Redwire Corp (RDW) Stock Forecast & Price Target

Redwire Corp has demonstrated significant growth potential, as evidenced by a 50.7% year-over-year increase in total sales for Q3 2025, reaching $103.7 million, despite missing market estimates. The company's ongoing initiatives, particularly with the Edge technology, are anticipated to drive higher gross and EBITDA margins, enhancing financial performance and revenue growth through improved market penetration and operational synergies. Furthermore, the positive outlook is supported by anticipated tailwinds in both the drone sector and broader space solutions, positioning Redwire for sustained upside in a rapidly evolving industry landscape.

Redwire Corporation experienced a significant decline in its stock price, dropping 30.9% following the release of disappointing 2Q25 operating results, which included a negative gross margin attributed to unfavorable EAC adjustments totaling $25.2 million. Revenue forecasts for 2025 were revised downward to $410 million from a prior expectation of $421.2 million, primarily due to government contracting delays and award timing issues that negatively impacted performance. Additionally, the company reported an EBITDA loss of $27.4 million, drastically underperforming against the previously projected positive EBITDA, further highlighting ongoing financial challenges despite maintaining record liquidity of $113.6 million.