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Redwire (RDW)

Participants
Michael Shannon Treasurer and Head, IR
Peter Cannito Chairman and CEO
Andrew Rush President and COO
Bill Read CFO
Greg Konrad Jefferies
Mike Vermut Newland Capital
Griffin Boss B. Riley Securities
Call transcript
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Operator

Good day, ladies and gentlemen, and welcome to Redwire’s First Quarter 2022 Earnings Conference Call. My name is Kyle, and I’ll be your operator for today.

As a reminder, this call is being recorded. I would now like to introduce your host for today’s conference call, Michael Shannon, Treasurer and Head of Investor Relations. Mr. your begin may you conference. Shannon,

Michael Shannon

Redwire’s welcome Thank Safe is the I earnings Chairman will Investor first and Harbor Rush, XXXX the begin which by to in Redwire’s call. you. and Read, I’m the website. CFO. Andrew Redwire’s disclaimer And release, conference Cannito, here quarter Peter our posted of COO; press you to to today Redwire’s and section President referring Relations CEO; Bill with earnings

make will on events we Many call, forward-looking assumptions statements. as forward-looking based today’s During cause are to uncertainties. are statements certain from the risks statements current and actual These materially factors could and and made expectations differ call. subject on a result, to this

about the update risks any refer on are during these that today. Readers forward-looking please uncertainties, disclaims call. may press to be or specifically not Redwire issued any information to undue to cautioned and obligation statements, revise For put reliance statements this release more forward-looking discussed and

this refer measures. will GAAP both, also to we financial non-GAAP and During call,

replaying a our presentation two You in call our weeks. is to and like turn with to definitions I’d being reconciliations to GAAP could for of copy call the will over press presentation be of this available Cannito. webcast release. non-GAAP our measures a And find and the website lastly, also included supporting on With that, Peter

Peter Cannito

Today, the accomplishments today. XXXX. joining Thanks, for of for quarter we be Mike. first discussing And you thank key the call will our business everyone

key range our and and and and scaling Assembly future Manufacturing. is navigation to for foundational to we To engineering, from goal that I at arrays, Before communications the improving of solar Redwire our Redwire do solutions infrastructure. technologies the continuously focused this, to products solutions and components, Servicing, payloads highlight to the space digital are In-Space innovative on slides, for moving present and wanted deliver our customers. here

have like support that wrap the U.S. that projects new Intelligence we everyone many technology commercial to the presentation images Force, space the will of real and Our through partners actual letter flag report missions Community the Redwire we images look glossy Space also the annual you on like enabling throughout in annual see with year. last and the in is Many to would for NASA, our report I posted and proud time are Please are some today. capability call the read to accomplished customers. this the report. of take deployed

present these is not are We have being programs a of executed Many science in vision, but this fiction. bold the day.

As I in our highlight milestones. demand in as There with we continued Assembly technical our earnings with some such follow and also customers business that that along, from few signals on have to we and areas, our X are starting In-Space Servicing, where coming results, the presentation, an long-term key known In Redwire the is ISAM, slide first today. posted strong more leader critical as moments. a Manufacturing, on please release strategy quarter, execute on of industry

for already and demand larger ROSA an is like June. Solar ROSAs, of we Arrays first a as which can continuing a highlighted, example our strong seeing patented much how last This have technology performance installed lead also was are We critical ISS the pair win breakthrough opportunities. with Roll-Out on the or proven to

and X for the future. customers such, new X growing and ROSA and customer from anticipate ROSA to in wings delivered As recently we the orders current

demand, performance on has recent to LEO systems gain Link-XX on national can security a Proven key been performance larger a antenna antennas, high and opportunities orbit corporate other production. our R&D success growth Building To build deliver leaning programs in is business strong Link-XX space infrastructure is the new to contracted Another opportunity how into will increased leading and lead move development, example our anticipated Redwire a security near-term to mission. foundation and investment orders and to national scale. antenna our are is how for for developed meet proven as we rate larger This we of large for satellite full forward constellations on have profitability. multiple constellation. demonstrating

growing has market and where focused. well. we is impact are is Of as this it course, cost and revenue that a But share critical to

in supply contracts. and experienced delays emerging The have subcontractor first from chain our impacting slightly with space due quarter was and we issues expectations order orders commercial performance below some contract fulfillment, to awards associated volatility

in key that such is Despite profile delivery subcontract the year. revenues first a well. the towards sales change our the near-term quarter back year’s revenue, have shifts, the throughout confidence materially be new expect heavily forecast revenue weighted order that the this XXXX delays last profile a of of revenue and year’s our pattern large of timing more size we in to shift our as milestone, the year. saw range impacted and same However, We half can or sizable of

slide Moving to on X.

