Redwire Corporation (RDW): Is This Space Stock Worth Your Investment in 2025?

Redwire Corporation ($RDW) is one of those companies that grabs your attention. They’re all about space infrastructure—satellites, in-space manufacturing, microgravity research. They’re not building rockets, but they’re laying the foundation for the space economy. That’s the kind of long-term vision I like to see, even if it comes with some risks. Here’s why I’m opening a position.

Is Redwire Publicly Traded?

Yep, Redwire is publicly traded on the NYSE under the ticker RDW. If you’re into niche stocks, this one’s worth looking at. It’s like KULR in the advanced tech world—quietly making big moves.

How is Redwire’s Revenue Growth?

This is where things get interesting. Redwire pulled in $68.6 million last quarter, up 9.6% from last year. For 2024, they’re forecasting $310 million—a solid 27% jump. And the backlog? It’s over $330 million, growing 30% year-over-year. That backlog is basically their future revenue pipeline, so the demand is definitely there.

Growth like this is why I’m okay taking on some risk. If you’re curious about other growth stories, check out my take on GitLab.

Why is Redwire Still Losing Money?

Let’s get real—this isn’t a profitable company. Last quarter, they reported a $21 million loss, which is worse than the $6.3 million loss from a year ago. Free cash flow is also in the red at -$20.5 million. So yeah, they’re spending heavily to grow, but they’re not covering those costs yet.

This doesn’t scare me off entirely. If you’ve followed high-risk plays like MARA stock, you know that sometimes growth requires patience.

Is Redwire’s Valuation Too High?

I’ll admit, the valuation is a bit rich. Their price-to-sales (P/S) ratio is 3.10, compared to the industry average of 2.2. And their price-to-earnings (P/E) ratio? Well, it’s negative because they’re not making profits yet. This means investors (like me) are betting on their future growth. It’s a calculated risk but one I’m willing to take.

If valuation is a concern for you, take a look at my HiTi stock analysis for another perspective.

Who Owns Redwire?

Ownership is a mix of insiders and institutions. Insiders own around 136%, including large chunks held by AE Red Holdings LLC. This kind of insider control can be both a good and a bad thing, depending on how aligned they are with shareholders like us.

How Does Redwire Compare to the Space Industry?

The space industry itself is booming. Global defense budgets hit $2.4 trillion this year, and commercial aviation is recovering nicely. But it’s not all smooth sailing. Supply chain issues, geopolitical tensions, and labor shortages could make growth harder.

That said, industries like cybersecurity (think SentinelOne) show similar volatility but plenty of upside if you play it right.

What Are Redwire’s Strengths?

The revenue growth and backlog are solid indicators of demand. They’re also expanding smartly—moving into Europe and acquiring companies like Hera Systems to strengthen their capabilities. And let’s not ignore the fact that space is becoming a huge market. Redwire is positioning itself in a growing sector, and I want in early.

What Are the Risks of Investing in Redwire?

The risks are obvious. Profitability is nowhere in sight, and the cash burn is real. Their valuation feels stretched compared to peers, and external risks like supply chain disruptions could slow them down. I’m okay with these risks, but they’re worth noting.

Why I’m Taking a Position in Redwire ($RDW)

Here’s where I stand—I’m opening a small position. Redwire’s growth and sector positioning outweigh the risks for me. I see this as a long-term play. Sure, it’s not a slam dunk, but I like where they’re headed. If they can narrow their losses and improve cash flow, this could be a strong performer down the road.

What I’m Watching Next

• Earnings reports: Any sign of narrowing losses or improving cash flow would be huge.
• Industry news: Supply chain fixes or geopolitical changes could impact their operations.
• Execution: Their expansion and acquisitions need to translate into measurable growth.

I’m okay with the risk here because I see the potential. Redwire’s not for everyone, but if you’re into long-term bets on growing industries, it might be worth a look. Let’s see where they go from here.

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