Earnings call transcript Q2 2023

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Operator

Greetings, and welcome to Redwire's Space Q2 2023 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded.

I'll now turn the conference over to your host Jeff Zeunik.

begin. may You

Jeff Zeunik

has and quarter Shamali, seen everyone. to our afternoon. Welcome earnings investor in Thank section relations earnings good call. second of It yesterday issued XXXX which you've been We Redwire posted release, the you, website@redwireSpace.com. we morning also hope our that

future. the Let our or intentions, beliefs, during Management make call, the remind me that forward-looking may expectations, predictions Redwire everyone statements reflect of that

detail on forward-looking are more are to described and risk that two. statements uncertainties slide Our subject in

Additionally, three, our measures presentation Planning and leave or Vice to reconciliations. the discussed the during non-GAAP am non-GAAP Analysis. investor and for I the extent Senior our President we Jeff calculation of call, please measures Redwire, of on the earnings Financial slide our website of these earnings release Zeunik,

me are today's and Baliff, Cannito, Chief Chief and Officer. call Jonathan Chairman Executive Officer, Financial on Joining Peter

Pete? to With the call that, over like turn I to Pete. would

Peter Cannito

Thank you, Jeff.

of take who During accomplishments will will Jonathan, the today's financial second call, present by in same I a the you highlights our of followed the for key quarter XXXX, period. discussion through

We which will the will the for outlook continuing floor we Q&A. open XXXX, of also our remainder discuss after for

another report Redwire. X. that financial for move pleased Please quarter was to I'm at very record the slide to quarter second performance

and Our for our results financial to ability turn our deliver to high-quality deliver tangible products enabling shareholders. to solutions customers us is in

execute gross more positive to EBITDA. expanded strategic potential profit multiple win free During the future cash the flow, positive adjusted second and quarter continued margins XXXX, in and business quarter operations high cash and of investments revenue, recognized record to our growth, from and our achieved We leading-edge contracts. we first drive of made

develop forms on page. infrastructure which our recently shown leading-edge trailblazing is of other landing the the build contract to such pads, this right on of moon, One rendering roads and systems a award announced to is of

significant bring Surface lunar solutions And are presence infrastructure a NASA's benefit very on to we the be critical The proud developing will economy permanent this on based for Lunar to mission. to support future Lunar humanity. partner trusted

slide to X. turn Please

incredible for of The second quarter XXXX successful second quarterly XXXX. momentum which of Redwire, a first of during XXXX from was XX.X% built year. of the first revenue very the the XXXX We quarter of to achieved from half we second on of the quarter growth the quarter year-over-year quarter for another

quarter the XXXX For XXXX. I'm adjusted pleased increase of adjusted EBITDA, to achieved of to with $X.X that on EBITDA, second second sequential quarter a the quarter report from basis very year-over-year we an million of second positive a

Next, to we improvement free are in an a million is we pleased to and $X.X a company. achieved flow achieved Also for QX, cash year-over-year for free report we flow milestone outstanding flow in quarter, important an notably, -- cash positive $X.X on absolute free improvement In a both $XX.X positive flow time accomplishment net of an loss. year-over-year cash public basis. growth percentage cash and of This million. Redwire this we the first have million as in achieved

million $X.X cash of operations improvement. second positive in from million That's million improvement year-over-year -- achieved from million to in operations in $X also We $X.X $X of XXXX. cash quarter the

performance and XX launched record of to financial extended track dependable are proven these heritage we we important as results solutions due In products launches four the on quarter. flight strong that it's significant Finally, our note QX, our already positive to operations. continued delivering in in flightworthy

Turning X. to Slide

is proven driven is is our by deliver sustainable. we As solutions how our I performance strong just our financial for differentiated This to it outstanding customers ability mentioned, today. know

our share just quarter investments examples of few On operational a and of the XXXX. second next success in we'll few slides, the

the bringing on installed Solar additional six. operating Redwire Space two ROSA to total deployments number Wing Arrays to of or ROSA were QX, Wings the Roll-Out in Station, During and International space

during Redwire more and a number and the Wings iROSA follow-on X, quarter, contract X In of the two award announced addition, from Boeing.

