RDW - Earnings call transcript Q2 2024

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Operator

Greetings, and welcome to the Redwire Space Second Quarter 2024 Earnings Call. At this time all participants are in listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jeff Zeunik, Senior Vice President, Financial Planning and Analysis and Investor Relations. proceed. Please

Jeff Zeunik

yesterday and Call. Welcome seen Investor We release, we Latanya, Quarter Redwire's our Relations morning, also which Earnings has website XXXX hope issued section good of you, in at to everyone. Second earnings been our Thank posted It redwirespace.com. the afternoon. that you've

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

in and forward-looking on more are described to that Our detail risks X. uncertainties statements Slide are subject

Additionally, please and Vice extent GAAP on their of we of President Relations. the earnings the to calculation discuss the and and Senior presentation non-GAAP see release, reconciliations. Financial Planning during I measures our investor Investor our the measures call, website am for Slide Analysis Jeff X, these Redwire's or Zeunik,

me call Joining With turn Executive Pete? to Chairman Officer; Financial and I Pete. Jonathan Cannito, the would Chief Peter Officer. Baliff, like to Chief over that, today's and are call on

Peter Cannito

Thank you, Jeff.

During to will take of a we the Q&A. in then key after through today's for same call, our present turn period, floor the quarter will Jonathan open the XXXX. Please which I financial discussion Slide accomplishments highlights second X. will of the for you

delivering delivered this again second strong year-over-year our during performance which revenue positive awarded. excellent and The we a of year once and quarter contracts growth quarter adjusted continued quarter. in first momentum another was for while EBITDA We Redwire, bids from submitted positive the

X.XXx. in negative for during million. $XX.X ending We had for had adjusted a the of a net million strong XXXX. note we in as We the value. the was million had quarter XX% of XXXX. these $XXX We strong of increase LTM which quarter, impact of fair while throughout includes revenue, a quarter, due provided corporate or improvement of months new of positive $XXX.X XX, with second the million finally, production $XX.X quarter LTM loss $X.X achieve net $XX.X contracts as private book-to-bill cash QX operations XXXX. in technologies, a June warrant achieved of awarded $X.X It positive liquidity million capacity an financial And by last the were had XX that able maturing and the quarter of the expanding to We we million of important in investing first During over infrastructure It's to simultaneously another year. EBITDA improved half second we revenue. results to million

near-term X. Please with balance continue outlined framework to for a performance. growth. to long-term turn we our Slide Redwire's results strategy We Each growth quarter, as

flight to plan demonstrated around in proven XXXX. protecting Scaling products of demand. reliability centered growing orders production, the on which and meet XXXX is our momentum means our about continuing foundation which it deliver winning is the growth on larger key increasingly core, to with and Our delivering principles: X existing continuing of strong heritage, means successes

next-generation spacecraft chain. that space capabilities to the means payloads. markets with optionality, create which integrated developments and leveraging and potential. developing in Moving could proven This game-changing new and up technologies components advanced venture deploying value the breakthrough mission subsystems finally, on means And in pursue our continuing

core an the growth up value discuss these I'll from next growth examples moving of the protecting our look the Over areas growth quarter in to turn X. second Starting the in-depth few slides, with area. of area. chain Please including successes each key our at Slide of XXXX,

pointing, satellite critical and to navigation, these GOES-U spacecraft navigation critical the a will and solar used Agency in Redwire's supplied MANUS on and our Argonaut on is enable the developed for of positioning which develop weather space part operations Sun the guidance is a release second deployable Robotic Please the monitoring. called have logistics structures and will and contract operations are functionality to the imagery quarter, which proud crucial avionics subsystems activity offering, and National June satellite, our of offering, control launched provide to and be quarter, and to Oceanic for Lunar includes system turn that come sun a This Redwire the and core components. control fine that the facility launch XX booms MANUS. for is During lunar intended sensors for Slide fourth such and prototype by provides X. mechanical supplied sensors our objects lander. components Administration are offloading, robotic on-orbit Redwire and to surface, berthing European and core docking infrastructure for and Lander was Atmospheric Space as awarded the which has of GOES-R from collection. arm core sensors family during of at ESA's Redwire arms The from precise second Also, includes variety retrieval systems. sophisticated mechanisms which Luxembourg mechanisms

order Thales Looking announced satellites, solar this Space, quarter, for Alenia at another growth principle, array space-inspired rollout the newest company's or geo-telecommunication scaling line our ROSA our of we product production satellites. Wings for

