Redwire Corp., the Jacksonville-based space conglomerate that went public 11 months ago, reported a net loss of $77 million in the second quarter, although revenues increased year-over-year.
The loss of $1.22 per share for the quarter that closed June 30 is 79 cents more than the 43-cent loss the company posted a year ago.
The loss includes $80.5 million in charges related to "non-cash goodwill, intangible and long-lived asset impairment," a situation the company did not disclose more information about.
Revenue for the quarter grew to $36.7 million — a 14.2% increase over the same period last year.
Although adoption in the commercial space has been slower than Redwire expected, CEO Peter Cannito said on the earnings call Wednesday morning that the company’s long-term government contracts should give the company “the financial strength to remain patient while we wait for commercial space to reach its full potential.”
For the quarter, the company had $61.6 million in contracts awarded, compared to $14.5 million a year ago. The first half of 2022 grew over the first half of 2021, albeit not as much, with $92 million in contracts over the past six months compared to $81.7 million over the beginning of 2021.
Cannito expressed confidence that this growing demand would continue for decades, especially as competition between western countries and China and Russia heats up. He pointed to Russia’s recent threat to leave the International Space Station as evidence of this trend.
As a result of this competition, Cannito said, Redwire has already seen growing demand in the U.S. and European government space force markets.
That said, because of various “dynamics” in the first two quarters of 2022 — including continuing challenges with supply chains and slower-than-expected commercial space adoption — Cannito said Redwire was narrowing its full-year revenue guidance to between $165 million and $175 million. Previously, it was between $165 million and $195 million. This compares to full-year revenue of $40.8 million in 2020 and full-year revenue of $137.6 million in 2021.
COO Andrew Rush also pointed to Redwire’s continuing investments in infrastructure in order to achieve greater scale. Approximately 30,000 square feet of new production space came online in the second quarter of 2022, he said, which will provide expanded capability for radio frequency antenna production, deployable structure production, and robotics and mechatronics production.
Redwire is projecting an addition 40,000 square feet of production space to be completed in the third quarter, providing expanded solar array production capacity, Rush added.
“These investments support proven technologies informed by demand signals,” he said. “They are not ‘build it and they will come’ type of investments.”
Shares opened at $3.48 on Wednesday. Redwire’s 52-week high is $16.98, and its 52-week low is $2.78.
