RDW - Redwire Corporation

Operator: Greetings, and welcome to the Redwire Corporation Third Quarter 2025 Earnings Call. [Operator Instructions] Please note that this conference is being recorded. I will now turn the conference over to your host, Alex Curatolo, Senior Director of Investor Relations. Alex Curatolo: Good morning, and thank you, Diego. Welcome to Redwire's Third Quarter 2025 Earnings Call. We hope that you have seen our earnings release, which we issued yesterday afternoon. It has also been posted in the Investor Relations section of our website at rdw.com. Let me remind everyone that during the call, Redwire management may make forward-looking statements that reflect our beliefs, expectations, intentions or predictions of the future. Our forward-looking statements are subject to risks and uncertainties that are described in more detail on Slides 2 and 3. Additionally, to the extent we discuss non-GAAP measures during the call, please see Slide 3, our earnings release or the investor presentation on our website for the calculation of these measures and their reconciliation to U.S. GAAP measures. I am Alex Curatolo, Redwire's Senior Director of Investor Relations. Joining me on today's call are Peter Cannito, Redwire's Chairman and Chief Executive Officer; Jonathan Baliff, Redwire's Chief Financial Officer; and Chris Edmunds, Redwire's Chief Accounting Officer and incoming Chief Financial Officer, effective December 1, 2025. With that, I would like to call -- turn the call over to Pete. Pete? Peter Cannito: Thank you, Alex. During today's call, I will outline our key accomplishments during the third quarter of 2025. Chris, our incoming Chief Financial Officer, will then present the financial highlights for the same period and discuss our 2026 outlook, after which we will open the call for Q&A. Please turn to Slide 5. Now that we have a full quarter of performance from the combination of Redwire Space and Edge Autonomy, I would like to continue to emphasize the major transformation underway at Redwire. As you will see in our accomplishments and results, the technical, operational and financial positioning of our platform has been significantly enhanced. As part of this transformation, I'm excited to introduce our updated vision statement, reflecting Redwire as an integrated space and defense tech company. At Redwire, our expanded vision is to pioneer next-generation space and defense technologies that empower scientific discovery, advance global industries and strengthen security, transforming how humanities explores, connects and protects from the skies above to the stars beyond. Let's now turn to a discussion of highlights from the third quarter of 2025. Please turn to Slide 7. As you can see from the highlights on this slide, the impact of our transformation, including the acquisition of Edge Autonomy was accretive to our financial performance. During third quarter of 2025, we increased our adjusted gross margin to 27.1% in the third quarter. We also saw sequential improvement of $24.8 million in our adjusted EBITDA. Additionally, we recorded significant revenue growth of 67.5% sequentially and 57% year-over-year to revenues of $103.4 million during the third quarter. We continue to scale aggressively. From a growth perspective, we closed a number of key strategic opportunities, adding to our backlog by achieving a book-to-bill ratio of 1.25, resulting in backlog of $355.6 million as of September 30, 2025. We are greatly encouraged by our growth reflected in our strong book-to-bill in Q3 based on strong customer demand for our differentiated products. However, looking forward, we anticipate some issues with near-term timing of awards in Q4 resulting from the ongoing U.S. government shutdown. In particular, we have seen delays in the U.S. Army's long-range reconnaissance and similar UAS programs as well as a slow start to Golden Dome. We've ramped production capability to meet these needs, but have not yet seen awards begin to flow. Therefore, we anticipate the diminished government staff and resulting delay in contracting activity is likely to push a number of our anticipated awards out of the quarter. Notably, however, we do not see a decrease in demand, but rather a temporary near-term timing impact that supports a strong 2026 as the government returns to full strength. Please turn to Slide 8. As Redwire nears completion of its transformation, expanding from exclusively space subsystems and components to becoming a highly scalable space and defense technology platform, I'd like to reorient investors to our 5 primary value-driving product areas. These value drivers represent the product areas where Redwire has differentiated intellectual property, first-mover advantage and recognized thought leadership in rapidly growing domains with sizable total addressable markets. They are differentiated next-gen spacecraft, particularly in VLEO and GEO like SabreSat, Phantom and Mako and others that support next-generation capabilities such as high-fidelity earth observation, quantum key distribution, in-space refueling, AI imaging and maneuverability. Large space infrastructure, specifically our rollout solar arrays and international berthing and docking mechanisms where we provide building blocks for critical space infrastructure like space stations and Moon to Mars exploration. Microgravity development, where we are a global leader with decades of heritage and hundreds of experiments flown in the areas of biotechnology and advanced materials and manufacturing. Combat proven UAS, namely the Stalker and Penguin series, where we supply combat-proven autonomous UAS built in the United States and Europe to war fighters in the most challenging battlefield environments. And finally, sensors and payloads such as optics and radio frequency systems where we support multi-domain missions ranging from airborne ISR to Artemis and the historic commercial moon landings. To underscore our strategic positioning in each area, I will share a brief description of the differentiators, a highlight or 2 from the third quarter as well as examples of future growth targets as we move towards 2026. Please turn to Slide 9. Starting with next-gen spacecraft. Redwire's key differentiators are that we have existing funded customers, classified personnel and facilities and a first-mover advantage in VLEO, GEO and space refueling and quantum secure satellites. During Q3, Redwire announced that we have reached an agreement with Thales Alenia Space to become the prime contractor for ESA's Skimsat mission, a technology demonstration mission for a spacecraft designed to operate in VLEO. The Skimsat mission leverages Redwire's Phantom spacecraft, an advanced European VLEO platform out of our Belgian facility. With this prime ship, we further establish ourselves as a global leader in VLEO capabilities. In addition, we signed an MoU with Honeywell during the quarter for QK-VSAT. Under this ESA public-private partnership, we aim to combine Redwire's quantum platform technology with Honeywell's quantum optical payload as we build towards a QKD constellation. As we look for further growth opportunities, VLEO is a relatively untapped orbit with no dominant provider. Redwire is now executing on 2 prime contracts in VLEO, DARPA's Otter program in the U.S. and ESA's Skimsat mission in Europe. And these funded contracts position us as an early mover and market leader in this exciting orbit. We are leveraging this funded development to position VLEO for Golden Dome and growing European defense spending. In the future, we are targeting opportunities with the intelligence community, Air Force Research Lab, or AFRL, most notably our current TETRA program, Space Force as well as additional phases for DeepSAT and expanding our Honeywell partnership for QKDSat as just a few examples. Please turn to Slide 10. Another key value driver is our large space infrastructure, where we are differentiated as a key supplier for products like ROSA and IBDM on funded contracts from customers with significant heritage and protected IP such as our rollout design. Our unmatched heritage with ROSA on the IFS continues to translate into follow-on orders from customers that need a proven solution. During the quarter, Redwire was awarded a contract to develop and deliver rollout solar arrays or ROSA wings for Axiom's Commercial Space Station. Power is critical to a sustained presence in low earth orbit and another commercial station provider selecting ROSA further underscores our strong positioning in this key capability. Building on Redwire's heritage from the ISS, DART, Blue Origin's Blue Ring, Thales Alenia Space GEO satellites, the power and propulsion element of Gateway and now Axiom's Commercial Space Station, Redwire is pursuing numerous follow-on opportunities to scale with our existing customers as their businesses grow. Additionally, we are aggressively pursuing orders for large space infrastructure such as ROSA and IBDM for other commercial space stations as well as other power-intensive spacecraft programs and Moon to Mars infrastructure like Artemis. Please turn to Slide 11. With hundreds of microgravity experiments conducted, proven IP like PIL-BOX and existing funded commercial, governmental and international customers, Redwire is at the forefront of microgravity development. We are decades ahead of many of our competitors. During the third quarter, Redwire launched 14 PIL-BOXes, studying 18 molecules to the International Space Station with 3 different partners: Bristol-Myers Squibb, Butler University and Purdue University. These PIL-BOXes are expected to return to earth in the coming months. With these, Redwire has now flown a total of 42 PIL-BOXes studying 35 unique molecules as of the end of the third quarter, adding to our extensive heritage in pharmaceutical development on orbit. In terms of future growth, we see the potential impact is extraordinary. Pharma has less than a 10% success rate from Phase 1 trials to approval and a fast-approaching patent cliff that threatens approximately $350 billion in annual worldwide revenue from drugs losing exclusivity through 2030. We see Redwire's pharmaceutical development on orbit as offering a potential solution to these challenges as we will take advantage of the unique microgravity environment in space to grow seed crystals using Redwire's flight-proven PIL-BOX technology. Our subsidiary, SpaceMD, will then sell or license these seed crystals to companies that can use them to create reformulated versions of existing drugs or entirely new therapeutics. We have a template for these commercial agreements and many successes with key partners in the biotech community to build on. Please turn to Slide 12. Next, let's turn to our combat-proven UAS. First, I'd like to take a moment to discuss a few key differentiators of the Stalker. The Stalker is a combat-proven UAS that is built on nearly 20 years of heritage with more than 300,000 flight hours, including in highly contested and harsh environments. The Stalker is silent, enabling covert surveillance and reconnaissance and minimizing detectability in contested or civilian-sensitive environments. The Stalker is also payload agnostic. More than 30 different third-party payloads have been integrated via our modular open systems approach, which enables plug-and-play integration. And finally, the Stalker Block 40 offers extended endurance of more than 18 hours, critical for long-range operations. We also have significant heritage with our Penguin series built in Regal Latvia, having delivered more than 200 Penguin aircraft to the Ukraine armed forces. European defense spending is growing rapidly and we are one of the few European-based suppliers with proven performance on the battlefield. During the quarter, we were awarded and delivered Stalkers for the prototype phase agreement of the U.S. Army's Long-range Reconnaissance or LRR program. The Stalker has previously been selected for 2 programs of record, the U.S. Marine Corps Long-Range Long Endurance and the U.K. Ministry of Defense's TIQUILA program. In total, during the third quarter, we shipped Stalker aircraft to 8 different end customers in the United States and other allied countries, showing the global demand for the combat-proven Stalker platform. Clearly, Stalker is broadly fielded for a variety of mission sets with multiple countries and U.S. military branches based on our differentiated capabilities. From unleashing American drone dominance in the U.S. to the European Drone Defence Initiative, the demand signal is strong. With existing production facilities and a broad customer base, we are targeting future growth globally. Redwire is ready with production capacity and fielded aircraft to deliver on key programs like LRR as we move into 2026. Please turn to Slide 13. Finally, moving to sensors and payloads. Redwire has decades of heritage having delivered thousands of space-based sensors and payloads, including antennas, sun sensors, star trackers and cameras for some of the most high-profile missions. Redwire now also has significant heritage with UAS sensors and payloads, having delivered more than 400 Octopus gimbals to the Ukraine armed forces, for example. These gimbals are compatible with a wide variety of UAS platforms. These are not just for Stalker and Penguin. We are selling these systems to other platform providers. During the quarter, Redwire announced a partnership with Red Cat to integrate their Black Widow Small UAS onto the Stalker to support UAS Army Echelon missions. The Black Widow, which was selected by the Army for its short-range reconnaissance Tranche 2 program can be mounted under the center wing of the Stalker as a deployable payload. By integrating best-of-breed short- and long-range reconnaissance systems, this partnership will provide war fighters on the front lines with mission -- with great mission reach and reliable data for effective decision-making. Stalker and gimbals are already integrated with controllers such as [ ATT&CK ] and CUDA technologies. And after Q3, we announced an MoU with UXV Technologies to enhance controller interoperability and align with the EU's ambitions to strengthen its defense industrial base through cross-border industrial cooperation. As we look forward, we see significant growth opportunities for airborne and space-based sensors and payloads. The UAS EO/IR sensor market segment is forecasted to grow from approximately $1.6 billion in FY '23 to approximately $4.8 billion in FY '32, a 12.9% CAGR. Redwire targets future growth both with the U.S. government and other key OEMs around the world for these products. In space, the proliferation of satellites is expected to continue with an estimated 70,000 satellites expected to be launched over the next 5 years. Further, as capabilities like space situational awareness and airborne ISR become increasingly important, Redwire is positioned for continued growth in this area. Please turn to Slide 14. Although in the near term we've seen delays from the U.S. government shutdown, which is likely to push key awards into next year, our pipeline of opportunities remains very strong and we saw a positive trend in contracts awarded during the third quarter as compared with the first half of 2025. Our contract awards during the third quarter of 2025 almost tripled year-over-year to $129.8 million with a book-to-bill ratio of 1.25x, improving backlog to $355.6 million, including contracted backlog from international operations of $128.7 million or 36% of total backlog. As a reminder, we often see lumpy contract awards from quarter-to-quarter. However, we continue to see a strong pipeline with an estimated $10 billion of identified opportunities across our space and airborne solutions, including approximately $3 billion in proposals submitted year-to-date as of September 30, 2025, inclusive of the year-to-date bids submitted by Edge Autonomy. Although the U.S. government shutdown is likely to delay timing of Q4 awards into 2026 with key wins during the third quarter and in the intervening weeks, we are pleased with the positive change in our trend line for contracts awarded and believe our pipeline of new opportunities is very strong, positioning us for continued growth for the next 12 months and beyond. Please turn to Slide 15. With that, I'd now like to turn the call over to Chris Edmunds, Redwire's Chief Accounting Officer. As previously announced, Chris will succeed Jonathan Baliff to become our Chief Financial Officer effective December 1, 2025. Chris brings deep knowledge of our business and significant finance and accounting expertise, and I look forward to working with him in his new role. Chris will now discuss the financial results for the third quarter of 2025. Chris? Chris Edmunds: Thank you, Pete. Before turning to Slide 16, I want to highlight the photo on this page of the ribbon cutting for our new 15,000 square foot facility in Albuquerque, New Mexico, adjacent to the Kirkland Air Force Base. This facility will support a wide range of capabilities from space, missile defense and other emerging war fighter domains as well as support work under the $45 million contract with the AFRL that was previously disclosed. Redwire is focused on optimizing our operational footprint and smartly investing in locations like Albuquerque, which are key to our nation's defense architecture. Please turn to Slide 16. Let's turn to the financial results for the third quarter of 2025, starting with revenue. Revenues for the third quarter of 2025 increased by 50.7% year-over-year to a record $103.4 million, with Edge Autonomy contributing $49.5 million. Turning to profitability. During the quarter, we saw a significant sequential improvement in our adjusted EBITDA from a negative $27.4 million in the second quarter of 2025 to a negative $2.6 million in the third quarter of 2025. This improvement is largely attributed to the 67.5% sequential increase in revenue and adjusted gross margin of 27.1%, offset by the unfavorable impact of VACs of $8.3 million. Finally, turning to cash and total liquidity. We ended the quarter with total liquidity of $89.3 million, which was comprised of $52.3 million of cash, $35 million of undrawn revolver capacity and $2 million in restricted cash. Although lower sequentially, this does represent a 46.2% year-over-year improvement in total liquidity. Please turn to Slide 17. I'd like to take a moment to provide some additional detail around third quarter adjusted gross profit and cash used in operating activities. Starting with gross profit, as shown on the left-hand chart, during the quarter, we reported gross profit of $16.8 million and gross margin of 16.3%. Included within these results was an $11.2 million noncash purchase accounting adjustment related to the Edge Autonomy acquisition. This represents the amount of the fair value step-up recorded through purchase accounting for the inventory sold this quarter, resulting in adjusted gross profit of $28 million with an adjusted gross margin of 27.1%. We believe that this adjusted gross margin is more representative of the potential of the combined business going forward as we have now fully recognized the inventory fair value step-up in earnings and it will no longer impact future gross margins. Second, as shown on the right-hand chart, we saw a significant and expected reduction in net cash used in operating activities during the third quarter of 2025 as compared with the first 2 quarters. During the quarter, our use of cash from operations decreased significantly on a sequential basis from a use of $87.7 million during the second quarter of 2025 to a use of $20.3 million during the third quarter, an improvement of $67.3 million. Even excluding the impact of acquisition-related costs included in our Q2 2025 operating cash flows, this represents a sequential improvement of approximately $30 million. Although this quarter represents a sequential improvement, we continue to focus on profitability, expanding revenue and gross margin and driving efficient SG&A as we sharpen execution and we achieve profitability, including positive cash from operations. In regards to capital allocation, we remain committed to a disciplined approach to fund our growth initiatives and maintain a prudent balance sheet. In line with this long-term capital sourcing strategy, we expect to file a prospectus supplement for a $250 million at-the-market or ATM equity offering program in the coming days. Please turn to Slide 18, for a brief discussion of the outlook for the remainder of 2025. Although we are benefiting from a diversification in geographical customer mix and despite the improved book-to-bill of 1.25 during the third quarter and the strong bookings we have seen thus far in October, the ongoing U.S. government shutdown has pushed a number of anticipated awards out of the fourth quarter and into 2026. As a result, for the 12 months ending December 31, 2025, including Edge Autonomy from the date of close, we are adjusting to a narrower expected revenue range of $320 million to $340 million. In closing, I'd like to reiterate that although impacts from the U.S. government shutdown have necessitated a prudent revision in revenue guidance, we believe that these anticipated orders have been pushed out of the quarter and into 2026. They have not been lost. With that, please turn to Slide 19, and I'll now turn the call back over to Pete. Peter Cannito: Thank you, Chris. The transformation of Redwire with addition of Edge Autonomy has already been accretive to our financial profile, reflected in our year-over-year revenue growth of 50.7%, 27.1% adjusted gross margin and