Why Redwire Corporation Stock Soared 20% Higher This Week

MrDecoder · 2026-02-27T04:30:24+00:00

Redwire Corporation's stock surged 20% this week due to strong backlog growth and a 10% revenue increase. However, despite rising sales and future revenue projections, the company struggles with profitability and high losses, suggesting it may not be a safe investment currently.

MrDecoder

2026-02-27 04:30:24

Abstract generation in progress

Shares of** Redwire Corporation** (RDW +10.96%) are jumping 20% this week, according to data from S&P Global Market Intelligence. The space infrastructure and defense innovator posted healthy backlog growth in the fourth quarter, leading investors to bid up the stock. Still, the stock is down from its $10-per-share listing price when it went public through a special purpose acquisition corporation (SPAC) in 2021.

Here’s why Redwire stock was up this week, and whether it is a buy right now.

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NYSE: RDW

Redwire

Today’s Change

(10.96%) $0.94

Current Price

$9.56

Key Data Points

Market Cap

$1.4B

Day’s Range

$8.52 - $9.79

52wk Range

$4.87 - $22.25

Volume

1.2M

Avg Vol

22M

Gross Margin

3.85%

Growing backlog and an improving balance sheet

Redwire is a new-age company that sells space infrastructure equipment and defense technology. These include power solutions and sensors for orbital equipment, as well as drones for military use.

Revenue grew 10% year-over-year in 2025 and was up 56% in the fourth quarter, with part of the acceleration driven by its acquisition of Edge Autonomy in June 2025. More importantly, Redwire’s backlog hit $411 million at the end of 2025, driven by a 1.52x book-to-bill ratio. This means that Redwire is booking more in contracts than it is billing to customers, giving it a growing backlog that will lead to revenue in the years to come.

In 2026, Redwire is guiding for $450 million-$500 million in revenue, a significant boost from $335 million in 2025.

Image source: Getty Images.

Time to buy Redwire stock?

Even though Redwire’s revenue is soaring, it is still struggling to achieve strong unit economics for its space and defense solutions. Gross profit was a measly $17 million in 2025, indicating the company is selling its products at super low prices to win contracts. It also had a $251 million loss before taxes last year.

Today, Redwire’s market cap is $1.6 billion, which remains a hefty multiple relative to its trailing revenue. With zero history of profitability, this looks like a high-risk stock investors should avoid for the time being.

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