for the NASA CLPS initiatives, as well as additional private sector customers. Redwire is a prime contractor on the CLPS IDIQ contract, which has a cumulative amount maximum contract value of $2.6 billion through 2028.
Alex Kurtz: These first quarter successes illustrate that red wire is proudly building on decades of flight heritage and we continued to play a critical role in developing organic capabilities for the European market as it pivot toward increased independence in space and defense.
Speaker Change: Please turn to slide 10.
Speaker Change: Moving next to exploring the Moon Mars and beyond in early April Red wire and ice space U S signed a memorandum of understanding to jointly pursue commercial lunar exploration and science missions for the NASA clips initiatives as well as additional private sector customers.
Speaker Change: <unk> is a prime contractor on the eclipse <unk> IQ contract, which has a cumulative amount maximum contract value of $2 6 billion.
Speaker Change: Through 2028.
Peter Cannito: Redwire is proud to combine our advanced digital engineering, integration and testing, and lunar subsystems and payloads with iSpace's proven lunar landing platform and mission operations to create a world-class team to support future lunar missions. This partnership furthers our already robust set of capabilities for commercial lunar exploration. Please turn to slide 11.
Speaker Change: Red wire is proud to combine our advanced digital engineering integration and testing and lunar subsystems and payloads with ice space has proven lunar landing platform and mission operations to create a world class team to support future lunar missions. This partnership furthers our already.
Speaker Change: A robust set of capabilities for commercial lunar exploration.
Speaker Change: Please turn to slide 11.
Peter Cannito: Turning to unlocking venture optionality, in April, Redwire launched both a new drug development technology and a cancer detection experiment to the International Space Station as we scale our in-space pharmaceutical drug development. Based upon our highly successful pillbox platform, the high volume industrial crystallizer is capable of processing samples that are up to 200 times the volume of what could be processed in the original technology. To validate the new hardware, Redwire launched its Golden Balls nanotechnology manufacturing demonstration, which I discussed on our last earnings call. The goal of the new industrial crystallizer technology is to further optimize large-scale production of pillbox pharmaceutical development in space to achieve economies of scale that significantly advance the business model potential.
Speaker Change: Turning to unlocking venture Optionality in April Red wire launched both a new drug development technology and a cancer detection experiment to the international space station as we scale our in space pharmaceutical drug development.
Speaker Change: Based upon our highly successful pillbox platform the high volume industrial crystallize or is capable of processing samples that are up to 200 times the volume of what could be processed and the original technology to.
Speaker Change: To validate the new hardware Red wire launched its golden balls, nanotechnology manufacturing demonstration, which I discussed on our last earnings call.
Speaker Change: The goal of the new industrial crystallize your technology is to further optimize large scale production of pillbox pharmaceutical development and space to achieve economies of scale that significantly advance the business model potential.
Peter Cannito: In addition, today Redwire is proud to announce that we have signed an agreement with a new commercial partner, Aspero Biomedicines, to fly two additional pillboxes to the ISS. Redwire will crystallize a new cancer treatment that Aspera Biomedicines is working on. Redwire and Aspera Biomedicines see this as the start of a long and fruitful partnership and are excited to have a new, we are excited to have a new commercial customer funding advanced biopharma development in space for the benefit of people on Earth. Please turn to slide 12.
In addition, today Red wire is proud to announce that we have signed an agreement with a new commercial partner a sparrow bio medicines to fly two additional pillboxes to the ISS.
Speaker Change: Red wire will crystallize, a new cancer treatment that is spare of biomedicine is working on.
Speaker Change: Red wire and a spare bio medicines see this as the start of a long and fruitful partnership and are excited to have a new <unk>. We are excited to have a new commercial customer funding advanced Biopharma development in space for the benefit of people on Earth.
Please turn to slide 12.
Peter Cannito: Finally, when it comes to executing a creative M&A, as many of you know, in January 2025, Redwire announced that it has signed an agreement to acquire Edge Autonomy. In March 2025, we announced that we had received all regulatory approvals needed to complete the transaction. And just this past Friday, May 9th, 2025, we filed our definitive proxy with the SEC. With these critical milestones behind us, we expect to close during the second quarter of 2025 with the special meeting scheduled for June 9th, 2025.
Speaker Change: Finally, when it comes to executing accretive M&A as many of you know in January 2025, Red wire announced that it has signed an agreement to acquire at autonomy in March 2025, we announced that we had received all regulatory approvals needed to complete the transaction.
Speaker Change: And just this past Friday may nine 2025, we filed our definitive proxy with the SEC.
With these critical milestones behind US we expect to close during the second quarter of 2025 with the special meeting scheduled for June nine 2025.
Peter Cannito: This transaction is expected to transform Redwire into a global leader in multi-domain autonomous technology, broadening our portfolio of mission-critical space platforms to include combat-proven autonomous airborne platforms. Please turn to slide 13.
Speaker Change: This transaction is expected to transform red wire into a global leader in multi domain autonomous technology broadening our portfolio of mission critical space platforms to include combat proven autonomous airborne platforms.
Speaker Change: Please turn to slide 13.
Peter Cannito: Next I would like to discuss tariffs in the context of Redwire's supply chain. Redwire's supply chain provides resiliency in the current environment with a U.S.-based supply chain for our U.S. customer base, particularly on federally funded contracts, and with a European-based supply chain for international customers. Our global manufacturing footprint serving local markets is a natural tariff mitigant. As such, we have yet to see notable widespread price increases or shocks due to tariffs. We are addressing one-off cases with suppliers. However, we currently do not expect any material financial impact. Redwire will continue to monitor potential impacts closely as we manage our business through this dynamic environment.
Speaker Change: Next I would like to discuss tariffs in the context of red wire supply chain.
Speaker Change: Red wire supply chain provides resiliency in the current environment with a U S based supply chain for our U S customer base, particularly on federally funded contracts and with a European based supply chain for international customers, our global manufacturing footprint, serving local markets.
Speaker Change: A natural tariff Michigan.
As such we have yet to see notable widespread price increases or shocks due to tariffs. We are addressing one off cases with suppliers. However, we currently do not expect any material financial impact Red wire will continue to monitor potential impacts closely as we manage our business through this dynamic.
Speaker Change: Environment.
Peter Cannito: In some instances, we believe that the current trade environment may lead to both increasing investment in U.S. manufacturing and in European space and defense budgets that could benefit Redwire's significant manufacturing presence in both regions.
Speaker Change: In some instances, we believe that the current trade environment may lead to both increasing investment in U S manufacturing and an European space and defense budgets that could benefit red wire significant manufacturing presence in both regions.
Peter Cannito: Please turn to slide 14. As many of you likely saw, the recent presidential budget request includes funding for key space and defense programs like Golden Dome. And Redwire is exploring multiple solutions throughout the Golden Dome layered defense architecture to help defeat threats targeted at the U.S. homeland.
Speaker Change: Please turn to slide 14.
Speaker Change: As many of you likely saw the recent presidential budget request includes funding for key space and defense programs like Golden Dome, and Red wire is exploring multiple solutions throughout the golden them layered defense architecture to help defeat threats targeted at the U S homeland.
Peter Cannito: I'd like to highlight just a few examples of how Redwire solutions could be leveraged in support of these efforts. First, Redwire's spacecraft, to include our VLEO, LEO, and GEO capabilities, can be leveraged in a multi-orbit architecture to identify, detect, and potentially mitigate threats. In addition, Redwire's space-based optical sensor capabilities that use the same technologies as developed in the cameras for Firefly's Blue Ghost and Intuitive Machine's IM-2 Lunar Landers can be leveraged to develop timely threat detection and custody. And finally, Redwire's Digitally Engineered Mission Systems and Integration, or DEMSI, agent-based digital engineering environment enables end-to-end architecture assessment for threat mitigation.
Speaker Change: I'd like to highlight just a few examples of how red fire solutions could be leveraged in support of these efforts.
Speaker Change: First red wire spacecraft to include RV, Leo Leo and Geo capabilities can be leveraged in a multi orbit architecture to identify detect and potentially mitigate threats.
Speaker Change: In addition, red wires space based optical sensor capabilities that.
Speaker Change: Use the same developed that use the same technologies has developed in the cameras for Firefly is glucose and intuitive machines <unk> lunar landers can be leveraged to develop timely threat detection and custody.
Speaker Change: And finally red wires digitally engineered mission systems, and integration or Dempsey agent based digital engineering environment enabled end to end architecture assessment for threat mitigation.
