Redwire CorpRDW

Redwire Corp Leases Disclosure

10-KFiled Feb 27, 20263 min read
Note J – Leases
The Company has entered into and acquired long-term leasing arrangements for the right to use various classes of underlying assets, including facilities, vehicles and office equipment. Certain facility leases contain predetermined fixed escalation of minimum rents at stated rates ranging from 1.00% to 25.00% per annum and three leases with annual escalations based on certain price indices. In addition, certain facility leases include renewal options that could extend the lease term for up to an additional fifteen years. The office equipment lease contains a renewal option that could extend the lease to consecutive 60-day terms and a purchase option.

Total Lease Costs
The following table summarizes total lease costs for the period:
Year Ended
December 31, 2025December 31, 2024December 31, 2023
Finance lease cost:
Amortization of ROU assets$576 $518 $434 
Interest on lease liabilities118 122 $98 
Operating lease costs8,343 4,637 $4,251 
Variable lease costs66 48 $29 
Short-term lease costs638 475 $230 
Total lease costs$9,741 $5,800 $5,042 
Total lease costs are included in selling, general and administrative expenses and cost of sales on the consolidated statements of operations and comprehensive income (loss).

During the year ended December 31, 2025, the Company abandoned a leased facility and recognized impairment expense of $0.3 million related to ROU assets. There was no impairment recognized related to ROU assets during the years ended December 31, 2024 and 2023.

As of December 31, 2025, the Company had one facility lease that had not yet commenced but requires significant future lease obligations in the amount of $12.3 million. The contract was determined to be an operating lease, whereby the Company is not required to make rent payments prior to the lease commencement date while construction is completed on the underlying asset. Due to the nature of the work and the amount of the Company’s contribution to the construction period costs for the lease, the Company was determined not to be the owner of the assets under construction as the landlord has substantially all of the construction period risks.
Supplemental Balance Sheet Information
The following table presents supplemental balance sheet information related to the Company’s operating and finance leases:
December 31, 2025December 31, 2024
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Right-of-use assets, net reflected in the following balance sheet line items:
Property, plant and equipment, net
$— $1,786 $— $1,392 
Right-of-use assets31,741 — 15,277 — 
Total right-of-use assets
$31,741 $1,786 $15,277 $1,392 
Current lease balance reflected in the following balance sheet line items:
Short-term operating lease liabilities$4,088 $— $4,354 $— 
Short-term finance lease liabilities— 595 — 473 
Non-current lease balance reflected in the following balance sheet line items:
Long-term operating lease liabilities30,471 — 13,444 — 
Long-term finance lease liabilities— 1,276 — 980 
Total lease liabilities$34,559 $1,871 $17,798 $1,453 

Other Supplemental Information
The following table presents other supplemental information related to the Company’s leases:
Year Ended
December 31, 2025December 31, 2024December 31, 2023
Operating LeasesFinance LeasesOperating LeasesFinance LeasesOperating LeasesFinance Leases
Cash paid for lease liabilities$8,543 $690 $2,460 $601 $4,273 $492 
ROU assets obtained in exchange for new lease liabilities$7,330 $774 $5,813 $457 $3,418 $1,167 
Weighted average remaining lease term (in years)5.43.44.03.34.43.8
Weighted average discount rate8.9 %7.9 %7.8 %8.1 %6.3 %8.4 %

Future Lease Obligations
As of December 31, 2025, the future annual minimum lease payments for lease liabilities are as follows:
YearOperating LeasesFinance Leases
2026$7,052 $716 
20278,120 624 
20286,419 429 
20295,265 237 
20305,478 124 
Thereafter
16,872 — 
Total lease payments
49,206 2,130 
Less: imputed interest14,647 259 
Present value of lease liabilities
$34,559 $1,871 

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Mar 11, 2025
2023Mar 20, 2024
2022Mar 31, 2023
2021Apr 11, 2022

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

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