performance power vertical continues such the propulsion advance to Astrobotics other and for platforms technology as to flight and array. power reliability missions contracts. follow-on to for space Gateway for and ROSA Our Redwire are also NASA's and leading the element solar LUNAR

Turning to Slide X.

the the Redwire payload Crossbow structure, from launch launch provided for developed ground system, launcher advanced interface separation key quarter second and and next-generation and support During Bolt expertise equipment. of delivered services XXXX, vehicle. their Rocket engineering Redwire systems deployment four the components: vehicle

developed New suborbital supporting In rocket. successful addition, Redwire's has technology Redwire and provided that systems Albuquerque, mission mission team is recovery was by The Crossbow their services. second Redwire this supported this Mexico, integration, vehicle and in post-flight with launch and the

study. turn the continuous Habitat payload XA investigations examples to will operations from excellent Redwire QX, Station. PFMI-ASCENT experiments cycle These the in had returned Space successful researchers respective for XX. Plant of Maker Redwire for. earth three International our are that space Please Also and from Slide to of Health further known is development ample Materials and in-space on the return

XX. Please turn to Slide

fully end that controlled large multinational the docking having performance to in QX, very the and the and and research associated end resilient, soon the and of missions. quarter by infrastructure, is Redwire's we XXXX, be of International of of system. of designed believe docking testing. systems next Finally, program is the system extensive versatile, low will in a berthing over this limitations designed The and computer In its first round endeavor, a the testing It result was environmental identified spacecraft. of and The the with mass of space as IBDM, and leader Redwire IBDM year. is completed the both the to for with mechanism second space with further system overcome IBDM and space a We successfully million docking global is is and international or fully high space for highly impact. of development an lightweight conventional of qualified our use IBDM pipeline goal generation year the $XX have current remarkable complete opportunities

slide turn to XX. Please

our Speaking totaled of were quarter pipeline, awards our increase $XX.X the second million. an which contracted over for million, the XXXX, first bookings during quarter of $XX.X

last months XX XXXX. times as X.XX was ratio of book-to-bill Our QX

future can of the June and factor on you increased XX.X% year this XXXX since and to Growth confidence a one gives of right-hand last our of us XX has our see backlog of is the backlog side as QX stability. that $XXX.X in slide, contracted million. Finally, end contracted growth backlog contracted at

with of identified our by currently have billion to continue a in under submitted healthy proposals review estimated We and an pipeline million including $XXX $X.X opportunities, customers.

free achieve two first EBITDA we future to Not during and while XX. of the turn continuing Redwire invest cash Please flow positive to adjusted growth. slide did quarters XXXX, our so only in did

XX, chamber Colorado June made expenditures. of as support our have rapidly a in in During capital XXXX, Longmont, for the in as first-of-its-kind production we our Examples in $X.X radio trust expenditures during our space the frequency year-to-date our solar capital investments on period million facility facility. spend test well quarter ending Goleta, growing include business, to communications California

same million, significant the investments the we including in IBDM. $X.X and development, totaling research During made in investments period, also have

flow have made through and systems of a In that totaling addition, in million $X.X infrastructure we corporate the investments SG&A line. variety

at demonstrating plans to is complete, commercialization, focused payload in XX,XXX state-of-the-art orbit Floyd for Technology expected ability Next, and companies in while on our and foot the Redwire support for and improving essential Park for Indiana. XXXX. biopharma Construction in announced are Earth recently investing Once in-space square in low human deliver will beyond. fourth this technologies of the moving the the Campus academic sustainable with begin future. and R&D, increased enabling microgravity facility commercial researchers to quarter space Nova we to flight XX. Clearly, present County, development operations in a a facility slide Innovation center demand mission

turn Financial to like that, to slide Please over Officer. call Redwire's the I'd Jonathan turn With Jonathan? Chief Baliff, XX. to now

Jonathan Baliff

last metrics slide you, about, to with the also quarterly, the last shown Please Similar financial for XX-month financial key just a this turn with other the our takeaways, expand financial update including talked the and information, and brief continuing financial outlook to quarter, I of Thank quantify then that year. help number quarterly and remainder of to on year-to-date, chart, and on will Pete Pete. a starting themes XX.

