Redwire CorpRDW
Redwire Corp Revenue Disclosure
Note P – Revenues
The following table presents the disaggregation of revenue according to segment:
| Year Ended December 31, 2025 | |||||||||||||||||
Space | Defense Tech | Total | |||||||||||||||
Revenue percentage by recognition method | |||||||||||||||||
Over time | 97 | % | 15 | % | 66 | % | |||||||||||
Point in time | 3 | 85 | 34 | ||||||||||||||
Total revenues | 100 | % | 100 | % | 100 | % | |||||||||||
Revenues by customer grouping | |||||||||||||||||
Civil space | $ | 69,453 | $ | 3,096 | $ | 72,549 | |||||||||||
National security | 51,869 | 105,370 | 157,239 | ||||||||||||||
Commercial and other | 88,495 | 17,098 | 105,593 | ||||||||||||||
Total revenues | $ | 209,817 | $ | 125,564 | $ | 335,381 | |||||||||||
Revenues by customer’s geographic location | |||||||||||||||||
U.S. | $ | 105,228 | $ | 90,716 | $ | 195,944 | |||||||||||
| Europe | 104,574 | 20,742 | 125,316 | ||||||||||||||
| Other | 15 | 14,106 | 14,121 | ||||||||||||||
Total revenues | $ | 209,817 | $ | 125,564 | $ | 335,381 | |||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||
| Space | Defense Tech | Total | |||||||||||||||
Revenues percentage by recognition method | |||||||||||||||||
Over time | 98 | % | 100 | % | 98 | % | |||||||||||
| Point in time | 2 | — | 2 | ||||||||||||||
Total revenues | 100 | % | 100 | % | 100 | % | |||||||||||
Revenues by customer grouping | |||||||||||||||||
Civil space | $ | 84,923 | $ | 3,891 | $ | 88,814 | |||||||||||
National security | 36,420 | 40,411 | 76,831 | ||||||||||||||
Commercial and other | 133,993 | 4,463 | 138,456 | ||||||||||||||
Total revenues | $ | 255,336 | $ | 48,765 | $ | 304,101 | |||||||||||
Revenues by customer’s geographic location | |||||||||||||||||
U.S. | $ | 101,504 | $ | 48,627 | $ | 150,131 | |||||||||||
| Europe | 153,747 | 12 | 153,759 | ||||||||||||||
| Other | 85 | 126 | 211 | ||||||||||||||
Total revenues | $ | 255,336 | $ | 48,765 | $ | 304,101 | |||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||
| Space | Defense Tech | Total | |||||||||||||||
Revenues percentage by recognition method | |||||||||||||||||
Over time | 94 | % | 98 | % | 95 | % | |||||||||||
| Point in time | 6 | 2 | 5 | ||||||||||||||
Total revenues | 100 | % | 100 | % | 100 | % | |||||||||||
Revenues by customer grouping | |||||||||||||||||
Civil space | $ | 94,200 | $ | 8,394 | $ | 102,594 | |||||||||||
National security | 26,456 | 32,597 | 59,053 | ||||||||||||||
Commercial and other | 73,344 | 8,809 | 82,153 | ||||||||||||||
Total revenues | $ | 194,000 | $ | 49,800 | $ | 243,800 | |||||||||||
Revenues by customer’s geographic location | |||||||||||||||||
U.S. | $ | 124,846 | $ | 48,057 | $ | 172,903 | |||||||||||
| Europe | 69,071 | 1,743 | 70,814 | ||||||||||||||
| Other | 83 | — | 83 | ||||||||||||||
Total revenues | $ | 194,000 | $ | 49,800 | $ | 243,800 | |||||||||||
Customers comprising 10% or more of revenues are presented below for the following periods:
| Year Ended | |||||||||||||||||
| December 31, 2025 | December 31, 2024 | December 31, 2023 | |||||||||||||||
Customer A(1) | $ | — | $ | 31,055 | $ | 39,314 | |||||||||||
Customer B(1) | — | — | 33,621 | ||||||||||||||
Customer D(1) | 66,261 | 107,605 | — | ||||||||||||||
Customer E(1) | 62,829 | — | — | ||||||||||||||
(1) While revenue may have been generated during each of the periods presented, amounts are only disclosed for the periods in which revenues represented 10% or more of total revenue.