signals is training driven tactically previously XX% growth of in architecture. by mentioned, strong need strong. simulation, space The critical responsive Space during the criticality space Redwire sensing, the seeing Ukraine for other modeling, of has security highlighted tactical space the are tragic Many communications, demand market budget. remote for resilient conflict space, invasion priorities. national and and assets demand for remain national As Russian the Force capabilities the I underscores and security The sector

support our to to continuing and this contracts security unique and We customer. are enable us in invest national will infrastructure security capabilities growing have effectively that

delays Despite landing component NASA space. the we our system. increased in approved -- grown a has civil are important Redwire’s now seeing is including The program second of recent to is investment budget growing. segment the and X% Civil human caused very this stable of and resolution, an Artemis revenue. announcement continuing by space the Moving

of deliver to space exciting the regardless power delivering Our for staying new a us foundation for legacy missions, stable of conditions. NASA provides and economic

our harnesses This is controller, cable a III Camera and camera for Artemis inspection and Orion recently Spacecraft. Orion and For developed pipeline for antennas cameras segment throughout from array XXXX. past wireless in pleased which Florida. visit Tuesday, System, Administrator an our a foundational this we is Jacksonville, XXXX navigation and NASA’s Bill were delivered headquarters of And the FY NASA Nelson example, to we the FY host to at

Lastly, the has space X growth that tremendous next could in segment XX annual the other far potential emerging commercial years over the rates. growth outpace to segments

predict that sector. strategy I’d growth easier for in positive interagency take In-Space heavily has very White these trajectory the national can segment national macro demand the Redwire has exciting objectives. capital provides in difficulty near-term volatility for on Since Redwire. companies and segment their are of signal development to a to to two Slide as on well. impact on long-term technologies and direct or see This this forecast the rely we incredible X. created very vibrant this and still the House a The space Redwire. Servicing, ISAM recent news the like their growth recently from to our strategy. specific However, Manufacturing The for in forecast to foundational is is over than support timing. raising have commercial a as changes having some deliveries is moment other environment segments required government focus commercial Assembly segment many a the long-term Regardless, released providers, potential an

on the executive first which framework. for Innovation the increase orbit, Award as discussed commitment Popular to our satellite ISAM It XD is that underscores moon. the first to components our of On-Orbit This and to as just One positive the number as manufacture ISAM uniquely branch strategy and business the but momentum area in-space ISAM technologies Assembly leader Servicing, House this as assemble key like based to and The capability. developing, once strategy well areas demonstrate technical change know, capability and regolith extends under area underscore key plan. been lunar should As advance In-Space a as the used Science validation in for this lunar the this to and priorities XXXX Archinaut, United won provides agencies you industry strategy sustained space XD earth is very Manufacturing. to all acquisitions and much be is orbit, Redwire the the developing positioned White development goals that on broadens ISAM or use has in rather to Redwire of interplanetary But into by on-orbit that and from Redwire Assembly all customers than and to opportunity a OSAM space, space. focus is printing in strategic development critical to the referred that ISAM mover will And critical the Servicing, printer our for greater nation’s is this additional as for our a provides program States presence of human in ISAM Manufacturing. such the in cislunar, to

to XX. Moving slide

As components, include the has scale. on well of Link-XX will the examples our engineering digital in and are to the ROSA already wings starting led of lead But can performance security We constellation. numerous a software I bear large could breakthrough procurement. on a the larger led proven Redwire to quarter. our first antenna to a and mentioned scale more technology saw for procurement of across national term, critical how of with many how ISS lead success in a to the navigation This examples win the our more there opportunities. orders large as orders and this to mentioned success is to that intro, other longer I much fruit Company

large leaning growth and supplier growth This with on the critical development, our XX. all to across capital future into seeds a segments, and order the expenditures. capitalize forward significant in are our to on base-lined investments slide As right having tails. business In programs solutions potential on of these opportunities, we are we R&D industry space growth ties planting by production three

category capabilities We the spending needed to in our ensure XX% each increased and facilities customers. we production scale opportunities and development new have resources with have business to capture the to over our

of in with development the bids they normalize will is the have numbers a order leverage. R&D number better these growth and when as Redwire support our from these can And effectively operating in for essential activity impact XX, on in compete pipeline. investments Although scale cost slide will subsequent in to business see near-term, and result you the

bids will was customers There this with high-probability examples and are seeing to types future submitted $XXX size of are our Our contract decisions. wins, bids which that March lead on the XX, have are we bids in quarters. million of slide. awaiting submitted that of should the to Redwire are over million in has that we A backlog But, consistent $XXX previous XXXX, quarter. highlighted few now be several as highlighted

slide final to XXXX. highlight to we section, my execute the XX, of continue in remainder for Moving I’d our slide positioning on as to on Redwire’s plan current like the

achieve just in market forward I are investments highlighted, growth of signals to higher gain Redwire we As are fuel as prioritize growth. our has leaning higher profitability, and revenue operating and to strong leverage. increased segments revenue The demand we to three all the and

staying resilience to business will critical, the to as we conditions, in we execute history have the government backlog cover to that capital strong larger section, of they believe DoD for for ahead stable sufficient to already with Bill and you access NASA, we his financial potential plan. combine We on uncertain when detail with existing our power are macroeconomic our capital occur. should economy. starting intelligence currently some in endure like long-term is have As sufficient to see growth customers, rocky more roads the customers and access and This our

