Slide 1: Q3 2024 Investor Presentation
Q3 2024 Investor Presentation November 7, 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 and Free Cash Flow. Non-GAAP financial measures are used
Slide 4: Agenda
Agenda Presenters 1 Q3 2024 Results 5 2 Financial Highlights 19 3 Remainder of 2024 Outlook 25 4 Q&A 26 Peter Cannito Jonathan Baliff Chairman & Chief Executive Officer Chief Financial Officer & Director 1. Insert Footnote 4
Slide 5: Q3 2024 Results
Q3 2024 Results Peter Cannito, Chairman and CEO Hera Mission Rendering Credit: ESA 1. Insert Footnote 5
Slide 6: 2024 Growth Strategy
2024 Growth Strategy • Protecting the core • Scaling production • Moving up the value chain • Venture optionality Digital Twin Rendering Credit: Redwire 1. Insert Footnote 6
Slide 7: Hera Systems is Redwire's 10th Acquisition
Hera Systems is Redwire's 10th Acquisition September 2021 Public Platform June 2020 Established Made In February 2021 March 2020 Space Deployable Adcole Space August 2024 Maryland Systems November 2021 December 2020 Techshot Platform Consolidation Hera Systems Aerospace LoadPath 2020 2021 2022 2023
Slide 8: In Focus: Moving Up the Value Chain
In Focus: Moving Up the Value Chain Acquisition of Hera Systems Mako • Complements existing suite of national Rad-hard GEO/ security space solutions MEO platform; under contract on • Supports Move Up the Value Chain in select the U.S. Space areas of emerging hybrid architectures Force's Tetra-5 Prog
Slide 9: In Focus: Moving Up the Value Chain
In Focus: Moving Up the Value Chain Spacecraft Platform Provider VLEO LEO GEO & MEO 5 heritage-based spacecraft platforms for missions across every orbit 1. Insert Footnote SabreSat Credit: Redwire; Thresher Credit: Redwire; Mako Credit: Redwire; Phantom Credit: Redwire; Hammerhead, Credit: Redwire.
Slide 10: In Focus: Moving Up the Value Chain
In Focus: Moving Up the Value Chain VLEO Spacecraft PAYLOAD MASS SabreSat: U.S.-Built VLEO Platform ~200 kg POWER AVAILABLE • Designed for performance, endurance and cost-effectiveness Up to 5,000 W OAP (EOL) • Modular design with optional air-breathing engine • Digital engineering tools enable opti
Slide 11: In Focus: Moving Up the Value Chain
In Focus: Moving Up the Value Chain LEO Spacecraft PAYLOAD MASS Up to 100 kg Hammerhead: European LEO Platform POWER AVAILABLE 120 W • Developed at Redwire's facility in Belgium • More than 40 years in orbit without failure • Compatible with small satellite launchers BUS DIMENSIONS Thresher: U.S.-Bu
Slide 12: In Focus: Moving Up the Value Chain
In Focus: Moving Up the Value Chain GEO & MEO Spacecraft Mako: High-Agility GEO/MEO Platform • Rad-hard platform designed and built in the U.S. for precision RPO missions and with docking provisions • High-precision, software-defined, autonomous, AI/ML capable and reconfigurable PAYLOAD MASS ESPA: U
Slide 13: In Focus: Moving Up the Value Chain
In Focus: Moving Up the Value Chain What is the impact? Pipeline Growth by Quarter $8.0 +53.3% • Increasing pipeline opportunities $7.0 $6.9 $6.3 and bid/contract size $6.0 $5.7 • Satisfying market need $4.8 Pipeline (in billions) $5.0 $4.5 • Scaling rapidly $4.0 $3.7 $3.4 • Leveraging classified $3
Slide 14: Protecting the Core
Protecting the Core Credit: Redwire Credit: United States Army ESA's Hera Mission X-Bow's Commercial Mission-1 Avionics & Sensors Structures & Mechanisms Provided onboard computer system for the Hera Redwire expertise crucial for the latest Bolt launch; mission; 3rd generation system was developed f
Slide 15: Scaling Production
Scaling Production Credit: NASA Credit: NASA Valkyrie Thruster ROSA Milestones Avionics & Sensors Power Solutions Signed a strategic cooperation agreement with Phase Shipped IROSA wings 7 and 8 to Boeing, a follow-on to Four to deliver advanced thruster technology to meet the the six IROSAs that hav
Slide 16: In Focus: Venture Optionality
In Focus: Venture Optionality Credit: NASA Achieved All Manifested Launches New Partnerships Microgravity Microgravity With 12 PIL-BOXes launched on SpX-31, Redwire has PIL investigations including with commercial partners launched all 16 of the additional PIL-BOXes manifested in Bristol Myers Squib
Slide 17: In Focus: Venture Optionality
In Focus: Venture Optionality Where do we go next? • Continue flying PIL-BOXes for our customer • Continue flying PIL-BOXes on our own behalf ◦ Developed a list of 80+ promising small molecule targets ◦ Engaging with pharmaceutical companies on back-end royalty agreements Credit: Redwire 1. Insert F
