Why Redwire Stock Collapsed 30% This Week

shares Redwire (NYSE: RDW) More than 30 % collapsed this week, according to data from the S & P Global Market Intelligence. The Space and Defense Technology Company has made a decrease in revenue in the last quarter and spreads significant net losses. It works on promising new technologies in satellite, drone monitoring, and even biotechnology solutions in space.

As of 3:34 pm Easter on Friday, Redwire shares decreased by 35.1 %. Here is the reason for the sinking company at risk this week.

On August 6, Redwire issued its profits for the second quarter of 2025. Revenue amounted to $ 61.8 million, a decrease of $ 78.1 million in the same quarter of last year. The profits were also far, as the company published a net loss of $ 78.9 million, more than its revenue in the quarter. While this is one of the first revenue declines in Redwire in many quarters, selling the area and defense to the United States government may sometimes be an integrated work. Redaire said that the contracts were later delayed in 2025 until 2026 for projects such as the Golden Dome, which will have a large budget from the United States.

In a positive note, Redwire has been granted more than $ 90 million of contracts in the last quarter and has a pipeline of possible revenue at an amazing level of more than $ 11 billion. While the company dives into advanced technologies such as satellites and drones for military surveillance, it aims to win more decades from the American army and its allies. It also examines biotechnology research and drug development in space with a new subsidiary, as well as working in missions to the moon and Mars.

Redwire’s net loss number looks ugly, but some can be explained as one -time events. There were major expenses for one time in the quarter regarding its acquisition of the autonomy of the drone maker, as well as the changes in contract estimates. Over time, most of these expenses should disappear with the company completing the contracts. It had a book to Bill 1.47 in this period, which means that the company has more orders than it was implemented with its high decline.

Investing in new space and defense technology companies is difficult. Many of them remain special like Anduril or Spacex, while Palantir Technologies Trading in installment evaluation.

Redwire is not profitable at the present time, but with a maximum of 1.3 billion dollars in the market, the United States government plans to spend tens of billions (if not hundreds of billions) in the near future, it has a possible bright future. This is still a risky arrow, but an investor may want to take a small location if they want to develop space and advanced defense.