an forward still defense and platform. this of lead impact as important accretive M&A industry. with increase to may of of government more Expanding for customers these broader the later should demand see Penetration fact, to and significant the other look U.S. we phases a however, see economy, programs Regardless in lead benefit the smaller opportunities providing elements more anticipate NASA in diversified the production missions. investments we in large, community joining we new global In as key the space from for larger, solutions scaling companies and our rapid innovative intelligence on to and multi-year and our potential strategy. are growth potential

the now more We have key through expect to call Andrew the our in programs. that, work procurements system. way half our be the for and their as key back weighted forecast over some specific to confidence the continue outline of of technical toward will XXXX With I acquisition achievements year sales and heavily to to turn

Andrew Rush

one. and give successes some in operational highlights I’d Thanks, Pete. of quarter you to like our updates walk on many through

XX, look at we Looking future the both I’d missions today chart and you are flying space of slide commercialization. and to slide, at this as like today that our tomorrow think of as

see missions. heritage with on the and can enabled remote also XXX sensing and flight many over has This on human permanent observatories, of Redwire You and systems, and specifically slide highlights space, XX-plus commercialization missions of our more. that years moon, industrialization outposts next the space flight Mars habitats around generation

of missions the tomorrow the future to of today, commercialization. as we deliver are enable Just supports working on the missions of Redwire and space also

age and Our strategic Servicing, enable today, and national capabilities advanced here. engineered and components, spacecraft, commercialization, you and focus Manufacturing, domain golden that orbit provide of support, digitally areas space of security, and second awareness, Assembly In-Space low-earth exploration sensors that see commercial space this missions will

to the turn slide of we’ve details Now, this let’s progress that to into quarter, XX. made get the

in get highlights Here a are I’ll several in of into moment. detail updates

we’re security multi-ships these and As satellite as for Pete growth multiyear, services at of provides us. alluded and constellation, national missions larger products for as missions. and constellations to, Penetration and delivering long-term commercial upside well multiple

Solar arrays important of company. are part deployable our very and solutions

year. that We’re and at for dramatically four hardware on this far, set wings Space wings has Thus operate deployed continues report the number of International increase continue and a the Space cadence. installation deliver International fourth Redwire be are on Station excited on Station. that services to high deployed our missions been third and and solar successfully year, delivered this the to to products to we’ve the array we

a the Air System Battle work on on we’re as This Management doing $XXX selected which in provider customers, a moment. for Force’s were builds recently other Advanced into also million We get IDIQ. I’ll

CDR, of icon, that satellites to and on If provide you proud demonstration look to adoption mission recently progress in-space with the manufacturing which our at our satellite page its on technology. milestone One updates at the major middle assembly out carried mission, of the Archinaut of I’m a way our and

forward increase capabilities, including and and robotic Finally, lines, our Redwire antenna for leaned capacity necessary of many has production arrays, product to made high-growth potential RF investments solar production.

to Turning lines. XX, solar our talk first about product we’ll slide array

its know, installed augment are Space wings Station you the and ultimately we power six International on capability. building to be generation As

quarter X that The first wing Redwire. to of installed pair of and their we in the performing actually are of wings its a year baseline X major for X, and XXXX, was or were at schedule, those ahead targets. wings, delivered above report last pleased X performance and and operational I’m first delivered win wings at X, us

track production We’re on against now on delivery for our on-time our on Space generation us scheduled and in Successful X wings technology schedule. Solar assets. excellence International Array an on the power and gives baseline DART Station customers Roll-Out improved of and our do their validates and confidence X and operation missions like performance other commitment to have to the for requires their

array pursuits, XXXX, targets subcontractor range challenges to wing based constellation our have delays two in some on faced multiple our financial delays, solar quarter In our line. Turning in to backlog three, resolving as let’s impacted subcontractors. our solar slide year. for anticipate have and the which triple maintaining definitization XX, include and large which QX deliveries orders, and include calendar of delivery well product satellites solar with results. our quarter start about from anticipate contracts and subcontractors arrays. These small subcontractor array We our quarter with talk We we extremely in outlook delays one, in as performance, the

our supply We’re vendor with chain vendors. base partnerships strategic strengthen by building our also proactively seeking and expanding trusted to

these impacts. array solar product is line performance despite near-term Our strong

beyond. four XXXX space for slide the Station and and first continue commercial many hardware satellite the separate in went Redwire to throughout deployed to launches Crew-X. that a -- be including satellite to and Transporter-X quarter, taking including GOES-T, SpaceX’s NG-XX Space successful hardware deployments was that We’ve on on the services both on had XX. Turning going International and will

turn the our let’s simulation and capabilities services. and Now, expansion slide and to discuss of modeling XX

million on U.S. support awarded position We’re IDIQ Management a contract Battle Advanced System. $XXX the Force’s the to Air

mission the this spaces. and our that currently providing is are utilization other similar would of The security commercial support and we IDIQ capabilities to works that in engineering. our cutting our edge we via works national modeling on customers and the expanding for ability systems simulation We’re to provide government