Peter Cannito: We are particularly well positioned because we have secure facilities and clearances to operate in this domain. Redwire is aggressively pursuing multiple Golden Dome opportunities and looks forward to the opportunity to leverage our extensive national security heritage in defense of the United States. and is in discussions with relevant stakeholders.
Speaker Change: We are particularly well positioned because we have secure facilities and clearances to operate in this domain.
Speaker Change: Red wire is aggressively pursuing multiple golden dome opportunities and look forward to the opportunity to leverage our extensive national security heritage in defense of the United States.
Speaker Change: And is in discussions with relevant stakeholders.
Peter Cannito: Please turn to slide 15. Turning to our contract awards and backlog, our contract awards during the first quarter of 2025 were $56.2 million with a book-to-bill ratio of 0.92 times, a significant improvement on both a sequential and year-over-year basis. In addition, backlog remained relatively flat at 291.2 million as of March 31st, 2025. 37% or $107.2 million of this contracted backlog is from our international operations in Europe. As we have continuously reinforced, we often see lumpy contract awards from quarter to quarter. Although we saw key wins for the first quarter coming out of the European market, including the contract for the IBDM-IHAB and ESA study contract for the Arrakis mission mentioned previously, we also saw notable delays in awards in the U.S.
Speaker Change: Please turn to slide 15.
Speaker Change: Yes.
Speaker Change: Turning to our contract awards and backlog or contract awards. During the first quarter of 2025 were $56 $2 million with a book to Bill ratio of <unk> 92 times, a significant improvement on both a sequential and year over year basis.
Speaker Change: In addition backlog remained relatively flat at $291 2 million as of March 31, 2025.
Speaker Change: 37% or $107 $2 million of this contracted backlog is from our international operations in Europe.
Speaker Change: As we have continuously reinforced we often see lumpy contract awards from quarter to quarter.
Speaker Change: Although we saw key wins for the first quarter coming out of the European market, including the contract for the IBD am I have and ether study contract for the Iraqis Mission mentioned previously we also saw notable delays in awards in the U S government market due to the transition of key decision makers and NASA.
Peter Cannito: government market due to the transition of key decision makers in NASA, SDA, and other agencies, as well as budget uncertainty associated with new administration priorities. We believe these delays are temporary, and based on analysis of the Presidential Budget request that includes funding for key space and defense programs like Golden Dome, we remain optimistic about the future of U.S. national security space and defense budgets. In the meantime, we continue to see a strong pipeline with an estimated $6 billion of identified opportunities, including approximately a half a billion dollars in proposals submitted during the first quarter of 2025.
Speaker Change: FDA and other agencies as well as budget uncertainty associated with new administration priorities.
Speaker Change: We believe these delays are temporary and based on analysis of the presidential budget request that includes funding for key space and defense programs like Golden Dome, we remain optimistic about the future of U S National security space and defense budgets.
Speaker Change: In the meantime, we continue to see a strong pipeline with an estimated $6 billion of identified opportunities, including approximately a half a billion dollars.
Speaker Change: And proposal submitted during the first quarter of 2025.
Peter Cannito: We continue our efforts to increase the average size of the individual opportunities we are pursuing. And as a result, we continue to have a pipeline of bids that could result in a substantial increase in backlog if we land some of these larger opportunities. Because of the success of our transformational investments building the Redwire platform in 2024, we are now positioned to continuously pursue larger opportunities in 2025 and beyond.
Speaker Change: We continue our efforts to increase the average size of the individual opportunities we are pursuing and as a result, we continue to have a pipeline of bids that could result in a substantial increase in backlog if we land some of these larger opportunities.
Because of the success of our transformational investments building the Red wire platform. In 2024, we are now positioned to continuously pursue larger opportunities in 2025 and beyond.
Peter Cannito: Please turn to slide 16.
Speaker Change: Please turn to slide 16.
Jonathan Baliff: With that, I'd now like to turn the call over to Jonathan Baliff, Redwire's Chief Financial Officer, to discuss the financial results for the first quarter of 2025. Jonathan? Thank you, Pete. Before turning to slide 17, I would like to highlight the rendering on this page, which is ESA's Probe 3 spacecraft using a version of Redwire's Hammerhead platform. During the first quarter, the Probe 3 spacecraft, which launched in late 2024, demonstrated key on-orbit milestones by autonomously acquiring and maintaining spacecraft formation flying over the course of two Earth orbits. This is the world's first on-orbit precision flying mission, with two spacecraft maintaining their relative positions down to less than a millimeter, while flying 150 meters apart in space.
Speaker Change: With that I'd now like to turn the call over to Jonathan Bailiff Red White, <unk>, Chief Financial officer to discuss the financial results for the first quarter of 2025 Jonathan.
Speaker Change: Thank you Pete before turning to slide 17, I would like to highlight the rendering on this page, which is <unk> <unk> III spacecraft using a version of Red wires Hammerhead platform <unk>.
Speaker Change: During the first quarter, the appropriate III spacecraft, which launched in late 2024.
Speaker Change: Demonstrated key on orbit milestones by autonomously acquiring and maintaining spacecraft formation flying over the course of two Earth orbits.
Speaker Change: This is the world's first on orbit precision flying mission with two spacecraft maintaining their relative positions down to less than a millimeter, while flying 150 meters apart in space.
Jonathan Baliff: This is not only a significant technological achievement, but also a critical step in achieving the mission objectives of studying the sun's corona forces.
Speaker Change: This is not only a significant technological achievement, but also a critical step in achieving the mission objectives of studying the Sun's Corona forces.
Jonathan Baliff: Kudos to our Redwire Space Europe team for making this possible.
Speaker Change: It goes to our Red bar space Europe team for making this possible.
Jonathan Baliff: Please turn to slide 17. So let's review the results for the first quarter of 2025, starting with revenue. Redwire recorded revenues of $61.4 million, a decrease both on a sequential and year-over-year basis. As Pete mentioned, although we saw key wins coming out of our European market, we also saw movement of revenue to the right on existing contracts and delays and awards across our customer classes, but especially in the US during this quarter. Turning to profitability, during the quarter we saw a significant sequential improvement in our adjusted EBITDA from a negative $9.2 million in the fourth quarter of 2024 to a negative $2.3 million in the first quarter of 2025.
Speaker Change: Please turn to slide 17.
Speaker Change: So let's review the results for the first quarter of 2025, starting with revenue.
Speaker Change: <unk> recorded revenues of $61 4 million a.
Speaker Change: The decrease both on a sequential and year over year basis, as Keith mentioned, although we saw key wins coming out of our European market. We also saw movement of revenue to the right on existing contracts and delays in awards across our customer classes, but especially in the U S. During this quarter.
Speaker Change: Turning to profitability during the quarter, we saw a significant sequential improvement in our adjusted EBITDA from a negative $9 2 million in the fourth quarter of 2024 to a negative $2 3 million in the first quarter of 2025.
Jonathan Baliff: Our adjusted EBITDA included a net unfavorable impact from EACs of $3.1 million. These net EAC changes were primarily due to additional unplanned labor and increased production costs related to the development of new technologies required to meet customer specifications, especially in our structures and mechanisms core offering as we transitioned to the new IHAB contract Pete talked about. Turning to net loss, we also saw a significant sequential improvement of more than $60 million, achieving a net loss of $2.9 million as we continue on our path to profitability. Looking at our cash and total liquidity, we ended the quarter with a record level of available liquidity, $89.2 million.
Speaker Change: Our adjusted EBITDA included a net unfavorable impact from EAC is up $3 1 million.
Speaker Change: These net EAC changes were primarily due to additional unplanned labor and increased production costs related to the development of new technologies, New technologies required to meet customer specifications, especially in our structures and mechanisms core offering as we transitioned to the new IHOP contract we talked about.
Speaker Change: Turning to net loss. We also saw a significant sequential improvement of more than 60 million achieving a net loss of $2 9 million as we continue on our path to profitability.
Speaker Change: Looking at our cash and total liquidity, we ended the quarter with a record level of available liquidity $89 2 million.
Jonathan Baliff: This is a 39.2% improvement over the $64.1 million in total liquidity at the end of last year. We had an expected increase in year-over-year and sequential use of free cash in the first quarter. And this was inclusive of a $33.9 million shift in working capital. This shift included one-time payments of $8 million related to litigation settlements and $3.4 million related to M&A activities. Even with this, overall liquidity was enhanced by the $82.9 million exercise of our outstanding warrants. This represents an 82.3% exercise rate for these public warrants, and the cleaning up of this takes us a step closer to maturing our capitalization as we complete the Edge Autonomy acquisition.