cash Important as positive gross we profitability flow. financials. to excellence our Redwire's One, execution business on initiatives detail path in operations our differentiated profit, in reiterate now deliver continue and record quarter's to to half our scale EBITDA for quarterly revenues this cash from free and growth points first with promises and and adjusted

record quarter to a net said public record EBITDA contributed So quarter versus of $XX.X increase which $X.X in our basis we to achieved controls We consecutive minutes. than and cost second And becoming let's year-over-year of achieved gross on doubling also This XXXX. a the quarter will million program adjusted excellent quarter since the continued positive before, quarter as adjusted a a few million XXXX. in that's of This gross more a second the to company, occurred the in due loss progress second EBITDA EBITDA of $X.X in specifics. XXXX. of a profit, profit revenue of primarily We second management an discuss million XXXX. second detail of adjusted improvement million $X.X a $XX.X year-over-year year-over-year in million the

last positive a a cash That the first in million was positive in improvement company. flow over million we on from XXXX, $X for of cash year-over-year improvement a Second $X.X and million This the operations. million operations sequential $X.X $XX.X from is of achieved notably, based QX cash as free time public a quarter. and

Please turn XX. to Slide

chart revenue an increase quarter I And as for quarter said X.X% can on before, XXXX million $XX.X this a see for for had Specifically first increase is of the a second from before, XXXX of we year-over-year on basis. basis. you as XX.X% the versus million a and $XX.X sequential a revenue, the on said representing as the quarterly right, stream I of

excellent Space revenue second quarter million, comparable by Excluding revenues NV, our were growth year-over-year $XX.X XX.X% of on a basis. contributed

this the businesses or name the We to government in security space who few. to from in global More national significant in LEO to are areas example, marquee delivering, for growth a from than customers exploration revenue due of backlog. programs were XX% is our derived habitation US the achieve and funded able commercialization of area,

revenue growth year on last months QX quarter's on last QX revenue a Redwire Finally, of from talked XXXX's acceleration last XX grew an about of XX.X% XX at call. XXXX XX.X%, months full basis

to XX. Slide Turning

across NV first this revenue revenue, of XXXX. $XXX.X Space Redwire's work live, million our and payloads explore, Systems half XXXX first focus XX% contributed space integrated mission space by space it the of to with first which compared of half, For excluding recorded year-to-date half or was the growth of Redwire saw XX.X% to leadership. growth multi-national three whether Europe or revenue an areas, year-over-year or be and as Space primary all Redwire enabler,

The from streams flow strength Redwire from revenue on security by this chart and percentage customer shows with first also revenue, type, commercial XX.X% diversification Civil, adjusted revenue XX.X% of shown half the cash the XX% customers. and from national of EBITDA

half, And five times our Of largest the first revenues X.X% of acceleration our have this half customer seen National this versus XX.X% class’s year-over-year Security XXXX growth year-over-year. the note, revenue. of half by XXXX commercial in the XXX.X% first growth grew half almost percentage, in customer revenues and

$X.X on Please continuing path adjusted positive XXXX, as slide continued in progress with a see With quarter, made now year-over-year you improving successfully chart in improvement XX. XXXX march right. to in the million. QX of financial a quarterly $X.X to EBITDA XXXX the steady to from turn this profitability to million Redwire’s the can

EBITDA driven our by record improvement in This gross improvement profit. primarily was adjusted

control, $X quarter to in the second improvement from excellence was basis a SG&A XX.X% of at labor lower better XX.X% on XXXX second gross quarter contracts, The year-over-year better cost the showing supported with by of and revenue, program utilization, profit increased are X.X a margin grew expenses our significant adjusted results, from million. higher contract the roll-off mix, in initiatives $XX.X XX% times execution XX.X%, to margin Our EBITDA XXXX. gross from also better drop Redwire's management, million year-over-year of

we quarter, first on to show Please left-hand Similar flow. chart, Slide move the XX. our free on cash to

provides our reminder, cash on a based a minus operations flow GAAP metric from cash CapEx. free As US