generation antennas for more multiple our and that solar this payloads generate of on for that XXXX, quarter or solar execute additional development Antennas Our offering, arrays growing XX. XX location. includes which XXX revenue has has recurring systems space-to-space systems our of the arrays continued and with size a the earth in communications. and space Rollout enable turn Redwire Throughout fall the potential. operate antennas was power core participation to space missions. are includes offering, power to regardless within which second and frequency systems production. orders part government Redwire of on power radio to Please that Slide than to flight antenna initiated over delivered project and core is last the distribution necessary the business additional year of area systems underscore

in used live amazing growth as live a heart effective our could XD future. tissue to our damaged quarter, BFF, or printed eventually tissue in starting patches using of the be bioprinting human heart the venture micro heart In and tissue successful second with the to Turning optionality personal human International on continued facility principle. gravity, we more bio-fabrication breakthroughs to heart Station. medicine Space door treatment for the create the opens XD our

pharmaceutical that in the to analysis Earth. mission, designed vessels the print in space. Also XD On on BFF Redwire various molecules next our in with PIL-BOX from second plans Butler successfully crystal X examined Station human University for quarter, partnership for blood returned use the Space International experiment

These the International Space our flew additional on to now In resupply new investigations addition, board X investigations launched we system. August have in NGXX on Station commercial drug the X. manufacturing PIL-BOX mission

new turn Finally, excited one mission expected to XX. Please launch small a drugs we year. bone ExesaLibero disease focused as on molecule company Pharma, also our this are developing to upcoming of later commercial partners to treat to for PIL-BOX announce an Slide

Otter Research on value we the SabreSat flight defense few like in from leadership achieved providing Defense our by prime the Projects major developing Next, into Advanced to chain or up of focusing Agency, and VLEO third in-depth with moving would on following slides, the Redwire's on award In more enhance milestone the a program. contract DARPA, intelligence a to strategy our the I VLEO principle, operations. QX, provide a look in capabilities and

that And while drag to the requirements. the will material and is considerably in close spacecraft opportunities satellite unimpaired resiliency, anti-access of overhead, rapidly Europe. platforms a atmosphere, revolutionary DARPA's the operating the defense higher significantly for for by optimizing SabreSat mission as to novel This a a and the spacecraft Otter potential responsible orbital When breathing Redwire and to Proximity, spacecraft rapidly move to self-cleaning challenges and and gap of above VLEO, intelligence in air twice in VLEO more X are both validation up airborne can satellites additional provides dynamic more prime therefore, untapped air the bridges debris fidelity ceases platforms is resiliency and to Phantom operations, enables use ground on spacecraft of orbit are Mobility, to drag, greater orbit United deorbit within VLEO demonstrate systems for orbit atmospheric below will rapidly VLEO for operate, while optimize at operational the provide operating environment from their for operations. the development first operate the LEO, a closer in over better and Low such in providing following: aerial full-scale that as observation and VLEO's this increased spacecraft electric action the environment as to and satellites has in resolution a will earth in the bring program, As unmanned the an complement gives Earth by sustainable lower to defenses Very LEO and of maneuver providing positions operating performance variety the VLEO into a systems These and between by area-denial lower overcome mission major to communications. designed that satellite a and therefore, Earth earth's threats propulsion an operating VLEO strong altitude, VLEO VLEO. signals the in provide is market. the operations concept to space advantages, Orbit integrator cost. and reduced environment able VLEO from observation atmosphere. strategic atmospheric performance issue. that in time. the and burn drag communications better States in or to sustainability, Redwire including better

the the including for Redwire exciting VLEO to this prime and DARPA, customer We This the to critical chain validated reception, offerings. advance a award design our through has our have further Prime and flight this very from domain. new of movement of our received provides in market SabreSat with Flight positive contract Program program value funded and

for Skimsat Redwire's mission and full-scale operating earth program to for in aims our With first With untapped increasing orbit substantially that States XX. concept abroad, study We in The was Redwire lower that operations SabreSat the at selected operations, United announced award at heritage, study announced testament to VLEO in March our platform Slide of second program. Later, program in power contract Showcasing our VLEO performance being been this the by our XXXX. have of And out working Skimsat office. to said mature both a developed the cost Turning announced first the the unveiled from XXXX, a our And Space time. Phantom design. for Phantom have we VLEO observation satellite platform spacecraft to then while of for of heritage/innovation the May. transformative and for is in X our reducing altitude. European award, our the XXXX announced Agency was Belgian first the is June we telecommunications during strategy. May and potential to our we this we program bring are platforms as of in Skimsat before, extraordinary. this is quarter, Otter

contractor, will building advancing the for prime technologies necessary be the project. leading and As responsible the and Redwire team bus, the for integrating, coordinating critical for the the mission SabreSat

up As Slide Provasatellite. Redwire's With Phantom platforms, the excited XX. X now Redwire operations spacecraft that are turn development and system of the satellite and SabreSat we moves offering positioned are growth. Please to we International value that for expand future include full well chain, very Redwire

