Redwire Awarded $45 Million Contract from Air Force Research Laboratory to Advance Enhanced Space-Based Capabilities for the Warfighter

Rhea-AI Summary

Redwire (NYSE: RDW) has secured a $45.47 million five-year cost-plus-fixed-fee contract from the Air Force Research Laboratory (AFRL) Space Vehicles Directorate. The contract focuses on designing, developing, and testing prototype software and hardware for mission-critical technologies.

The project aims to develop spacecraft technologies including large deployable structures, thermal management capabilities, payload accommodations, and improved analysis methods for national security applications. The work will be performed at Redwire's Albuquerque facility, which specializes in mechanical, structural, and thermal technologies for satellite and space launch applications.

Positive

• Secured significant $45.47 million contract with AFRL
• Five-year contract duration provides steady revenue stream
• Builds upon previous AFRL contracts, showing strong relationship with key customer
• Expands company's presence in national security space sector

Negative

• Cost-plus-fixed-fee structure may limit profit margin potential
• Contract is incrementally funded, not guaranteed upfront

Insights

Financial Analyst

The $45.47 million AFRL contract represents a significant win for Redwire, strengthening its position in the defense space sector. With a market cap of $817 million, this contract value equals approximately 5.6% of the company's market capitalization, making it a material contribution to future revenue streams. The five-year duration provides steady, predictable income, while the cost-plus-fixed-fee structure ensures profit margin stability and minimizes execution risk.

This award builds upon previous AFRL contracts, demonstrating Redwire's ability to secure follow-on government work - a important factor for sustainable growth in the defense sector. The focus on advanced space technologies aligns with increasing defense spending on space capabilities, positioning Redwire to capture additional market share in this growing segment.

Defense Technology Analyst

This contract signifies AFRL's commitment to advancing critical space-based military capabilities through private sector innovation. The scope encompasses key strategic areas including large deployable structures and thermal management - technologies essential for next-generation military satellites and space assets. The emphasis on "agile, effective, resilient and affordable" solutions aligns with the Pentagon's broader strategy to maintain space superiority while optimizing costs.

Redwire's Albuquerque facility's track record of delivering flight experiments and operational technologies for AFRL indicates strong execution capabilities. The incremental funding approach typical in defense contracts allows for milestone-based development while maintaining program flexibility and risk management.

JACKSONVILLE, Fla.--(BUSINESS WIRE)-- Redwire Corporation (NYSE: RDW), a leader in space infrastructure for the next generation space economy, was awarded a $45,469,600, five-year cost-plus-fixed-fee contract that will be incrementally funded by the Air Force Research Laboratory (AFRL) Space Vehicles Directorate for the design, development, and testing of prototype software and hardware for mission critical technologies. The contract will support the AFRL Space Vehicles Directorate’s efforts to equip the joint warfighter with a spectrum of agile, effective, resilient, and affordable space mission capabilities.

Redwire will research and develop novel and emerging spacecraft technologies to include large deployable structures, thermal management capabilities, payload accommodations, and improved analysis and testing methods for in-space and terrestrial national security applications. This contract builds on a previously awarded AFRL contract to mature space domain technologies from early functional proof of concept through demonstration of full system or architecture prototypes.

“We are honored to have the opportunity to continue supporting AFRL’s Space Vehicles Directorate through this new contract award,” said Adam Biskner, President of Redwire Space Systems. “We have a long and proud legacy of supporting AFRL, and this award demonstrates our joint interest in continuing to support the mission of developing and transitioning space technologies to provide enhanced space-based capabilities to the warfighter.”

Redwire will perform the contracted work in Albuquerque, New Mexico. Redwire’s team in Albuquerque specializes in mechanical, structural, and thermal technologies for satellite and space launch applications. Redwire’s Albuquerque site has been awarded several AFRL contracts that have culminated in full flight experiments and cutting-edge space technologies used to better the success of AFRL and its mission.

About Redwire

Redwire Corporation (NYSE:RDW) is a global space infrastructure and innovation company enabling civil, commercial, and national security programs. Redwire’s proven and reliable capabilities include avionics, sensors, power solutions, critical structures, mechanisms, radio frequency systems, platforms, missions, and microgravity payloads. Redwire combines decades of flight heritage and proven experience with an agile and innovative culture. Redwire’s approximately 700 employees working from 17 facilities located throughout the United States and Europe are committed to building a bold future in space for humanity, pushing the envelope of discovery and science while creating a better world on Earth. For more information, please visit redwirespace.com.

DISTRIBUTION A: Approved for public release; distribution is unlimited. Public Affairs release approval # AFRL-2024-6796

View source version on businesswire.com: https://www.businesswire.com/news/home/20241210694217/en/

Emily Devine

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Source: Redwire Corporation

FAQ

What is the value of Redwire's (RDW) new AFRL contract?

Redwire (RDW) was awarded a $45,469,600 contract from the Air Force Research Laboratory.

What type of work will Redwire (RDW) perform under the AFRL contract?

Redwire will design, develop, and test prototype software and hardware for mission-critical technologies, including large deployable structures, thermal management capabilities, and payload accommodations.

Where will Redwire (RDW) perform the AFRL contract work?

Redwire will perform the contracted work in Albuquerque, New Mexico.

What is the duration of Redwire's (RDW) new AFRL contract?

The contract is a five-year cost-plus-fixed-fee contract.