XX.X% a flow can improvement quarter flow On of during second cash you quarter a of $XX.X compared free million, second million improved quarter last almost first As the of XX of million. with months the cash basis, we $XX the see, XXXX, XXXX. XXXX's free $X.X use of sequential of of also cash had positive in

and continues the to But working second Credit for and half management we And Pete quarter $X more million already this the dependent improvement class. solution spoke over one first goes through beyond. and revenue profitability after or investments our be customer this to any growth growth improvements remember, flow almost efficient in not discussed. one management the about of and addition, earlier on capital and laser XXXX this for cash any that is is had effective focused on

June the $XX.X On chart, as liquidity available which QX change million, XXXX. a XX, right-hand nominal ample we XXXX, of totaled show an from our

This ago, Redwire's we and continue to that want much and quarter's through path teams all from to will is profitability, beyond. a of for quarter's continue liquidity I global this results, total a effort year improved XXXX and thank our

turn over XXXX. Pete of Pete? the remainder to a to I presentation brief back now outlook will the provide for

Peter Cannito

turn Please to Jonathan. Thanks, Slide XX.

future, backlog. resulting deliver operational see now strong can with financial strong while and our investing performance pipeline continues you Redwire presentation, future in in and As from to our

our to of guidance reaffirm represents at year-over-year the which range. the year we million, XX% XXXX, full $XXX for reasons, $XXX of these midpoint million range growth For

I'd hard -- employees an and all second that, of excellent thank our Redwire. for and like to quarter trusting to work With Redwire the all customers on for their

We will questions. floor open for now the

Operator

at Securities. Please will question comes first Mike a be of with your [Operator time, Riley from Crawford Instructions] Our B. we proceed And with question. the question-and-answer this line session. conducting

Mike Crawford

start Thank you. like with submitted proposals -- Pete, for to maybe the numbers under and the you review. gave I'd your

June $XXX increase of dexos is quarter? that million XXth, month the at mentioned in first a today. $XX the $XXX million the accurate So, there that you Is million

Peter Cannito

back we'll Mike. that So, I have think on question, get you the to -- to

we year-to-date bids confusing submitted and might versus time certain I be in range period of year-to-date. as that think the it's

But number real see to I'm me quick. here. up going Let pull the

Mike Crawford

a experience Well, characterize to on pipeline going you're potential this this enough into Okay. turn year? to maybe $X.X and you you coming more the importantly, rate point have in or billion like that at have -- win how do backlog thoughts

Peter Cannito

over this The comfortable is change no, I in swings conversion we're A you enough question. number Yes. that on. reporting give opportunities, essentially No, good it's could, time we anyways. that rate a there's has answer big any instance, have to consistency there, conversion were really don't at point, for a those rate of that some

So, work the have over of comments $X.X $XXX to include growth, billion win to here. there's great our for really the lot million? a based you have rate that the seen And think a we versus backlog $XXX you've growth Jonathan, time underscores opportunities on enough against. I additional on us million consistent did any

Jonathan Baliff

Yes, the the submitted I think it's that million, $XXX on those only during year.

year-to-date other been So, $XXX few million, bids, we just had a a cutoff includes $XXX that have submitted. on submitted bids the million

Mike Crawford

you we for was Okay, guess expect perfect. sizable should like mix reasons new the in and that of margin margin the I roll of forecasted the last, I excellence anything quarter these beats with And to the follow-through in program what your a is margins? baseline contracts, And in more forward? of that particular then this and better the et really led execution, is, versus going improvement management, gross lower drivers Jonathan, few But there know gave cetera. a out

Jonathan Baliff

focus the enabling the management, look, and really number you've space Mike, which profit, work let area. trying your across or space do in of and a or saw we last and all or in in but to me always focus saw all here. at basically it projection gross it Redwire areas, industries and program what missions, margins I at seen, multinational, what question in you year adjustments our space basically three call a if publicly nature some not you three look Well, of Look, of you out what whether get EAC space gross gross margins, it's we but improvement give, the international current live help in the be live-work improvement really Europe appreciate

just You contracts saw And all EAC really about better coming management, some talked that that's that year-over-year things before. fewer program new I to improvement. adjustments, the due on,

about talk standpoint about just when control operating mention also the to have and do from margin. of SG&A control, I we don't we cost cost talk

themselves. We also the talk about within contracts

milestones, so us on-time flow a a standpoint on operate helps profit and and from and being gross then time standpoint. cash gross of And from able delivery obviously, both better do to margin

Mike Crawford

Okay.

