Aerospace and defense company Redwire (NYSE: RDW) announced better-than-expected revenue in Q2 CY2026, with sales up 89.6% year on year to $117.1 million. The company’s full-year revenue guidance of $475 million at the midpoint came in 1.3% above analysts’ estimates. Its GAAP loss of $0.19 per share was 25.7% below analysts’ consensus estimates.

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Company Overview

Based in Jacksonville, Florida, Redwire (NYSE: RDW) is a provider of systems and components used in space infrastructure.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Thankfully, Redwire’s 32.8% annualized revenue growth over the last five years was incredible. Its growth beat the average industrials company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Redwire’s annualized revenue growth of 20.8% over the last two years is below its five-year trend, but we still think the results suggest healthy demand.

This quarter, Redwire reported magnificent year-on-year revenue growth of 89.6%, and its $117.1 million of revenue beat Wall Street’s estimates by 8.7%.

Looking ahead, sell-side analysts expect revenue to grow 22.4% over the next 12 months, an improvement versus the last two years. This projection is eye-popping and suggests its newer products and services will spur better top-line performance.

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Operating Margin

Redwire’s high expenses have contributed to an average operating margin of negative 28.8% over the last five years. Unprofitable industrials companies require extra attention because they could get caught swimming naked when the tide goes out. It’s hard to trust that the business can endure a full cycle.

On the plus side, Redwire’s operating margin rose by 5.2 percentage points over the last five years, as its sales growth gave it operating leverage. Still, it will take much more for the company to reach long-term profitability.

Redwire’s operating margin was negative 18.9% this quarter.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Although Redwire’s full-year earnings are still negative, it reduced its losses and improved its EPS by 9.7% annually over the last four years. The next few quarters will be critical for assessing its long-term profitability.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For Redwire, its two-year annual EPS declines of 22.1% mark a reversal from its four-year trend. We hope Redwire can return to earnings growth in the future.

In Q2, Redwire reported EPS of negative $0.19, up from negative $1.41 in the same quarter last year. Despite growing year on year, this print missed analysts’ estimates. Over the next 12 months, Wall Street expects Redwire to improve its earnings losses. Analysts forecast its full-year EPS will improve from negative $1.46 to negative $0.61.

Key Takeaways from Redwire’s Q2 Results

We were impressed by how significantly Redwire blew past analysts’ revenue expectations this quarter. We were also glad its EBITDA outperformed Wall Street’s estimates. On the other hand, its EPS missed. Overall, we think this was a solid quarter with some key areas of upside. The stock traded up 9.5% to $11.76 immediately following the results.

Indeed, Redwire had a rock-solid quarterly earnings result, but is this stock a good investment here? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).