Now and turning awards to contract our backlog.

excellent in quarter sequential of This XXXX to during quarter. It million. for increase Redwire. were was awards bookings contract bookings last XXX% at an compared the a second $XXX.X is Our quarter

second ratio quarter we continuing an growth book-to-bill see months but XXXX contract are awards growth basis. a X.XXx lumpy was XX annual to positive from reinforce, the often continuously we for rate last of on we quarter-to-quarter, Our as maintain

of in of slide, in As future you growth. factors that on this has side The a to total contracted us increased backlog one contracted backlog million. of confidence XX.X% can gives see growth lower is our year-over-year right-hand the many our $XXX.X

proposals we to of $X.X June healthy an with a continue year-to-date XX, pipeline approximately have identified $X.X Finally, billion opportunities, XXXX. including billion submitted estimated in of as

June in growth this increase right-hand significant represents the slide, opportunities average our corresponding to increase XXXX. period is size of we the on upper a XXX.X% see can of individual efforts side this XX, you year-to-date of over a of are pursuing. result the the This ended As

in programs more For award individual on value cadence. $XXX a example, we on million-plus are now bidding regular the

opportunities. substantial there of Please a backlog a we XX. like the Baliff, some of these will that Slide larger now result Although to turn land Jonathan call bids Financial Jonathan? win Redwire's have in we if no is opportunities, I'd over Chief can that, in to we to Officer. pipeline now With increase guarantee turn these

Jonathan Baliff

Pete. you, Thank

the and spoke on state-of-the-art facility. the cutting-edge Redwire's the results, this within it highlight to to groundbreaking County, square in in quarter, turn Floyd space. for like programs operations foot Before our payload I for and Innovation biotechnology Nova an which space about outcomes microgravity is facility and This investment slide Technology Park Indiana, ceremony development photo the I'd space located to making last financial of industry the supports biopharma in campus locations is possible achieve that Pete game-changing XX,XXX

Turning to Slide XX.

half which revenue entered its was positive we of for second of XXXX second quarter year. demonstrated momentum Our million. and the Quarterly with first a quarter this record a $XX.X results

in achieved also EBITDA the million. We positive of adjusted quarter $X.X

one-off QX value as items you of EAC quarter's and in that significant slides, $X.XX this with growth XXXX. more submitted a basis. see $X adjustments second which the associated the $X.X bids of in subsequent on of loss, this for we it impacted a warrants loss impacted drivers as share quarter bids This EBITDA submitting left-hand a change on in or the affected per discuss the net by but adjusted total box, also page, basis $X.X will $X.X of negatively million fair second quarter such note was also On of million. year-over-year other in billion billion our can lower of We noncash by experienced backlog in was

of as second results operations of we XXXX, million our cash Finally, use be during calls, quarterly on and although previous had the can from cash quarter said we lumpy. a $X.X of

increase XX million basis, cash last in an look a year-over-year an of operations from achieved LTM we on $XX you when on So basis. or the at months

LTM demand clients' we to as quarter talk $X.X global and million, the our as growth the These satisfy space cash to for to in As operations in Slide and a this quarter Redwire turn second team growing infrastructure. our and we're of about level from commitment results a are for second Please to result, of was positive members allowed XXXX. increased capability fund going investment attributable confidence their XX.

quarter's Specifically over for year-to-date million quarter highest the a chart XXXX. basis, $XXX.X first increase revenue a of quarterly on the the as and was revenue, well half history. June quarter year-over-year Redwire from as represents and this record in represents revenue increase as company's XXXX second XX.X% for million the right, basis of XX, of revenue XXXX, see a both as you second can $XX.X this a XX% On the a on is