strong book-to-bill of 1.25x. Finally, before we move to our question-and-answer session, as we announced in early October, our CFO, Jonathan Baliff, will be retiring from Redwire effective November 30, 2025. I'd like to take a moment to thank Jonathan for his leadership and valuable contributions throughout his tenure as he guided Redwire through critical phases of our evolution, both in his role as CFO and as a member of our Board. Thank you, Jonathan. With that, I want to thank the entire Redwire team for their contribution to our results during the third quarter of 2025. We will now open the floor for questions. Operator: [Operator Instructions] And your first question comes from Sujeeva Desilva with ROTH Capital Partners. Sujeeva De Silva: And Jonathan, best of luck with the transition. And Chris, congrats and good luck in the new role here. So starting with the revised guidance, appreciating that you did revise it down. What does that mean for the business looking toward 2026, given what you've seen happening during the second half of '25? Peter Cannito: Yes. So I think as Chris emphasized there in the paragraph on the guidance, these are not lost awards. These are just timing issues, particularly, as I mentioned, with the LRR program. The Army announced publicly right after the award of our prototyping contract that they would be awarding a production capability towards the end of this year and that has not occurred. And we believe the reason that that hasn't occurred is because of the ongoing government shutdown. So we do expect those awards once the government shutdown ends to start to flow. But unfortunately, we only have approximately 7 weeks or so of production time left in the quarter and that includes 2 holiday weeks with Thanksgiving and Christmas. So once the government reopens, and we believe the Army will start placing orders for the production element of LRR, we'll start producing those. And that would lead you to believe that -- and we also believe that that is setting us up for a strong 2026. Chris, anything you want to add? Chris Edmunds: No, I think this is the first quarter we've got the combined results and I think that's a stepping off point as the baseline as we start to go forward, right? So as we think about stepping from today forward and as the government reopens with our diversification geography, we are looking at '26 to be obviously a marked improvement on where we are. And I think we can start to see those trend lines as we're moving out. Sujeeva De Silva: Great. And just to understand that, was the EAC in the quarter, was that related to the government shutdown pushouts primarily? Peter Cannito: No. The EAC was, again, a market improvement quarter-over-quarter as we continue to sharpen our execution. We put a lot of effort into that, but there remain a few space programs that we're rightsizing in terms of our delivery. Sujeeva De Silva: Okay. Great. And my other question here is on the pipeline and bidding activity numbers you provided. And thanks, Pete, for the 5 areas and clarifying kind of the focuses going forward. Which of those 5 areas would you say maybe are the larger emphasis of the pipeline and bidding activity that you have in place today on a relative basis? Peter Cannito: Yes. Well, it's a good question and we are trying to -- I appreciate you acknowledging that because we're really trying to point out where the value is being driven at Redwire, so people have more clarity on that. The good news is all 5 of them are areas with extraordinary potential. Now as we just talked about, the UAS orders, this is something be -- is a major priority for the Army and quite frankly, the Department of Defense in general, our existing customers, the Marine Corps and U.S. SOCOM also have strong needs for UAS. So in terms of -- ironically, even though this is where we saw a pushout in the fourth quarter into 2026, that seems -- that still remains to be an area that has a strong growth potential. But there's been a bit of a slow start to Golden Dome as well and we think the VLEO orbit, in particular, will have a role to play in that defense architecture. So we're really excited about that as well. Those can be sizable orders when you order a large VLEO spacecraft. We believe with the now nomination of Jared Isaacman, who has shown in the past a strong disposition for commercial LEO destinations or commercial space stations that funding may ramp up for the commercial -- for the CLD program for those space stations. And you can see that Axiom is leaning forward. We're obviously in talks with all the commercial space station providers because of our heritage on the ISS. So we think that's really exciting as well. And over the longer term, we're just getting started. We continue to have a strong drumbeat in microgravity. It's not our largest revenue driver. But in terms of the potential for some of the pharmaceutical molecules that we've been working on, we see a lot of growth there. And even in sensors and payloads, that's a tried and true element of both the space and airborne market. And because we sell our payloads and not only use them on our own platforms, but sell them to other OEMs, we see strong growth there as not only coming from us selling more Stalkers and Penguins for UASs, but other people selling UASs in different categories that leverage our Octopus EO/IR sensors. So I guess it's kind of a long answer to your question, but the nice thing about it is we have many paths to victory here. It's just a matter of timing for us. Operator: And your next question comes from Greg Konrad with Jefferies. Greg Konrad: Maybe just sticking to one question. I think you had called out the gross margin improvement, which was noted, but you still had some level of VACs. I mean, how do you think about the right level of gross margins as the business comes back? And then just to reiterate, the fair value purchase adjustment, so that's gone going forward. That is just a 1 quarter adjustment? Peter Cannito: That's correct. So starting with the last part first, 27% to 30% gross margins should be our forward runway. The only reason it wasn't reflected to that and why we call it adjusted gross margin is because of that purchase accounting element. 30% is where we have in the past said is our stated goal for gross margins and where we think the business should be run rate forward, inclusive of any EAC adjustments. Now having said that, we are hyper focused on sharpening our execution. So should we be able to continue to reduce the number of EACs we see on some of these development -- space development programs and as we move out of development and more of our revenue comes from production contracts on the space side, we could do better than 30%, but I think 30% is the right forecasting run rate for us. Chris, I don't know if there's anything you want to add there. Chris Edmunds: Yes, I think you hit it right. As we're looking at the balance of our product mix, we'll continue to make investments where we see expansion in this gross margin. But based on where we are, as Pete said, with the repeat orders like we've seen recently with the announcement of the rollout solar rays with Axiom, again, repeat product line, we'll continue to see that gross margin profile continue to land around that 30% margin, Greg. Operator: Your next question comes from Scott Buck with H.C. Wainwright. Scott Buck: I just want to ask about the commentary around the cost-cutting. Have you completed that cost-cutting process? And if so, what is the annual cost savings target? Peter Cannito: Well, I'll answer the first part, and then I'll turn it over to Chris here. So the short answer is no. We have not completed it. Whenever you do a major acquisition, it's an opportunity to completely review your overall structure. One of the core principles of our acquisition is that we're able to scale to get operating leverage, particularly around SG&A on a much larger platform. So we're going to continue to look at that. And quite frankly, we have a lean culture that we've been implementing and we've been moving a lot of our engineering and development operations towards lean principles. And so that will be a part of who we are going forward. In turning of size and scope, Chris, do you have any comments on that? Chris Edmunds: Yes, playing off of the lean culture. We've gone through -- continue to evaluate all of our processes across the company. And really, the cost control is kind of balanced across all the various elements of the P&L. We are stepping off and making a commitment to a $10 million run rate savings here across the portfolio. We are seeing obviously investments where it makes sense, but being smart about where we can be more efficient in getting operating leverage as we continue to grow the top end of our P&L. We will continue to run the lean program that we've invested in. We do see additional cost savings, again, from production efficiencies as we continue to grow the top end. But no, we're happy where we are. We see margin expansions, as we said on the last comment and we'll continue to see operating leverage with our G&A as we go. Jonathan Baliff: Yes, one other thing, Scott -- yes, Scott, I have to mention [indiscernible] as I retire from the company. This will have -- what Chris has said, will also benefit our cash and cash from operations as we look into the future too. We saw obviously sequential improvement in cash from ops and free cash flow. But all of the things that Pete and Chris are talking about are really meant to obviously decrease the cash burn and eventually become free cash flow positive. Operator: And we have reached the end of the question-and-answer session. I will now turn the call over to Chris Edmunds for closing remarks. Chris Edmunds: Well, thank you all for your questions. Before concluding today's Q&A, as we've done the last quarters, we'd like to ask a select question from our retail community. Government contractors have been inconsistent as to whether they have been impacted by the government shutdown in 2025. Why do you expect to be impacted? Pete? Peter Cannito: Thanks, Chris. As usual, a very poignant and observant question from our astute retail investor base. It's a good one. It's interesting. Like the question states, we've seen a lot of different feedback on the government shutdown. Quite frankly, I'm a little bit surprised that it hasn't impacted everybody in the government contracting sector. But for us specifically, I think it really comes down to the impact on the LRR program. As I stated earlier, the Army had put out an article that they expected production to occur in the latter part of this year for LRR and that hasn't occurred because the government hasn't passed the budget. So those were not 2025 funds that they were playing off of. I also think that in many of our programs, we -- it just happened to line up that we were expecting contract awards to happen in the fourth quarter and those contracts didn't come for some key programs. And for the large defense contractor, maybe I should say, for each defense and government contractor, it probably has to do with where you are in your contract cycle. So maybe some folks that are burning off backlog don't see quite the impact. But we invested a lot in being ready for production for the fourth quarter to meet the operational demands for the drone initiatives that were out there and I'm confident they're coming. But that didn't materialize in the fourth quarter. And with only 7 weeks left for production, we think it's prudent at this time to revise down for ourselves. So thank you for that question. And of course, all the engagement we get.

Operator: Greetings, and welcome to the Redwire Corporation Second Quarter 2025 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Alex Curatolo, Senior Director of Investor Relations. Thank you. You may begin. Alex Curatolo: Good morning, and thank you, Shamali. Welcome to Redwire's Second Quarter 2025 Earnings Call. We hope that you have seen our earnings release, which we issued yesterday afternoon. It has also been posted in the Investor Relations section of our website at rdw.com. Let me remind everyone that during the call, Redwire management may make forward-looking statements that reflect our beliefs, expectations, intentions or predictions of the future. Our forward-looking statements are subject to risks and uncertainties that are described in more detail on Slide 3. Additionally, to the extent we discuss non-GAAP measures during the call, please see Slide 4, our earnings release or the investor presentation on our website for the calculation of these measures and their reconciliation to U.S. GAAP measures. I am Alex Curatolo, Redwire's Senior Director of Investor Relations. Joining me on today's call are Peter Cannito, Redwire's Chairman and Chief Executive Officer; and Jonathan Baliff, Redwire's Chief Financial Officer. With that, I would like to turn the call over to Pete. Pete? Peter Anthony Cannito: Thank you, Alex. During today's call I will outline notable items during the second quarter of 2025. Jonathan will then present the financial highlights for the same period and discuss our 2025 outlook. Finally, I will close the call by discussing our creation of a new entity, SpaceMD to advance the commercialization of our PIL-BOX space pharma strategy after which we will open the call for Q&A. Please turn to Slide 7. On our last earnings call I introduced our 2025 growth strategy which is centered around 5 key principles: providing picks and shovels which means delivering on our strong foundation of proven products with demonstrated flight heritage that form the building blocks of space missions for our customers. Delivering multi domain platforms, which means executing our platform strategy by delivering highly differentiated space and airborne vehicles for critical missions including multi domain missions. Exploring the Moon, Mars and beyond which means capitalizing on our decades of experience in providing systems for space exploration and delivering on ambitious missions to the lunar surface to Mars and beyond. Unlocking breakthrough technologies, which means continuing to pursue breakthrough technologies and that could unlock new markets with game changing potential. And finally, executing accretive M&A which means building on our proven track record of effectively creating enterprise value by acquiring technologically differentiated companies at accretive values, a key competitive advantage that enables Redwire to rapidly scale as a public platform. Over the next few slides, I will discuss a key win for each growth area to demonstrate how we are executing against them. Please turn to Slide 8. Starting with providing picks and shovels, during the quarter Redwire successfully completed the first deployment test for one of our Roll-Out Solar Array wings for the lunar Gateways power and propulsion element. These next generation Gateway ROSAs will generate an unprecedented 60 kilowatts of electricity, making these the most powerful ROSAs ever built. In the coming months, the pair of wings will undergo additional testing as we prepare to deliver them to Maxar in the fourth quarter of 2025. We are proud to be delivering our well proven ROSAs to support this key capability. Successful execution on this critical capability continues to underscore our foundational position in advanced power generation. Please turn to Slide 9. Turning next to delivering multi domain platforms. During the quarter we closed our acquisition of Uncrewed Aerial System or UAS manufacturer Edge Autonomy and we are already seeing significant positive conversion of their pipeline. During the second quarter, our Stalker platform was added to the Defense Innovative Innovation Units, UAS Blue List which contains technology vetted and approved by the Department of Defense for universal use across government agencies. This selection streamlines our ability to deliver combat proven commercially developed UAS technology at scale to meet the evolving mission needs of the U.S. government. Today I would like to give you an update on a critical U.S. army program called the Long Range Reconnaissance program or LRR. I'll start by providing a high-level description. LRR is a U.S. army program of record to provide maneuver battalions with a UAS designed to support reconnaissance, surveillance and target acquisition efforts. For LRR, systems will have aircraft weight of less than 55 pounds, range of 40 to 60 kilometers, an endurance of 5 to 10 hours, making our Stalker platform well suited to this specific set of requirements. For fiscal year 2026, the DoD's budget estimate for army aircraft procurement published this last June included approximately $325 million in funding for the LRR program. We believe Redwire Edge Autonomy is well positioned to be a performer on this program. Please turn to Slide 10. As such, we're pleased to announce the award to Redwire Edge Autonomy of a prototype phase agreement by the U.S. army to develop and deliver Stalker Uncrewed Aerial systems for the LRR program. Under the terms of the contract, we will deliver the Stalker UAS's which will be evaluated by the army and during hands on flight operations in the coming months. This is a strong signal that the U.S. army recognizes the Stalker system as a potential future platform for their UAS architecture. We are proud to support this critical program and are committed to meeting the Army's evolving mission needs. Please turn to Slide 11. Moving next to exploring the Moon, Mars and beyond. In early June, Redwire announced that our advanced manufacturing technology Mason passed Critical Design Review, or CDC, with NASA participation. Mason is an advanced tool suite designed to operate on the Moon and Mars and will enable the construction of berms, landing pads and roads for future lunar and Martian habitats. This technology can reduce operational risks and protect assets from damage caused by regolith, the material on the surface of the moon, as lunar surface activity continues to increase. This is a critical milestone that brings Mason one step closer to launch in the future and having completed the CDR, engineers at Redwire will begin to focus on fabricating a prototype and conducting functional testing of Mason. Please turn to Slide 12. Now let's turn to unlocking breakthrough technologies. During the second quarter, Redwire was selected by NASA to facilitate a space microalgae biotechnology experiment developed by the Indian Space Research Organization, International Center for Genetic Engineering and Biotechnology and the National Institute of Plant Genome Research, New Delhi. For this research mission, Redwire will manage mission integration, scientific fulfillment and on-orbit operations. This is but the latest example of Redwire's reputation as a leader when it comes to microgravity research, not only in the U.S. but globally. Please turn to Slide 13. Finally, when it comes to executing accretive M&A, our acquisition of Edge Autonomy was overwhelmingly approved by Redwire shareholders and closed on June 13, 2025. With Edge, Redwire is well positioned to transform the future of multi domain operations and provide decisive advantages to U.S. and allied warfighters. Integration is well underway and our goal is to achieve commercial, operational and financial integration objectives within 12 months. Please turn to Slide 14. Next, I would like to discuss the impact of the U.S. and international budgeting environment in the context of the industries we operate in. As we have previously discussed, delays in the U.S. government budgeting process impacted Redwire during the first half of 2025 and in some cases these delays have pushed out awards previously scheduled for the second half of 2025 into the beginning of 2026. Despite these delays, however, we have started to see positive trends from both the U.S. and our allies that will present significant growth potential moving forward. Starting in the United States, in the Big Beautiful Bill, the U.S. government is funding key programs Redwire could address, including Golden Dome with funding of approximately $24 billion, and NASA Gateway, with funding of approximately $2.6 billion. Further, we see both the July 2025 unleash U.S. military drone dominance memo and recently proposed Ukraine aid as positive indicators for our airborne platforms as we move into the back half of 2025 and towards 2026. Turning to the international environment, during a Summit in The Hague that took place this past June, NATO allies committed to invest 5% of gross domestic product annually on core defense requirements and defense and security related spending by 2035. Given our long standing existing operations in Europe, we are considered local in multiple countries and are therefore significantly advantaged in our ability to participate in European government programs. Also in June, Canada announced a plan to increase and accelerate investments in defense, with a cash increase of more than $9 billion anticipated in fiscal year 2025 to 2026. These developments are positive indicators for continued investment in the national security space and defense budgets both in the U.S. and internationally as we move into the second half of the year and beyond and Redwire is well positioned to take advantage of these key trends. Please turn to Slide 15. Turning to our contract awards and backlogs, our contract awards during the second quarter of 2025 were $90.6 million with a book to bill ratio of 1.47x and backlog of $329.5 million as of June 30, 2025, both an improvement on a sequential basis and inclusive of the backlog from the acquisition of Edge Autonomy. As a reminder, we often see lumpy contract awards from quarter-to-quarter. However, we continue to see strong and growing pipeline with an estimated $11 billion of identified opportunities across our space and airborne solutions, including approximately $2.5 billion in proposals submitted year-to-date as of June 30, 2025 inclusive of the year-to-date bids submitted by Edge Autonomy. We continue our efforts to increase the average size of the individual opportunities we are pursuing and as a result we continue to have a pipeline of bids that could result in a substantial increase in backlog and if we land these larger opportunities. Due to the success of our transformational investments building the Redwire platform, we are now positioned to continuously pursue larger opportunities in 2025 and beyond. Please turn to Slide 16. With that, I'd now like to turn the call over to Jonathan Baliff, Redwire's Chief Financial Officer, to discuss the financial results for the second quarter of 2025. Jonathan? Jonathan E. Baliff: Thank you, Pete. Before turning to Slide 17, I would like to highlight the photo on this page which is of our airborne flight operations team in Riga, Latvia, and they're preparing for the launch of a Penguin C VTOL UAS. With a vertical takeoff and landing and range of approximately 180 kilometers, this aircraft can be rapidly deployed even in harsh environments like the one shown here. Please turn to Slide 17. Let's review the results for the second quarter of 2025, starting with revenue. Redwire's recorded revenue of $61.8 million was up sequentially. 