Speaker Change: This is a 39, 2% improvement over the $64 $1 million of total liquidity at the end of last year.
Speaker Change: We had an expected increase in year over year and sequential use of free cash in the first quarter and this was inclusive of a $33 $9 million shift in working capital.
Speaker Change: This shift included onetime payments of $8 million related to litigation settlements and $3 $4 million related to M&A activities.
Speaker Change: Even with this overall liquidity was enhanced by the $82 9 million.
Speaker Change: Exercise of our outstanding warrants.
Speaker Change: This represents an 82, 3% exercise rate for these public warrants and the cleaning up of this takes us a step closer to maturing our capitalization as we complete the edge autonomy acquisition.
Jonathan Baliff: Please turn to slide 18 for a brief discussion of the outlook for 2025.
Speaker Change: Please turn to slide 18 for a brief discussion of the outlook for 2025.
Jonathan Baliff: As part of the announcement of our combination with Edge Autonomy, we provided a financial forecast for fiscal year 2025 as if the transaction closed on 31 December 2024. In 2025, there has been significant commercial market uncertainty, especially in the U.S. defense and government servicing sector with the incoming new administration. And both Redwire and Edge Autonomy have seen some of our project projected wins slip to the right. We acknowledge that there is volatility with the rest of 2025. However, our previous combined forecast was meant to be conservative. And as of today, we believe that we are still on track to end 2025 within our previously provided ranges.
Speaker Change: As part of the announcement of our combination with edge autonomy, we provided a financial forecast for fiscal year 2025, as if the transaction closed on 31 December 2024.
Speaker Change: In 2025, there has been significant commercial market uncertainty, especially in the U S defense and government services sector with the incoming new administration.
Speaker Change: And both Red wire and edge autonomy has seen some of our project projected wins slipped to the right.
Speaker Change: We acknowledge that there is volatility with the rest of 2025. However, our previous combined forecast was meant to be conservative and as of today. We believe that we are still on track to end 2025 within our previously provided ranges.
Jonathan Baliff: Therefore, we are reaffirming the combined forecast at this time for revenue as if the transaction had closed on 31 December 2024, Redwire is forecasting full year 2025 combined revenue to be in the range of $535 million to $605 million, which represents a 52.9% compound annual growth rate from fiscal year 2023 to fiscal year 2025 at midpoint. And for Adjusted EBITDA to be between $70 million and $105 million, which represents 138.8% compound annual growth rate from fiscal year 23 to fiscal year 25 at midpoint. Post-closing, we expect to provide guidance for the remainder of 2025.
Speaker Change: Therefore, we are reaffirming the combined forecast at this time for revenue as if the transaction had closed on 31 December 2024, Red wire is forecasting full year 2025, combined revenue to be in the range of 535 million to $605 million, which represents a 52, 9%.
Speaker Change: Compound annual growth rate from fiscal year, 'twenty three to fiscal year 2025 at midpoint.
Speaker Change: And for adjusted EBITDA to be between $70 million and $105 million, which.
Speaker Change: <unk> 138, 8% compound annual growth rate from fiscal year 'twenty three to <unk> 25 at midpoint.
Speaker Change: Post closing, we expect to provide guidance for the remainder of 2025.
Peter Cannito: Please turn to slide 19, and I'll now turn the call back over to Pete.
Pete: Please turn to slide 19, I will now turn the call back over to Pete.
Peter Cannito: Thank you, Jonathan. I want to thank the entire Redwire team for their contribution to our results during the first quarter of 2025, a truly global effort.
Pete: Thank you Jonathan I want to thank the entire red wire team for their contribution to our results. During the first quarter of 2025, a truly global effort. We will now open the floor for questions.
Operator: We'll now open the floor for questions. Thank you.
Operator: We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question. You may press star two if you would like to remove your question. participants using speaker equipment, it may be necessary to pick up your handset before pressing the star. We ask that you please limit yourself to one question and one follow-up.
Speaker Change: Thank you we will now be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad.
Speaker Change: Confirmation tone will indicate your line is in the question queue. You May Press Star two if you would like to remove your question from the queue for participants using speaker equipment that may be necessary to pick up your handset before pressing the star keys, we ask that you. Please limit yourself to one question and one follow up question. One moment. Please for the first question.
Operator: One moment, please, for the.
Greg Konrad: Our first questions come from the line of Greg Konrad with Jefferies, please proceed. Good morning. In the prepared remarks, I mean, one of the things you highlighted was Europe's increased independence in space and defense. Can you maybe talk about some of the risk given? I think there's potential for some of the programs that the U.S. and Europe partner on to potentially be pushed out versus maybe the opportunities on that independence and maybe what you're seeing, you know, given some of the award flow out of Europe. Yeah, thanks, Greg. That's an excellent question. So let's break it up, first of all, into two sides.
Speaker Change: Our first questions come from the line of Greg Konrad with Jefferies. Please proceed with your questions.
Greg Konrad: Good morning.
Speaker Change: Good morning, Gregg Hey, Greg in the prepared remarks, I mean, one of the things you highlighted was Europe's increased independence and space and defense can you maybe talk about some of the risks given yes, I think there is potential for some of the programs that the U S and Europe partner on to potentially be <unk>.
Speaker Change: <unk> versus maybe the opportunities on that independence, and maybe what youre seeing.
Speaker Change: Some of the award flow out of Europe.
Craig: Yeah. Thanks, Craig that's an excellent question so let's break it up first of all into two sides.
Peter Cannito: on the space side, and then one on the defense side, right? So, and of course, we recognize that there's some overlap between the two, but on the space side. You really see kind of a wake-up call over in Europe. on the fact that they've started to fall behind the U.S. and China in terms of having an independent national program for space. And this is resulting in a real interest in additional investment in that area. Now, we recognize that because the partnership between the U.S. and Europe has been so close on some joint programs, that where those dollars flow to, which programs, will be dynamic in the short term.
Craig: One on the space side, and then one on the defense side right. So and of course, we recognize that there is some overlap between the two but on the space side.
Craig: You really.
Craig: <unk> kind of a wakeup call over in Europe.
Craig: On the fact that they've started to fall behind the U S and China in terms of having an independent national program for space.
Craig: And this is resulting in a real interest in additional investment in that area now we recognize that because of the partnership between the U S and Europe has been so close on some joint programs.
Craig: Where are those dollars flow to which programs.
Craig: But the dynamic in the short term, but theres been a number of.
Peter Cannito: But there's been a number of, both in the press and quite frankly in some of the other companies that work on an international level in their earnings call, a discussion about If you take something like Gateway, for instance... Europe may not stop their development just because the U.S. changes their strategy. They may just repurpose or redirect or look for new partners internationally to continue that development. I think. We see both a positive trend in the fact that there's additional interest in just space spending overall in Europe, as well as, so that if the dollars move, they'll still be there, but it'll just be creating new opportunities, as well as some interest in continuing to fund programs that are already underway.
Craig: Both in the press and quite frankly in some of the other.
Craig: Companies that work on an international level in their earnings call discussion about.
Craig: If you take something like Gateway for instance.
Craig: Europe may not stop their development, just because the U S changes to their strategy. They may just repurpose or redirect or look for new partners internationally to continue that development. So.
I think.
Craig: Yeah.
Craig: We see both a positive trend and the fact that there is additional interest in just space spending overall in Europe.
Craig: As well as.
Craig: So that if the dollars.
Craig: Move there will still be there, but it will just be creating new opportunities as well as.
Craig: Some interest in.
Craig: And continuing to fund our programs that are already underway. So I think it's too early to say quite frankly that some of the current development that Europe is working on.
Peter Cannito: So I think it's too early to say, quite frankly, that some of the current development that Europe is working on is going to go away. But like I said, if it does, it'll just move to something else, which, when you look at the way Redwire's positioned with things like Arrakis and Mars, which is somewhere where European dollars could pivot more to, we think that we'll be participating strongly, regardless, as long as the overall trend.
Craig: Is going to go away, but like I said, if it does it will just move to something else, which when you look at the way <unk> positioned with things like Iraq, and Mars, which is somewhere where European dollars could pivot more to.
Craig: We think that will be participating strongly regardless as long as the overall trend.
Peter Cannito: Defense is even more interesting, because Europe is going to continue to be a close ally of the U.S., but they're under a tremendous amount of pressure from their closest allies to actually increase their budgets in defense spending. So Redwire, obviously, on the space side, is well positioned to capitalize on that increase in defense spending, and of course, with the addition of Edge Autonomy, which has a very large manufacturing presence over in Latvia, supporting European defense spending, we'll be even better positioned there as well. So recognizing, and I think this is a theme you'll hear throughout, that the market is dynamic, so it's difficult to pinpoint exactly what programs dollars are going to go to.