resulted $XX.X increase And XXXX to LTM many XX.X% revenue, million XXXX. a as of expenses contracts. turn name leverage was programs quarterly EBITDA adjusted $X.X excellent and from XX in similar in revenue On exploration by past these quarter meaningful drop previously Redwire XXXX. proliferation These was Gross was QX second EBITDA million XX.X% funding the gross positive the results revenue cycles Offsetting in were EAC These continued required has basis, to Please backing Slide to $X.X and by control satellite last achieved during of security, the XX. adjusted of million meet from XXXX, just customers derived declines, a driven with by at in quarter. customer basis our XXXX gross XX.X% in second QX government in delivering from million to requirements Redwire's largely backlog areas adjustments in tech a results unplanned and during or from a year Redwire on last natural solid the Finally, in and years, performance achieved supported million impacted EBITDA global SG&A quarterly Adjusted a impacted more our quarterly or margin. are were months $X.X adjusted quarter. cost scale of of for marquee than on in and from $XX EBITDA quarter primarily second profit margin gross by space to gross adjustments the of the design XX% QX margins LTM the operating the with few. basis, profit XX.X%.

the a in and lower basis, to operating the tens growth SG&A continue business support and scale the to innovation XX. second turn much of we create growth leverage and global to year-over-year benefit on drive make that's Throughout of we continue Please industry-leading We in with revenue in. large to revenue about spoke kicking millions quarter, scale. Slide dollars increases of and investments

of development During the in through $X.X variety period and in plus a we capital investments other year-to-date June through million made corporate the internal SG&A research XX, million line. XXXX, and expenditures that million of mostly flow in investments $X.X $X.X

now levels our risk chart, turn left-hand perform on demonstrate all the financially growth, Slide high last while to to free reduction investments to profitability, liquidity. to future flow. continue and cash We for quarter, operating while Please Similar and making XX. also ability we of show and maintaining

reminder, U.S. cash expenditures. operations metric from based our a As a flow free provides on GAAP cash minus capital

XXXX, was was second quarter million. in of $XX.X operating the and which also For use flow, a $X.X of a cash cash million free use net activities used

on last improvement million from activities quarter LTM operating this of achieved However, $XX.X activities to used net an basis. of $X.X on basis, on XX-month LTM basis operating cash a a provided we an significant have million in cash by

of And a represents right-hand year XXXX, another forecast. the growth $XXX of as As annual with $XX.X $XXX equivalents our year-over-year a XXXX. We cash we rate. a outlook strong which June of at full $XX.X for XX, June revenue we XX% delivered on On to yields million, total XX, see Slide year-to-date remainder quarter XX% discussion XXXX. as the have performance. a revenue guidance XX cash of result, for a of achieved reaffirm million brief basis, this turn XXXX, you XX.X% can in million million Please increase chart, available on liquidity, for over and available the

to to program to initiatives, Pete? continue and we our presentation now through reduce more path final creating over will provide and EAC on the Pete leverage our on back remarks. profitability. I excellence to improving Finally, management focus efficiency to execution operating while and volatility brief continue our cost the turn also

Peter Cannito

thank want to Please this their Jonathan. With I turn to to all results. Thanks, quarter's that, team Slide XX. for Redwire's of contributions

We for open questions. floor will the now

Operator

you. Thank

session. now Griffin Our B. Boss comes a first Instructions] question question-and-answer will with Riley. We [Operator conduct from

Griffin Boss

me, start left for the on to I you just first off guys want off reaffirmed guidance. So where

implying half first the the given had in the I second a big is benefit softer know, first With from beat I'm bookings, guide quarter surprised get Can perspective the outlook And obviously, I half. items. you view just top of in guess lumpy results there? long much to you back the just a the muted on XQ mind, then line, with outsized But expectations And lead see that the versus relative for your elaborate back half half perhaps the half? margin the year first to in strong on outlook the of how year.

Peter Cannito

Yes. your question. Griffin, thanks for

So set million. the associated had I Thales mean talked wouldn't we've about on ROSA how some for quarter, material a the contract. I with we the call plan we And year it lumpiness buys muted. $XXX in at first

revenue we're plan some where be year. the of and like to But run for the added executing first remainder the result. against with that a our year, So time we quarter are the associated as that won't regular we

revenue Goldilock's team market constantly of that that, constantly doing strategic maintaining growth effectively think When we're profitability I what for I investing liquidity. a and is like so future of the think balance, about And I between while and a you is level position the an really balance strategic emerging prudent good what job what is our finding think in doing with space, call company.

sure we're ability continue got $XXX trajectory and our the our programs balancing Beacon to our our as make well deliver well. have for time, growth with on we're we at that, So that a do on to to that year, plan same we as investments while million as

