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Redwire RDW Defense Tech — Net favorable (unfavorable) EAC adjustment

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Other financials

Income statement

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Revenue$117.1M+89.6%
Gross profit$32.5M+271%
Operating income-$22.1M+76.0%
Net income-$41.0M+57.8%
EPS (diluted)-$0.19+86.5%

Balance sheet

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Cash & equivalents$557.7M+610%
Total debt$87.1M-61.3%
Total equity$1.6B+79.6%
Total assets$1.9B+28.9%

Cash flow

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Operating cash flow-$24.9M+71.6%
CapEx$8.5M+188%
Free cash flow-$33.5M+63.1%

Valuation

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Market cap$2.83B+44.6%
Enterprise value$2.35B+12.1%
P/S6.6×-0.8×

Profitability

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Gross margin20.1%+17.6pp
Operating margin-50.5%-2.0pp
Net margin-57.3%-9.7pp
FCF margin-23%

Returns & leverage

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Return on equity-19.2%
Debt / equity0.1×-0.2×
Current ratio3.9×+2.5×

Where this comes from

Reported directly by Redwire in its filing.

Tagged under the XBRL concept rdw:ContractWithCustomerNetEstimateAtCompletionAdjustmentFavorableUnfavorable.

The source filing: Redwire’s 10-Q, filed August 6, 2026.

Filed
Aug 6, 2026, 4:15 PM EDT
Fiscal quarter
Q2 FY2026
Calendar quarter
Q2 2026
Accession
0001819810-26-000124

The net unfavorable EAC adjustments for the six months ended June 30, 2026 were primarily due to $10.4 million net unfavorable adjustments in the Space segment as a result of an increase in estimates made for the programmatic and technical assumptions based on the nature and technical complexity of the work to be performed to meet customer specifications. This was partially offset by $9.3 million of net favorable adjustments in the Defense Tech segment, inclusive of the reversal of loss reserves in the amount of $6.7 million. The net unfavorable EAC adjustments for the six months ended June 30, 2025 were primarily due to a $14.7 million unfavorable adjustment, including a $7.2 million loss reserve related to a program in the Company’s Defense Tech segment as a result of an increase in estimates made for the programmatic and technical assumptions based on the nature and technical complexity of the work to be performed to meet customer specifications. The net unfavorable EAC adjustments in 2025 were also due to production delays, additional unplanned labor and increased production costs as it relates to the development of new technologies required to meet customer specifications in the Company’s Space segment.

Item 1. Financial Statements (Unaudited)

FAQ

What is Redwire's defense tech — net favorable (unfavorable) EAC adjustment?
Redwire (RDW) reported defense tech — net favorable (unfavorable) EAC adjustment of $3.7M in Q2 2026.
What does defense tech — net favorable (unfavorable) EAC adjustment mean?
Reflects the net impact of Estimate at Completion (EAC) adjustments on contract profitability within the Defense Tech segment. It indicates whether project performance, cost estimates, or scope changes have resulted in positive or negative revisions to expected contract margins.

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