Craig: Defaced defense is even more interesting because.
Craig: Europe is continue going to continue to be a close ally.
Craig: The U S, but they're under a tremendous.
Mount a pressure from their closest allies to actually increase their budgets in defense spending so a red wire, obviously on the space side.
Craig: <unk> is well positioned to capitalize on that increase in defense spending and of course with the addition of.
Craig: Edge autonomy, which has a very large manufacturing presence over in Latvia.
Craig: Supporting European defense spending will be even better positioned.
Craig: There as well so.
Craig: So recognizing and I think this is a female.
Craig: Here throughout that the market is dynamic so it's difficult to pinpoint exactly what programs are going to go to the key point is that in the overall macro environment, both space and defense are growth areas.
Greg Konrad: The key point is that in the overall macro environment, both space and defense are growth areas. And then maybe just for a follow-up, I mean, I think the lumpiness on the U.S. side is fairly well-appreciated. You had a fairly robust submitted bid last year, and it seemed like Q1 was pretty strong in aggregate. Any kind of change as we sit here today in terms of what you see coming out of the U.S., just given we have the skinny budget, the CR in place for 2025, have you seen any change or is it still relatively constrained as we sit here today?
Speaker Change: Okay, and then maybe just for a follow up I mean, I think the lumpiness on the U S side is is fairly well appreciated you had.
Speaker Change: Fairly robust submitted bids last year and it seemed like Q1 was pretty strong in aggregate.
Speaker Change: Any kind of change as we sit here today in terms of what you see coming out of the U S. Just given we have the the skinny budget.
Speaker Change: Our in place for 25 have you seen any change or is it still relatively constrained as we sit here today.
Peter Cannito: Yeah, I think, again, I would say the same basic theme applies in the near term, because we don't have a NASA administrator fully in place yet, there's dollars shifting around in defense, where some things are being deprioritized, while other things like Golden Dome are being highly prioritized. It's a pretty dynamic environment. But we feel pretty confident that once the prioritizations are set, that both the space budget for the United States, if you include national security and civil space, as well as the defense budget focused on space, and particularly on drones, are strong growth trends. So we think we're really well positioned in the right areas where when the budget shakes out, you're going to see a lot of continuous opportunity.
Speaker Change: Yes, I think again I would say the same.
Speaker Change: Our basic theme applies in the near term because we don't have an asset administrator fully in place yet.
Speaker Change: There's <unk>.
Speaker Change: Dollars shifting around in defense.
Speaker Change: Some things are being prioritized.
Speaker Change: While other things like Golden Dome are being highly prioritized.
Speaker Change: It's a pretty dynamic environment.
Speaker Change: But we feel pretty confident that once the prioritization or said that.
Speaker Change: Both the space.
Speaker Change: Jet for the United States. If you include National security and civil space.
Speaker Change: As well as the defense budget.
Speaker Change: Focused on space and particularly on drones.
Speaker Change: Our strong growth trends. So we think we're really well positioned in the right areas.
Speaker Change: Where when the.
Speaker Change: The budget shakes out youre going to see a lot of continuous opportunity. So for us some of this is.
Peter Cannito: So for us, some of this. is just near term dynamics associated with new decision makers getting into their positions and making decisions. For example, people have talked about changes to the gateway program in the U.S., it's important to emphasize that it's just a change in strategy, which will ultimately end up with a change in focus where they're Any changes to the budgets for Gateway will likely be offset with increased funding for direct-to-lunar infrastructure or potential future Mars missions. So again, although one of the really resilient and exciting things we believe about Redwire is that when you're focused on space infrastructure, even when the programs change, there's a really strong role for us to play.
Speaker Change: Is just near term dynamics associated with.
Speaker Change: New decision makers getting into their physicians and making decisions.
Speaker Change: For example people have talked about changes to the gateway program in.
Speaker Change: In the U S.
It's important to emphasize that it's just a change in strategy, which will ultimately end up with a change in focus were there.
Speaker Change: Any changes to the budgets for gateways will likely be offset with increased funding for a direct to lunar infrastructure or potential future Mars missions.
Speaker Change: So again, although the one of the really resilient and exciting things, we believe about red wire is that when you're focused on space infrastructure.
Speaker Change: Even when the programs change, there's a really strong role for us to play as a matter of fact, the reset may give us opportunity to get in on some programs.
Greg Konrad: As a matter of fact, a reset may give us opportunity to get in on some programs on the ground floor. So, highly dynamic environment, but not without great opportunities. Thank you.
Speaker Change: On the ground floor, so highly dynamic environment, but not without.
Great opportunities.
Speaker Change: Thank you.
Suji DeSilva: Our next questions come from the line of Suji DeSilva with Roth Capital Partners.
Speaker Change: Thank you our next questions come from the line of <unk> with Roth Capital Partners. Please proceed with your questions.
Peter Cannito: Please proceed with your Hi Pete, hi Jonathan, congrats on keeping the guidance in a tough environment here. So maybe you could talk about the prioritization in the U.S. government of programs. Can you talk about where drones is fitting in there anecdotally in terms of international and domestic spend given the edge autonomy acquisition coming your way? Yeah, well, I think two points that I'll make about that is number one is drones have proven themselves at this point, I think it's safe to say, as a force multiplier in combat, via the conflict in Ukraine. You can open up almost any news source, and you're going to read about the effectiveness of that capability.
Speaker Change: Hi, Pete Hi, Jonathan.
Speaker Change: That's on keeping the guidance in this environment here and tough environment here. So yes. So maybe you could talk about the.
Speaker Change: Yes.
Speaker Change: The prioritization in the U S government programs can you talk about where drones is fitting in there anecdotally in terms of.
Speaker Change: International domestic spend given the edge of autonomy acquisition coming in your clothes.
Speaker Change: Yeah, well I think.
Speaker Change: Two points that I'll make about that is number one is drones have.
Speaker Change: Our proven themselves at this point I think it's safe to say as a force multiplier in combat.
Speaker Change: The conflict in Ukraine.
Speaker Change: You can open up almost any new source and youre going to read about the effectiveness.
Speaker Change: That capability. So drones are here to say and stay in I would say.
Peter Cannito: So drones are here to stay, and I would say it's an area for growth in terms of defense spending. AUSA, the Army's big conference, was recently held, and there was a lot of talk about it. talk how critical drones are, particularly at the tactical level where edge plays are to the future of US Army warfighting and how additional investments are required in that area. There's a lot out there in the press about that. So we're really excited about those developments. And quite frankly, that's why we started looking at edge autonomy is because we saw those trends and wanted to engage in that as well as the idea that these drones are going to be closely integrated into a multi-domain mission environment that will include space as well.
Speaker Change: It's an area for.
Speaker Change: For growth in terms of defense spending.
Speaker Change: The Army Big Conference.
Speaker Change: It was recently held and there was a lot of us.
Speaker Change: Talk how critical drones are particularly at the tactical level, where edge plays are to the future of <unk>.
Speaker Change: U S Army War fighting and how additional investments are required in that area. There's a lot out there in the press about that so.
Speaker Change: We're really excited about those developments and quite frankly thats.
Speaker Change: Why we.
Speaker Change: Started looking at edge autonomy is.
Speaker Change: Because we saw those trends.
Speaker Change: And wanted to engage in that as well as the idea that these drones are going to be closely integrated into a multi domain mission environment that will include <unk>.
Peter Cannito: So I think, like I said, it's safe to say that drones are going to be a big part of defense spending, not only in the US, but in the European market as well.
Speaker Change: Space as well so.
Speaker Change: Think like I said, it's safe to say that.
Speaker Change: Drones are going to be a big part of defense spending not only in the U S.
Speaker Change: But in the European market as well.
Suji DeSilva: Great. Thanks, Pete.
Speaker Change: Great. Thanks, Pete and then the other question you guys made a mou announcement with ice space that space Symposium.
Peter Cannito: And my other question, you guys made a MOU announcement with iSpace at Space Symposium. Curious what milestones we should watch there and how you think your combined approach to lunar missions may be differentiated? Yeah, good question. I think it's Often, or I know it hasn't been really emphasized that Redwire is a prime on the CLPS contract that has been funding missions from Firefly, Blueghost, and Intuitive Machines. Peer to four, we've been a critical subsystem and component provider for those missions and proudly so. Opportunity presented itself because iSpace US is not a prime contractor to take a much larger role.