Jonathan Baliff

it's Griffin, But XX% going, growth year-over-year. Griffin. keep

Griffin Boss

going color. and the to going then adjustments I again. to appreciate understand I'm the it's Jonathan, but what relative into to obviously, you're meant EAC just And no the I first half, I come surprise, dig as saying,

a in where give those a You that the helpful. can one more second color coming mentioned the And several, was it bit from, primarily just on primarily bit, but would quarter? adjustments mix be there you little program whether it little or are

Jonathan Baliff

Yes.

large I'll the when talking small bit I consider that This not a we're quarter of able EACs one at we're of on really still again, about at number it look we continuing so is than you'd in And to over things, year on percentage Pete's in basis, this for what And from spread and basis, adjustments little year on this contracts. last work these of percentage revenue LTM to smaller more was put have There's a at, we're let to place. percentage balance Pete on the contract. deliver But a and year. the of being contracts a to looking doing a year, number it basis about some was Yeoman's talk larger look doing an last a basis clients it. being

and one work impact wasn't move to us. on it don't focus cash continue any to on again, that. That's things But other you see a be to it. we contract. has why a and our improving profitability SG&A flow area forward for continuing So continue scaling. on the We're it We believe like big

Peter Cannito

this to we of XX% had year-over-year And So idea go back I'll balance, right? strategic growth. Yes. again, revenue

and You that on got accordingly. expand execute to

bumper of to it way a along at some So might we're technical say, year-over-year. you're a comfortable growing industry-like as in total the run hard revenue. with into highly But when is small where you're going complex percentage XX% space,

team our that and So with the balance levers, out and every myself execution, on working kind we day. Jonathan, that's got of the exactly operational are to revenue growth

Griffin Boss

broadly, more presidential has particular the I'll one And interest and the conversations been election we've back for having. topic of U.S. that a in Maybe been and then last obviously, me, jump queue.

industry implications safe of say Redwire your for probably administration Republican to funding, general. in the directly hear Democrat support and speaking, handicapping the there's would but generally love or think to a for maybe space bipartisan I thoughts you're on it's how

Peter Cannito

it. said, believe not we question. bipartisan Yes. you imperative. No, handicapping We're space a interesting is really an Like it's

swim security. staying in is are must-dos, that focus like Our the lanes national

fighter on or as everybody I These in invest also going from to who that of administration are think it fluctuate things a our comes the for in. I'd XX% emerging an of those previous talked but to roughly quarter-by-quarter. overseas. calls, country X/X that domain. have war order, we've about regardless that But tracking are fair space remind is or revenue amount

So our diversification, in about the one times of as who's resiliency numerous sitting biggest terms talked strength we've of ultimately of is regardless in Redwire's oval office.

Operator

The next question comes from Greg Konrad with Jefferies.

Greg Konrad

to I mean, start more submitted between $XXX with called up maybe you just your that just and within more as government out number. work Maybe step the submits? billion programs bids. this commercial you're million-plus mean color where about more thinking you areas noticeable $X.X trends versus any seeing I opportunity in

Peter Cannito

mean of a it's coming from, in terms I mix. Yes. where it's

across all opportunities market the scalable different there's of So segments. targeted

it's a things. yes, So mix of different those

we're going part in existing up as our XXXX know aware our constellations I growth scaling and of, production, So these of chain, orders after things our to right? value the principles think for continue to projects, scaling take you're tied So the root these of as moving marketplace to that the directly scale. start I larger production quantity flavors X X predominant core of the right? of

full contracts single the as and the full program to be getting we to scope because size mentioned, when a start programs As spacecraft doing subsystem. the that tend ilk, you of for you're antenna just they prime bidding larger of instance, opposed work in

Greg Konrad

seems the touching step-up X data items, be the of venture maybe that on of to portfolio. around portfolio. a just there X/X continues of points I kind positive and like then monetization that And you It of timing early and being meaningful of given think path the kind that of mean these some market? in to the items you're increased the about seeing how really optionality do business just

Peter Cannito

trailblazing Well, mean so we're we're optimistic. here. I

there context to lot a make to on timing. lot a of and make predictions isn't of So data

characterized one-off hopefully, we and in been able could result. particularly PIL-BOX. from as regular So emerging lot in of a production-like area, don't what it's experiments moving there's But more we've be towards this a cadence to quarter-by-quarter, articulate of as activity, momentum an

is and So an an momentum both analyzed investigations in as what to really do for well different partners as builds, doing. diversity in we're orders encouraged the data interested outlook with continue partners repeat that by of have working as and optimistic we're we existing to more the from us. number the And are increase as

technology. predict refer that's to the as the So really But results. it of lot qualitatively, we due nature again, venture to we encouraging why And first-of-a-kind trailblazing a to difficult optionality. have of

Operator

Our Kinstlinger next Brian from question comes Alliance Global. with

Brian Kinstlinger

that's $X.X submitted to submit going impressive the quarter. maybe And accelerated billion, average You years rate capacity? the about you continue last at proposal proposals in X the whether smaller win I you're talk talk Can bid about assume an to second between an of different pace? and large then over versus proposals.