2025 is a transition year for our customers and we continue to see movement of revenue to the right on existing contracts and delay in awards across our customer classes, especially in the U.S. during the first half of 2025. Turning to profitability. During the quarter we saw a sequential decrease in our adjusted EBITDA from a negative $2.3 million in the first quarter of 2025 to a negative $27.4 million in the second quarter of 2025. This quarter's adjusted EBITDA was primarily impacted by net unfavorable EAC of $25.2 million, and this related primarily to a single program in the company's RF system offerings, as this program saw an increase in estimated costs and based on the technical complexity of the work to be performed to meet customer specifications. Turning to net loss, we saw a sequential decrease to negative $97.0 million and this includes the EACs I just spoke about, as well as noncash expenses, transaction costs and nonroutine activity that we will discuss in additional detail on the next slide. Looking at our cash and total liquidity, we ended the quarter with a record level of total liquidity of $113.6 million, which was comprised of $76.5 million of cash, $35 million in undrawn revolver capacity, and $2.1 million of restricted cash. This is a 27.4% improvement over the $89.2 million in total liquidity at the end of the first quarter of 2025 and 103.4% year-over-year improvement in total liquidity. We had an expected increase in year-over-year and sequential use of operating free cash flow in the second quarter, but this is related to transaction and other investments, which again I'll go over on the next slide. We expect these levels of cash use to decrease in the second half of 2025. Please turn to slide 18. The transformational aspects of the Edge Autonomy transaction, as well as our organic opportunities for growth provide significant benefits including an improved balance sheet and capitalization. So let's talk about some of these. The completion of the transaction had the issuance of approximately $260 million of equity and that repaid $120 million of debt and the repurchase of $61.5 million of the preferred securities, significantly reducing the fixed charges for the company and improved our capitalization ratios while also increasing shareholders equity from a negative $68.1 million in the first quarter of 2025 to a positive $907.6 million in the second quarter of 2025. However, there have been second quarter impacts associated with these changes which improve the balance sheet and therefore we wanted to provide additional detail of the drivers of these changes specifically on our net loss for the second quarter of 2025, as compared to the second quarter of 2024. As you can see on this slide, in addition to the EACs already discussed, Redwire's Q2 2025 net loss and cash flow was impacted by significant transaction related and nonroutine activity and the net income was also impacted by some noncash charges. Key among these were first, the $29.6 million increase in equity-based compensation primarily from the acquisition of Edge Autonomy. Second, a $20 million increase in interest expense from the repayment of debt to finance the Edge Autonomy transaction. And third, a $16.4 million increase in transaction expenses between the second quarter and 2024 -- between 2024 and 2025 which again primarily relates to the accretive acquisition of Edge Autonomy. We do not expect this magnitude of noncash transaction related and nonroutine activity during the remainder of 2025. Please turn to Slide 19 for a brief discussion on the outlook for the rest of 2025. Our acquisition of Edge Autonomy closed on June 13, 2025, so we are now for the first time providing full year Redwire 2025 guidance including the Edge Autonomy from the close date again June 13, 2025 through December 31, 2025 and this will be a range of $380 million to $445 million which represents a 30.5% compound annual growth rate on fiscal year '23 to fiscal year '25 revenue at midpoint. In line with the Redwire post-acquisition range provided today, let's discuss the impacts to the combined forecast range which we had provided before. As part of the announcement, our combination with Edge Autonomy we provided a combined financial forecast for fiscal year 2025 as if the transaction had closed on December 31, 2024. We're now revising our full year combined revenue forecast to be in the range of $470 million to $530 million, which still represents a 43.2% compound annual growth rate from 2023 to '25 at midpoint. This represents less than a 13% reduction to our previously provided combined forecasts at the midpoint. Please turn to Slide 20 and I'll discuss the drivers of this revised revenue as well as the impact they had on adjusted EBITDA for 2025. First, as we mentioned earlier, Redwire's first half of 2025 was impacted by the uncertain timing of government contracting, including delays in the U.S. government budget process related to a transition in administrations. We have seen some of our projected awards slip to the right and in some cases out of the year for both our space and airborne platforms, products and solutions. Second, as discussed, our second quarter 2025 saw a net unfavorable impact from EAC changes of $25.2 million, primarily related to a single program in our RF system offering which is a development phase program and I want to spend a moment to double clip on this topic. As part of our moving up the value chain growth strategy, Redwire manages the risk associated with nonrecurring engineering or NRE on development programs. Generally, these are development programs that can anchor Redwire into the production tail for validated requirements from our customers. An example of these pursuits that we've seen this dynamic in play include moving from providing just antennas to providing full RF payloads and also breaking into emerging markets such as low voltage distribution units. Once the NRE is complete, Redwire generally both owns the intellectual property and is spec'd in on our production programs with high switching costs for our customers, thus resulting in a much lower risk of losses moving forward. Furthermore, subsequent orders for these products tend to have much more predictable gross margins. At the same time, we recognize the need to manage the risk associated with these programs and are highly focused on minimizing EAC changes that impact our results in the future. Ultimately, we see such programs as having a short-term negative impact on profitability similar to IRAD while enabling future growth and profitability. So, given these drivers for 2025 and at this time we are withdrawing our previously provided adjusted EBITDA combined forecast for the full year 2025. Despite the revisions to our outlook in 2025, we believe that we are well positioned to capitalize on high growth trends in the future. It's important also to note that our acquisition of Edge Autonomy lowers the proportion of our business exposed to EAC volatility. Our contracted backlog as of June 30, 2025 as Pete talked about, now includes almost $90 million in remaining contract value from contracts which recognize revenue at point in time instead of percent of completion revenue recognition. These budgetary movements we have begun to see, combined with the positioning and diversification of our space and now airborne product offerings provide us momentum heading towards 2026. Please turn to Slide 21, and I'll now turn the call over back to Pete. Pete? Peter Anthony Cannito: Thank you, Jonathan. For those of you who have been following Redwire, you know that unlocking venture optionality has been a strategic opportunity. On Monday of this week, we announced our next major milestone in these endeavors to drive shareholder value, the creation of SpaceMD as a separate entity within Redwire to focus on commercializing drug development in space by partnering with pharmaceutical companies, scientists and research institutions to develop a novel pipeline of innovative drugs and therapeutics. Please turn to Slide 22. With decades of experience and 28 PIL-BOXes flown to-date, we continue to establish ourselves as a true leader in microgravity operations, particularly when it comes to pharmaceutical research. Utilizing Redwire's proven PIL-BOX technology, the team will develop a pipeline of new and modified drugs uniquely manufactured in microgravity, accelerating solutions for disease treatment and generating new revenue streams from sale or licensing. SpaceMD represents the evolution of our venture optionality strategy, moving from experimentation to full commercialization with significant upstream revenue potential, unlocking value for our shareholders. Please turn to Slide 23. I want to emphasize that the technology and processes underlying SpaceMD are proven and we are entering the commercialization phase. During the second quarter we signed an agreement with Aspera Biomedicines, a new commercial partner, to conduct space-based pharma research and analysis to advance the development of a cutting edge cancer treatment, rebecsinib, a small molecule ADAR1 inhibitor. Please turn to Slide 24. In addition, I am excited to announce that Redwire SpaceMD has executed a trailblazing commercial royalty agreement for space drug research with ExesaLibero Pharma. Under the terms of this agreement, Redwire SpaceMD expects to receive royalties from the commercial sales of resulting pharmaceutical products. This agreement signals a revolutionary paradigm shift for commercial utilization of microgravity. SpaceMD is translating the benefits of microgravity research into product value for our end customers with the goal of transforming the future of therapeutics while creating value for our shareholders. Through SpaceMD, Redwire has created a new business model for the monetization of critical IP generated by future PIL-BOX missions. Please turn to Slide 25. In closing, I would like to acknowledge that Q2 was a disappointing quarter for adjusted EBITDA compared to our expectations. We had one project, as Jonathan mentioned in particular that encountered challenges which led to an adverse EAC change with an outsized impact on revenue and profitability for the quarter. Space is hard. The team has taken numerous steps to address the challenges to get the program back on track. We are investing significant focus on operational execution. Despite this setback, there were also numerous achievements that we discussed that we believe position Redwire for long-term success. Space is a long-term investment. The path to success is not linear. Our strategic horizon is measured in years, not months. There is strength in the diversity of our business and the fundamental foundations of our strategy remain positive. With that, I want to thank the entire and integrated Redwire team to include our new employees from Edge Autonomy for their contribution to our results during the second quarter of 2025, a truly global effort. We will now open the floor for questions. Operator: [Operator Instructions] Our first question comes from the line of Colin Canfield with Cantor Fitzgerald. Colin Michael Canfield: As we think about the work that needs to get done here, how do you think about the balance of work that needs to be done between accounting controls and the complexity of the engineering solution? And then maybe if you could talk about kind of what are the key dynamics that you need to see before being able to reinstate your adjusted EBITDA guidance? Peter Anthony Cannito: Yes, that's a good question. And it's a good first question because obviously it's a big part of this quarter was associated with the accounting of our acquisition. That has a direct impact, of course on our reported numbers as well as the accounting of our programs. And I think that's why Jonathan took the time to try to articulate just how our developmental programs work in terms of EACs, because it's possible many of our shareholders don't understand what EAC estimate at completion really means and how you account for a program, a development program that's already happening in midstream. And the fact of the matter is, when you have a large number of development programs like you have in the space industry, EACs introduce a level of volatility during the development phase. Because what you're essentially doing is you are bidding a development program that in many cases has never been done before at a -- on a firm fixed price contract. And that's how our customers buy. So the result sometimes is as you move through the program, you can encounter technical challenges that affect what you are projecting will be the ultimate cost to the program at any given time based on the percentage of completion of the program. And this is how EACs are calculated. There's an estimate at completion that occurs. Because of this we endeavor to follow obviously the rules and general principles of accounting for these correctly, but that it can add some level of predictability when you have unpredictability, when you have a large portfolio of these first of a kind technologies in their development phase. As Jonathan tried to articulate, is that in many cases these development programs are moving towards production contracts. So despite the volatility of EACs, we remain optimistic overall on these programs because it's moving towards a production phase that tends to have, where the technological risk has now been significantly burned down and you move into just generating units in more of a production business model. But as we started to look at the impacts of EACs, especially late in the second quarter, and some of the changes that rapidly emerged associated with those, we decided that it would be prudent to do a complete portfolio review to understand this EAC dynamic that we have now seen for 2 quarters in a row before we continue to give EBITDA guidance. And so I'm going to turn it over to Jonathan to expound on that. But the idea is when you combine some of that variability that we're seeing on these development programs that are in many cases technological firsts, with the uncertainty in the environment associated with things like CRs and delays in budgets, and not having clear visibility into which programs are going to get funded. The idea of there not being a current NASA administrator, full time NASA appointed administrator in place, that's why we decided to remove our EBITDA guidance for the remainder of the year as some of that uncertainty, regardless of the AAC starts to go away, specifically in the budgetary environment, that of course give us a higher confidence to do predictions in the future as well. Jonathan, anything you want to add? Jonathan E. Baliff: No, I want to be very clear that you asked how did the team think about our accounting controls? Our accounting controls have improved significantly. On top of that, the issues associated with this one product line or product offering the RF was part of a third quarter review that was completed just recently. We're being conservative. We're taking the EAC in that program in our second quarter queue and disclosure because those controls have significantly improved and I believe that the team is excellent. As far as the EBITDA and other things that impact that, Pete has just mentioned it. The only thing I would add to what Pete has said and just to repeat, the acquisition of Edge Autonomy brings down the amount of contracts and revenue pretty significantly that's exposed to these fixed price contracts which again we have shown in the past to be both profitable and also free cash flow positive as we move forward and scale the business. Colin Michael Canfield: Got it. And then maybe if you could just talk about the due-diligence process that you conducted as part of the Edge Autonomy acquisition, as well as the investor due diligence of that acquisition during your recent raise with regards to the free cash flow profitability. So you discussed free cash flow right now. Is it still fair just considering kind of that due diligence of both parties to expect free cash flow positive next year? Jonathan E. Baliff: So first of all, it's a company that has unique technologies and has been both growing and also achieving higher levels of gross margin as they are in a more mature production phase with these technologies. And again, the announcement of the LRR prototype contract is proof point of that. It is a company that has been able to achieve free cash flow positive and we expect that to happen in the future especially as we scale the business. We'll, in the future, give more details about that. But that business is providing the financial results that we expected in due diligence. Operator: Our next question comes from the line of Greg Konrad with Jefferies. Gregory Arnold Konrad: Maybe just to go back to the EACs, I mean sometimes when we hear the word fixed price development there's a negative connotation. When you think about retiring that risk, I mean has there been a shift in just overall mix? I mean when you think about retiring that does the portion of the business that's fixed price development programs go down relative to production? Just trying to get a sense of if some of this is just tied to changes in the mix of development versus production programs. Peter Anthony Cannito: Well, so no, I don't think it's tied to the changes in the mix. Actually going forward, the mix part of what we believe is one of the financial synergies of Edge Autonomy is the diversification of the kind of contracts we perform on and Jonathan hit that development percent complete programs versus production point in time, which Edge Autonomy brings predominantly production point in time. So our mix going forward will actually be better. Essentially, we believe that this is just a function of where the space industry is right now. These contracts are let from fixed price. If you want to compete on them, you have to bid a firm fixed price job. In many cases when you look at opportunity that comes up, you're trying to determine, you're comparing it, especially when you're trying to break into new markets with a technology that's never been done before to just purely developing the entire thing on IRAD. For contrast, I'll give you an example. If you were -- if a customer had a requirement to do something and they were willing to pay a firm fixed price for it, we could essentially build the entire thing on IRAD, expense it, and then once we know exactly how much it would cost, we could set that price for the customer, assuming that price is lower, assuming they want to wait that long, and assuming that that price is lower than what other people would bid, which usually isn't the case. What happens usually instead in the space industry and again, I think this is just where the industry is right now with a lot of these first of the kind emerging tech programs is you bid the project and with the intent to be profitable but because it's a development project, you try to estimate that variability and include things like MR and other aspects to manage your risk. But sometimes because you don't see many cost plus fixed fee projects anymore, but because they're firm fixed price, you can encounter a technological hurdle that the team didn't anticipate because it's a first of its kind type of development that can impact your profitability on the program. Our perspective is that latter approach is better than just spending IRAD outright in the vast majority of our contracts. We retain the same level of IP through the contract as if we had done it entirely with our own money on IRAD and we feel that sometimes the impacts that you occur with these riskier development projects in the aggregate is less than the amount of total IRAD that you would have to spend to do more of a develop on your own money first and then sell as a unit price later on. Does that answer your question? Gregory Arnold Konrad: That's helpful. And then maybe just to go back to the Blue List for Edge Autonomy, obviously a lot of excitement around UAS