Contract Balances
The table below presents the contract assets and contract liabilities included on the consolidated balance sheets for the following periods:
| December 31, 2025 | December 31, 2024 | ||||||||||
Contract assets | $ | 44,019 | $ | 43,044 | |||||||
| Contract liabilities | $ | 60,119 | $ | 67,201 | |||||||
The increase in contract assets during 2025 was primarily driven by production incurred on related contracts resulting in revenue recognized and the timing of billable milestones occurring during the year ended December 31, 2025.
The decrease in contract liabilities during 2025 was primarily driven by the timing of large billable milestones occurring during the last quarter of 2024 compared to the year ended December 31, 2025, as well as decreased bookings during 2025. Revenue recognized in the year ended December 31, 2025 that was included in the contract liability balance as of December 31, 2024 was $61.5 million. Revenue recognized in the year ended December 31, 2024 that was included in the contract liability balance as of December 31, 2023 was $49.4 million.
For revenue recognized over time, the Company evaluates the contract value and cost estimates at completion (“EAC”) for performance obligations at least quarterly and more frequently when circumstances significantly change. Due to the nature of the work required to be performed on many of the Company’s performance obligations, the estimate of total revenue and cost at completion is complex, subject to many variables and requires significant judgment by management on a contract-by-contract basis. As part of this process, management reviews information including, but not limited to, labor productivity, the nature and technical complexity of the work to be performed, availability and cost volatility of materials, subcontractor and vendor performance, volume assumptions, inflationary trends, and schedule and performance delays.
When the Company’s estimate of total costs to be incurred to satisfy a performance obligation exceeds the expected revenue, the Company recognizes the loss immediately by recording a loss reserve which is included in other current liabilities on the consolidated balance sheets. When the Company determines that a change in estimate has an impact on the associated profit of a performance obligation, the Company records the cumulative positive or negative adjustment in the consolidated statement of operations and comprehensive income (loss). Changes in estimates and assumptions related to the status of certain long-term contracts may have a material effect on the Company’s operating results.
Net EAC adjustments can have a significant effect on reported revenues and gross profit. The below table summarizes the favorable (unfavorable) impact on gross profit from the net EAC adjustments for the following periods:
| Year Ended | |||||||||||||||||
| December 31, 2025 | December 31, 2024 | December 31, 2023 | |||||||||||||||
| Net EAC adjustments, before income taxes | $ | (54,453) | $ | (17,696) | $ | (3,522) | |||||||||||
| Net EAC adjustments, net of income taxes | (49,062) | (17,395) | (3,459) | ||||||||||||||
| Net EAC adjustments, net of income taxes, per diluted share | (0.41) | (0.26) | (0.05) | ||||||||||||||
The net unfavorable EAC adjustments in 2025 were primarily due to a $25.2 million unfavorable adjustment, including a $12.9 million loss reserve related to a program in the Company’s Defense Tech segment and $14.1 million unfavorable adjustments related to programs in the Space Europe reporting unit as a result of an increase in estimates made for the programmatic and technical assumptions based on the nature and technical complexity of the work to be performed to meet customer specifications. In addition, the Space segment also had further unfavorable adjustments due to production delays, additional unplanned labor and increased production costs as it relates to the development of advanced technologies required to meet customer specifications in multiple space offerings. The net unfavorable EAC adjustments in 2024 were primarily due to additional unplanned labor and test cycles required to meet customer requirements in the Company’s Space segment.
Remaining Performance Obligations
As of December 31, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was $330.3 million. The Company expects to recognize approximately 54% of its remaining performance obligations as revenue within the next 12 months and the balance thereafter.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Mar 11, 2025 | |
| 2023 | Mar 20, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Apr 11, 2022 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.