Jonathan Baliff

help, Mike? that Does

Mike Crawford

Yeah, yes.

of So question, kind the of that was but a great not answering job really.

Jonathan Baliff

to we right? but to giving look, intent not Look, you, progress up, -- we're have tell, also the give direction be overnight, these dropping can We really public can a to leverage this. all you into operating which is past, you just of guidance, company. to guidance, in It's but as Pete's, any then the an quarter-over-quarter, Mike, told margins we it's you the going not see continue money getting the making see don't coming we but Mike, progress. bottom we're management the business back the an And line, the team

Peter Cannito

I'll the I swings. add again, -- is, factor Yeah. the have the in that mentioned some as key just big we pipeline, pretty

for these on swings fixed swings, based these big of be of significantly scale. with profit Some even profit landing plus of may value instance. absolute though cost one therefore, margin increase change the could would gross And fee the the

on trade-offs be a of number an complex building cost plus happens we fee -- you're like the different fixed a there's outsized put gross that for So we're margin. a the is reluctant mix when kind of are of of to one example wall reasons an of programs could a for a and mark profit

Mike Crawford

call of multinational, them are look Pete. of that one for attractive, margin or of I potential there systems, Thanks, industries, areas any characteristics wouldn't you is markets three, these on at I space segments, of most is question focus? And kind bigger different right. one have guess those there picture I closing All space but if addressable

Peter Cannito

each are of focus table. growing effect others. really in something bring Obviously, the faster this the to portfolio it's areas the than instance. They about No, some

more for are provide the occurring that Others future. have civil and really percentages there's commercial Jonathan US market as different saw market, you Certainly, growth as the and security a have number versus national rates Some in different US from scale. dynamics the of you internationally well. important the presented,

the of is resilient, So that come brings makes a way. part of important that portfolio what's I together the whole the really, stable think each really in area to focus growing something

Mike Crawford

you. Thank very Thank you Okay. much.

A –Peter Cannito

you, Thank Mike

Operator

comes Greg proceed question question. your of from Jefferies. the next with Please line Konrad Our with

Greg Konrad

Good morning. I'm going to… just

Peter Cannito

how Greg, are you?

Greg Konrad

not second just the half margins, around is do of some but variability the you follow-up to or least How going think is Just think COGS maintain answer, that OpEx way. at an about around forward. doing? there you the at variability are I different it mean, year, baseline Good. EBITDA. mean, mentioned But on swings, a is got you expecting a mix thinking some when the And a I coming if of just the biggest more spending. on positive we there about line, about

Peter Cannito

it's a the mix, or it's we win and Yes. in the contracts function mix margins, type -- of margin product of terms as No, of the the we really scale. that

the I In of part been intention great on, gross that to a putting to add we've an that's that want of that margin you excellence as to into lot area a focus our do and demonstrated headway terms the make continue ability on our is what to discipline, call Jonathan, thing of continue execution there, we've future. going initiative, and

Jonathan Baliff

that line. But basis. SG&A lot improvement find this add quarter, that on quarter, way of margin ERP the had to SG&A SOX, still a The margin we this a year-over-year I than continue its SG&A in line any more other, Yes. on much The see only into line. is, better thing investments we would

but So we margin our the on it little SG&A But would some I But don't looks and what really, rate try and a them, say not adjustments. one-offs. specific they're down did is sequentially quarter-over-quarter. a do investments run we we really include call had to see that basis SG&A higher, we go some

absolute bigger continue seeing that. to and leverage that comes. see win we're an where going revenue, think -- why that's basis, you're once that's operating you're projects fixed these So But I to that on and stay we

specific intent margin a moving margin On better to better know past the keep future. of the higher really gross delivery, that continue to about being the asking have We standpoint again, programs I on-time this from have delivery, an you're question excellent able margins. gross basis, on-time the

a give -- I So guidance you're we're a sense trying we're We an what don't do towards intent. of but going continue to that's to do, Greg, it, just hopefully, here. getting