and drones. I mean what does that really mean for Edge Autonomy? How does that change conversations with customers and any read through in the impact of the international opportunity set with the addition on that list? Peter Anthony Cannito: Yes, I think getting included on the Blue List is kind of table stakes now for competing in U.S. government contracts in the UAS market. So -- although we usually win and we have programs of record with the Marine Corps in particular and other allies at scale that saw the advantages of our UAS platforms regardless, and the differentiation regardless of whether we were on a Blue List or not, this I think gives us additional credibility and makes it easier for the customer to check a box and say that this is a legitimate platform for a federal agency, not only in the DoD, but across all federal agencies to acquire. So the Blue List and DIU has taken on the initial vetting process and that our presumption is, is that federal agencies go to that list first when they're considering who they're going to include in future procurements. Gregory Arnold Konrad: And then maybe just to sneak one last one on SpaceMD I mean, what changes with that business going forward as a new entity? What was the structure required to capture royalties? And maybe how are you thinking about that opportunity going forward as that gets separated out? Peter Anthony Cannito: Yes, no, it's a great question. And quite frankly, much of the strategic thinking around this came from questions on earnings calls from you all, as well as investor questions and questions from our own Board about what does this strategic pillar that I talk about in 2024 called "Unlocking venture optionality really mean?" And to be explicit about it, it was how do you unlock that venture potential and take it from being optionality to an actual value creating part of the business? And so as we started contemplating that, and we've had previous questions on calls about the business model and whether there was opportunity for generating royalties, we were working very hard on putting that together. The ExesaLibero agreement gave us a proof point that this was in fact a viable business model. And there are pharmaceutical companies out there that see the value of it, that they would be willing to sign an agreement of this type. So once we had the proof point associated with the strategy, we looked at some of the ways that competitors were positioning themselves, companies like Varda and the associated valuation and shareholder accretion that were generated by those businesses. And we thought to ourselves, well, perhaps by making it very distinct, we can unlock the venture optionality by putting significant focus and getting the right people with the right story focused on going out to the pharma industry to create the partnerships as part of this separate branding. Because in some cases, when you approach a pharma company as Redwire, they see you as a space infrastructure company less than as a development company. This gives us a vehicle to work inside those markets in the most streamlined and direct way possible. And again, like I said, the Aspera Biomedicines is a proof point, albeit that's a more traditional model where we're paid to run a facility. But certainly, the ExesaLibero is what we hope is the first of these proof points that show that this kind of model for microgravity drug development has finally come of age. Operator: Our next question comes from the line of Suji Desilva with ROTH Capital Partners. Suji Desilva: You guys said I think you're conducting reviews of all your programs for kind of EACs and the assumptions baked in. Is that an ongoing effort right now? And when do you think that review process would conclude? Jonathan E. Baliff: I mean, let's be clear, Suji and I'll let Pete -- we by nature of our programs, we conduct these reviews very regularly, right? What we're trying to say is we were conducting the reviews as part of after the second quarter was completed in July and as part of those reviews, both operational and financial. This is when the EAC became evident there was work being done as part of that. But again, these are part of the normal reviews that we believe are excellent accounting controls and in partnership with our operations. Go ahead, Pete. Peter Anthony Cannito: Yes, no, I'm glad you brought that up because I don't want to be misinterpreted. The reviews are systemic to what we do. This is what we do and we will always do it this way. I think the greater focus is on trying to characterize the whole EAC dynamic in our forecasting and making sure that we have the best processes in place to ensure that we capture any variability as early as possible. Suji Desilva: Okay. And I appreciate that clarification. I understand these are first of their kind projects which are fixed fees. So this is a new kind of world for this. And then separately, congrats on the win for the Stalker. I'm curious, as you've been down selected or the prototype has been off awarded, are you the only one providing a prototype? Are there multiple and just remind us the competitive advantage of Stalker that may have helped you get an Edge in this program. I think it's a battery tech, but you can clarify that. Peter Anthony Cannito: Yes, that's correct. We do not know who has been awarded prototype contracts, so we just don't know. The competitive advantage of Edge is, as you said, the range and duration of flight that we can achieve with our battery intellectual property that gives us best-in- class duration and range and duration for our group category in the UAS Group 2 category. Yes, I'd probably add to that too, that the combat proven operational performance is a key part of it too. I think sometimes people overlook that the Marine Corps and Special Forces have already been using Stalker pretty extensively. So I can't speak for the Army, but I imagine that they looked at that as well. Operator: Our next question comes from the line of Brian Kinstlinger with Alliance Global Partners. Brian David Kinstlinger: As it relates to the contract with a large number of EACs, it's still ongoing and if so, how should we think about the margin profile going forward on that if you've already exceeded the cost, will they all be EACs? Will it, now that you've taken the EACs, start fresh and have normal gross margins? Just wanted to kind of understand the impact in the second half of the year if it's still ongoing. Jonathan E. Baliff: So, Brian, when we talk about taking this large EAC, we have been very conservative as part of this. And in any type of EAC, you have an ability over time to both again, continue to get cash flow, continue to get margin. For this particular contract and without getting into too much detail, contract by contract, we generally want to be very conservative when we take it so that over time, as we perform, both cash flow comes in obviously at a better margin than what we've already taken. And that's kind of the history. That's why as part of most of our EACs, we then work as the project and the program is going to be ongoing to move forward. Brian David Kinstlinger: Okay. As it relates to the LRR program, that $325 million of initial funding, is that for 1 year for fiscal '26 or is that year marked and it will be $325 million for multiple years. Peter Anthony Cannito: It's the 2026 1-year governmental budget line. And as I understand it, they budget on a year-by-year basis for the procurement to be spent in that year. Brian David Kinstlinger: And how long at the valuation period do you think of the prototype? Peter Anthony Cannito: I don't have any... Jonathan E. Baliff: Yes. Look, historically in all of these prototype phases, it doesn't go out very long, right? These are meant to then move into an operational phase. That's the way it is. Peter Anthony Cannito: I think we're thinking about it as if you look at the administration and the Department of Defense position on U.S. drone dominance, I don't think they're being given a lot of time. The sentiment that we understand is that this is a major priority for this administration and they want to see UAS dominance in the near-term. That's how we interpreted the memo. I encourage anybody who is out there who is interested in the UAS market, go and read that memo. Jonathan E. Baliff: And just for all the investors out there, we plan on obviously coming out after this earnings announcement with more information about our UAS business, which we're really excited about. Tremendous growth wedge as part of the business that some of it we've talked about. Now that the combined companies are there, we plan on giving more information about this in the future. Pretty exciting. Operator: Our next question comes from the line of Griffin Boss with B. Riley Securities. Griffin Taylor Boss: So is there anything more you could provide today as to what Edge's results were for the full second quarter and what its proportion of backlog is given that you said you included that in the backlog as well. Jonathan E. Baliff: Yes. So Griffin, again, to remind everybody that the transaction closed on June 13. So the results that are in the current disclosure and we'll release the 10-Q later today allows you to see a very small amount of results from Edge. For the rest of the year and then into '26, we'll obviously show the full results of Edge. However, as part of our disclosure, we'll disclose revenue and net income loss recognized for Edge from the acquisition 6/30 and pro forma results for the same 3 and 6 month period for June 30, both 2025 and June 30, 2024. As you'll see when the 10-Q is filed, you can calculate the Q2 revenue for Edge, which was approximately $58 million. And so you'll be able to do that as part of when the Q comes out and then we'll be able to talk about that over the next number of months as we disclose more information about this exciting and accretive acquisition. Griffin Taylor Boss: And then yes, next for me and apologize if this was covered earlier on. But regarding LRR, do you have any idea how many companies could potentially be down selected on that program? And also given that this is a program of record, how soon we could perhaps expect to see any potential award there? Peter Anthony Cannito: We do not know how many can be selected. We see us being having a purchase by the way, this wasn't just an invite to prototype, they're actually procuring the aircraft as having us well positioned. But whether it's a winner take all or a couple awards, we don't have insight into the Army's plan there. What was the second part of your question? Griffin Taylor Boss: It was if you had any potential expectation for when we could see an award given. It's a program of record, so shouldn't be affected by the CRR? Peter Anthony Cannito: Yes, we don't know so. But we do believe that the DoD has got very aggressive about making drone dominance a priority. So we're optimistic that it's not going to linger for long. I think maybe the most simplistic way I can answer this is that government fiscal years start in October, October 1. So when we talk about it being in budget for 2026, we don't mean after January, we mean in a couple or 1.5 months here or whatever it is will be when the budget for 2026 will be active. But obviously there's been a lot of uncertainty around the timing of government programs associated with the budgeting process as we articulated. So when they will actually get to executing the contracts out of that October 2026 budget start, we're not trying to predict. Operator: Our next question comes from the line of Scott Buck with H.C. Wainwright. Please proceed with your question. Scott Christian Buck: Just one from me. With the closing of Edge, can you provide us with a little bit of color on what the information share looks like across Legacy, Redwire and Edge today and maybe a bit of a road map on integration through the remainder of the year? That would be great. Peter Anthony Cannito: Yes. Well, I'll take the second half first and then Jonathan can take the first half. In terms of the road map for integration, obviously the number one thing that we start from an integration perspective is the financial integration for reporting. So that is obviously very well underway, has gone extremely well and has been our initial focus. As we continue to progress, I would say the next big thing is looking at aligning strategic road maps and the allocation of investment and looking for those combined BD opportunities where multi domain provides a highly strategic differentiator for us. And that of course is also well underway. And then we have a very robust integration framework as you can imagine, we've done this. This is our 11th acquisition, so we're following our playbook and I think I articulated in the script look to have it completed in about 12 months. Jonathan E. Baliff: I mean, Scott, I'll just say from a financial information standpoint and consistent with previous, especially the large acquisition that we did 2.5 years ago, the financial community will see and has already seen the information on Edge Autonomy is part of our proxy that we filed about 2 months ago. And so you're able to see that information as part of our 10-Qs and our 10-Ks. You'll also be able to see pro forma information similar to what I just spoke about in answering a previous question in which you'll see full Q2, you'll see that comparison to 2024, and then you'll see the same thing for subsequent quarters and the full year. So we do expect you to be able to understand that business. It is a higher margin business on a gross basis at this current state because they're mature into production. But just use that as a guide in what we've already shown. And again, a very accretive transaction and again operating the way that we saw already with nice growth, high margins. Operator: And our last question comes from the line of Austin Moeller with Canaccord Genuity. Austin Nathan Moeller: So my first question, how do you view NASA's new directive on future contract awards for the commercial LEO destinations program? And how do you expect that may impact your revenues versus the restored funding from Congress through the ISS? Peter Anthony Cannito: Well, I'll take the latter part first. The restored funding for the ISS is obviously good for us. We do a lot of work on the International Space Station that leads to more shots on goal with PIL-BOX and our other microgravity innovations. So we're excited about that and we're excited about the recognition that having a presence in low earth orbit is really important to not only the U.S. but our allies as well. And some of the variability that we've talked about in terms of uncertainty in the timing of things is to put a finer point on it is ESA, which is a very big customer of ours, looking to see what direction NASA is going to go in with some of the programs like the ISS, as well as the longer-term programs associated with Artemis, like Gateway. But I think we're starting to see through the budgetary process that the programs are going to be healthy here going forward. In terms of CLD, I think it's good that we're seeing additional clarity there. I would point to, as we've discussed previously, Redwire's is positioned to be what we colloquially refer to as the orbital outfitter for government and commercial space stations. So as these space stations come online and the investment goes into building them out, whether it's funded by NASA or funded by individual companies, we're clearly an important subsystem provider for that since we have the proven rollout solar array capabilities on the International Space Station now. And we're of course -- well, it's been through a number of press releases with our associations with VAST and others, it's been well established that we're positioned to be providing onboard capability like our PIL-BOX and other microgravity capabilities for anyone who successfully executes their plan. Austin Nathan Moeller: Okay. And just a follow-up. Presumably you view the funding opportunity in fiscal year '26 as more favorable than the CR this year. Do you expect any Golden Dome contract awards that you're bidding on to be issued more in the first half or the second half of '26? And are you bidding as a prime contractor, a subcontractor, or both? Peter Anthony Cannito: So I can't discuss the details of our bidding strategy on Golden Dome other than to say we are actively bidding into Golden Dome in a variety of ways based on the early industry conferences that we have been invited to today. So we're an active participant in the Golden Dome acquisition. In terms of time line for Golden Dome, again, we don't -- part of, I think one of the major themes of the uncertainty in the second half of 2025 is there isn't a lot of insight right now as to when these programs are going to be awarded. But General Guetlein, who is leading the Golden Dome effort has -- they only have 3 years that they've outlined to accomplish their goals. So I believe they will move out quickly. But again, the -- when that actual -- it's a material. If you look at the fact that sitting in this chair last year, if you had asked me what the number one national security space program opportunity would be, I would have said the SDA tranches coming out of the Space Development Agency. There has been a lot of uncertainty around that. And it seems to be kind of an on again, off again thing that's going on out there. How that -- those funds and the funding and the architecture and all that kind of stuff transitions into a new yet to be defined Golden Dome architecture does introduce an element of uncertainty. But all I can say similar to LRR is that we are very focused that these are the Department of Defense's priorities. So we're not, fortunately, a business that is -- even though there's uncertainty around it, we're not a business that's focusing on deprioritized trends. We have a lot to offer to these prioritized initiatives. Operator: Thank you. We have reached the end of the question-and-answer session. And I would like to turn the floor back to Jonathan Baliff for closing remarks. Jonathan E. Baliff: Thank you for your questions. Before we conclude today's Q&A and as we've done the last several quarters, we'd like to ask a select question drawn from our retail investor community. Today's question comes from Reddit. Redwire owns a new domain, rdw.com, are you moving away from redwirespace.com. Pete? Peter Anthony Cannito: No, it's I'm always amazed by the attention to detail from the retail investor. They really do an incredible job noticing some of these moves. And I think it's an insightful question because we are moving forward as rdw.com, of course we're still Redwire, but Redwire has -- both Redwire Space as well as Edge Autonomy. And perhaps symbolically the move to rdw.com really just underscores that a Redwire is no longer just a pure-play space company. We are a space and defense tech company. And there's a lot of reasons why that is highly strategic. But I think in the context of the discussion we've had today, the thing I'd like to highlight most is Redwire has always had this position of being diversified across what we call things that are happening today that are generating revenue and profit today, as well as things that are happening in the bold future. And it's a bit of a hybrid because there are some companies who are more towards completely towards the venture side of things. They don't generate much near-term revenue. Certainly, profitability doesn't tend to be a focus area for those kind of companies. And then there's other companies who have great traditional revenue streams but don't have a bold vision for the future. We're a hybrid and that's what we try. We've always tried to articulate that when we talk our picks and shovels side of the business of providing subsystem components, as well as our unlocking breakthrough technologies part of our strategy in terms of the biotech. The pivot to RDW is really just an extension of that. We look at the similarities between defense tech and space and we recognize that defense tech in many cases is a much more mature market than the emerging space industry is. And therefore, expanding the vision to include both high tech things in space as well as high tech things like UAS's allows us to continue that tradition of trying to have that portfolio effect via our diversified strategy of things that are being procured now and that have really strong demand in the immediate future with things that have a much longer tail. And in my closing remarks at the end, I talked about that space is a long-term investment and it has to be viewed that way in terms of how we certainly, I should say view it that way in terms of how things are going to play out. But the pivot to rdw.com underscores that we also see a lot of value in having a strong base in the defense tech area that enables us to be patient to see how some of these programs like SpaceMD and others, play out over the long-term. So, I appreciate that question. And again, our retail investors have a keen eye for that kind of thing. And I think that question, in particular, was insightful because it was a great way for me to use a symbolic change to underscore a much broader strategic pivot. So with that, thank you all for the questions. And as always, it's great to engage with the retail investor community as well, as all of you. And with that, we appreciate everybody taking the time to listen today and go Redwire. Operator: Thank you. And this concludes today's conference, and you may disconnect your line at this time. We thank you for your participation.

