Slide 1: Q2 2024 Investor Presentation
Q2 2024 Investor Presentation August 8, 2024
Slide 2: Disclaimers
Disclaimers Industry and market data used in this Presentation have been obtained from third-party industry publications and sources as well as from research reports prepared for other purposes. Redwire has not independently verified the data obtained from these sources and cannot assure you of the
Slide 3: Non-GAAP Financial Information
Non-GAAP Financial Information This Presentation contains financial measures that have not been prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”). These financial measures include Adjusted EBITDA, Pro Forma Adjusted EBITDA, and Free Cash Flow. Non-GAAP
Slide 4: Agenda
Agenda Presenters 1 Q2 2024 Results 5 2 Financial Highlights 14 3 Remainder of 2024 Outlook 20 4 Q&A 21 Peter Cannito Jonathan Baliff Chairman & Chief Executive Officer Chief Financial Officer & Director 1. Insert Footnote 4
Slide 5: Q2 2024 Results
Q2 2024 Results Peter Cannito, Chairman and CEO GOES-U Credit: NOAA 1. Insert Footnote 5
Slide 6: Continued Execution in Q2 2024
Continued Execution in Q2 2024 +30.0% $114.4M $(18.1)M Improvement in Contracts Net Income Revenue Awarded in in from Q2 2023 to Q2 2024 Q2 2024 Q2 20241 $1.6M 1.28x $5.7M Positive LTM Book-to-Bill3 Positive LTM Net cash Adjusted EBITDA2 Ratio provided by operations in Q2 2024 in Q2 2024 in Q2 2024
Slide 7: 2024 Growth Strategy
2024 Growth Strategy • Protecting the core • Scaling production • Moving up the value chain • Venture optionality Credit: Redwire 1. Insert Footnote 7
Slide 8: Protecting the Core
Protecting the Core Credit: SpaceX via X account Credit: Redwire GOES-U Mission MANUS Robotic Arm Avionics & Sensors Structures & Mechanisms Fine and coarse sun sensors launched on the GOES-U Awarded a contract by the European Space Agency to mission; supported all 4 spacecraft in the GOES-R develop
Slide 9: Scaling Production
Scaling Production Credit: Space Inspire © Thales Alenia Space/E.Briot Credit: Redwire Space Inspire Satellites Antenna Production Power Generation Radio Frequency Systems Secured a follow-on order to deliver additional ROSA Redwire has delivered more than 50 flight antennas and wings for Thales Ale
Slide 10: Venture Optionality
Venture Optionality Credit: Redwire Credit: Redwire BFF-Cardiac PIL-BOX Microgravity Microgravity Successfully 3D bioprinted the first live human heart Prepared to launch 4 PIL-BOX missions to the ISS in tissue sample onboard the International Space Station; on early August; announcing ExesaLibero P
Slide 11: In Focus: Moving Up the Value Chain
In Focus: Moving Up the Value Chain Developing a New Breed of Spacecraft for VLEO Operations • Ramping from concept to full-scale operation: ◦ SabreSat: Modular platform for a range of missions; can support large constellations ◦ Phantom: Reliable, cost-effective; designed to enable intelligence, Ea
Slide 12: Critical VLEO Milestones in the U.S. and Abroad
In Focus: Moving Up the Value Chain Critical VLEO Milestones in the U.S. and Abroad SabreSat VLEO DARPA Otter SabreSat Platform Study Contract Introduced Announced Award Credit: Redwire Mar. 2024 May 2024 Jun. 2024 Growing multi-year Jun. 2022 May 2024 pipeline Phantom ESA's Skimsat Phantom Study Co
Slide 13: Continued Pipeline and Backlog Growth
Continued Pipeline and Backlog Growth Demonstrating the Heritage + Innovation Differentiation YTD Submitted Bids ($B) ~$5.7B ~$1.9B $1.9 % 8 8.5 +2 Pipeline as of 2024 Year-to-Date June 30, 2024 submitted bids as of $0.5 June 30, 2024 6/30/2023 6/30/2024 1 Contracted Backlog Detail ($M) $114.4M 1.28
Slide 14: Financial Highlights
Financial Highlights Replace Photo Jonathan Baliff, Chief Financial Officer 1. Insert Footnote 14
Slide 15: Balancing Growth & Profitability in Q2 2024
Balancing Growth & Profitability in Q2 2024 $78.1M $60.1 +3 0.0 % $78.1 $(18.1)M $(5.5) $1.6M $4.4 $( 2. 7) Net Loss M $(12 Revenue Adjusted $1.6 .6) Including a $9.0M loss associated with the change in fair value of warrant EBITDA2 $(18.1) Q2 2023 Q2 2024 liabiltiies1 Q2 2023 Q2 2024 Q2 2023 Q2 202
Slide 16: Quarterly Revenues
Quarterly Revenues Increase in revenues to 30.0% $78.1 for Q2 2024 vs. $60.1 for Q2 2023 • Record second quarter revenue; second highest revenue quarter Sequential Quarterly Revenues in company history $100.0 Quarter-to-Date Revenues (in millions) $87.8 • 41.0% increase in revenues $80.0 $78.1 from
Slide 17: Quarterly Adjusted EBITDA
Quarterly Adjusted EBITDA • 94.6% increase in LTM Adjusted $12.6M LTM Adjusted EBITDA in Q2 2024 EBITDA from $6.5 million in Q2 2023 to $12.6 million in Q2 2024 Quarterly Adjusted EBITDA $6.0 • Positive Adjusted EBITDA Quarter-to-Date Adjusted EBITDA (in $4.9 $5.0 supported by a decrease in $4.4 $4.