Greg Konrad

kind momentum. been the a switching of the guide, then, just midpoint the there's flat of the it's kind sequential to mean year. for I great the outlook mean, we line And supply near-term? top for I of take thinking you levels. Is expect QX coming Just versus it orders in? least Is about kind What the HX are it variability? is it at chain? that capacity? the revenues of you If in how Is

Peter Cannito

Yes.

to and size timing the has do orders. it of orders So with the of

say industry, you award can very majority of a As predict sometimes so about know, difficult with this for the is awards. when, to occurs, in instance, government that would associated it uncertainty be timing I the

Jonathan Baliff

want just the executing. and halfway trying And a but what able has guidance -- be team to done to said, achieve, we've that, be to can again, no, through it lumpy, great in be been proud of we're Pete just job we're sticking We're But Yes. with we prudent. year. like prudent our

Greg Konrad

not much changes But items. one, a the of other bit funding, HX that seen have increase. last is just little I how mean, Commercial any sure I'm some in led the broader there's -- volatility before realm. and you then versus obviously Commercial if around inorganic. in And I mean, organic of

about can the Just you commercial talk trends in broader the business?

Jonathan Baliff

receiving amount hit it, about a mean, talked funding exposure significant I growing a well. but There's their think opportunity enabler there, I Commercial fast. Redwire's in to on is Yeah. emission had customers as news. the lot of you some it and

on customers, us our to trickles of profile as obviously, funding So, down that depending the well.

to Commercial the We're that segment successes lot still But And that will enthusiasm we is as some of overall, well, market. believe continue overtime. around the of Commercial tailwind. a of seeing lot breakout leading trend also there's a

just areas I'll be of the part point as and to about area, National the which topic, one growth. happens on excited growing reemphasize fastest in we're the I'll that's we're accelerating the Security our or area while then, the And out of

of There's infrastructure contracts opportunity in of a capitalize and opportunity has on some significant as Redwire based that And certainly amount we Security well. to our real emerging trends. security think a National those on

Peter Cannito

just mean, yeah, emphasize, nv without I nv And just without to a XX% a know, Space on growth we an we -- just mean first I XX.X% LTM on to as basis. asked specific saw basis, answer Space question, you you. Thank half saw growth.

And so we're making progress. That's the way I can say.

Greg Konrad

Thank you.

Operator

question Suji comes line proceed from ROTH next question. MKM. Our the your of with DeSilva Please with

Suji DeSilva

Peter. all progress Jonathan Hi the Hi congrats on here.

Peter Cannito

much, very you Thank Suji.

Jonathan Baliff

Thanks.

Suji DeSilva

Sure.

The all, some million So just the to a this contracts distinguish of pipeline. Maybe to first want I questions. to follow-up multibillion-dollar submitted the versus of of try the ask in is pipeline. $XXX

uncertain does give some the level of that most parts running refer of Jonathan, the timeframe for back understanding award, And to you proposal, submit should of where revenue the are when or one kind the prior that you I is comments of the line? your here,

Peter Cannito

the timing the No, control Yeah. we don't of award.

can be being variable. resolution. highly it So a are for late. It awarded be continuing notorious Government can contracts

the a protest. a awards. that goes be can it into Some of these lot There's timing

So to difficult it's very predict.

Suji DeSilva

again… And

Jonathan Baliff

Yeah. just note… think of I

Suji DeSilva

Go ahead Jonathan.

Jonathan Baliff

last billion. I'm billion million compare from it up moved you has $XXX to to when pipeline quarter, the $X.X making No, almost note, the just $X.X

we predict. can as But think long coming hard something that about more through what Pete about we is timing and the pipeline. we're and be said, the So prudent seeing

Suji DeSilva

Yes.

that a next to that you that reasonably contract within about just question one will mean, simply. a not is or more a submitted little expect is when ask reasonable it? the the it months, be So think XX way a I awarded

Peter Cannito

has financing. customers as deal that to their So have things number I as that would just our include commercial well of government repeat with a they to the

difficult We've was excellent on to Yeah. the We're predict. think very that. to in I'd our something, on it's proud Yeah. if growth I backlog. had of mean, would focus I very to backlog. So try I going focus

in look job customers that Our future. the I that's team to confidence that an reliable into the increase winning where moving backlog. And has of would to terms done revenue of extraordinary in our