Operator: Greetings, welcome to The Redwire Corporation First Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]. Please note, this conference is being recorded. I will now turn the conference over to your host, Alex Curatolo, Senior Director of Investor Relations. Thank you, you may begin. Alex Curatolo: Good morning and thank you Darrell. Welcome to Redwire's first quarter 2025 earnings call. We hope that you've seen our earnings release, which we issued earlier this morning. It has also been posted in the Investor Relations section of our website @redwirespace.com Let me remind everyone that during the call, Redwire management may make forward-looking statements that reflects our beliefs, expectations, intentions, or predictions of the future. Our forward-looking statements are subject to risks and uncertainties that are described in more detail on Slide 3. Additionally, to the extent we discuss non-GAAP measures during the call, please see Slide 4, our Earnings Release, or the Investor presentation on our website for the calculations of these measures and their reconciliations to U.S GAAP measures. I am Alex Curatolo, Redwire's Senior Director of Investor Relations. Joining me on today's call are Peter Cannito, Redwire's Chairman and Chief Executive Officer; and Jonathan Baliff, Redwire's Chief Financial Officer. With that, I would like to turn the call over to Pete. Pete? Peter Cannito: Thank you, Alex. During today's call, I will outline our key accomplishments during the first quarter of 2025 and Jonathan will then present the financial highlights for the same period. We will then discuss our 2025 outlook after which we will open the call for Q&A. Please turn to Slide 7. On our last earnings call I introduced our 2025 growth strategy which is centered around five key principles; providing picks and shovels, which means delivering on our strong foundation of proven products with demonstrated flight heritage and that form the building blocks of space missions for our customers. Delivering multi domain platforms, which means executing our platform strategy by delivering highly differentiated space and airborne platforms for critical missions to include multi-domain missions. Exploring the moon, Mars and beyond, which means capitalizing on our decades of experience in providing systems for space exploration and delivering on ambitious missions to the lunar surface, to Mars and beyond. Unlocking venture optionality, which means continuing to pursue breakthrough developments on advanced technologies that could unlock new markets with game changing potentials. And finally, executing accretive M&A, which means continuing our proven track record of effectively creating enterprise value by acquiring technologically differentiated companies at accretive values, a key competitive advantage of Redwire, which enables us to continue to rapidly scale as a public platform. Over the next few slides I will discuss a recent key success for each growth area, to demonstrate how we are executing against these focus areas. Please turn to Slide 8. Starting with providing picks and shovels, during the quarter, Redwire was awarded a contract from Thales Alenia Space to provide four docking systems for the European Space Agency's I-Hab habitation module. The Redwire system is branded as the International Berthing and Docking Mechanism or IBDM. The IBDM will enable safe transfers of crew and cargo from the visiting spacecraft to I-Hab, supporting continuous operations and missions within the Lunar Space Station. This is a mission critical element of infrastructure that has applicability to space habitats and both crewed and uncrewed space capsules. Please turn to Slide 9. Turning next to delivering multi-domain platforms, in February, Redwire announced the award of a study contract from ESA to develop the preliminary spacecraft design for the upcoming ARRAKIHS dark matter mission that will image faint galaxies in the nearby universe and provide insight into the nature of dark matter. Redwire's solution is built around an adapted version of our flight proven small satellite platform Hammerhead, shown on the right of this slide. If selected for the implementation phase of the ARRAKIHS mission, Redwire would integrate the full satellite in our state-of-the-art clean room facilities in Belgium, underscoring the maturity of our full mission systems capability in the European market. These first quarter successes illustrate that Redwire is proudly building on decades of flight heritage and we continue to play a critical role in developing organic capabilities for the European market as it pivots toward increased independence in space and defense. Please turn to Slide 10. Moving next to exploring the moon, Mars and beyond. In early April, Redwire and i-space-U.S. signed a Memorandum of Understanding to jointly pursue commercial lunar exploration and science missions and for the NASA CLPS initiatives, as well as additional private sector customers. Redwire is a prime contractor on the CLPS IDIQ contract, which has a cumulative amount maximum contract value of $2.6 billion through 2028. Redwire is proud to combine our advanced digital engineering, integration and testing, and lunar subsystems and payloads with ispace's proven lunar landing platform and mission operations to create a world class team to support future lunar missions. This partnership furthers our already robust set of capabilities for commercial lunar exploration. Please turn to Slide 11. Turning to unlocking Venture Optionality, in April Redwire launched both a new drug development technology and a cancer detection experiment to the International Space Station as we scale our in-space pharmaceutical drug development. Based upon our highly successful PIL-BOX platform, the high volume industrial crystallizer is capable of processing samples of that are up to 200 times the volume of what could be processed in the original technology. To validate the new hardware, Redwire launched its Golden Balls nanotechnology manufacturing demonstration which I discussed on our last earnings call. The goal of the new industrial crystallizer technology is to further optimize large scale production of PIL-BOX pharmaceutical development in space to achieve economies of scale that significantly advance the business model potential. In addition, today Redwire is proud to announce that we have signed an agreement with a new commercial partner, Espero Biomedicines, to fly two additional PIL-BOXES to the ISS. Redwire will crystallize a new cancer treatment that Espero Biomedicines is working on. Redwire and Espero Biomedicines see this as the start of a long and fruitful partnership and are excited to have a new -- we are excited to have a new commercial customer funding advanced biopharma development in space for the benefit of people on earth. Please turn to Slide 12. Finally, when it comes to executing accretive M&A as many of you know, in January 2025 Redwire announced that it has signed an agreement to acquire Edge Autonomy. In March 2025 we announced that we had received all regulatory approvals needed to complete the transaction and just this past Friday, May 9, 2025, we filed our definitive proxy with the SEC. With these critical milestones behind us, we expect to close during the second quarter of 2025 with the special meeting scheduled for June 9, 2025. This transaction is expected to transform Redwire into a global leader in multi-domain autonomous technology, broadening our portfolio of mission critical space platforms to include combat proven autonomous airborne platforms. Please turn to Slide 13. Next, I would like to discuss tariffs in the context of Redwire's supply chain. Redwire's supply chain provides resiliency in the current environment with a U.S. based supply chain for our U.S. customer base, particularly on federally funded contracts, and with a European based supply chain for our international customers. Our global manufacturing footprint serving local markets is a natural tariff mitigant. As such, we have yet to see notable widespread price increases or shocks due to tariffs. We are addressing one-off cases with suppliers. However, we currently do not expect any material financial impact. Redwire will continue to monitor potential impacts closely as we manage our business through this dynamic environment. In some instances, we believe that the current trade environment may lead to both increasing investment in U.S. manufacturing and in European space and defense budgets that could benefit Redwire's significant manufacturing presence in both regions. Please turn to Slide 14. As many of you likely saw, the recent presidential budget request includes funding for key space and defense programs like Golden Dome and Redwire is exploring multiple solutions throughout the Golden Dome’s layered defense architecture to help defeat threats targeted at the U.S. Homeland. I'd like to highlight just a few examples of how Redwire solutions could be leveraged in support of these efforts. First, Redwire spacecraft to include our VLEO, LEO and GEO capabilities can be leveraged in a multi-orbit architecture to identify, detect and potentially mitigate threats. In addition, Redwire's space based optical sensor capabilities that use the same technologies as developed in the cameras for Firefly's Blue Ghost and Intuitive Machines IM-2 lunar landers can be leveraged to develop timely threat detection and custody. And finally, Redwire’s digitally engineered mission systems and integration or DEMSI agent based digital engineering environment enables end-to-end architecture assessment for threat mitigation. We are particularly well positioned because we have secure facilities and clearances to operate in this domain. Redwire is aggressively pursuing multiple Golden Dome opportunities and looks forward to the opportunity to leverage our extensive national security heritage in defense of the United States and is in discussions with relevant stakeholders. Please turn to Slide 15. Turning to our contract awards and backlog, our contract awards during the first quarter of 2025 were $56.2 million with a book-to-bill ratio of 0.92 times, a significant improvement on both a sequential and year-over-year basis. In addition, backlog remained relatively flat at $291.2 million as of March 31, 2025. 37% or $107.2 million of this contracted backlog is from our international operations in Europe. As we have continuously reinforced, we often see lumpy contract awards from quarter-to-quarter. Although we saw key wins for the first quarter coming out of the European market, including the contract for the IBDM, I-Hab and ESA study contract for the ARRAKIHS mission mentioned previously, we also saw notable delays in awards in the U.S. Government market due to the transition of key decision makers in NASA, SDA and other agencies, as well as budget uncertainty associated with new administration priorities. We believe these delays are temporary and based on analysis of the Presidential budget request that includes funding for key space and defense programs like Golden Dome. We remain optimistic about the future of US national security, space and defense budgets. In the meantime, we continue to see a strong pipeline with an estimated $6 billion of identified opportunities, including approximately $0.5 billion in proposals submitted during the first quarter of 2025. We continue our efforts to increase the average size of the individual opportunities we are pursuing and as a result we continue to have a pipeline of bids that could result in a substantial increase in backlog if we land some of these larger opportunities. Because of the success of our transformational investments building the Redwire platform in 2024, we are now positioned to continuously pursue larger opportunities in 2025 and beyond. Please turn to Slide 16. With that, I'd now like to turn the call over to Jonathan Baliff, Redwire's Chief Financial Officer, to discuss the financial results for the first quarter of 2025. Jonathan? Jonathan Baliff: Thank you, Pete. Before turning to Slide 17, I would like to highlight the rendering on this page, which is ESA's Proba-3 spacecraft using a version of Redwire's Hammerhead platform. During the first quarter, the Proba-3 spacecraft which launched in late 2024 demonstrated key on-orbit milestones by autonomously acquiring and maintaining spacecraft formation flying over the course of two Earth orbits. This is the world's first on-orbit precision flying mission with two spacecraft maintaining their relative positions down to less than a millimeter while flying 150 meters apart in space. This is not only a significant technological achievement, but also a critical step in achieving the mission objectives of studying the Sun's corona forces. Kudos to our Redwire Space Europe team for making this possible. Please turn to Slide 17. So let's review the results for the first quarter of 2025 starting with revenue. Redwire recorded revenues of $61.4 million, a decrease both on a sequential and year-over-year basis. As Pete mentioned, although we saw key wins coming out of our European market, we also saw movement of revenue to the right on existing contracts and delays in awards across our customer classes, but especially in the U.S. during this quarter. Turning to profitability, during the quarter, we saw a significant sequential improvement in our adjusted EBITDA from a negative $9.2 million in the fourth quarter of 2024 to a negative $2.3 million in the first quarter of 2025. Our adjusted EBITDA included a net unfavorable impact from EACs of $3.1 million. These net EAC changes were primarily due to additional unplanned labor and increased production costs related to the development of new technologies required to meet customer specifications, especially in our structures and mechanisms core offering as we transitioned to the new I-Hab contract Pete talked about. Turning to net loss, we also saw a significant sequential improvement of more than $60 million achieving a net loss of $2.9 million as we continue on our path to profitability. Looking at our cash and total liquidity, we ended the quarter with a record level of available liquidity, $89.2 million. This is a 39.2% improvement over the $64.1 million of total liquidity at the end of last year. We had an expected increase in year-over-year and sequential use of free cash in the first quarter and this was inclusive of a $33.9 million shift in working capital. This shift included one-time payments of $8 million related to litigation settlements and $3.4 million related to M&A activities. Even with this, overall liquidity was enhanced by the $82.9 million exercise of our outstanding warrants. This represents an 82.3% exercise rate for these public warrants and the cleaning up of this takes us a step closer to maturing our capitalization as we complete the Edge Autonomy acquisition. Please turn to Slide 18 for a brief discussion of the outlook for 2025. As part of the announcement of our combination with Edge Autonomy, we provided a financial forecast for fiscal year 2025 as if the transaction closed on 31 December 2024. In 2025 there has been significant commercial market uncertainty, especially in the U.S. Defense and Government Services sector with the incoming new administration, and both Redwire and Edge Autonomy have seen some of our projected wins slip to the right. We acknowledge that there is volatility with the rest of 2025. However, our previous combined forecast was meant to be conservative and as of today we believe that we are still on track to end 2025 within our previously provided ranges. Therefore, we are reaffirming the combined forecast at this time. For revenue as if the transaction had closed on 31 December 2024. Redwire is forecasting full year 2025 combined revenue to be in the range of $535 million to $605 million, which represents a 52.9% compound annual growth rate from fiscal year 2023 to fiscal year 2025 at midpoint, and for adjusted EBITDA to be between $70 million and $105 million, which represents 138.8% compound annual growth rate from fiscal year 2023 to fiscal year 2025 at midpoint. Post-closing, we expect to provide guidance for the remainder of 2025. Please turn to Slide 19 and I'll now turn the call back over to Pete. Peter Cannito: Thank you, Jonathan. I want to thank the entire Redwire team for their contribution to our results during the first quarter of 2025, a truly global effort. We will now open the floor for questions. Operator: Thank you. [Operator Instructions] Our first questions come from the line of Greg Konrad with Jefferies. Please proceed with your questions. Greg Konrad: Good morning. Peter Cannito: Good morning, Greg. Jonathan Baliff: Hey, Greg. Greg Konrad: In the prepared remarks, I mean, one of the things you highlighted was Europe's increased independence and space and defense. Can you maybe talk about some of the risk given? I think there's potential for some of the programs that the U.S. and Europe partner on to potentially be pushed out versus maybe the opportunities on that independence and maybe what you're seeing given some of the award flow out of Europe. Peter Cannito: Yes, thanks, Greg. That's an excellent question. So let's break it up first of all into two sides. One on the space side and then one on the defense side. Right. So, and of course we recognize that there's some overlap between the two, but on the space side, you really see kind of a wakeup call over in Europe on the fact that they've started to fall behind the U.S. and China in terms of having an independent national program for space. And this is resulting in a real interest in additional investment in that area. Now we recognize that because the partnership between the U.S. and Europe has been so close on some joint programs that where those dollars flow to which programs will be dynamic in the short-term. But there's been a number of both in the press and quite frankly in some of the other companies that work on an international level in their earnings call, a discussion about, if you take something like Gateway, for instance, Europe may not stop their development just because the U.S. changes their strategy. They may just repurpose or redirect or look for new partners internationally to continue that development. So I think we see both a positive trend in the fact that there's additional interest in just space spending overall in Europe as well as so that if the dollars move, they'll still be there, but it'll just be creating new opportunities as well as some interest in continuing to fund programs that are already underway. So I think it's too early to say, quite frankly, that some of the current development that Europe is working on is going to go away. But like I said, if it does, it'll just move to something else, which when you look at the way Redwire is positioned with things like ARRAKIHS and Mars, which is somewhere where European dollars could pivot more too, we think that we'll be participating strongly regardless as long as the overall trend. Defense is even more interesting because Europe is going to continue to be a close ally of the U.S. but they're under a tremendous amount of pressure from their closest allies to actually increase their budgets in defense spending. So a Redwire obviously on the space side is well positioned to capitalize on that increase in defense spending. And of course, with the addition of Edge Autonomy, which has a very large manufacturing presence over in Latvia, supporting European defense spending, we'll be even better positioned there as well. So, recognizing and I think this is a scheme you'll hear throughout, that the market is dynamic, so it's difficult to pinpoint exactly what programs dollars are going to go to. The key point is that in the overall macro environment, both space and defense are growth areas. Greg Konrad: And then maybe just for a follow-up, I mean, I think the lumpiness on the U.S. side is fairly well appreciated. You had a fairly robust submitted bids last year and it seemed like Q1 was pretty strong in aggregate. Any kind of change as we sit here today in terms of what you see coming out of the U.S. just given we have the skinny budget, the CR in place for 2025, have you seen any change or is it still relatively constrained as we sit here today? Peter Cannito: Yes, I think again, I would say the same basic theme applies in the near term because we don't have an asset administrator fully in place yet. There's dollar shifting around in defense where some things are being deprioritized while other things like Golden Dome are being highly prioritized. It’s a pretty dynamic environment. But we feel pretty confident that once the prioritizations are set that both the space budget for the United States, if you include national security and civil space, as well as the defense budget focused on space and particularly on drones, our strong growth trends. So we think we're really well positioned in the right areas where when the budget shakes out, you're going to see a lot of continuous opportunity. So for us, some of this is just near term dynamics associated with new decision makers getting into their positions and making decisions. For example, people have talked about changes to The Gateway program in the U.S. it's important to emphasize that it's just a change in strategy which will ultimately end up with a change in focus. Where there any changes to the budgets for Gateway will likely be offset with increased funding for direct to lunar infrastructure or potential future Mars missions. So again, although one of the really resilient and exciting things we believe about Redwire is that when you're focused on space infrastructure, even when the programs change, there's a really strong role for us to play. As a matter of fact, a reset may give us opportunity to get in on some programs on the ground floor. So highly dynamic environment, but not without great opportunities. Greg Konrad: Great. Thank you. Operator: Thank you. Our next question is come from the line of Suji DeSilva with Roth Capital Partners. Please proceed with your questions. Suji DeSilva: Hi Pete. Hi, Jonathan. Congrats on keeping the guidance in a tough environment here. In a tough environment here. So, yes, so maybe you could talk about the prioritization of the U.S. Government programs. Can you talk about where drones is fitting in there anecdotally in terms of international domestic spend given the Edge Autonomy acquisition coming near close? Peter Cannito: Yes. Well, I think two points that I'll make about that is number one is drones have proven themselves at this point, I think it's safe to say, as a force multiplier in combat via the conflict in Ukraine, you can open up almost any news source and you're going to read about the effectiveness of that capability. So, drones are here to stay. And I would say it's an area for growth in terms of defense spending. AUSA, the Army's big conference was recently held and there was a lot of talk how critical drones are, particularly at the tactical level, where Edge plays are to the future of U.S. army war fighting and how additional investments are required in that area. There's a lot out there in the press about that. So we're really excited about those developments. And quite frankly, that's why we started looking at Edge Autonomy, is because we saw those trends and wanted to engage in that as well as the idea that these drones are going to be closely integrated into a multi domain mission environment that will include space as well. So I think like I said, it's safe to say that drones are going to be a big part of defense spending, not only in the U.S. but in the European market as well. Suji DeSilva: Great, thanks, Pete. And my other question, you guys made a MOU announcement with ispace at Space Symposium. Curious what milestones we should watch there and how you think your combined approach to lunar missions may be differentiated in the marketplace. Thanks. Peter Cannito: Yes, good question. I think it's often or I know it hasn't been really emphasized that Redwire is a prime on the CLPS contract that has been funding missions from Firefly’s Blue Ghost and Intuitive Machines. Heretofore, we've been a critical subsystem and component provider for those missions. And proudly so opportunity presented itself because ispace-U.S. is not a prime