XX. demonstration, deployment test construction, These our subcontractor the of and for delays program. will that -- which slide manufacturing first demonstration did first technology we a be on schedule In provide operation manufacturing the completed its clears impact a way OSAM-X. mission, to program paradigm the of which the ability itself, and ISAM technology and major This kind delays experience for satellite OSAM-X. on Redwire’s I’ll rework, Turning for schedule family manufacturing strategy the as on assembly $XX is review an and a quarter technology do satellite but this our really and the in did update and to in-space We our manufacture of to this assemble Archinaut a demonstration to provides one, technology, is House’s and satellites truly potential in-space mission, this disruptive which in design, our or us of which announcement satellites assembly to such of encourage mission. and a manufacture as are satellite this the Validating of we leadership recently One design for national do critical can of major shift way adoption long-term the market. for OSAM-X billion known tailwind was White of the adoption.

quarter and delays impacts seeing potential, this spite that validates in we’ve technology, uptake interest and which long-term in of had increased one. in We’re its

to slide now XX. Turning

investments to at production support we infrastructure about that the in talk have capacity Redwire. made Let’s

feet to existing us enable square additional and design, on We’re to of space development pipeline. deliver building production out and backlog an XX,XXX our

Propulsion in a solar We’re in production a range more increased is to a build out on the and for XX-foot those arrays, the build constellations. for bay, This us Power RF heavily and Gateway, of facilities Bill focusing arrays With this the production delivery and it support I’d program CFO. to that us making has by deployed future wider NASA increased turn like by investment multiyear have sets capacity that arrays, production capabilities been enable over program. up our multi-shipset, this building our and Read, in Thanks. on yet investing production. solar which major solar updates, facility success also largest note Of satellite antenna to Element robotic high will to

Bill Read

you, Andrew. Thank

Pete As wins. we important and and Andrew deliveries XXXX noted, off customer started several program key with

and healthy business to is our of backlog continues Our pipeline very new strong. be

and backlog, and XX, of end from Contracted to as total million of ‘XX have contracts backlog $XXX fully our of been selected as at XXXX. verbally million. the Our award, contract million the grew $XXX period the scoped backlog $XXX have awarded, stands the as existing executed. backlog process un-contracted million including be backlog extensions in to firm add-ons with of priced, contract remaining contracted was and also March both Contracted and along at the represents backlog $XXX well expected at that contracts commitments includes received, to end we are

the of long the contract required U.S. the under timing of the we previous Federal contract. As indicated our to continuing update, length budget awards get resolutions of the time and delay impacted resulting approval both negatively the and Government’s in in programs

Omicron including, chains caused in of the continuing performance quarter of variant supply delays. and COVID the contract fourth impact subcontractor Additionally, impacted into impacted QX XXXX, negatively the and awards, continuing

of revenues and deployables activities from acquisitions XX% to or result GAAP pro of moved increase the not million was basis, the of year. prior programs million, subcontract I’m in inflation and many our the a million services $X.X and revenues to were based our repeated program down challenges, of large timing an product this the quarter-to-quarter XXXX and see the timing on deliveries driven in revenue first the $XX.X for of ‘XX $XX.X to long-term pressures. year, growth. by several inherent period in revenue On our in that several engineering on in $X.X revenue quarter growth activity increased quarter, in or while the the quarter are by of time businesses. million. million nature X% the contributed expect programs, later from As Cost $X.X our supply variability Because QX forma in see We the a macroeconomic of due continuous including to next. not necessarily for over chain million significant to of this from on expecting we relevant variability sales one programs $X.X

mentioned, experienced facilities. under our delays programs we getting of As which in contract, labor significant inefficiencies in created several

as increases in and related of over challenges, period in-space ‘XX in especially year. declined sales, subcontractor was with inflationary our a Several net impacts, addition, quarter. as The increased program and for experienced new development well to and the subcontractor is Therefore, previously delays million QX mentioned not of have year the for in revenue for versus cost time understood. expenses increased one-of-a-kind in engineering margin The decline $X.X costs to program pressure, quarter. chain better prior of programs performance. cost adjustments million activities. manufacturing In $XX.X material same the million margin investigation sites. create $X.X global public independent cost being new rollout conversion two started conversion million, for of of stock-based a higher $X.X with approximately ERP QX and insurance is compared a includes expenses. new to the some our of public related all related to complete solution company. for and which for sites The to to in being expense take fees costs ‘XX a gains. single our In $X.X years charges to Interest drive is as $X.X XX% QX, associated increase we servicing was non-cash recently Gross year. business the we million $X.X expected is to of in in compensation expenses estimates investments system the to of are SG&A it for of expense supply as ‘XX the ERP of comparable increases period to SG&A in a XX%, spending and $X same to estimates, percentage efficiency one-time unusual QX are of to million, quarter million, programs. one-time several development higher million, compared company million the to help first is last synergies related by Cost and challenges expected and is our $X.X as the across significant the due concluded driven the

loss first loss stock-based quarter non-cash GAAP into of million. ERP the costs associated costs related When conversion public, cost, For to XXXX, becoming in of investigation unusual million. other gain net $X.X fees, EBITDA a capital consideration of was changes liabilities, taking the $XX.X ‘XX compared warrant with to $X first adjusted a compensation, market of non-cash in related expenses million, quarter was and