Peter Cannito

break it our win don't, we result, as down. So on don't rates, the last part a report and we first,

being highly early not sure historic would market. Of and data dynamic relevant over time of be past emerging period our growth. this an part of course, I'm during

growth that I in the you in in XX.X% backlog think year-over-year. see is results key the terms of contracted

it's our a function right the important wins capacity anyways value that you of it's we've that bids. individual big continue move bidding we individual it's chain what way like of production, And that's us, right up is have, less to that of percentage size the the and average increasing been matter, increase highlighted, As perspective, and to we we're the on. a the from and wins focused

pipeline up, and see as in bookings. of from what's potential So quarter-to-quarter, encouraging towards that future we the but bids number varies the goes

Brian Kinstlinger

from can capacity I mean bids deliver, increasing winning, if ability about you Sorry, I capacity meant but I and how some keep facility, know do deliver. to you your you new have a sorry. think

Peter Cannito

fair Yes, yes, question. yes. No, that's a

we going if bid, strategic of we When the we balance. we into here capacity the again, of happens have planning the really sure that back should into idea what do So at a win to make detailed level awarded the to go that a program. be ready we

or the associated feel of that we actual the we we're plan on time get capacity selected, will capacity to we bid. our if bid as submission that attaining pretty comfortable the the timeline the execute we submit So part with the by portion to have

some up really the a that simultaneously So for with ramping for of would instance, then period allow physical large may design start site awards as initially well. production

have So on submit part it's that go ability one of and that a review we we do when bid, have a day. do is to internal work that and strategic we process that's to detailed balance we gates pass execute, we ultimately for every the this of our to the

Jonathan Baliff

are to want we do you're I about. of obviously in get submit of, past, bids. vast into we revenue, not take the for When CapEx to the achieve Brian, question included these a and contract of these our do compared again, able the securities of mean, We've our is do our stayed that. I But bidding account as our not we credibility low to or it past said, these to like talking to a the pay anything majority of of low and because lot strategic this be delivered to that most million quite any the capacity part we've on that bids, the we fairly in And element over talked of to $XXX if believe years. sure to financial costs clients to we need get we're covering guidance, costs. make issue That seen costs deliver. number we've to revenue And the that the about is,

Brian Kinstlinger

it's Jonathan, a you been for relates question last bit high of the X variety other a it's my mentioned to contracts. And the quarters. then EACs, And

strategy I'm the Can fixed to going capture how contracts this ensure appropriate curious little So your forward? a higher you pricing margin? impacts price you

Jonathan Baliff

Yes.

there a right? we're And customer. to on product new more it some on as our at a financial you rapidly, gross with increasing focus a aggressively -- about, instance, about on measuring basis, revenue that's I'm And and really things are, the your strategic that's from the So products of and what because operations are have we're time, margins. or talk strategic a operational in we where right? as you out moment every execution, some snapshot a goals over line going look balance really we breaking some see we cash that you moving perspective we to mature more if balance more strategic just about implication an example, positioned the that where in why operational bid increasing what of with as in is that strategic the execution, can new you context around, it or that effect, focus like where for gross of maybe as bid because look quarter-by-quarter talking So So a level our us grow an important portfolio a it's introduce challenges to you that's that LTM in at that balance growth. we got then is into it

is what of you're a bidding we're reflection think strategic seeing financial are time, well a how in some basically snapshot to just the market. balance these I as So as and of positioning performance in

Operator

comes question next Cancer Andres Deverall. The Fitch with Sheppard from

Andres Sheppard

back, maybe ROSA have take to Congratulations progress. on a the key make asked. step A great quarter. our continues to lot of But been questions

solar we kind that that supply getting to of some the disruptions. continues feedback experience Some are chain is industry

pricing maybe latest if seeing there, just the what business. solar maybe So you're share your for could wondering you