Slide 18: Continued Pipeline and Backlog Growth
Continued Pipeline and Backlog Growth Demonstrating the Heritage + Innovation Differentiation YTD Submitted Bids ($B) ~$6.9B ~$2.9B 6.2 % $2.9 Pipeline as of 2024 Year-to-Date +30 September 30, 2024 submitted bids as of $0.7 September 30, 2024 9/30/2023 9/30/2024 1 Contracted Backlog Detail ($M) $44
Slide 19: Financial Highlights
Financial Highlights Jonathan Baliff, Chief Financial Officer Credit: Redwire 1. Insert Footnote 19
Slide 20: Balancing Growth & Profitability in Q3 2024
Balancing Growth & Profitability in Q3 2024 +9.6 % $68.6 $62.6 $68.6M $(21.0)M $(6.3) $2.4M $4.9 $( 2. 5) $(14 M Revenue Net Loss Adjusted $2.4 .6) EBITDA1 $(21.0) Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 $1.0B $1.0 $(17.7)M $(3.3) $(8.7)M $(8.7) % LTM Cash 4.4 $(1 M 4 Bids 0.6 4.4 +3 Cash fr
Slide 21: Quarterly Revenues
Quarterly Revenues • 9.6% increase in revenues from $298.0M LTM revenue in Q3 2024 $62.6 million in Q3 2023 to $68.6 million in Q3 2024 Sequential Quarterly Revenues $100.0 • 30.1% increase in YTD revenues Quarter-to-Date Revenues (in millions) $87.8 from $180.3 million for the nine $80.0 $78.1 mont
Slide 22: Quarterly Adjusted EBITDA
Quarterly Adjusted EBITDA • 50.2% sequential increase in Adjusted EBITDA from $1.6 $10.1M LTM Adjusted EBITDA in Q3 2024 million in Q2 2024 to $2.4 million Quarterly Adjusted EBITDA in Q3 2024 $6.0 Quarter-to-Date Adjusted EBITDA (in $4.9 • Positive Adjusted EBITDA $5.0 $4.3 supported by a decrease
Slide 23: Continued Investments for Growth and Scale to Advance our Path to Profitability
Continued Investments for Growth and Scale to Advance our Path to Profitability $6.9M $4.7M $3.1M Year-to-date Year-to-date Year-to-date Capital Research and ERP and SOX Expenditures Development Investments Credit: Redwire Credit: NASA 1. Insert Footnote 23
Slide 24: Quarterly Free Cash Flow and Liquidity
Quarterly Free Cash Flow and Liquidity Total liquidity as of September 30, LTM Q3 2024 Net cash $(8.7)M provided by (used in) operating activities $61.1M 2024 comprised of $45.8M in available liquidity and $15.3M in restricted cash2 Quarterly Free Cash Flow 1 Quarterly Total Liquidity $20.0 $80.0 $1
Slide 25: Remainder of 2024 Outlook
Remainder of 2024 Outlook Revenue Guidance $400 • Global Revenue Growth +27% $350 ◦ Redwire affirms that it is forecasting full year 2024 revenues to be $310M $310 $300 Year-to-Date Revenues (in millions) ◦ 27% forecasted year-over-year growth $250 $244 ◦ 76% of forecasted revenues achieved YTD thro
Slide 26: Questions & Answers
Questions & Answers 1. Insert Footnote 26
Slide 27: Appendix
Appendix > 27
Slide 28: 2024 Year-to-Date Performance
2024 Year-to-Date Performance Nine Months Ended $ Change from prior % Change from prior ($ in thousands, except percentages) September 30, 2024 September 30, 2023 year period year period Revenues $ 234,541 $ 180,315 $ 54,226 30 % Cost of sales 194,709 133,077 61,632 46 Gross profit 39,832 47,238 (7,
Slide 29: Q3 2024 Quarter-to-Date Performance
Q3 2024 Quarter-to-Date Performance Three Months Ended $ Change from prior % Change from prior ($ in thousands, except percentages) September 30, 2024 September 30, 2023 year period year period Revenues $ 68,638 $ 62,612 $ 6,026 10 % Cost of sales 56,615 45,495 11,120 24 Gross profit 12,023 17,117 (
Slide 30: Supplemental Non-GAAP Information
Supplemental Non-GAAP Information Three Months Ended Nine Months Ended Last Twelve Months1 Adjusted EBITDA Adjusted EBITDA are not measures of results under generally September September September September September September accepted accounting principles in the United States. (in thousands) 30, 2
Slide 31: 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) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 ii. Redwire recorded adjustments relate
Slide 32: Supplemental Non-GAAP Information, Continued
Supplemental Non-GAAP Information, Continued Three Months Ended Nine Months Ended Last Twelve Months Free Cash Flow September September September September September September Free Cash Flow is computed as net cash provided by (in thousands) 30, 2024 30, 2023 30, 2024 30, 2023 30, 2024 30, 2023 (use
Slide 33: Key Performance Indicators
Key Performance Indicators Contracted Backlog We view growth in backlog as a key measure of our business growth. Contracted backlog September 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