We are and reaffirming our guidance for full adjusted year revenue EBITDA.

and revenue As the future in quarters quarter relative was revenue year. than Pete the to in full lower mentioned, expected first

more year. have We near-term the pipeline heavily of quarters The be an strong forecast in for increasing of existing towards and revenue backlog the combination our us range weighted profile our back year. the remaining gives confidence sales a expect and to the in confidence of half

operating leverage higher the volume to is this return operational positive profits and generate increasing mentioned, to As cash flows. and efficiencies significant Redwire expected

our between be for is of strong guidance demand very previous reaffirming management’s million $X million. full market reiterate, $XXX million result, a revenue Redwire full year and XXXX products seeing $XX and year market to EBITDA of To for to our segments. $XXX million between all services across As adjusted and

to grows. company actions, we profitability, and sufficient executed invested to are and growth. development drive execute We initiatives to facility borrowings this equivalents, of and Company but confident million are million and and our R&D capacity invest growth. capital heavily of meet Street revenue with $XX with not quarter million with increase in and position Facility infrastructure, as April, In sell $XX existing credit us cash liquidity our over backlog comprised needs has B. operational business. the on business ended million available $X.X We in our up have the obligation the Pete Equity provides revolving million drive fuel in secured efficiencies and the an session. $XX $XX.X of public recently opportunity, to And Recently on available to growth We leverage the and continuing our Company facilities. our Redwire in fuel credit in With that to the resources our from entered ongoing Adams working equity Committed accretive for like Partners increase believe liquidity his hand to I’d our to are million. revolver for to $X which to existing into of strong operational sources With before Riley, foreseeable sufficient future. it comments now, the future Q&A a back Company closing and cash to

Peter Cannito

building play our for key space open expect a and momentum it XXXX, turn throughout as a mission now solid pure back to time today. we with to operator Thank the scale. strong you to you call company your Q&A. foundation see, our for can up and will Redwire’s I As continue all enabler over

Operator

Konrad Greg Our from with Instructions] proceed with question. is your Jefferies. first question Please [Operator

Greg Konrad

towards what needs accelerate in takes get maybe closer confidence and of the upper the to puts versus Maybe second happen end? headwinds or the half-weighted lifting, in the to budget, guidance But I outlook. near-term lower then and maybe gave supply around start. just to appreciate maybe COVID, initially the what chain, towards just end and can those when the was outlook headwinds revenue you talk contemplated you ‘XX about

Peter Cannito

course, question of at -- Greg, This I’m your our bids the you rate our take half you of Hey Thank question. look half backlog going to that on are backlog for of Yes. win the look is how to I the you? what’s to When we at drive your you second really that and the we have Pete. backlog, size when then, Yes. think, No, the backlog. is bids of number going executing convert plus second submitted, and first.

under of been lower been of of for million us the upper there, timing $XXX end out awards review forecast. a and with bids for to drive in which many bids will have or have and either submitted the those while, So, a while our

to the In our some of it of over talk chain turn COO, terms going Rush, and to of Andrew some headwinds, about that. supply he I’m President can and

Andrew Rush

question, Thanks Greg. for the

the As have not performance with we addition of portion subcontractor faced contracts of in issues in we in in the that definitization into going call, delays anticipate did discussed we subcontractors. to QX prepared

portions resolving those the this year We else light prices inflation watching experiencing. to the resolving higher like to everybody subcontractor are have latter delays, inflationary for pushing maintain gross in seen that our definitization while the of concerns. response our in of pressures subcontractors, We and margins the we issues, striving in anticipate

Greg Konrad

just and then thinking plan. within more little and latter bid bit you least would called the two say, higher And a side, internal R&D, at maybe on on that’s inflation, I and proposal, least expense predictable, at the or

as about to relates when just to and just profitability of ability it offset forward? you you or impact contract how going the think inflation, or Just about kind pricing think the do maybe structure

Bill Read

to of. and and that question to, great and a programs pay a attention think bidding it’s multiyear because are something we look we ahead one it’s constantly have of we It’s about here, lot on

our importance not program. so for I their the in pricing later the subcontractors, think of that we’re we in it and of sure the us got in making with relationships squeezed time bid getting when the those we’ve good just and between proposal, reemphasizes at lock

Andrew Rush

end contracts had pressures. passed customer, reduces that, types some our contracts, we for our where along of have to pricing are to inflationary costs in ultimate -- or CDFF pressures that inflationary mentioned our we’ve of as Bill To locked exposure we’re where different time several

price beginning of program. every typically However, you single the lock don’t at in a