Peter Cannito

experiencing So always has we're rate that is don't Supply not where only. disorder specific being executing. we're I particular be something think it's managed. chain it to

top solar solar arrays. put of your Of aren't arrays course, the run house our mill, on of type

of of a Redwire that from partners those chain pleased have supply are perception sitting, growth So And experiencing. strategic and where I'm chain. my ROSA supply very with the the is we growth

there we're bids, these And showing at have us. mix up look ensuring are to with along we with the grow results numbers. when capacity the in they that suppliers, the so, in critical the And in

Jonathan Baliff

satellites or Andres, the that demand because product there's -- relationships, that's real energy our start unique amount you're spacecraft our that view opportunity, an seeing for needed obviously existing for of expansion of project, when right, you specific or an strong we as seeing technologies. of that

again, should get you chain capacity that our when and obviously expansion, supply so, to that those start seeing then And able have to, you we that to beyond. relationships assume be in

Andres Sheppard

gears the are It optionality. year? missions us of and this the placing line this your more you long next over Maybe How maybe throughout Can one big as to for just seems just time switching core it's more of becoming an the on venture you PIL-BOX focus. remind term? emphasis

thoughts and there. just your curious time on line the So

Peter Cannito

Yes, a it's good question.

another just we So launched X.

of been trips And a So that's there's lot going of ISS. a for to keep around course, us the headlines busy to while.

so continue successes. we're focus that more bigger to we've we able target it's year. that more And been items this achieve far to becoming as on and yes, So operational I with think same the exhibit so I a agree you

even the putting customers, dollars though millions partner We're to their own these, with license we like get losing millions a on it's a or of emphasize, working These target. venture is have to is call venture ability I'd and this with But profitability hit we that up. these a optionality. early and to associated domain, still crystal not come -- and it to ultimately and they IP, potential in revenue real from So are our and days. going

to for at on from really pharmaceutical we it's to is and idea hopefully, turning think, product the contribution as point most being market crystals the level say, of have for Redwire regular, And start business to production that are what at up well, just in a revenue a of terms we're start momentum would not in in that really And out. years, yet But I you what level and great ability regular that's in that pharmaceuticals, just to of turning life seeing out year cycle in cadence of So have excited we're able and really just a about. the those of this these orbit, predictions. making lead space that production putting I what is is cadence go being it's not at things applications that terms the we're nexus experimentation to to the number on other pointing level this tempo. at

Jonathan Baliff

prediction in disclosed obviously X and We the went there up. XX that the additional you XXXX. be just is mean, missions now that have PILL-BOX we I would gave

results. last drugs really because, proteins, PIL-BOX development, the these it's our time which of accelerated explained again, continuing We're last this development clients working, our quarter. experimentation. were themselves. not is we this the again, But cadence right? It's development getting that we're The it's great So partners, of year, we investigations started talking about

would So the we're biopharma lot decade of And XX been of thing thing last on investment the and this. million I parts say, over those investments in personalized the $XX Andres, track in other of for million. with a medicine, is this only there's other PIL-BOX and

$XXX that we wouldn't optionality. that $XX you terrestrial. believe But also are just in but conservative their We said, Where have from medicine we've development these and starting about our already to been cycle. contract year, we're Obviously, how biopharma got others come million with in this the for of forecast to about to how in in benefits. now very manufacture going we million, investment venture we models part a it's invested mimicking said, both if now talk in Pete pharma and We've dealing reap business venture talk the we with frankly benefiting being the space like investment personalized didn't. and new are starting So place, space that. that it. of we're But revenue

knowable that the now like there University. apply a Lilly a Butler clients So space, frankly, model to will or same Eli is but business that's

Peter Cannito

Yes.

really I think Jonathan important. is highlights what

really the major right? with just production. we're venture if generating that life the by organizations where any have that look want getting at at you to We've you cycle of aligned We're imagination. of in the what a are typically major moving into stretch losses experimentation not tempo, is comes we around this not a the at revenue. looking loss from It's product venture to or way it opportunity this competitive the investors started, look understand business, of you If are aspect are the -- been at competitive

the of starting and I are lot have to out market. prove a think we excitement

down the we're real at So terms of to start business, embedded if in valuations and to you the is who how the with that Redwire analysis the potential. this turning this this into to those you just the option are in try associated area are applied into a you and getting segment look associated at full further being with see considering stream look that value

Andres Sheppard

last able any about the might I if the the color be obviously, cash with? all Maybe color. Jonathan, free don't quick. and Appreciate guide it. could one, for squeeze year one next maybe it, should there to into really we that but you of this I year? provide flow Got realize, us think rest how you