Speaker Change: I'm curious what milestones we should watch there and how you think your combined approach to lunar missions may be differentiated in the marketplace.
Yes, good question I think.
Speaker Change:
Speaker Change: Often.
Speaker Change: I know it hasnt been really emphasize that red wire is a prime on the.
Speaker Change: The clips contract that has been funding missions.
Speaker Change: From five five glucose and intuitive machines.
Speaker Change: Heretofore, we been a critical.
Speaker Change: Subsystem and component provider.
Speaker Change: For those missions and proudly so.
Speaker Change: Opportunity presented itself because <unk> is not a prime contractor to take a much larger role.
Peter Cannito: So it's a natural progression for us as we take on bigger and bigger opportunities to lead a full mission underpinned by their lunar lander. And there's a lot of. technologies that Redwire brings to bear, specifically around digital engineering, subsystems and payloads, and just the ability to run a really strong prime lead on clips that we're going to be unlocking here with this new partnership. So we're really excited about that and look forward to seeing the direction it I'd say the next big milestone would be watching the team start to bid and win clips. Task Force, and Mission.
Speaker Change: So it's a natural progression for us as we take on bigger and bigger opportunities to lead a full mission.
Speaker Change: Underpinned by their lunar lander and.
Speaker Change: There's a lot of.
Speaker Change: Technologies that <unk> brings to bear specifically around digital engineering.
Speaker Change: Sub systems and payloads.
Speaker Change: Just the ability to run a really strong.
Speaker Change: Prime lead.
Speaker Change: On clips that we're going to be unlocking here with this new partnership. So we're really excited about that and look forward to.
Speaker Change: Seeing the direction it heads.
Speaker Change: I'd say the next big milestone would be watching the team star.
Speaker Change: Start to bid and win cliffs.
Speaker Change: Cliffs.
Speaker Change: Task orders and missions.
Suji DeSilva: All right, great.
Operator: Thanks, Pete. Thanks, everybody. Thank you.
Speaker Change: Got it alright, great. Thanks, Pete Thanks, everybody.
Speaker Change: Thank you.
Mike Crawford: Our next questions come from the line of Mike Crawford with B. Reilly Securities. Please proceed with your Thank you, and regarding the retained proforma...
Speaker Change: Thank you. Our next question will come from the line of Mike Crawford with B Riley Securities. Please proceed with your questions.
Speaker Change: Thank you.
Speaker Change: Regarding the <unk> pro forma.
Jonathan Baliff: Annual Guidance for 2025. Can you just fill us in on some details on what's going on with EDGE today? Ravenue, and EBITDA, did the company attain Q1, and how's the pipeline looking, etc. Sure. So, Mike, thanks for the question. And again, we are not disclosing their first quarter of the time because when we will receive that information in a U.S. GAAP format, we will disclose it. And there's an ability to do that later. But I will say we have provided in the proxy that was final on Friday a lot of historic information about their revenues and adjusted EBITDA.
Speaker Change: Annual guidance for 2025 can you just fill us in on some details on what's going on with edge today approximately what.
Speaker Change: Revenue and EBITDA that the company obtained Q1.
Speaker Change: How's the pipeline looking et cetera.
Jonathan Bailiff: Jonathan sure so Mike Thanks for the question again.
Jonathan Bailiff: We are not disclosing their first quarter of the time, because when we will receive that information in a U S. GAAP format, we will disclose it in theirs.
Jonathan Bailiff: There is an ability to do that later, but I will say we have provided in the.
Jonathan Bailiff: In the proxy that was our final on Friday.
Jonathan Bailiff: The historic information about their revenues and adjusted EBITDA and I would point you in that direction I would also point your direction that the company did increase its backlog from what we disclosed when we announced transaction in mid January to today. Their current backlog has grown to $99 4 million.
Jonathan Baliff: And I would point you in that direction. I would also point you in the direction that the company did increase its backlog from what we disclosed when we announced the transaction in mid-January to today. Their current backlog has grown to $99.4 million from low 70s. So, you know, we're, you know, as part of the, and it is a combined forecast, not guidance. Once we close the transaction, we know the exact date of the closing. We will then provide the street guidance for 2025 when the transaction closes. But again, take a look at the historical information concerning their revenues and their profitability and cash generation.
Jonathan Bailiff: <unk>.
Jonathan Bailiff: From low 70 so.
Jonathan Bailiff: Sure.
Jonathan Bailiff: As part of the and it is a combined forecast not guidance once we close the transaction. We know the exact date of the closing we will then provide the street guidance for 2025.
Jonathan Bailiff: When the transaction closes, but you can take a look at the historical information concerning their revenues.
Jonathan Bailiff: And their profitability and cash generation and again. This is a company thats been able to grow pretty significantly and achieve a level of operating leverage that has gross margins.
Jonathan Baliff: And again, this is a company that's been able to grow pretty significantly and achieve a level of operating leverage that has gross margins, you know, that will be accretive to RedWire. And so we're excited to get the transaction closed.
Jonathan Bailiff: Sure.
Jonathan Bailiff: That will be accretive to red wire and so we're excited to get the transaction closed.
Mike Crawford: Okay, thank you.
Jonathan Bailiff: Okay. Thank you and then follow up is just on your your own pipeline just can't talk about pipeline.
Jonathan Baliff: And then follow-up is just on your own pipeline. Can't talk about edges pipeline.
Jonathan Bailiff: Pipeline.
Jonathan Baliff: So can you characterize any, can you give us any additional color on the what was like half a billion bids submitted so far this year and then the other big opportunities we should be tracking. Yeah, without getting into the specific contracts that we don't share for competitive reasons. I think that notable thing is if you look at our strategy in 2024 of moving up the value chain and the moves that we've made to go from being a primarily subsystems and components merchant supplier to having still that strong foundation of picks and shovels but adding to it these spacecraft platforms in VLEO, LEO, GEO, and even obviously highly sought after for Mars and deep space missions like Lightship, and Arrakis.
Jonathan Bailiff: So can you characterize any can you give us any additional color on the <unk>.
Jonathan Bailiff: Got it.
Jonathan Bailiff: On the.
Jonathan Bailiff: What was <unk> 1 billion.
Jonathan Bailiff: <unk> submitted so far this year and then the other big opportunities we should be tracking.
Jonathan Bailiff: Yes, without getting into the specific contracts that we don't share for competitive reasons.
Jonathan Bailiff: I think this.
Notable thing is if you look at our strategy in 2024 of moving up the value chain and the moves that we've made to go from being a primarily subsystems and components merchant supplier to having still that strong foundation of picks and shovels, but adding to it. These.
Jonathan Bailiff: Spacecraft platforms and V Leo.
Jonathan Bailiff: Leo Geo and even.
Jonathan Bailiff: Obviously highly sought after.
Jonathan Bailiff: For Mars and deep space missions like.
Jonathan Bailiff: A light shift in Iraq is that.
Peter Cannito: This strategy is allowing us to bid as prime on larger full-mission spacecraft programs. And an example of this, as Suji pointed out, is priming Eclipse mission, for instance. So, without getting into the specific opportunities, you can see, or what I would point to is the execution of that moving up the value chain, leading to larger and larger bids. Great. Thanks, Pete. Thank you.
Jonathan Bailiff: Our strategy is allowing us to a bid as prime on <unk>.
Jonathan Bailiff: A larger a full mission space craft programs and.
Jonathan Bailiff: An example of this as soon as you pointed out is.
Jonathan Bailiff: Planning Eclipse the mission for instance.
Jonathan Bailiff: So without getting into the specific opportunities you can see or what I would point to is the execution of that moving up the value chain, leading to larger and larger bids.
Speaker Change: Great. Thanks Pete.
Speaker Change: Thank you.
Colin Canfield: Our next question has come from the line of Colin Canfield with Cantor Fitzgerald. Please proceed with your Hey, thanks. Looking through the forecast numbers on edge autonomy with respect to cash flow, it looks like they're kind of on course to do maybe $60 million of free cash flow this year.
Speaker Change: Thank you. Our next question is come from the line of Colin Canfield with Cantor Fitzgerald. Please proceed with your questions.
Speaker Change: Hey, thanks.
Speaker Change: Looking through the forecast numbers on edge autonomy with respect to cash flow. It looks like they are kind of on course to do maybe $60 million of free cash flow. This year. So if you could maybe talk us through how we should think about organic red water and the moving pieces on free cash flow.
Jonathan Baliff: So if you could maybe talk us through how we should think about organic Redwire and the moving pieces on free cash flow, specifically how we think about kind of 2Q in the cadence through the rest of the year. Thank you.