So, shareholders. that’s something experience to and as we’re our inflation. perspective, I And a provide great then, low, we some growth value we forward-looking to to doing negotiating earlier, impacts we -- mentioned aggressively our our from do due so that cost are to can customers keep

Greg Konrad

out mean, Redwire for I think helpful And of those what real you disrupt versus just much of out this that’s growth space, examples about -- of significant have of forecast, Redwire’s then, I and just emerging appreciating the far, about timing that those how And that some opportunities? thinking is about those of potential but so materialize? think or front? at And I year’s that acceleration. the then, kind kind about programs pushed appreciate I some out those is been thinking mean, we opportunities least future captured thinking it guidance? commercial can or just you any these way bucketed in how meant some mean, opportunity called was I to the when of any mean,

Peter Cannito

Yes.

the to I timing. think was difficulty highlight the predicting point in really the just

run as from things commercial the in our or that the slows into benefit Redwire then of forecasts, their one that that benefits get and can forecasts, of we they an mission these is companies, strong if end that. if commercial space their a issues timing and as timing. to don’t interesting space affect critical sector as So, the we us one down the have demand key instance, can But regulatory of like impact of part they supplier partner of and they supplier, is on result industry, that up a anticipated the market, revising key the down funding many about forecast, of a the have a across amount for and that a the as

the point key some the see on some very commercial next, think as and are So, highlight just sort to tremendous, of that easy order to based it’s we the move I customers. forecast potential in from our is unanticipated change we demand but strong, is to one of overall, really signals for the a quarter of the trying

Greg Konrad

product me, just I be are revenues? I important you area solar expected in definitive maybe more to tripling, mean, any called little array helpful. about that out deliveries how product can for bit bit? you does a in. what total then triple of Or a would I that mean a is this mean, last category And for revenues for one that little finances? give XXXX. mean, And I area maybe color you more mean, on you one just were that can talk

Andrew Rush

Yes, absolutely.

thing is And sticky -- baseline very bus that very about that baseline, active the becomes awesome When for fast-growth our Solar became last of and lot as for kind for of different operational customers us. relationship. for a ROSA, a for solutions, our fast-moving, on is Roll-Out lines, array is year deployable Array that it a solar us, on product array really instance many future and And That’s seeing sticky. satellite your many, are technology opportunities programs. for So, instance, our now area solar other gets structures for orbit. a used deployable we antennas missions.

on to solar the enables low-orbit for We satellites interest also customers. are constellations coming are and for oriented have optimized that that sell us line multiple also systems. there, And optimized are strong as some to for shipsets arrays smaller these component, multiple multi-shipset satellites sales that for customers significant And it products class there. from there’s for LEO, strong

components, So, be for navigation our in and seeing in that a bids us effect our whether provides in buoying or that opportunities it cameras we’re other seeing components.

area looking significant continue to to continue sales driver as for we customer do -- satellite driving in so well line So, forward, coming us. more more as to both -- an see a design post that is is this for uptake, -- on in growth us missions expect here,

Peter Cannito

with only I’d on in is now to demonstrated interest Redwire of scale. the of program number the understanding that version got in more on for additional of that take who like of it for gives to which has the the it. that’s also the different which customers success the is that any unique successful Gateway, has deploy out customer only a deployment with has DART want Solar you jump Because led we’re that see really company that. can to Array it heritage. of that right a Roll-Out we going flight reason, that there We And to Space International to orders. has And wanted how to -- Yes. critical And the unique sparked and that confidence a capability ROSA heritage flight from that using Station. the capability then advantage that Lunar of success

the So, for demand high product us. product that and that there’s a ability high line And more product for as to very particular us driving revenue that end, gives in is more scale, line.

Operator

with your Mike is Our question. Capital. question next Newland with from proceed Please Vermut

Mike Vermut

a public, questions of gave is, couple a guess, the for you. when us. here I guess, one got initial long-term we slide I for the decks I trajectory project first went first

you of size programs, the and of size and that, all, some has grown has quick, the of that? if discuss we those more really of kind of phenomenal And next -- dramatically. set constellation into a about these? But land those we become changed And always work these and contracts, be how at in you’ve confidence on that your tails you the come original worried Has way developing the to close of anything First this growing you over national that on is opportunity is out how and that on company. going I’ve or any Has years? scope it know security bigger? numbers, can I the gotten it, also larger to us four there? the two, three, for goals moving even Once this looked five that? it this, it’s gives