Jonathan Baliff

we're give I color of just give let's a aspects multiyear the this of operations question. give this flow some One, X, I cash just to profitability. First I'll you appreciate in least operating won't very or cash of all, free you your answering own is Obviously, path at proud to on context. flow. teams. exercise say,

just we one So any look don't quarter. ever at

that invest. venture or moving basis the that's We don't have of this a operations We to to cash to disclosing adjustments, cash any tendency, such from and generate investment able able or growth from value we're it's last our in focus be number a strategy as LTM are And up optionality. be that kind make quarter's operations. quarter's things chain of includes to

a I like we've lot. again, invested in that said, Although, already

talk that full million can a LTM gives bit basis, more from that in on cash doing. we you which see operations, $XX improvement we confidence about us when our invest So a of we're the what year

page technology. types SG&A coming associated are have which on why creating in on of been primarily global and of in has those also, investments We our But basically an the with LTM it's technology a percentage is basis that down the revenue. commercializing scale,

other the And invest. to the to prudent which piece, LTM basis, structure high levels to on liquidity have we capital allows impact And continue make an important seeing at piece, a prudent investments, quarter, the revenue growth. really the basis, to it then continue we're operations high make look credibility X So are our we're we higher put and that second us having that lumpy. right? trends they level generating also flow way liquidity, sure cash seeing flow levels that we're simply then in to maybe things that the they on when if can are from is cash of you quarterly of friend. make those we a Like And and investment, of a operating is X are be

Operator

The next ROTH Capital. Desilva Suji question comes from with

Sujeeva De Silva

keep it on one on Congrats the to time. to I'll keep here. progress question

I capability VLEO by the drill Someone have. down capacity asked here. wanted into to you

programmatic it's X helpful. evolve I the to it's space from X how graph current and a to customers, be believe. building return how you're where feel understand situation many it basis, continued Or a where model? thoughts or of for going on a sort of if would to programs Just program-based to designing can handle? a per there Is going you kind graph capacity space what Any simultaneously it's revenue a

Peter Cannito

handful you're understand. bit, will be scaling. So just could you clarify question or little if didn't it's correctly, it whether I asking a if Maybe whether programs of a understand I your totally

Sujeeva De Silva

programs Either layering be one? to Or graph multiple it's expect like more on wayâ€¦ which space program this each has

Peter Cannito

Okay, both.

at saw I first. in as think And segment, the it like to will lead investment come you're you're see from this be spacecraft governments you constellations LEO that take going evolution initially then capability, to going this see spacecraft the in online. and to development next-generation SabreSat happened predominantly developing proliferated the much

and SabreSat proven our orders move become you're of see larger larger and perspective, time. as a your spacecraft phase platform, Did out over stable very that increase quantity and the Phantom to answer from So going question? development

Sujeeva De Silva

you do did, for, of you think It capacity many can yes. how programs And if just think that? now simultaneously or have right you

Peter Cannito

for? capacity has Redwire

Sujeeva De Silva

VLEO sorry, I'm I'm sure. specifically, Yes, sorry.

Peter Cannito

estimate, an the the opportunities market? in VLEO number of of terms In

Sujeeva De Silva

could handle guess, I simultaneously That you yes.

Peter Cannito

are with so baseline. articulated, then our stable to key we these about and we tend when through then reviews capacity development multiyear design is design reviews milestones enter apologize. simultaneously, where and The like a as particularly in development government associated technologies with for it's can develop I along government programs, predominantly programs, critical handle like government out and into imperative preliminary So We get the to new growing space Jonathan move I a the be right? we these we're understand, nice new until when thing the this,

milestone things early along with development, the profile program to as did scale in. have of during new So associated come we And nice our cash these with bids. capacity these ability each with stages a they we these

and come with necessary So the to need along resources the time bids scale. we

number, guess programs nights that I'm a these a and my we more not at continues as production worrying go that and out bid programs invest and to on to idea government not I'm about going of these of in more the a So bottleneck. to hazard and going this into but more we're more as spending run

Operator

At call this you. to like the time, to would turn Thank comments. I back closing for over management

Peter Cannito

today. our questions thank Great. tremendous without globe customers our like just employees, of for excellent the across their happens None questions, our again, employees to And for everybody some all Well, I'd I this a effort our in to the really want delivering thank Redwire teammates. results. partners, these

of So thank and thank all you them, all to to you you of Redwire. go and

Operator

teleconference. you. This does conclude Thank today's

you participation, day. your time. your great this have and may You a at Thank lines disconnect for

Redwire (RDW) 8 Aug 242024 Q2 Earnings call transcript