Slide 18: Continued Investments for Growth and Scale
Continued Investments for Growth and Scale to Advance our Path to Profitability $4.1M $2.8M $1.8M Year-to-date Year-to-date Year-to-date Capital Research and ERP and SOX Expenditures Development Investments 1. Insert Footnote 18
Slide 19: Quarterly Free Cash Flow and Liquidity
Quarterly Free Cash Flow and Liquidity LTM Q2 2024 Net cash $5.7M provided by (used in) operating activities $55.8M Ending liquidity as of June 30, 2024 Quarterly Free Cash Flow 1 Quarterly Total Available Liquidity $20.0 $60.0 $55.8 $12.6 Quarter-to-Date Total Liquidity (in Quarter-to-Date Free Cas
Slide 20: Remainder of 2024 Outlook
Remainder of 2024 Outlook Revenue Guidance $400 • Global Revenue Growth +23% $350 ◦ Redwire affirms that it is forecasting full year 2024 revenues to be $300M $300 $300 Year-to-Date Revenues (in millions) ◦ 23% forecasted year-over-year growth $250 $244 ◦ 55% of forecasted revenues achieved YTD thro
Slide 21: Questions & Answers
Questions & Answers 1. Insert Footnote 21
Slide 22: Appendix
Appendix > 22
Slide 23: 2024 Year-to-Date Performance
2024 Year-to-Date Performance Six Months Ended $ Change from prior % Change from prior ($ in thousands, except percentages) June 30, 2024 June 30, 2023 year period year period Revenues $ 165,903 $ 117,703 $ 48,200 41 % Cost of sales 138,094 87,582 50,512 58 Gross margin 27,809 30,121 (2,312) (8) Ope
Slide 24: Q2 2024 Quarter-to-Date Performance
Q2 2024 Quarter-to-Date Performance Three Months Ended $ Change from prior % Change from prior ($ in thousands, except percentages) June 30, 2024 June 30, 2023 year period year period Revenues $ 78,111 $ 60,098 $ 18,013 30 % Cost of sales 65,127 44,194 20,933 47 Gross margin 12,984 15,904 (2,920) (1
Slide 25: Supplemental Non-GAAP Information
Supplemental Non-GAAP Information Adjusted EBITDA and Pro Forma Adjusted EBITDA Adjusted EBITDA and Pro Forma Adjusted EBITDA are not measures of results under Three Months Ended Six Months Ended Last Twelve Months1 generally accepted accounting principles in the United States. June 30, June 30, Jun
Slide 26: Supplemental Non-GAAP Information, Continued
Supplemental Non-GAAP Information, Continued i. Redwire incurred acquisition costs including due diligence, integration costs and Three Months Ended additional expenses related to pre-acquisition activity. (in thousands) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 ii. Redwire recorded adjustments relate
Slide 27: Supplemental Non-GAAP Information, Continued
Supplemental Non-GAAP Information, Continued Three Months Ended Six Months Ended Last Twelve Months Free Cash Flow June 30, June 30, June 30, June 30, June 30, June 30, Free Cash Flow is computed as net cash provided by (in thousands) 2024 2023 2024 2023 2024 2023 (used in) operating activities less
Slide 28: Key Performance Indicators
Key Performance Indicators Contracted Backlog We view growth in backlog as a key measure of our business growth. Contracted backlog June 30, December 31, represents the estimated dollar value of firm funded executed contracts for which work (in thousands) 2024 2023 has not been performed (also known