Peter Cannito

growth are you that invasion the Ukraine, on national budgets. side, national national is that’s And amount underscored that’s No, going occurrences of security really to up. the there And of budgets it’s security excellent because our important see security. think particularly the tremendous question. with these the is an how going why Russian Yes. tragic in on I with It’s space

and on not security first in Redwire execute national really And do important have be a that’s because work. position all the the clearances suppliers is space-based and contracts, So, those to budgets, to foremost. the to infrastructure security able

do. So, we

really against terms being that’s of in growing able So, important execute budgets. to those

we market, in the to that capacity a the as to we see participate continue sector. have So, that fast-growing part and of

early once has doing a rarely on, lot revenue of national of sectors we’re program, that led terms security national seeds. use we of all planting in a to change. we’re long-term, true particular when scale, it because they specked we used across security to you analogy, the a how be Well, is on got that different to a actually program the And is have. very In sticky specked, what another in

the that capability we’re things capability and it. a for a procurement planting of in of antenna, recently, We constellation. our flight put in That’s having constellation heritage our the excited so, an a PlanetiQ. lot example success a as now demonstrated with we’ll scale we the mentioned some about the out led diversity providing to the I constellations. their national to of constellation is that -- or past six where seeds one So, of announcement months scales, pipeline, how being Link-XX of larger security and emerging we’re believe

communications constellations, As will grow other like it. that and constellation grow grows with along it

kind tremendous programs really seeds the you’re on specked what details of in production getting us lot So, of is early large a them. seeing in just these days and with that planning have really associated

Mike Vermut

Excellent.

million guess number. question, that’s number, you bids I exact have Another you out roughly forgot $XXX there, the of said the I --

Peter Cannito

million. $XXX Yes,

Mike Vermut

to you What’s not win anything, from the that what’s us holding historical you I’m that? get historically? would rate but for normal

Peter Cannito

Redwire that good historical way predict, together, And, don’t the to have so. data. that it’s unfortunately, difficult Well, of specifically $XXX million, because came to Yes. we

hazard in wouldn’t $XXX run in million some the I kind against could a million and at bid shakes in of and out the backlog rates guess. submitted, at potential look you that our analysis terms you different and that $XXX forecast. win of against So, But see sensitivity when overall where --

Mike Vermut

happened It’s that common, quarter. you to to changed years. that’s next trajectory months back had Granted, Going there so, guess, that? very question in to we you or guys I before, a push the kind six over anything slide ago deck, great first or the what Is in can this of initial nine you it. five had

So, become just that to go in the says, or you years, your is oh, six opportunity that? the longer greater in revenues $X changes run, five, Can uncertain? into out you in can’t more there, any has anything billion in there to mind less, get

Peter Cannito

with the conditions, that gone up. think uncertainty rapidly economic has the I changing

far too off comparatively. for not that We’re the actually tracking relative we’re in, market

space commercial bit the that I timing, supplier in if as about has to that the some security to companies the and really coming our predictable of changed, see a up. fact we talked a But, conditions. see with civil space We forecasts we the that national we rate for of over are of markets, a reflection the regards line this change uncertainty lot a and kind And you about of on of economic have if segment us. from NASA like as So, commercial well. last the time. combination anything deliver the adds think a matter Redwire is, their their growth to national of commercial were I future our as next area uncertainty say a very it’s sector, forecast the we being five security, I over of mean, and to in think the growth as stability being of as years regardless were year, that in projections the that the pervasive see does time the high not forecasts, of lot little slightly

Mike Vermut

there talking was -- we’re $X.X not But the guess, out billion. it. about number I Got okay,

numbers huge point, a my the -- cap say, if It’s So, $XXX take a to it you you for now. -- not it’s to that that goes dramatically $XXX saying not that’s if even market was five six in So nothing that get to million years, like so have $XXX I million great, we company million dramatically. has or can that -- far off, changed right? nothing’s changed are that

Peter Cannito

Yes. yes, and what you’re -- think And Mike. saying, appreciate I I

a that to highlighting point would I the we of thought beginning what at the incredible signals into is, lot are think I there. demand put out

So, execute security it the strong is and space their signal in supply plans conditions as sector new through headwinds issues overall, space Redwire budgets to great grow, policy drive strategy, at opportunity. look to very opportunity. the for commercial alike, you changes and to little markets But we’ll against on will up as still a the and more and is on large long is national when procurements the there that own to national see system the and bit chain a long for drives continue The as economic well. and a was of -- before. as large their exciting what’s ability demand as really acquisitions overall, the companies vulnerable ISAM, regulatory as demand lot capital continue going is And and

Mike Vermut

in there But haven’t in and Excellent. exactly. specifically, project, this particular. in is and One internet we that can’t. lot it is announced one -- on? I things because Kuiper? to going what called out going specific building saying Amazon or this this you bidding are last involved But But a anything as is there out -- not satellites there, like we was here. yes, of whole -- like out one I’m question it isn’t stuff forgot this be you this one that not are probably haven’t I areas yet I’m know saying and such are or this, and anything have there this

Peter Cannito

Yes.

bid of I comment, on one specifics obviously, or program... So, the any can’t

Mike Vermut

in it Yes. saying I’m general.