Speaker Change: Specifically, how we think about kind of <unk> indicators through the rest of the year. Thank you.
Jonathan Baliff: Sure, I'll take that one, Colin. Thanks for your question. You know, for us, you know, there was always an expectation when you looked at the book-to-bill in the full year 2024, that, as we said, we expected to have a use of cash in this quarter. You can see there was builds on the balance sheet, both on the asset and the liability side, somewhat unusually. And so, for us, we expect for, one, revenues to, you know, some of the revenues that are moving into the second and third and fourth quarter to come about. We obviously have a certain level of bidding that we're doing that provides, once you win, some cash flow.
Speaker Change: Sure I'll take that one Collin thanks for your question.
Speaker Change: For us.
Speaker Change: There was always an expectation when you look at the book to Bill in the full year 2020 for that as we said we expected to have a use of cash in this quarter. You can see there was builds on the balance sheet, both on the asset and.
Speaker Change: And the liability side somewhat unusually and so for US we expect for one revenues too.
Speaker Change: Some of the revenues that are are moving into the second and third and fourth quarter to come about we obviously have a certain level of bidding that we're doing that provides once you win some cash flow you'll also see milestone payments start to come in.
Jonathan Baliff: You also see milestone payments start to come in where that provides cash flow. So you start to see, you know, some of the contract assets that you saw build in the first quarter start to come down. So we do expect cash flow to improve. We don't give guidance for free or operating cash flow, but we do expect it on the Redwire side to improve as we go through the year. Got it.
Speaker Change: That provides cash flow. So you start to see some of the contract assets that you saw a build in the first quarter start to come down. So we do expect cash flow to improve we don't give guidance for free operating cash flow, but we do expect it on the <unk> side to improve as we go through the year.
Jonathan Baliff: And then maybe if you could talk through... Also, just by the way, you mentioned free cash flows. Sorry, I did want to answer, because I want to answer your question completely. CapEx, again, will remain fairly low compared to other industrial companies. Our CapEx position, although we've made pretty significant investments in the first quarter, almost $4.1 million, we expect it to continue to be moderate. Again, we don't have very high levels of maintenance CapEx. And so, again, we've always said we'd be less than 2, 2.5% of revenue generally. Got it. I appreciate that.
Speaker Change: Got it.
Speaker Change: Just by way you mentioned free cash flow sorry, do you want to add because I will answer question completely capex again will remain fairly low compared to other industrial companies are capex position, although we've made pretty significant investments in the first quarter four point almost $4 $1 million, we expect it to <unk>.
Speaker Change: To be moderate and we don't have very high levels of maintenance Capex and so again, we've always said we'd be less than 225% of revenue generally.
Speaker Change: Got it appreciate that and then for the EAC dynamics, maybe talking us through the mechanics of the recovery what are the big moving pieces, how do we think about that and then how do we think about that <unk> 25 versus 26 in terms of getting that back via pricing.
Jonathan Baliff: And then for the EAC dynamics, maybe talking us through the mechanics of the recovery, what are the big moving pieces? How do we think about that? And then how do we think about that in 25 versus 26 in terms of getting that back via pricing? Sure. I mean, again, I think we've been very explicit that, you know, we want and are working quite hard, both project management, working with our clients, to bring these EACs down from last year's levels. That being said, the EACs that we took the net unfavorable in first quarter really was due to a transition of the IHAB contract from a PATP to a full contract.
Speaker Change: Sure I mean again I think we've been very explicit that we want.
Speaker Change: <unk> are working quite hard, but project management working with our clients to bring these eac's down from there from last year's levels that being said the EAC that we took the net unfavorable in first quarter really was due to a transition of the <unk> contract from a P ATP to a full contract.
Jonathan Baliff: Not talking about that specific contract in the future, but all the contracts, we always look forward to working with our clients on that.
Speaker Change: Talking about that specific contract in the future, but all of the contracts. We always look forward to working with our clients on that piece I don't know if there is something you want to say I was just going to add that.
Peter Cannito: Pete, I don't know if there's something you want to say. Well, I was just going to add that one of the things we emphasize on almost every call, it feels like, is this idea of balancing growth and profitability, right? And Redwire It really tries to focus on balance, and some of the EACs are fundamentally a part of growing pain. when you're growing at double digit CAGR growth rates. If you think about Or I will articulate to you how we think about the evolution of some of the technologies that we're developing. Space is still a relatively new from an emerging technology perspective.
Speaker Change: One of the things we emphasized on almost every call. It feels like is this idea of balancing growth and profitability right and red wire.
Speaker Change: It really tries to focus on balance and some of the Acs are fundamentally a part of growing pains.
Speaker Change: When youre growing at double digit CAGR growth rates.
Speaker Change: If you think about.
I will articulate to you how we think about the evolution of some of the technologies.
Speaker Change: That we're developing space is still a relatively.
Speaker Change: New from an emerging technology perspective, so in many cases, we're bidding on things that have never been done before that.
Peter Cannito: So in many cases, we're bidding on things that have never been done before that are going through a development phase, which is a little less predictable. that will ultimately move into a production phase that will be highly predictable. An example of that is if you look at the early stages years ago of ROSA when it was an emerging tech, there was a lot of programs that had more variability associated with developing out the ROSA baseline. Now that ROSA is moving more into a production capability, you see more stable profitability and execution on the program. So I'd just like to note some of these EACs are a result of leaning forward and bidding programs that are emerging tech programs. That will result in some variability in cost in the near term, but once they move into production and scale, we'll recuperate some of those costs in future orders.
Speaker Change: That are going through a development phase, which is a little less predictable.
Speaker Change: That will ultimately move into a production phase that will be highly predictable and example of that is if you look at.
Speaker Change: The early stages.
Speaker Change: Years ago of Rosa when it was an emerging tech there was a lot of.
Speaker Change: Programs.
Speaker Change: <unk> had more variability associated with developing out the Rosa baseline now that <unk> is moving more into a production capability.
Speaker Change: <unk>.
Speaker Change: More stable.
Speaker Change: Profitability and execution on the program so.
Speaker Change: Just like to note some of these eac's are.
Speaker Change: A result of.
Speaker Change: Leaning forward and bidding programs.
Speaker Change: Our emerging tech programs.
Speaker Change: That will result in some variability in cost in the near term, but once they move into production.
Speaker Change: And scale.
Speaker Change: We'll we'll recuperate.
Speaker Change: Some of those costs in future.
Colin Canfield: Does that help? Got it. Thank you. Appreciate it. Thank you.
Speaker Change: <unk> future orders that help got it thank you I.
Speaker Change: Appreciate it.
Brian Kinstlinger: Our next questions come from the line of Brian Kinstlinger with Alliance Global Partners. Please proceed with your question. Great, thanks so much.
Speaker Change: Thank you our next questions come from the line of Brian <unk> with Alliance Global Partners. Please proceed with your questions.
Speaker Change: Great. Thanks, so much during 2024 red wider submitted just over $4 billion of proposals can you share what the total value of bids outstanding are at this time and what PCV of the awards you referenced that were delayed and then as you look at the base. How do you think about the gross margin mix versus what your gross margin.
Jonathan Baliff: During 2024, Redwire submitted just over $4 billion of proposed Can you share what the total value of a bid's outstanding are at this time and what TCV of the awards you referenced that were delayed? And then as you look at the bids, how do you think about the gross margin mix versus what your gross margin looks like maybe in the trailing 12 months? Do you want to take that one?
Speaker Change: Like maybe in the trailing 12 months.
Jonathan Baliff: I'll take that one. Thanks, Brian. So, when you look at the bids submitted, the one question you're asking, we do not submit – we don't publicly disclose that information specifically about the margins. Again, the only thing I would say is we are bidding on larger projects, and it's a mix, it's a mix. But there is a definitive desire as we bid these that they would be higher margin than what we've been getting over the last 12 months. As far as the bids today, the $529.6 million that we bid, if you look at the last 12 months of those bids, which I think you brought about, many of those are still being adjudicated.
Speaker Change: Do you want to take that one I will take that one thanks, Brian. So when you look at the bids submitted the one question you are asking we do not submit we don't publicly disclose that information specifically about the margins again, the only thing I would say is we are bidding on larger projects.
And it's a mix, it's a mix, but there is a definitive desire as we bid these that they would be higher margin than what we've been getting over the last 12 months.
Speaker Change: As far as the bids today the 529.
6 million that we bid.
