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Redwire is a newly formed conglomerate that tries to capitalize on the consolidation of the industry as space companies mature and cost of operations keeps declining with the roll in of the new generation of reusable launch systems. Coming with a wide horizontal approach and a strong portfolio legacy with more than 150 satellite missions over 50 years, Redwire's recent acquisitions try to position the company as a versatile manufacturer and operator with a focus on space systems and in-orbit manufacturing, particularly 3d printing.

Noticeable subsidiaries and products

Made in Space

Manufacturing and engineering, focus on zero-gravity 3D printing.
 

  1. RRP - Redwire Regolith Print 

  2. OSAM2 - Archinaut 

  3. Zblan manufacturing 

Techshot


Since 1988, Techshot has been at the forefront of biological and physical-science research in space.

  1. MVP - Multi-use variable-gravity platform

  2. PONDS - Passive Orbital Nutrient Delivery System

  3. BFF - 3D BioFabrication Facility
     

Deployable Space Systems


Leading supplier of deployable solar arrays, structures and mechanisms for space applications.
 

  1. ROSA - Roll-Out Solar Array

  2. OLM - Open Lattice Mast Deployer

Roccor

Supplier of high-reliability satellite technologies, solutions, and products.

  1. ROC FALL - Deorbit device

Deep space systems

Design, development, integration, testing and operations of science and exploration spacecraft, avionics, cameras.

  1. DARS - The Data Acquisition and Recovery System

 

Recent developments

As of February 2022 the company still hasn't published earnings 

after delaying them on November 10 after an investigation of potential accounting issues at a business subunit.

Concerning to get close to 90 days without auditors coming to a term, the fact the company recently went public and just acquired multiples companies might add to the complexity of their task.
 


 

W.I.P.

W I P

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Fundamentals and Forward Guidance

 

2022 Guidance

 

Redwire expects sales to be in a range of approximately $165 million to $195 million and Pro forma Adjusted EBITDA3 to be in a range of approximately $8 million to $15 million.

Management projections:

  • 77% CAGR until 2026

  • $1,143M in income for 2026

  • $220M of bids submitted and awaiting decision as of August 2021

  • Total backlog increased to $271.6 million as of December 31, 2021

 

Current assets

Cash: $25m as of last financials.

Long term debt: $74M, January 2022.

Total liabilities: $150m, January 2022.


 

Subsidiaries past revenues

Adcole - Net income US - $30 million (2011)
Deep space - Revenue: $19 Million

Deployable space - Revenue: $5 Million

Load path - Revenue: <$5 Million

Made in space - Revenue: $19 Million

Oakman - Revenue: $5 Million

Roccor - Revenue: $9 Million 

Techshot - Revenue: $13 Million 


 

Burlap's 2 minutes   DDs

 
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  1. Strong legacy, with 50 years of experience for their oldest subunit, over 150 satellite missions, multi-planetary exploration, 
     

  2. Pick and shovel play of the possible incoming space rush, with their roots in old space Redwire position themselves to be one of the suppliers of the “new space industry”. Covering a wide range of components, they have a diversified approach and strong legacy of successful contract bidding.
     

  3. Strong Intellectual property, holder of numerous patents and strong expertise with actual official missions under the belt unlike lots of competitors.
     

  4. Could benefit from the Starship program success, if as envisaged by SpaceX the cost of a KG to LEO really reach $10 (from $20k less than a decade ago), then manufacturing and operating in space will benefit the first movers.
     

  5. Revenue increased $96.8 million, or 237%, to $137.6 million for 2021, from $40.8 million in 2020. This was with acquisitons, organically 16-17% CAGR could be reasonably expected (hopefully).
     

  6. AE Partners, the organization that funded and formed Redwire in 2020, owns 65% of the float as of last 13f, which means they have a vested interest into the RDW success.
     

  7. First mover advantage for In-space manufacturing and capabilities.
     

  8. Strong business and governments connections proven by their track-record.

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  1. Redwire ecosystem would win at being a bit more vertically integrated, current synergies could benefit from a clear alignment. 
     

  2. Possible redundancies in their offer, as multiples subsidiaries seem to work on what seem to be similar projects.
     

  3.  $61.5 million in net losses in 2021 (one time expenses like merger process and SLS bid's $20m loss).
     

  4. Running low on cash as of December 31, 2021,the available liquidity totaled $25.5 million, which was comprised of $20.5 million in cash and cash equivalents, and $5.0 million in available borrowings from our existing credit facilities.
     

  5. Dilution is to be expected, they have a purchase agreement for up to 80$m in shares ATM (at-the-market prices).
     

  6. Management had a difficult time early after going public, with delayed earnings and an investigation of potential accounting issues at a business subunit (nothing was found by auditors).
     

  7. While having a lot of potential, the ISMO (Made in space + Techshot) subsidiary is very speculative and will probably be cashflow negative for a while as there is little infrastructure to operate on that is available right now.  
     

  8. Risks associated with AE owning 65% of the float as of last 13f.
     

  9. Highly competitive hardware sector with low margins, current margins of the company are 21% for 2021.

The Catalyst list
 

Where to DD?

Sec fillings:

https://sec.report/Ticker/RDW

Redwire's investor relationship:

https://ir.redwirespace.com/

Cosmos(now Redwire) financials, August 2021 

Financials here

SPAC presentation, August 2021 

Presentation here

Ceo letter to shareholder April 2022

Letter here

 

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