contractor to take a much larger role. So, it's a natural progression for us as we take on bigger and bigger opportunities to lead a full mission underpinned by their lunar lander. And there's a lot of technologies that Redwire brings to bear specifically around digital engineering subsystems and payloads and just the ability to run a really strong prime lead on CLPS that we're going to be unlocking here with this new partnership. So we're really excited about that and look forward to seeing the direction it heads. I'd say the next big milestone would be watching the team start to bid and win CLPS task orders and missions. Suji DeSilva: Got it. All right, great. Thanks, Pete. Thanks, everybody. Peter Cannito: Thank you. Operator: Thank you. Our next questions come from the line of Mike Crawford with B. Riley Securities. Please proceed with your questions. Mike Crawford: Thank you. And regarding the retained pro forma annual guidance for 2025, can you just fill us in on some details on what's going on with Edge today? Approximately what revenue and EBITDA did the company attain, Q1 and how's the pipeline looking, et cetera? Peter Cannito: Jonathan? Jonathan Baliff: Sure. So Mike, thanks for the question. And again, we are not disclosing their first quarter of the time because when we will receive that information in a U.S. GAAP format, we will disclose it and there is an ability to do that later. But I will say we have provided in the proxy that was final on Friday a lot of historic information about their revenues and adjusted EBITDA. And I would point you in that direction. I would also point you in direction that the company did increase its backlog. From what we disclosed when we announced the transaction in mid-January to today, their current backlog has grown to $99.4 million from low 70s. So, we're as part of the and it is a combined forecast, not guidance. Once we close the transaction, we know the exact date of the closing. We will then provide the street guidance for 2025 when the transaction closes. But again, take a look at the historical information concerning their revenues and their profitability and cash generation. And again, this is a company that's been able to grow pretty significantly and achieve a level of Operating leverage that has gross margins that will be accretive to Redwire. And so we're excited to get the transaction closed. Mike Crawford: Okay, thank you. And then follow-up is just on your own pipeline. Can't talk about Edge's pipeline, so do you characterize any? Can you give us any additional color on the what was like $0.5 billion bids submitted so far this year and any other big opportunities we should be tracking? Peter Cannito: Yes. Without getting into the specific contracts that we don't share for competitive reasons. I think the notable thing is if you look at our strategy in 2024 of moving up the value chain and the moves that we've made to go from being a primarily subsystems and components merchant supplier to having still that strong foundation of picks and shovels, but adding to it these spacecraft platforms in VLEO, LEO, GEO and even obviously highly sought after for Mars and deep space missions like Lightship and ARRAKIHS. That strategy is allowing us to bid as prime on larger full mission spacecraft programs. And an example of this, as Suji pointed out, is priming Eclipse mission, for instance. So without getting into the specific opportunities you can see, or what I would point to is the execution of that moving up the value chain leading to larger and larger bids. Mike Crawford: Great, thanks, Pete. Peter Cannito: Thank you. Operator: Thank you. Our next question has come from the line of Colin Canfield with Cantor Fitzgerald. Please proceed with your questions. Colin Canfield: Hey, thanks. Just looking through the forecast numbers on Edge Autonomy with respect to cash flow. Like they're kind of on course to do maybe $60 million in free cash flow this year. So if you could maybe talk us through how we should think about organic Redwire and the moving pieces on free cash flow, specifically how we think about kind of 2Q indicators through the rest of the year. Thank you. Peter Cannito: Sure, I'll take that one. Colin, thanks for your question. For us, there was always an expectation when you looked at the book-to-bill in the full year 2024 that as we said, we expected to have a use of cash in this quarter. You can see there was builds on the balance sheet both on the asset and the liability side, somewhat unusually. And so for us, we expect for one, revenues to some of the revenues that are moving into the second and third and fourth quarter to come about. We obviously have a certain level of bidding that we're doing that provides once you win some cash flow, you also see milestone payments start to come in where that provides cash flow. So you start to see some of the contract assets that you saw build in the first quarter start to come down. So we do expect cash flow to improve. We don't give guidance for free or operating cash flow, but we do expected on the Redwire side to improve as we go through the year. Colin Canfield: Got it. Peter Cannito: And then just by the way you mentioned free cash flow. Sorry, I did want to. Because I want to answer your question completely. CapEx again will remain fairly low compared to other industrial companies. Our CapEx position, although we've made pretty significant investments in the first quarter, four point, almost $4.1 million, we expect it to continue to be moderate and we don't have very high levels of maintenance CapEx. And so again, we've always said we'd be less than 2%, 2.5% of revenue generally. Colin Canfield: Got it. Appreciate that. And then for the EAC dynamics, maybe talking us through the mechanics of the recovery, what are the big moving pieces? How do we think about that? And then how do we think about that in 2025 versus 2026 in terms of getting that back via pricing? Jonathan Baliff: Sure. I mean again, I think we've been very explicit that, we want and are working quite hard both project management working with our clients to bring these EACs down from their, from last year's levels. That being said, the EACs that we took the net unfavorable in first quarter really was due to a transition of the I-Hab contract from a PATT [ph] to a full contract. Not talking about that specific contract in the future, but all the contracts, we always look forward to working with our clients on that. Pete, I don't know if there's something you want to say. Peter Cannito: No, I was just going to add that one of the things we emphasize on almost every call it feels like is this idea of balancing growth and profitability. Redwire really tries to focus on balance and some of the EACs are fundamentally a part of growing pains. When you're growing at double digit CAGR growth rates. If you think about, or I will articulate to you how we think about the evolution of some of the technologies that we're developing. Space is still a relatively new from an emerging technology perspective. So in many cases we're bidding on things that have never been done before that are going through a development phase which is a little less predictable, that will ultimately move into a production phase that will be highly predictable. An example of that is if you look at the early stages years ago of ROSA when it was an emerging tech, there was a lot of programs that had more variability associated with developing out the ROSA baseline. Now that ROSA is moving more into a production capability, you see more stable profitability and execution on the program. So I'd just like to note some of these EACs are a result of leaning forward and bidding programs that are emerging tech programs that will result in some variability in cost in the near term. But once they move into production and scale, we'll recuperate some of those costs in future orders. Does that help? Colin Canfield: Got it. Thank you. Appreciate it. Operator: Thank you. Our next questions come from the line of Brian Kinstlinger with Alliance Global Partners. Please proceed with your questions. Brian Kinstlinger: Great. Thanks so much. During 2024, Redwire submitted just over $4 billion of proposals. Can you share what the total value of bids outstanding are at this time and what TCV of the awards you referenced that were delayed? And then as you look at the bids, how do you think about the gross margin mix versus what your gross margin looks like maybe in the trailing 12 months? Peter Cannito: You want to take that one? Jonathan Baliff: I'll take that one. Thanks, Brian. So when you look at the bid submitted, the one question you're asking, we do not submit. We don't publicly disclose that information specifically about the margins. Again, the only thing I would say is we are bidding on larger projects and it's a mix. It's a mix. But there is a definitive desire as we bid these, that they would be higher margin than what we've been getting over the last 12 months. As far as the bids today, the $529.6 million that we bid, if you look at the last 12 months of those bids, which I think you brought about, many of those are still being adjudicated. You saw the, the actual amount of bidding stay flat kind of year-over-year on a quarterly basis. You've seen our pipeline come down a little bit, but that's really due to the lumpiness and probably delays as the U.S. Government executive transition is happening. But for the most part, we're still seeing pretty large projects, as Pete said, continuing to bid, especially in Europe. Right. If you look at the large win that we had in the first quarter with I-Hab, we're continuing to see Europe start to catch up. And so a large amount of our pipeline is global and continues to either be with commercial customers. If you look at our revenue mix, it was pretty interesting in the first quarter on just the quarterly revenue mix, which is kind of pointing in the direction of our trending. We saw National Security on a year-over-year basis go from 16% of total revenue on a quarterly basis to 32%. You saw commercial revenue stay, roughly, kind of in and around our largest at around 40%. And then obviously our civil business continued to be, less than a third of our business. So the bottom-line is that's kind of the direction of our bidding also. And again, we're trying to get higher margins as we bid some of these larger projects. Brian Kinstlinger: Great. Peter Cannito: And I'll add to that about kind of the portfolio effect of what we're, how we're managing margins inside some of these bids. Like I said, we're constantly bidding or we're constantly balancing revenue, steep revenue growth with profitability. So there are some bids that we put in that are things that we've done for a long time in the portfolio that have really great gross margins. And then there's other large bids that may have substantial materials associated with it that may bring down gross margin percentage, but increase gross profit in an absolute value perspective. And so that's why it can be challenging to make a definitive statement across the whole portfolio because we're managing it to optimize for both long-term revenue growth and profitability. But you do have instances where a really large win could reduce your gross margin percentage, but add to your gross margin absolute value, which that scaling effect enhances your EBITDA because the G&A doesn't grow at the same slope of the curve as your revenue does. So even though they might be a slightly lower gross margin on a percentage basis, overall, you're creating value, if that makes sense. Brian Kinstlinger: Yep. Great. And then my follow-up, maybe you could share what percentage in the trailing 12 months of revenue is funded by NASA? And then a ballpark. What percentage of your $6 billion pipeline is NASA related? Jonathan Baliff: Let me take the first one. I kind of answered the first one. The civil business mix was roughly 29% of overall quarterly revenue. If you look at it on a LTM basis, it's slightly lower than that. A pretty nice percentage of that. We don't give publicly what that is, is NASA. Obviously, we have ESA as part of it, and there's some other small space administrations, but at least gives you directionally what we're talking about as far as the pipeline is concerned. We don't, for competitive reasons give the specifics of whether it be civil or just specifically to NASA. I will say again, our commercial business, which has both national security and also some level of commercial business associated with satellites, like for example, the Thales ROSAs that we're building out, are also a meaningful part of our revenue growth today. And in the future. Brian Kinstlinger: Okay, thank you. Operator: Thank you. Our next questions come from the line of Scott Buck with H.C. Wainwright. Please proceed with your questions. Scott Buck: Hey, good morning guys. Thanks for taking my questions. I guess, I just have one this morning. Curious with the entrance of the UAV space with edge, is that complete with just edge or is there interest in expanding the capabilities similar to what you've done with legacy Redwire? Peter Cannito: Yes, I think it's fair to say that we're not going to change our strategy in that regard. We're making a transformation into being a pure play space company to both space and defense tech, particularly targeting those multi domain missions that utilize space and autonomous systems. So I won't comment on any specifics for our strategy in autonomous systems in general, especially enabled by AI. But I think it's fair to say if you look at the history of Redwire, where we often have a land and expand strategy to any of the markets we enter, that is how we think about markets in the long-term. Scott Buck: Okay. Peter, is there preference between future deals being on the space side or unmanned, or is it just simply being opportunistic? Looking across the spectrum? Peter Cannito: Yes, I think it's more the latter. We have a very distinct formula for what we go after to include it being accretive. So valuation matters very much to us. We don't just buy into high growth trends at any cost. So some of it is driven by opportunistic. But I would say it's fair that when you look at the public platform that we've established here and the difficulty that many companies are now having into getting into the public markets, especially subscale companies, there's an opportunity in both segments of the business here to expand through M&A. Scott Buck: Great. Well, I appreciate the added color guys. That's it from me. Peter Cannito: Thank you. Jonathan Baliff: Thanks, Scott. Operator: Thank you. We have reached the end of our question-and-answer session. I would now like to turn the floor back over to Jonathan Baliff for closing comments. Jonathan Baliff: Thank you for the questions. Before we conclude today's Q&A, we'd like to continue the initiative we introduced on our fourth quarter call where Redwire asked a select question drawn from our retail investor community. Here's today's question, which once again comes from Reddit. Can you elaborate on how your space infrastructure technologies like in-space manufacturing or advanced deployables are positioning Redwire to win future contracts Pete? Peter Cannito: Thanks, Jonathan. And yes, I'm very excited to continue to incorporate the voice of the retail investor in our earnings call. We got a lot of really positive feedback the last time we did this. So thank you all for the continued support. We value our retail investors and thank you for this great question. The first thing that I'll say when you talk about breaking down this question is can you elaborate on how your space infrastructure technology will position Redwire to win future contracts? And I think it's important to really understand the answer to this question, to understand of the different total addressable markets associated with space. If you look at a pie chart of the TAMs in space, you'll quickly realize that in space infrastructure is one of the largest, if not largest TAM. Now admittedly the rocket guys get the best headlines because that's super exciting and we love them all because they're essentially our ride to space. But over the long-term, the future contracts are associated with building out infrastructure in LEO, VLEO as Redwire is starting to unlock that new orbit. GEO cislunar on the lunar surface, missions to Mars, ultimately on the Mars surface, deep space, there's just this tremendous growth in the future of space infrastructure. So that's really exciting from a Redwire perspective when you talk about winning future contracts because there's a lot of opportunity and one of the number one core lessons and anyone who's out there is going to start a business or get into the business is focus on the big TAM opportunities. And we certainly are. You mentioned though, how are we going to be competitive in things like through our technologies like in-space manufacturing and advanced deployables. And the important thing to note there is those are fundamental building blocks of space. So these are not obscure parts of this massive future growth that we massive future expansion that we anticipate in space infrastructure. We're focusing on things like deployables that have are applicable to LEO, GEO, cislunar, on the lunar surface, Mars, deep space, all these things. And we're not a startup in these places either. So it's the virtuous cycle that is created by having demonstrated technologies that work that are going to position us for this expansion in future space infrastructure. Whether it's through NASA, ESA, international customers, national security customers, these fundamental building blocks and the fact that we're a proven player is what I think is going to position us to for those future contracts. So thank you for that question. I think it was a great question that gets fundamentally to our heritage plus innovation strategy, being a proven provider that knows how to operate in space and has many successes, but continuing to be that innovator as that space infrastructure expands into the future. So with that I'd like to thank everyone for their questions and appreciate taking the time to listen today and go Redwire. End of Q&A: Operator: Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines at this time. Have a wonderful day.

Jeff Zunick: Let me remind everyone that during the call, Redwire management may make forward-looking statements that reflect our beliefs, expectations, intentions, or predictions of the future. Our forward-looking statements are subject to risks and uncertainties that are described in more detail on slide three. Additionally, to the extent we discuss non-GAAP measures during the call, please see slide four of our earnings release, or the investor presentation on our website for the calculation of these measures and their reconciliation to US GAAP measures. I am Jeff Zunick, Redwire's Senior Vice President of Financial Planning and Analysis and Investor Relations. Joining me on today's call are Peter Cannito, Redwire's chairman and chief executive officer, and Jonathan Baliff, Redwire's chief financial officer. With that, I would like to turn the call over to Pete. Peter Cannito: Thank you, Jeff. During today's call, I will outline our key accomplishments during 2024, and Jonathan will then present the financial highlights for the same period. We will then discuss our 2025 outlook, after which we will open the call for Q&A. Please turn to Slide seven. During 2024, Redwire effectively led to approximately 25% revenue growth and a strong positioning for 2025. During the year, Redwire continued to provide critical picks and shovels as a trusted supplier to some of the most remarkable missions of the year. For example, in 2024, Redwire delivered 186 sensors, including sun sensors, star trackers, and cameras to our customers. Additionally, Redwire effectively scaled our production capabilities to meet growing demand through affordable capital investments. For example, in 2024, we increased the number of ROSA arrays under contract by 23.8% year over year. Also, in order to be better positioned for scalability and growth, Redwire effectively moved up the value chain from trusted supplier to strategic platform provider. With the introduction of five spacecraft platforms across multiple orbits serving the US and international markets: Sabersat and Phantom for VLEO, Thresher and Hammerhead for LEO, and Mako for MEO. And finally, Redwire made incredible advancements in the field of microgravity by launching 27 pillboxes for partners including Eli Lilly, Bristol Myers Squibb, and Excesso Libero Pharma. Please turn to slide eight. Taking a look at Redwire 2024 execution by the numbers. Redwire executed on programs for more than 100 customers with greater than 85% of revenues coming from our many government and marquee customers around the world, showcasing our strong revenue diversity. In addition, Redwire announced the launch of more than 70 products and solutions on 15 launches during the year, and that does not include product launches that did not get announced due to customer confidentiality. We expanded our footprint across the globe adding three facilities, two in California, and one in Poland. And as you can see in the right-hand column, our performance resulted in a robust year-over-year top-line growth of 24.7%, to record annual revenue of $304.1 million. Please turn to Slide nine. Turning to our contract awards and backlog. Our contract awards during the full year 2024 were $229.8 million. Our book-to-bill ratio was 0.76 times for the year and we ended 2024 with a backlog of $296.7 million. As we have continuously reinforced, we often see lumpy contract awards from quarter to quarter. We continue to expand our pipeline with an S including approximately $4.1 billion in proposals submitted during the full year 2024. This is a result of our moving up the value chain and scaling production growth principles leading to larger bids. As you can see on the upper right-hand side of this slide, this represents a significant increase of 334.3% over the corresponding prior year period. This growth in bids submitted throughout the year is a result of our effort to increase the average size of the individual opportunities we are pursuing. We are now bidding on individual programs in the $100 million plus award value on a more regular cadence. Of course, there is no guarantee we will win these opportunities. However, we now have a pipeline of bids that could result in a substantial increase in backlog if we land some of these larger opportunities. Because of the success of our transformational investments building the Redwire platform in 2024, we are now positioned to continuously pursue larger opportunities in 2025 and beyond. Please turn to slide ten. With that, I would now like to turn the call over to Jonathan Baliff, Redwire's Chief Financial Officer, to discuss the final financial results for the fourth quarter and full year 2024. Jonathan Baliff: Thank you, Pete. As we said before, we are on slide ten. So let's review 2024. With a focus on full-year results. Starting with revenue, Redwire's full-year and fourth-quarter performance illustrate the strong positive growth momentum Redwire demonstrated during 2024, and over the past three years. Our full-year 2024 revenues reached a record $304.1 million, a 24.7% increase on a year-over-year basis. Excellent revenue growth was achieved despite having a $17.7 million net unfavorable estimate at completion or EAC adjustment that resulted from program replanning which we will discuss further. Turning to profitability. In 2024, we recorded positive adjusted EBITDA for three out of four quarters, and positive free cash flow for two out of four quarters, including the fourth quarter of 2024. However, our fourth-quarter adjusted EBITDA was a negative $9.2 million primarily due to unfavorable net EAC adjustments for the quarter. As a result, for the full year 2024, Redwire realized an adjusted EBITDA loss of $0.8 million. You should note that these EACs also impacted our net loss, which was additionally impacted by other one-off items that I will talk about momentarily. EAC adjustments are project accounting measurements most often associated with fixed-price contracts that occur when a project does not proceed exactly