Suji DeSilva

maybe and That's a understand in to a the observation. focus helpful, the may you have been and Peter. a offerings part security been have about be on you to There's last few lot of launch less the kind Redwire's of of highlight, talk, I just execution on question, second Earth of may And want do It's national great been date security the about backlog. business? you know, highlighted sort to national quarters. because little satellites that been, can,

what opportunities So be curious there. the are

Peter Cannito

that in, we it's, portfolio allows have in that more to mix products and clearances so board. quite much contracts our it's from have has to elements What contracting that you and RedWire personnel I have market. they're on interest focus unique you much that you security and have part as the business. of would I security in offerings, participate which across across national segment of would that documentation the Yeah, infrastructure on not frankly, It's entire contracts, the if we follow classified specifically government those the list know work, interested because focus have industry, pretty our is you

the growth about talk programs. you Does sensitive that most has you of on to ability will, reflection it's that when think that I space company accelerated fact of see a make the growth, more some the and to we're accelerated when in trusted government's I barrier So that entry, the of terms work if a the sense?

Suji DeSilva

know, or how are customers? understand there that I'm a roughly And years understand the cite large XX%, presentation. customers It's maybe you change there? help expect customer just data Yeah. that the point next marquee then or of that in in emerging helpful one And across to you curious, lot to XX% perspective. you kind of Thanks. does two a that you lastly, diversified make to that maybe is government Absolutely. just us the the cited very could can could stay grow

Peter Cannito

the but to jump because last part get first. let on that, repeat I'll part I ask first didn't totally you me the

really terms all of you is potential pipeline, is a exciting to kinds impact that that and the if growth. things the we one will, an have which our pursuing of hit our I that are area sometimes wins awesome swings large So can in outsized the that of talk have about the class of in we're to are know, like really right? the big you mix, on particular our our above Redwire, business things in You these fueling because have of about Redwire base, the weight opportunities that exciting

security. makes different gross there. make any bold a fee of of our We the sometimes idea one at it or cost very large your it about in like even be or segments sometimes the of fix this different margins I time, could variety that However, mixes win same difficult predictions change national plus to a as profile referenced may growing

So where security you might single large the -- increase in in numbers. segment, commercial win smaller and the might have say, compared the of very except space, could wins you for in an an dollar national have say, amounts civil change the a to, these number or instance large that again

the like mix. we So,

lot different market most across all us that I what and successfully, resilience these operating is doing. stability important of and that think gives we're of areas a to the thing the is us regardless

great one excited down over due slows growth. are is really stability there. increases is have particularly they national areas Europe their Sometimes, always to associated Civil to in we capital, the the growing really security commercial with there. maybe when because budgets we're of about access

about portfolio to? was and XX%. that of What understand earlier us well. as half about the So I in the the question that talked I resiliency additional reference stability effect second that in didn't gives

Suji DeSilva

one customers I Sure. whether two dominating already Yes, you one it or customers there's or was relatively… Peter, think said you extent. I portion? remaining XX%, many large that think it's The smaller across answer whether

Peter Cannito

Got it.

Jonathan Baliff

me on customers the that that at for, get going I'm just when to specific about government we're because I how we're and current XX% bucket. look you -- you bids to have mean, are Let bolt and that marquee doing you pretty into that

are when $XXX too, There's line is right? date. And that year, really adds there But actually residual very to The the you XX% other look this XX%. many quality them a was too, still bit XXXX XX%, those are large to that of XXX, little these submitted the are of out bottom that coming of million right? the customers, at of very, customers, bids

Suji DeSilva

details. Got the Great guys. Thanks Appreciate it.

Operator

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

Peter Cannito

everybody Again, that's we're time like excited really you to thank team trusts NASA employees every day. all those really I'd like and and great for the quarter. launch incredible Thank Redwire. and roads like Mason we're we us program pads customer about at for really another all to a outstanding Redwire, to do everyone's program much. here questions. when I mentioned, you, for appreciate a the I'd very Thank thank moon. like what exciting for build we of our the today, work Like the customers Go and with and on listening. thank

Operator

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

Redwire (RDW) 8 Aug 232023 Q2 Earnings call transcript