Speaker Change: If you look at the last 12 months of those dates which I think you brought about many of those are still being adjudicated you saw the the actual amount of bidding stay flat kind of year over year on a quarterly basis, you've seen our pipeline come down a little bit, but that's really due to the lumpiness and probably delays as the U S. Gulf.
Jonathan Baliff: You saw the actual amount of bidding stay flat kind of year over year on a quarterly basis. You've seen our pipeline come down a little bit, but that's really due to the lumpiness and probably delays as the U.S. government executive transition is happening. But for the most part, we're still seeing pretty large projects, as Pete said, continuing to bid, especially in Europe, right? If you look at the large win that we had in the first quarter with IHAB, we're continuing to see Europe start to catch up, and so a large amount of our pipeline is global and continues to either be with commercial customers.
Speaker Change: Executive transition is happening, but for the most part we're still seeing pretty large projects as Pete said continuing debate, especially in Europe right. If you look at the large win that we had in the first quarter with I have we're continuing to see Europe start to catch up and so a large amount of our pipeline is global.
Speaker Change: <unk> and continues to either be with.
Peter Cannito: If you look at our revenue mix, it was pretty interesting in the first quarter on just the quarterly revenue mix, which is kind of pointing in the direction of our trending. We saw national security on a year-over-year basis go from 16% of total revenue on a quarterly basis to 32%. You saw commercial revenue stay roughly kind of in and around our largest at around 40%, and then obviously our civil business continued to be less than a third of our business. So the bottom line is that's kind of the direction of our bidding also, and again, we're trying to get higher margins as we bid some of these larger projects.
Speaker Change: Commercial customers. If you look at our revenue mix it was pretty interesting in the first quarter on just the quarterly revenue mix, which is kind of pointing in the direction of trending we saw national security on a year over year basis go from 16% of total revenue on a quarterly basis to 32% you saw commercial revenue state roughly.
Speaker Change: Kind of in and around our largest at around 40% and then obviously our civil business continued to be less than a third of our business. So the bottom line is that kind of the direction of our bidding also.
Speaker Change: And again, we're trying to get higher margins as we bid some of these larger projects.
Peter Cannito: And I'll add to that about kind of the portfolio effect of how we're managing margins inside some of these bids. Like I said, we're constantly balancing steep revenue growth with profitability. So there are some bids that we put in that are things that we've done for a long time in the portfolio that have really great gross margins. And then there's other large bids that may have substantial materials associated with it that may bring down gross margin percentage, but increase growth profit in an absolute value perspective. And so that's why It can be challenging to make a definitive statement across.
Speaker Change: Great and I'll add to that about kind of the portfolio.
Speaker Change: <unk> effect of what we're how we're managing margins inside some of these bids look like.
Speaker Change: Like I said, we're constantly bidding where we're constantly balancing revenue.
Speaker Change: Steep revenue growth with.
Speaker Change: Profitability so.
Speaker Change: There are some bids that we put in that are things that we've done for a long time in the portfolio.
Speaker Change: That have really great gross margins and then theres other large bids that may have substantial materials associated with it.
Speaker Change: That may bring down gross margin percentage, but increased gross profit and in absolute value perspective.
Speaker Change: And so thats why.
Speaker Change: It can be challenging to make a definitive statement our prost.
Jonathan Baliff: The whole portfolio, because we're managing it to optimize for both long-term revenue growth and profitability. But you do have instances where a really large win could reduce your gross margin percentage, but add to your gross margin absolute value. which that scaling effect enhances your EBITDA because the G&A doesn't grow at the same slope of the curve as your revenue does. So even though they might be a slightly lower gross margin on a percentage basis, overall you're creating value, if that makes sense. Yep, great. And then my follow up. Maybe you could share what percentage in the trailing 12 months of revenue is funded by NASA?
Speaker Change: The whole portfolio, because we are managing to optimize for both our long term revenue growth and profitability.
Speaker Change: But you do have instances, where a really large win could reduce your gross margin percentage.
Speaker Change: Add to your gross margin absolute value.
Speaker Change: Of which that scaling effect enhances your EBITDA because the G&A doesn't grow at the same slope.
Speaker Change: The curve as your revenue does so even though they might be a slightly lower gross margin on a percentage basis overall youre, creating value if that makes sense.
Speaker Change: Great and then my follow up.
Speaker Change: Maybe you could share what percentage in the trailing 12 months of revenue was funded by NASA and then a ballpark what percentage of your $6 billion pipeline as NASA related.
Jonathan Baliff: And then a ballpark, what percentage of your $6 billion pipeline is NASA? I kind of answered the first one. You know, the civil business mix was roughly 29% of overall quarterly revenue. If you look at it on a LTM basis, it's slightly lower than that. You know, a pretty nice percentage of that, we don't give publicly what that is, is NASA. Obviously we have ESA as part of it and there's some other small space administrations, but at least. gives you directionally what we're talking about.
Speaker Change: Let me take that first of all I kind of answered the first one.
Speaker Change: The civil business.
Speaker Change: Mix was roughly 29% of overall quarterly revenue if you look at it on a LTM basis, it's slightly lower than that.
Speaker Change: Pretty nice percentage of that we don't give publicly what that is is NASA. Obviously, we have Isa is part of it and there are some other small space administration's by at least <unk>.
Speaker Change: You're directionally, what we're talking about as far as the pipeline is concerned.
Jonathan Baliff: As far as the pipeline is concerned, we don't, for competitive reasons, give the specifics of whether it be civil or just specifically to NASA. I will say again, our commercial business, which has both national security and also some level of commercial business associated with satellites, like, for example, the TALIS ROSAs that we're building out are also a meaningful part of our revenue growth today and in the future. Okay, thank you. Thank you.
Speaker Change: For competitive reasons give the specifics of whether it be civil or just specifically to NASA I will say again, our commercial business.
Speaker Change: Which has both national security and also.
Speaker Change: Some level of commercial business associate with satellites like for example, the talus.
Speaker Change: Grocers that we're building out our also.
Speaker Change: Meaning for part of our revenue growth.
Speaker Change: Today and in the future.
Speaker Change: Okay. Thank you.
Speaker Change: Okay.
Scott Buck: Our next questions come from the line of Scott Buck with HC Wainwright. Please proceed with your Hey, good morning, guys. Thanks for taking my questions. I guess I just have one this morning.
Speaker Change: Thank you. Our next question will come from the line of Scott Buck with H C. Wainwright. Please proceed with your questions.
Scott Buck: Hey, good morning, guys. Thanks for taking my questions I guess I just have one this morning curious with the entry into the UAV space.
Peter Cannito: Curious, with the entry to the UAB space with Edge, is that complete with just Edge, or is there interest in expanding the capabilities similar to what you've done with legacy Redwire? Yeah, I think it's fair to say that we're not going to change our strategy in that regard. We're making a transformation into being a pure play space company to both space and defense tech, particularly targeting those multi-domain missions that utilize space and autonomous systems. So I won't. Comment on any specific for our strategy in autonomous systems in general, especially enabled by AI. But I think it's fair to say if you look at the history of Redwire, where we often have a land and expand strategy to any of the markets we enter, that that is how we think about markets in the long term.
Scott Buck: With edge is that complete with just edge or is their interest in expanding the capabilities similar to what you've done with legacy.
Scott Buck: Right.
Scott Buck: Yes, I think it's fair to say that we're not going to change.
Scott Buck: Strategy in that regard, we're making a transformation to being a pure play space company to both space and defense Tac, particularly targeting those multi domain missions.
That utilize space.
Scott Buck: And autonomous systems.
Scott Buck: So.
Scott Buck: Bob.
Scott Buck: I won't.
Scott Buck: Comment on any specifics.
Scott Buck: For our strategy in autonomous systems in general, especially.
Scott Buck: Especially enabled by AI.
Scott Buck: But I think it's fair to say if you look at the history of Red wire, where we often have a land and expand strategy to any of the markets we enter.
Scott Buck: That is how we think about markets and the long term.
Peter Cannito: Okay, Peter, is there a preference between future deals being on the space side or unmanned, or is it just simply being opportunistic looking across the spectrum? Yeah, I think it's more of the latter. We have a very distinct formula for what we go after, to include it being accretive. So valuation matters very much to us. We don't just buy into high growth trends at any cost. So some of it is driven by opportunistic. But I would say it's fair that... When you look at the public platform that we've established here and the difficulty that many companies are now having into getting into the public markets, especially subscale.
Speaker Change: Okay. Peter is there a preference between future deals being on the space side or on.
Speaker Change: Unmanned or is it just simply.
Speaker Change: Being opportunistic looking across the.
Speaker Change: Across the spectrum.