as planned. EAC adjustments result from changes in project execution, timing, and cost that can either accelerate or delay recognition of revenue and Redwire has faced both. An unfavorable EAC adjustment results in revenue being recognized in future periods while costs remain at actual levels in the present. And these adjustments then impact revenue, gross profit, net income, and adjusted EBITDA. Turning to our cash from operations during the fourth quarter of 2024, net cash provided by operations totaled a positive $7.1 million. This is a sequential and significant improvement of $24.7 million over the third quarter of 2024. On a full-year basis, we saw a use of cash from operations of $17.3 million and this is despite achieving two quarters of positive free cash flow during 2024. The full-year results reflect the deliberate investments we have made into organic and M&A growth. Including more than $20 million in capital expenditures, internal research and development, and a variety of important corporate investments that flow through SG&A. This includes $4.1 million of capital expenditures in the fourth quarter of 2024, our highest quarterly CapEx spend since going public. We do expect these investments to yield better revenue growth, scale, and returns on invested capital in 2025 and beyond. And we have clearly continued to demonstrate our ability to financially perform now while also making investments for growth, risk reduction, and profitability in 2025 and beyond. Finally, our total liquidity at the end of 2024 was $64.1 million comprised of $48.7 million in available liquidity and $15.4 million in restricted cash. Subsequent to the end of 2024 in 2025, today, our total available liquidity has been significantly expanded by the $65.5 million we have collected associated with the exercise and redemption of our public warrants through March 7, 2025. Please turn to slide eleven. In order to provide additional insight into the nature of our 2024 net loss, we provided here a breakdown of the key drivers of the year-over-year decrease. In summary, Redwire's 2024 net loss was primarily impacted by significant non-routine activity as shown on this slide, which bridges between 2023 and 2024. Key among these were the $49.9 million increase in a loss recognized for the non-cash warrant liability fair value adjustment. Also, a $14.2 million increase in net unfavorable EAC impacts already discussed. A $9.8 million increase in litigation settlement and related expenses, and a $9.1 million increase in transaction expenses between 2023 and 2024. Please turn to slide twelve. In summary, though not without growing pains, 2024 was a transformational year for Redwire. We entered 2025 well-positioned with robust revenue growth, demonstrated cost control, and ample liquidity. And with that, I would like to turn the call over to Pete to provide a discussion on our 2025 outlook. Peter Cannito: Thank you, Jonathan. Please turn to slide thirteen. Now we would like to focus on our 2025 growth strategy, which is centered around five key principles. Providing picks and shovels, which means delivering on our strong foundation of proven products with demonstrated flight heritage that formed the building blocks of space missions for our customers. Delivering multi-domain platforms which means executing our platform strategy by delivering highly differentiated space and airborne platforms for critical missions to include multi-domain missions. Exploring the moon, Mars, and beyond, which means capitalizing on our decades of experience in providing systems for exploration and delivering on ambitious missions to the lunar surface, to Mars, and beyond. Advancing venture optionality, which means continuing to pursue breakthrough developments on advanced technologies that could create new markets with game-changing potential. And finally, executing accretive M&A, which means continuing our proven track record of effectively creating enterprise value by acquiring technologically differentiated companies at accretive values. A key competitive advantage of Redwire which enables us to continue to rapidly scale as a public platform. Over the next few slides, I will discuss examples of early successes to demonstrate how we are already executing against these focus areas. Please turn to slide fourteen. Starting with providing picks and shovels, in early 2025, two lunar landers with Redwire cameras onboard headed to the moon. Firefly's Blue Ghost, which landed on the lunar surface on March 2, 2025, and Intuitive Machines IM-2, which landed on the lunar surface on March 6, 2025. Redwire's cameras provided critical data and stunning images such as the ones shown on the right of this slide. These cameras leverage decades of flight heritage on prestigious missions, including acting as the eyes of Orion on NASA's Artemis I mission. Please turn to slide fifteen. Next, delivering multi-domain platforms. In early February, Redwire was proud to announce that it has been awarded a contract to deliver a Mako spacecraft to support Tetra-6, a US Space Force Space Systems Command mission, in geosynchronous orbit or GEO. Tetra-6 is a follow-on contract to Tetra-5. For which Redwire is delivering two Mako spacecraft. The Mako spacecraft for both the Tetra-5 and Tetra-6 missions will be the first satellites in GEO to be refueled and demonstrate compatibility with multiple available refueling mechanisms. Please turn to Slide sixteen. Moving next to exploring the moon, Mars, and beyond. Redwire has been awarded a study contract by the European Space Agency to conceptualize a spacecraft platform that could be delivered to Mars as part of the agency's light ship initiative. Redwire's solution is built around an adapted version of our highly versatile small satellite platform, Hammerhead, and our proven avionics capabilities. Redwire's European facility in Belgium has more than 40 years of spaceflight heritage developing spacecraft platforms and success delivering innovative technology for game-changing ESA programs. Including as the prime contractor for ESA's Proba-1, Proba-2, and Proba-V missions, which have a combined flight history of 50 years without failure. Please turn to slide seventeen. Turning to advancing venture optionality. Redwire is excited to announce our upcoming Golden Balls investigation. Which is looking into the production of gold nanospheres, a high potential space-enabled product for biomedical applications, including managing cancer or other diseases. There is an existing market for gold nanospheres and by producing them in space during this investigation, Redwire aims to yield higher quality, more uniform gold nanospheres. In addition to the Golden Balls investigation, Redwire also has several other payloads expected to launch in the coming months. Including four additional pillboxes building on the success of the 28 pillboxes launched today. Please turn to Slide eighteen. Finally, when it comes to executing accretive M&A, as many of you know, in January 2025, Redwire announced that it has signed an agreement to acquire Edge Autonomy. This transaction is expected to transform Redwire into a global leader in multi-domain autonomous technology, broadening its portfolio of mission-critical space platforms to include combat-proven autonomous airborne platforms. This transaction is expected to close during the second quarter of 2025. Please turn to Slide nineteen. Now let's turn the focus towards the combination of Redwire and Edge Autonomy platforms. Edge Autonomy is a leader in providing field-proven innovative autonomy and uncrewed airborne systems, advanced optics, and resilient energy solutions. And currently brings two airborne platforms to market. The VXE-30 series and airborne platform focused on the US market and the Penguin series, is focused on the high potential European defense market as well as the global UAS market. Redwire is a leading provider of space-based platforms to national security, civil and commercial customers, and currently brings five space-based platforms to market. By combining with Edge Autonomy, we extend our platform strategy to become multi-domain. Multi-domain capability is critical to our national security customers as they start moving towards the future of advanced warfighting concepts such as the Joint All Domain Command and Control or JADC2 strategy. Like our customers, we believe in a future where our autonomous space and airborne vehicles collaborate during multi-domain operations that deliver a strategic advantage. Therefore, this combination provides competitive differentiation by supporting integrated missions, from the surface of the earth, to the surface of the moon, Mars, and beyond. Please turn to slide twenty. The broad benefits of this transformational combination are technical, operational, and financial. Starting with the technical benefits of the combination. Edge Autonomy systems leverage similar operational technologies such as avionics, optical sensors, computer vision, AI, and autonomy software. And like Redwire, Edge Autonomy brings proven flight heritage. As a result, these technologies are already in production. Moving to the operational benefits of the combination. Combining autonomous airborne and space platforms will meet customer mission requirements for multi-domain operations. Redwire satellites and Edge Autonomy airborne vehicles are designed for similar missions. Such as intelligence collection, and communications to name a few. Further, Redwire and Edge Autonomy have complementary geographic operations and paths to growth. Especially in Europe, where space and defense markets are forecasted to grow. Finally, with respect to financial, we expect the combination with Edge Autonomy to accelerate growth across key financial metrics with the added scale driving operating leverage and cash flows. And to position Redwire with a stronger balance sheet and enhanced credit quality. I speak for the entire team when I say that we could not be more excited to welcome the Edge Autonomy team to Redwire. And I look forward to building a multi-domain defense tech company together. Finally, please turn to slide twenty-one, for a brief discussion of the outlook for 2025. As part of the announcement of our combination with Edge Autonomy, we provided a financial forecast for fiscal year 2025 as if the transaction closed on January 1, 2025, and we are reaffirming that forecast at this time. To reiterate, taking the sum of the standalone full-year fiscal 2025 forecast for Redwire and Edge Autonomy, Redwire is forecasting full-year 2025 combined revenue to be in the range of $535 million to $605 million. Which represents a 52.9% compound annual growth rate from FY23 to FY25 revenue at the midpoint. In addition, we expect the added scale from the combination with Edge Autonomy will significantly increase operating leverage and cash flow. As a result and taking the sum of the standalone full-year 2025 forecast for Redwire and Edge Autonomy into account. Redwire is forecasting full-year combined adjusted EBITDA to be between $70 million and $105 million which represents a 138.8% compound annual growth rate from FY23 to FY25 adjusted EBITDA at the midpoint. It is important to note that these numbers are intended to be conservative and do not include run-rate synergies but actually do include continued investments and expenses including integration planned in FY25. And even taking these investments into account, we expect the combined company to be free cash flow positive in 2025. Further, the transaction consideration positions Redwire to have a significantly stronger balance sheet with enhanced credit quality as a result of better operational and financial scale. Please turn to slide twenty-two. With that, I want to thank the entire Redwire team for their contribution to our results during 2024. A truly global effort. We believe 2024 was a transformational year for Redwire, as we balanced top-line and bottom-line performance. In 2024, we capitalized on our solid foundation as a merchant supplier of critical space subsystems and components to transform into a strategic platform provider. With soon to be two uncrewed airborne systems and five spacecraft. To fuel our future expansion. We believe with the acquisition of Edge Autonomy, we are well-positioned and stronger than ever and look forward to an exciting 2025. We will now open the floor for questions. Thank you. We will now be conducting a question and answer session. Star keys. Moment please while we pull for your questions. Our first question comes from the line of Greg Conrad with Jefferies. Please proceed with your questions. Greg Conrad: Good morning. Hey, Greg. Maybe just to start on the guidance. I mean, appreciate the pro forma guidance, but any insight into underlying Redwire organic growth? I mean, just given the wide pro forma range, how much of that is timing of the deal versus other swing factors? And maybe what are the main drivers of the top and bottom end of the range? Peter Cannito: Let me take that, Greg. So look, we are giving you actually a full year as if the deal was closing on December 31, and it is a combined forecast range. As we get closer to giving pro forma information out on a US GAAP basis, in the you know, as we approach the end of the first quarter and then the second quarter, you will get more information to understand that. But again, we are giving you everything you need to understand on a combined forecast for revenue to EBITDA. Let's just talk about the growth rates. If you look at the growth rates for Redwire, especially these last three years, we have grown at roughly between 15% and 25% revenue growth, and that is pretty much on an organic basis. If you look at Edge Autonomy over their period of time and even not going back too far, but the last couple of years, they have grown between 20% and 30% organically. The combined business even without synergies, should be able to grow around 20% organically. Without further additions. And so when we look at 2025, which is still somewhat of a transition year for both companies, as large contracts are still, you know, being formed and the companies themselves are bidding on especially a lot of European space and defense we feel confident. And that is why we are giving this range. But it is fairly wide because of especially on the space side, the nature of our business. So or at least gives you more detail. And then maybe just combining the EACs and cash, you know, first on the EACs, I mean, how do you think about those trending into 2025 and then just on cash, you had a good Q4, good working capital release. I mean, how do you think about all of that rolling into free cash conversion in 2025 just given you know, some of the investments that you have talked about. Jonathan Baliff: Yeah. Good question, Greg. I will address the EACs, and then I will turn it over to Jonathan to talk about cash impact. So as you know, when you are first starting out bidding, a program, some of the nature of the firm fixed price that bid that we are bidding when we break into a new market. Have some non-recurring and engineering associated with them as you develop these new technologies that in some cases have never been built before. And as a result, as you move through those, it is part of the growing pain of entering these new markets and introducing these new technologies, you saw sometimes rerun into these replanning on the programs that result in the EAC in an unfavorable EAC that pushes the revenue out into a future period while keeping the cost in the same period. That is having an impact both on revenue and the bottom line. The goal is to continue to refine our bid processes and where possible to include more management reserve, to reduce the total impact of the EACs. But also, as you move from early non-recurring engineering when these technologies are first being developed, and proven after you get the flight heritage. You move into production and then those revenues should be a lot more predictable and stable, and you will see the EACs tail off over time. Jonathan, you want to talk a little bit about I guess yeah, my comments. I agree with everything Pete said. You know, again, transformational yield, but not without growing pains. And this is an example of growing pains. Let me just reemphasize. No one at Redwire is happy about these net EAC unfavorable adjustments. But, you know, we are in essence trying to do better on a total revenue basis, and you are seeing from a percentage standpoint still pretty low compared to our peers, but you know, when we look at the future, we are meant to be neutral on our EACs as we move forward with a number of tools at hand that Pete just talked about. I think as you pointed out, the cash flows were positive. This despite the EACs because they do not have a direct cash impact on the period that they are recorded. Greg Conrad: That is right. Thank you. Operator: Thank you. Our next question is come from the line of Scott Buck with H. C. Wainwright. Please proceed with your questions. Scott Buck: Hey, good morning, guys. Thanks for taking my questions. Pete, it sounds like the full year 2025 revenue guide, there are some potential benefits from combining the businesses that are not fully captured in the guidance. We get some additional color on what those synergies could look like? Peter Cannito: Yeah. Great question. And you are right. As I pointed out, we did not we took a conservative approach and did not put revenue synergies in there. But the fact of the matter is we have a really strong presence geographically that align between the two companies. With major engineering centers in Belgium, in Latvia, and a new office for expansion in Poland. And so there are opportunities there. Right? There are opportunities to go into ministry of defense customers on the revenue side. That are either buying spacecraft now and are looking for opportunities to acquire UAS systems from a trusted supplier and or vice versa. Countries that are currently buying UAS capabilities from Edge Autonomy that are very interested in expanding in space. So that is an example. You can also obviously do all the traditional playbooks. When you look at M&A in terms of consolidating manufacturing capabilities, not only in Europe, but also in the US, but, you know, we think that the growth is the real story here. The organic intrinsic growth that both of these organizations have demonstrated over the last three years and that is what we are forecasting. So any additional revenue synergies that we squeeze out above any of the costs associated with integration. Will just be additional upside. Scott Buck: Great. I appreciate that. And then my second one, can you just remind us what Edge's pipeline looked like on a stand-alone basis? Peter Cannito: Sure. So we gave some description of that when we announced the transaction back in January. Their pipeline is different than ours. They have fleets of their stockers and penguins out there in which they do free fleet replacement, fleet upgrades, and a number of other aspects that mirrors a bit more like commercial aerospace. So their programs of record, although growing, is about $100 million is what we disclosed for 2023. We will give more updates but their sales cycle is very short. Right? They generally are much more mature company, and so a lot of their customers will buy to increase those fleets and that is in essence their competitive advantage because it is hard to place the fleets for their especially DOD and MOD customers. And as those expand, then you get almost like an annual recurring revenue that happens as part of both the expansion replacement and upgrades. But it is about $100 million right now and again, they are bidding in the future on very, very large projects also, so we do expect that to grow. Jonathan Baliff: So Jonathan highlights a key point here that, you know, I talked about the benefits of this transaction in the context of technical operational, and financial. And on the financial side, one of the things we are really excited about is the UAS market is just a more mature industry than space is right now. So it looks different. It has this a fleet replacement aspect to it that is much more predictable, fewer EACs, etcetera. And that is very complementary to Redwire which is in a less mature industry that tends to have a lot of this nonrecurring injury or nonrecurring engineering. So if you think about it, when you walk into a Redwire facility, you will see a lot of engineers and technicians working on a single spacecraft that is standardized, but is highly bespoke for the particular customer mission in there. And that is the way it has to do with the maturation of the industry. Whereas in the UAS industry, these are things that are being moved off of a production line, much more like in the automotive industry. So it is very complementary. You have lower backlog because the sales cycles are smaller compared to the multiyear contracts that you get in a space contract. But they are complementary in the sense that they have less of that variability associated with doing technological things that have never been done before. And we think that is going to smooth things out for us over time. Peter Cannito: And just to add one thing, Scott, briefly, is their pipeline also is changing quickly with the European defense environment that dynamic environment increasing. And so we will be giving more information about the pipeline especially in Europe over the coming months. Scott Buck: Great. I appreciate the added color there guys and looking forward to 2025. Thank you. Operator: Thank you. Our next question has come from the line of Brian Kinstlinger with Alliance Global Partners. Please proceed with your questions. Brian Kinstlinger: Great. Thanks so much. With the new administration's clear positioning in Ukraine or unclear for that matter, are there any changes you expect for Edge's Ukraine-related revenue compared to your previous internal expectations? Then maybe touch on the overall budgetary environment in the US and procurement cycle for the Redwire business? Peter Cannito: Yeah. Hey, Brian. How are you? The good question as usual. So talking about Ukraine first. First and foremost, we took a very conservative position on forecasting the Ukraine portion of Edge's future revenue. And if you go back to the presentation that we did and I believe we 8-Ked some information on this as well, we put out some detail on our conservative approach. However, I would like to highlight whether we all hope for peace in Ukraine. And but whether the peace happens tomorrow or not, we still see real opportunity because any peace in Ukraine will likely, based on the current discussions that we are tracking, result in some sort of demilitarization zone or peacekeeping effort. And the way you are going to, we believe that that is going to be executed is using drones as a surveillance capability to monitor the peace or to potentially monitor a persistent really indefinite demilitar at least for the near future, zone. So, again, regardless of what happens in Ukraine, we feel we are protected to the downside because we took a very conservative approach in forecasting Edge's revenue. And like I said, there is more details out there, that we put out. But we also see peace in Ukraine as not being a standstill or a total stop. Possibly even an opportunity for peacekeeping drone technology as well. In terms of the continuing resolution and that is going on in the government, this is actually not unknown territory for companies like Redwire. Those of us who have been around for many years doing this actually live through sequestration, and the fact of the matter is that because of the large oftentimes multiyear contracts, that we have typically, companies like Redwire Defense Contractors in general or federal contractors in general weather, a short-term even government shutdowns if, hopefully, it does not come to that. But because we continue to work on our contracts, and as far as delays as far as we have heard from the government, we have not heard about any delays on our procurements, any of our major procurements yet. In many cases, we are a supplier, and the orders continue as prime contractors continue to execute. But I think it is too early to say right now based on where the political process is, for us to make any