Peter Cannito

constellation But, just a you comes that’s time was I upfront Redwire. is an what my will out, opportunity doing every that disclaimer. yes. tell for I yes, Yes,

is have technologies, and we actively number diverse different from about is every Redwire, things lot discussing and base-lined. and So, -- are a Redwire a partnering range the with -- out opportunity of of for planting And of are seeds is then one we there across heritage to get a we interesting an that of constellation products.

we now. each get for one. So, product individual constellations doesn’t that different even are every constellation, a commercial security if and because for on penetrate national multiple constellation, one at line products we services particular and offer can we And

that’s to that and people underscores to constellations ability valuable deliver So, are of who heritage our up. putting kind

Mike Vermut

your you that statement at million had and the I statement would and look is $X.XX thing with now make possibly And would close that hope the that just at know we’ve way I a is saying blackout here. I then, the purchase valuation. have it’s money last this window that could guys kind for it at at backers item, and the all a period me down opens? a we’re been Board, all it stock Is our $XXX been buying a significant that stock right best not do you probably you hope management, at today. is long when time. of guys this

that out these everybody. market the happen. that’s This I for a has been And there. opportunity hiccups tough So, see

seen we’ve hopefully, the bottom So, here.

Peter Cannito

our believe definitely the value long-term in of stock I that We Yes. think.

Operator

Our with Griffin Please next Riley question is question. with from your proceed B. Boss Securities.

Griffin Boss

them for have but Yes, quick Hi. question. Thanks here. already, have most been taking ones answered of couple of I a do my

Just that? regarding and against it on curious million the -- who Air was the for IDIQ you guys that you the was just what has or ABMS. competing for are were Force contract Redwire $XXX I role mentioned

Peter Cannito

Yes. the question. Thanks, Griffin. I appreciate

enterprise that architectures, and they on very really and the some engineering when can Redwire contract as all they IDIQ opportunities in technology realistic constellations an to way. delivery we -- as indefinite software simulate quarters they come at sense opportunity to that an important and the indefinite environment is different comes ABMS have because simulate high-fidelity model is really a look out. and in to JADCX really there, and that’s can past contract, the is scale. had quantity relevant package digital This at out JADCX in use our software architecture together, that’s the of the great a which command control So, bid space

And is represents security And space customer. to that I goal And work great space to in situational think in and of underscore key operation national questions national the can startup of Redwire. general concepts software different being So, in off that be a disparate the that’s those contract tomorrow security for sector. to to awareness. by different a street the obviously, scenarios, actually the can’t simulate one how program able tried come the doing plays that’s just bring security can a that the of start architecture earlier couple better why access contracts to use that of JADC Redwire really the together a a data different national and just opportunity of one provider and sources -- achieve into I that

then already of be personnel doing security can’t if double-digit take you positioned you’re to the with contracts right not right that the national the So, right with advantage security growth with for FDA with clearances, and can Force Whereas of Redwire, Space capabilities we do those organizations and IDIQ. U.S. have about talked we because take that growth like budget contracts the that. the like infrastructure, advantage the ABMS

were actually that are But it’s we on have IDIQs, a of we it. that us made terms and don’t unique it gives competing, our feel that I But broad who contract. exact In number great like many awards the pretty software differentiated, opportunity. multiple-award. is know that of that’s so is

Griffin Boss

of you then And backlog, just that back I revenue curious, duration the of jumping to have one timing that proposal year pipeline, earlier know million to $XXX noted, duration, is the general place. your to current last you this the that awards down in in get layering guys general backlog, the in then, bid to any million in $XXX in just million we I of was the remainder me, curious, your you have -- obviously guys recognize comes I of insight historically, the that bids revenue to order you end the But, that? guys how was into of guidance and XXXX? there for and much talked that of high expect sort sort about and as can of $XXX maybe the just if then expect sort we you of And what

Bill Read

the of turn I’ll million our backlog it Well, question, take this piece. for the But typically is have today, $XXX or on on expecting revenue contracts. year. bid multiyear the of first Pete another color Andrew more to about the backlog that generally, we backlog And into have Okay. up some and may we’re made

contract. vary it of can substantially the so, the And depending nature upon

of links. of burn and it’s similar But, So, the kind going bid the time. answer variety think on there’s the backlog programs, says of it’s question, the I this over always that’s period question. -- to they’re not it’s to -- out clean a a to of that variety It’s

it’s time. of And say, to going this to is number so, revenue of turn what given over difficult kind into period very

Andrew Rush

talking that’s is about, your of only part closed In a that bids of submitted a Pete pipeline was pipeline. billions closest broader dollars. And that in the portion highlight $XXX of to our in I like, to a one. want sales is just question subset million That’s the that that portion, pipeline the that’s terms measured of that the of

as rates sector. Pete We talking the win we expect are our -- about, in was historic for family

not here meaningful seeing to a expect We’ve that that and submitted backlog to turn the been and continue yet in nice QX, as expect bid into so, see well going And bids pick sales things of in to up we convert some as future. we are those portion wins. to forward,

Operator

I’ll have the We the call reached Peter Cannito And now the for to session. closing of end over remarks. turn question-and-answer

Peter Cannito

I’d just us for like and evening. good to thank joining a everybody tonight, have

Operator

disconnect This may your and concludes you your you today’s Thank lines at conference, participation. for time. this