Speaker Change: Yes, I think I think its more the ladder.
Speaker Change: Have a very.
Speaker Change: Distinct formula for what we go after to include.
Speaker Change: It being accretive.
Speaker Change: So valuation matters very much to us we don't we don't just buy into.
Speaker Change: High growth.
Speaker Change: Trends at any cost so some of it is driven by opportunistic.
Speaker Change: But but I would say I would say it's fair that.
Speaker Change: When you look at the.
Speaker Change: Public platform that we've established here and the difficulty that many companies are now having into getting into the public markets, especially sub scale.
Peter Cannito: There's an opportunity in both segments of the business here to expand through M&A.
Speaker Change: Companies.
Speaker Change: There is an opportunity in both segments.
Speaker Change: Of the business here too to expand through through M&A.
Scott Buck: Great. Well, I appreciate the added color, guys. That's it for me. Thank you. Thanks, Scott. Thank you.
Speaker Change: Great well I appreciate the added color guys Thats it from me.
Speaker Change: Thank you thanks Scott.
Operator: We have reached the end of our question and answer session.
Speaker Change: Thank you we have reached the end of our question and answer session I would now like to turn the floor back over to Jonathan <unk> for closing comments.
Jonathan Baliff: I would now like to turn the floor back over to Jonathan Baliff for. Thank you for the questions.
Speaker Change: Thank you for the questions before we conclude today's Q&A, we'd like to continue the initiative were introduced on our fourth quarter call. We have regular asset select question drawn from a retail investor community. Here's today's question, which once again comes from read it.
Jonathan Baliff: Before we conclude today's Q&A, we'd like to continue the initiative we've introduced on our fourth quarter call where Redwire asks a select question drawn from our retail investor community.
Peter Cannito: Here's today's question, which once again comes from Reddit. Can you elaborate on how your space infrastructure technologies, like in-space manufacturing or advanced deployables, are positioning Redwire to win future contracts? Pete? Thanks, Jonathan. And yeah, I'm very excited to continue to incorporate the voice of the retail investor in our earnings call. We got a lot of really positive feedback the last time we did this. So thank you all for the continued support. We value our retail investors. And thank you for this great question.
Speaker Change: Can you elaborate on how youre space infrastructure technologies like in space manufacturing or advanced deployable are positioning <unk> to win future contracts.
Speaker Change: <unk>.
Jonathan Bailiff: Thanks, Jonathan and yes.
Jonathan Bailiff: I'm very excited to continue to incorporate the voice of the retail investor in our earnings call. We got a lot of really positive feedback. The last time, we did this so thank you all.
Jonathan Bailiff: For the continued support we value our retail investors and thank you for this great question.
Peter Cannito: The first thing that I'll say. When you talk about, you know, breaking down this question is Can you elaborate on how your space infrastructure technology... will position Redwire to win future contracts. And I think it's important to really understand the answer to this question. to understand the different total addressable markets associated with space. If you look at a pie chart of the TAMS in space, You'll quickly realize that in-space infrastructure is one of the largest, if not the largest TAM. Now, admittedly, the rocket guys get the best headlines, because that's super exciting. And we love them all because they're essentially our ride to space, but over the long term, the future contracts are associated with building out infrastructure.
Jonathan Bailiff: The first thing that I'll say.
Jonathan Bailiff: When you talk about breaking down this question is.
Can you elaborate on how your space infrastructure technology.
Jonathan Bailiff: We will position red wire to win future contracts and I think it's important.
Jonathan Bailiff: To really understand the answer to this question.
Jonathan Bailiff: To understand.
Jonathan Bailiff: The different total addressable markets associated with space.
Jonathan Bailiff: If you look at a pie chart of the Tam and space Youll.
Jonathan Bailiff: You will quickly realize that in space.
Jonathan Bailiff: Infrastructure.
Jonathan Bailiff: Is one of the largest if not our largest Tam now admittedly the rocket guys.
Jonathan Bailiff: Get the best headlines.
Jonathan Bailiff: That's super exciting.
Jonathan Bailiff: And we love them, all because they are essentially our ride to space, but.
Jonathan Bailiff: But over the long term.
Jonathan Bailiff: The future contracts.
Jonathan Bailiff: Our associated with building out infrastructure.
Peter Cannito: Leo The Leo, as Redwire is starting to unlock that new orbit. Geo, Cislunar, On the Lunar Surface, Missions to Mars, ultimately On the Mars Surface, Deep Space, there's just this Tremendous. I'm a pro! in the future of space infrastructure. So that's really exciting from a Redwire perspective when you talk about winning future contracts, because there's a lot of opportunity. And one of the number one core lessons in anyone who's out there is going to start a business or get into the business is focus on the big TAM opportunities, and we certainly are. You mentioned, though, how are we going to be competitive in things like through our technologies like in-space manufacturing and advanced deployables?
And Leo.
Jonathan Bailiff: The Leo as Red wire is starting to unlock that new orbit.
Jonathan Bailiff: Geo cislunar on the lunar surface missions to Mars ultimately on the March surface deep space Theres just this this.
Jonathan Bailiff: Tremendous.
Jonathan Bailiff: Gross.
Jonathan Bailiff: And the future of space infrastructure, So that's really exciting.
From a red wire perspective, when you talk about a winning future contracts because there's a lot of opportunity in one of the number one.
Jonathan Bailiff: Core lessons and anyone who's.
Jonathan Bailiff: Out there is going to start a business or getting into the business is focus on the big Tam opportunities and we certainly are.
Jonathan Bailiff: You mentioned, though.
Jonathan Bailiff: How are we going to be competitive.
Jonathan Bailiff: And things like through our technologies like in space manufacturing and advanced deployable.
Peter Cannito: And the important thing to note there is those are fundamental building blocks of space. So these are not obscure parts of this massive future growth that we, massive future expansion that we anticipate in space infrastructure. We're focusing on things like deployables that have, are applicable to. Leo Geo, Cislunar, On the Lunar Surface, Mars, Deep Space, all these things.
Jonathan Bailiff: And the important thing to know.
Jonathan Bailiff: There is those are fundamental building blocks of space. So these are not obscure parts of this.
Jonathan Bailiff: Massive future growth that Matt.
Jonathan Bailiff: Mattrick massive massive future expansion that we anticipate us in space infrastructure, we are focusing on things like deployable that have.
Jonathan Bailiff: Our applicable to.
Jonathan Bailiff: Leo.
Jonathan Bailiff: Geos, just lunar lunar surface Mars deep space all of these things.
And.
Peter Cannito: We're not a startup in these places either. So it's the virtuous cycle that is created by having demonstrated technologies that work that are going to position us for this expansion in future space infrastructure, whether it's through NASA, ESA, international customers, national security customers. These fundamental building blocks and the fact that we're a proven player is what I think is going to position us for those future contracts. So thank you for that question. I think it was a great question that gets fundamentally to our heritage plus innovation strategy, being a proven provider that knows how to operate in space and has many successes, but continuing to be that innovator as that space infrastructure expands into the future.
Jonathan Bailiff: We're not a startup in these places either so.
Jonathan Bailiff: The virtuous cycle that is created.
Jonathan Bailiff: By having demonstrated technologies that work.
Jonathan Bailiff: That are going to position us for this.
Jonathan Bailiff: Expansion in.
Jonathan Bailiff: Future space infrastructure, whether it's through NASA East international customers National security customers.
Jonathan Bailiff: These fundamental building blocks and the fact that we're a proven player.
Jonathan Bailiff: Is.
Jonathan Bailiff: What I think is going to position us.
Jonathan Bailiff: For those for those future contracts.
Jonathan Bailiff: So thank you for that question.
Jonathan Bailiff: Think it was a great question that gets.
Jonathan Bailiff: Fundamentally to our heritage plus innovation strategy.
Jonathan Bailiff: Being a proven provider.
Jonathan Bailiff: That knows how to operate in space and has many successes, but continuing to be that innovator as debt.
Jonathan Bailiff: Base infrastructure expands into the future.
Peter Cannito: So with that, I'd like to thank everyone for their questions and appreciate taking the time to listen today and go Redwire. Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines at this time. Have a wonderful day.
Jonathan Bailiff: So with that.
Jonathan Bailiff: I'd like to thank everyone for their questions.
Jonathan Bailiff: And.
Jonathan Bailiff: I appreciate taking the time to listen today and go Red wire.
Speaker Change: Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines at this time.
Jonathan Bailiff: Wonderful day.
Jonathan Bailiff: Okay.
Jonathan Bailiff: [music].
Jonathan Bailiff: Yeah.