predictions about the long-term impact on that. Jonathan Baliff: Financially, Brian, we are very protected. We have got record liquidity. Obviously, we spent some money, obviously, in 2024, but had it more than covered. And again, we have some level of discretion over our spending, but we feel you know, in a really good position. Brian Kinstlinger: Great. My follow-up is you talked about larger programs, $100 million plus total contract value. Does the competitive landscape change who you are competing with essentially on these larger programs? And then just a quick numbers question with the warrant redemption that you mentioned, can you update us on the share count? Thanks so much. Peter Cannito: Sure. Yes. The competitors can change. Although in Europe, we have already been functioning as a prime in many cases. So I think over in Europe, our competitive landscape will not shift materially, but yes, when we choose to prime, however, I will say, that our prime strategy is very selective. You know, being a merchant supplier in many of the existing architectures is already foundational to Redwire. So our prime strategy is to look at areas where there is white space, where there is no clear leader already, and where we can offer a future technology through our platforms that is not currently being done. And the example I will give is in VLEO. Rather than attacking the proliferated LEO market, we are trying to do a leap ahead into what we think is the future of hybrid orbit architectures to include VLEO. And in that particular case, because of our technological differentiation, the competitive landscape is really a small handful of people that are trying to build that market. Jonathan Baliff: In terms of the share count, Jonathan, do you have that? Peter Cannito: Sure. So as of Friday, concerning the redemptions, the total share count as of Friday, which we will disclose in our 10-K, 75,573,294 shares. Brian Kinstlinger: Thank you so much. Operator: Thank you. Our next question has come from the line of Griffin Boss with B. Riley Securities. Please proceed with your questions. Griffin Boss: Hi. Good morning, and thanks for taking my question. So just want to start out on bookings. I understand obviously are lumpy, but this is the first time I believe, that I recall since going public that LTM book to bill fell below one. So, just given the magnitude of your bids submitted, the $1.2 billion in the quarter, $4.1 billion on the year, can you talk about how many of those bids maybe are still outstanding today? Are you seeing longer contract award cycles? Are you losing more bids than historically? Any context around that could that would be helpful. Peter Cannito: Bids, pipeline, and backlog are this constant back and forth depending on whenever you snap the chalk at Redwire. Right? So we are obviously constantly trying to move things from pipeline into backlog. But something can move from pipeline into backlog pretty quickly, especially from the bid submitted number. So you know, I think we are we kind of look at them as a combined factors to look at when we do our revenue forecasting to substantiate it. And right now, although, you are correct that our current book to bill is below you can see that on the pipeline side, it is fairly large. So I think what we would like to see occur in the next quarter is for more of those bids to move out of submitted but into and into backlog. But I do not think it is we have enough data to say that that is anything other than a timing perspective I would not lean forward and say that we see any changes in terms of government procurement timelines as of yet. It just seems to be where each of these different bids are in the process. Certainly, some people point to the holidays as being a slow period. But, again, that is just speculation. I do not know. Jonathan, you want to add anything? Jonathan Baliff: Griffin, the wide range that we use, $535 to $605 takes some of this into account because, again, it is a longer sales cycle. For the current bids outstanding, and there are no doubt that they are larger bids too. But you know, that is kind of how we will disclose it right now and we will give you updates. Griffin Boss: Okay. Fair enough. Thanks for that. And just second one for me. Given that we are just a few weeks away from the end of the first quarter, is there any sort of directional guidance you could give for the first quarter? Obviously, I know you did not provide it, but directionally, it could be helpful, I think, for us to understand kind of the cadence looking into the year and how that work. Peter Cannito: Almost through the first quarter. Well, no. Obviously, we do not give quarterly guidance. And I think if you look at what we are doing right now, we are hyper-focused on closing on Edge Autonomy, which will materially change the overall profile. So I think stand by and once we close, we will have some additional information on the remainder of the year. That Jonathan referenced earlier. Griffin Boss: Okay. Alright. Thanks, Pete. Operator: Thank you. Our next question has come from the line of Suji DeSilva with Roth Capital Partners. Please proceed with your questions. Suji DeSilva: Hi, Pete. Hi, Jonathan. So just to understand the combined yeah. Hi, guys. Just to understand the combined company guidance for the full year, you said it is conservative. I just want to understand maybe there is a percent of backlog coverage you are using this year going into 2025 versus what you have done with Redwire guidance, full-year guidance in the past years, that might be helpful to understand. How much higher backlog coverage is, maybe this year is an element of conservatism. Peter Cannito: Let me take that. Let me try to give you some additional color on how we come up with these forecasts. We do basically a line-by-line look at each opportunity in the pipeline while also taking a look at the backlog. And, of course, the pipeline is weighted based on what we call PECO probability of that the procurement is going to go forward and PWIN, which is our probability of a win. So we go line by line on that, and we look at the different probabilities, and we bring in a number of different experts to give us additional insights. And it is really a bottoms-up buildup. And then we look at macro factors of, like, saying, okay. You know, what if the war in Ukraine ends or, you know, how much do we want to really lean into you know, war-related revenues, which as I stated, was not a lot. We wanted to make sure that we were conservative there. And that is how we come up with these forecasts. We also take a look at a little bit on our burn rates, and we try to make a forecast based on looking at where we are in terms of each one of the projects we are at, and that can kind of give you a good idea of how much your revenue is going to come from backlog, but it is not as simple as having, like, a heuristic, like, percentage of pipeline and backlog, that moves in. We actually get into the nitty-gritty of looking at, well, you know, this one is expected to be awarded in March, and it is this size. And it has a probability of this you know you know, this probability of occurring and us winning. And that would give us a certain runtime and we build out a number of spreadsheets on that. So I cannot give as a result of that kind of detailed bottoms-up approach to forecasting, I cannot give you a high-level heuristic number to use for what I think you are looking for. I do not know. Jonathan, do you have any? Jonathan Baliff: We have given an ability for you know, investors and analysts to look at our average contract length, which in Redwire, that is very you know, known and knowable that, you know, we are two and a half years, you know, two plus two years and so then you can kind of use that as a way to look at also at least our disclosed backlog. When we get closer to closing and then other information concerning Edge Autonomy, we will give how to look at them then as a combined basis, but Pete gave a really good overview there, Suji. Suji DeSilva: Okay. Great. Appreciate the discussion of that. Probably way to approach the pipeline. And also on the lunar interplanetary mission opportunity, I think that cadence is going to pick up here. We already saw two missions this month. What is the opportunity for Redwire to expand its content there? It seems like camera is your primary opportunity. Are we missing these other elements or there can be in the future? Any color there would be helpful. Thanks. Peter Cannito: Yeah. And, great question. So we have talked about Mason in the past. Which is a program, where we are building a technology to build a landing pad on the moon. So that is an example of our lunar technology. Obviously, we are highlighting in this call light ship or a country or study for light ship. So we are really excited about the fact that we are well-positioned and got the confidence of ESA to be one of the study members on looking at building a spacecraft to go to Mars. That is really from an organization like ESA to select a company like Redwire and their confidence in our Hammerhead platform, I think underscores the way we are thought of in terms of a competitive participant in future Mars exploration and in vehicles for future Mars exploration, of course, we have the cameras that you mentioned. As well. So and many of our vehicles particularly in Mako, are such that they have the wherewithal to be able to operate in Syslun or The other aspect of it that I will point to is in terms of we have talked about our microgravity manufacturing in the past. We like to say, make it, do not take it. So we believe that there is a real opportunity for microgravity manufacturing when you start looking at building out permanent lunar infrastructure as well as quite frankly, a venture to Mars they are going to be very limited on the amount of material that they will be able to bring. So having Redwire-like manufacturer capabilities on board could be something that could be mission essential. So we are looking at those kinds of things as part of our participation in our active participation in that community. Suji DeSilva: Yeah. Great, Pete. Thanks. Great rundown. Very exciting. Thanks, guys. Operator: Thank you. We have reached the end of our question and answer session. I would now like to turn the floor back over to Jonathan Baliff for any closing remarks. Jonathan Baliff: So first, I want to thank all the institutional analysts sell-side analysts for your questions. But before we conclude today's call, we would like to actually, at Redwire, introduce a new initiative. In which we will draw a question or two, today it will be one, drawn from our retail investor community. So today's question comes from our Reddit community. And this will be for both of us. It is really for Pete. What percentage of Redwire's business is based in Europe and able to service the European space and defense efforts, which we have been hearing a lot about these past number of weeks. Peter Cannito: Thank you, Jonathan. Clearly, based on the question, Rick, received from the analyst, the retail lines. I am really excited, first of all, about this initiative and the ability to incorporate the voice of the retail. So from a technological standpoint, both Redwire and Edge Autonomy have platforms specifically focused on the overseas market. Particularly the European market with Phantom and Hammerhead satellites. For Redwire, obviously, we are the platform for the ESA Skinsat, which is the premier VLEO program over in ESA, which has both civil as well as potential defense. Application. And Edge Autonomy has very notably the Penguin series of UAS that is currently a combat-proven platform operating in Ukraine as we have discussed. From an operational viewpoint, both Redwire and Edge Autonomy have significant physical footprints in Europe to serve our European and international customers. Redwire has a large engineering facility in Belgium. We have an engineering facility in Luxembourg. And recently announced our expansion in Poland. And Edge Autonomy has facilities in Latvia and as of January 2025, a very small facility in Ukraine. So given that our products are produced for European customers in Europe, we do not have any anticipated tariff risks because the products that are built for the European market are produced in our European facility. So we are well-positioned to take advantage of any trends that may emerge in Europe as a result. From a financial perspective for the full year 2024, we had $153.8 million or 50.6% of Redwire's revenue based on the location of where our customer came from. So even if it was produced in the US, the customer was in Europe, which represented a 117.1% increase over 2023 revenues, of $70.8 million. And as we previously disclosed, for FY23, which is the most recent audit numbers we have, approximately 57% of Edge Autonomy's revenue was derived from international defense customers. So, obviously, Edge Autonomy is very well-positioned with their manufacturing facility. In Latvia as well. And finally, as has been widely discussed, why is this important European defense budgets are slated to ramp up. And given the fact Redwire is well-positioned as we move into 2025 and beyond in those markets. So great question from our friends on Reddit. And we look forward to continued engagement with our retail investor community. So with that, we appreciate everyone taking the time to listen today, and go Redwire. Operator: Thank you. This does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

Operator: Thank you for standing by. My name is Janine, and I will be your conference operator for today. At this time, I would like to welcome everyone to the Redwire Space third quarter 2024 earnings call. All lines have been placed on mute to prevent any background noise. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star followed by the number one on your touch-tone phone. To withdraw your question, please press star followed by the number one again. I would now like to turn the conference over to Jeff Zunick. Please go ahead. Jeff Zunick: Thank you, Janine, and good morning, everyone. Welcome to Redwire's third quarter 2024 earnings call. We hope that you have seen our earnings release, which we issued yesterday afternoon. It has also been posted in the Investor Relations section of our website at redwirespace.com. Let me remind everyone that during the call, Redwire management may make forward-looking statements that reflect our beliefs, expectations, intentions, or predictions of the future. Our forward-looking statements are subject to risks and uncertainties that are described in more detail on slide two. Additionally, to the extent we discuss non-GAAP measures during the call, please see slide three, our earnings release, or the investor presentation on our website for the calculations of these measures and their reconciliations to US GAAP measures. I am Jeff Zunick, Redwire Senior Vice President of Financial Planning and Analysis and Investor Relations. Joining me on today's call are Peter Cannito, Chairman and Chief Executive Officer, and Jonathan Baliff, Chief Financial Officer. With that, I would like to turn the call over to Pete. Peter Cannito: Thank you, Jeff. During today's call, I will take you through a discussion of our key accomplishments in the third quarter of 2024. Jonathan will then present the financial highlights for the same period, after which we will open the floor for Q&A. Please turn to slide six. During the third quarter, Redwire continued to effectively execute on our growth strategy for 2024, which is centered around four key principles: protecting the core, scaling production, moving up the value chain, and venture optionality. As I have done on previous calls, over the next few slides, I will discuss examples of successes in each of these key growth areas from the third quarter of 2024 to demonstrate our extraordinary progress against these objectives. Peter Cannito: Please turn to slide seven. M&A has always been a core strength of Redwire. With nine integrated acquisitions through the first half of 2024, our team has the demonstrated expertise and performance to effectively scale both through organic and inorganic strategies. This is a competitive advantage and enables us to rapidly scale as a public platform. In the most recent quarter, I am very pleased to introduce Redwire's tenth acquisition as part of our platform development strategy: Harith Systems. Harith Systems is an agile and differentiated spacecraft development company with expertise in specialized missions for national security space customers and unique technical achievements, with a path to transformative capabilities in the emerging area of dynamic space operations. The acquisition of Harith is right on strategy for Redwire. On the following slides, I will specifically highlight how the purchase of Harith accelerates our third growth principle, moving up the value chain. Peter Cannito: Please turn to slide eight. The Harith Systems acquisition complements our existing suite of national security space solutions and moves Redwire up the value chain as an integrated spacecraft platform provider. Harith Systems has developed a new class of high-performance spacecraft to support the evolving requirement for national security missions in contested space. Their acquisition broadens Redwire's product technology portfolio and extends our spacecraft platform capabilities with two additional spacecraft that we have recently rebranded as Mako and Thresher. Renderings of Mako and Thresher are shown on the right-hand side of this slide. Mako is a red, hard GEO and MEO platform that is currently under contract on the US Space Force's Tetra five program, while Thresher is a LEO spacecraft currently on contract with an undisclosed customer, designed and built in the United States for operating in contested environments. As the national security space architecture evolves, Mako and Thresher are bringing unique capabilities to the warfighter in LEO, MEO, and GEO with plans for autonomy, edge processing, and maneuverability that will enable emerging concepts in dynamic space operations and rendezvous and proximity operations. Peter Cannito: Turning to slide nine, the addition of Mako and Thresher through the acquisition of Harith significantly enhances Redwire's full platform spacecraft portfolio. As we now have five unique spacecraft platforms for missions in every orbit, from VLEO to LEO, GEO, and beyond. Redwire's advanced spacecraft designs incorporate cybersecurity communications, resilient power systems, highly accurate pointing, extensive maneuverability, and expanded onboard computing power that can support mission and payload-specific machine learning. On the next few slides, I will provide a detailed outline of our complementary spacecraft platforms to emphasize how well we are now positioned to scale. Peter Cannito: Please turn to slide ten. Hopefully, by now everyone is familiar with our two VLEO spacecraft, SABR Saturn Phantom. SABR Sat, depicted on the upper right, is a US-built platform designed for performance, endurance, and cost-effectiveness with a modular design and optional air-breathing engine. SABR Sat is currently being leveraged on DARPA's Otter flight program. This is a new market opportunity for spacecraft, and Redwire is well-positioned as a first mover in this emerging area of operations. In fact, from a VLEO perspective, we are not only well-positioned in the US national security market segment, but we are also a leader in European VLEO development with Phantom, depicted on the lower right. Phantom is a European VLEO platform that is designed to carry out a wide array of intelligence, earth science, and communications missions. Redwire is advancing Phantom's design and development through the European Space Agency's Skinsat mission. It is important to emphasize that both SABR Sat and Phantom are supporting funded contracts with premier customers and are on a path to flight operations. Peter Cannito: Turning to slide eleven. Now turning to low earth orbit or LEO. I am pleased to announce for the first time Redwire's rebranding of our European P200 LEO satellite platform that has been supporting generations of ESA probe missions as Hammerhead, shown on the upper right. Hammerhead is a European LEO platform developed at Redwire's facility in Belgium. Much like how Phantom is the Redwire platform that supports ESA's Skinsat, Hammerhead is the new name for our platform that has been supporting ESA probe missions for more than forty years in orbit without failure on ESA's Provo one, two, three, and five missions. As previously mentioned, with the acquisition of Harith, we have now added a US LEO platform called Thresher, depicted on the lower right of this slide. Thresher is a LEO platform designed and built in the US for US-centric missions and can support a wide variety of surveillance, space domain awareness, and tactically responsive space missions. Thresher is currently targeted for delivery in 2025 on a contract with an undisclosed customer. Peter Cannito: Please turn to slide twelve. Also added as part of our Harith acquisition, we now have a GEO and MEO spacecraft in our portfolio, Mako. Mako is a high agility red, hard platform designed for the harsh environments of GEO and MEO and built in the US for precision rendezvous and proximity operations. Mako is currently being developed on the US Space Force's Tetra five program with a targeted launch in 2025. On this inaugural mission, Mako is being developed to demonstrate the feasibility of on-orbit refueling. As with all of our products, flight heritage is key to Redwire's differentiation, and all these platforms are currently under contract with a customer and have a pathway to flight. Peter Cannito: Please turn to slide thirteen. So why does this matter? What are we achieving by building out this differentiated portfolio of spacecraft and moving up the value chain? The answer is simple. By moving up the value chain, Redwire is able to access increasingly larger opportunities and supercharge our growth. This portfolio of platforms significantly increases our TAM in order to scale. We are seeing early signs of success with this strategy as evidenced by the substantial year-over-year increase in pipeline and year-to-date bids submitted. We are focused on satisfying market needs, scaling rapidly, and leveraging our classified and global reach, particularly in Europe. As Redwire moves forward, we will continue building on our heritage as a spacecraft platform provider with innovative solutions to meet the challenges of our customers around the globe. Peter Cannito: Please turn to slide fourteen. Of course, we continue protecting the core of our existing product portfolio in order to build on our successes. As an example, Redwire is proud to have provided the onboard computer for the European Space Agency's Hera mission. Not to be confused with Harith, the company, our most recent acquisition, Hera's mission is Europe's inaugural flagship planetary defense mission. On Hera, Redwire's advanced data and power management system leverages twenty-five years of flight heritage and is designed to meet the challenges of operating in deep space. The system will control all vital spacecraft operations, including power, navigation, and key mission milestones such as the deployment and monitoring of ESA's two deep space CubeSats. Onboard computers fall within our avionics and sensors core offering, which includes spacecraft subsystems and components that are used for navigation, control, and imagery collection. Also during the third quarter, Redwire's expertise was critical for Crossbow's latest launch, which took place on September twelfth, 2024. Redwire developed and delivered the launch vehicle structures and launcher interfaces for the flight test mission. This is the third in a series of Crossbow launches supported by Redwire technology in our Structures and Mechanisms core offering, which includes a variety of space infrastructure that provides critical mechanical functionality for on-orbit operations from launch release mechanisms and deployable booms to deorbiting and docking systems. Peter Cannito: Please turn to slide fifteen. Looking at our scaling production growth principle, during the quarter, Redwire announced that we have signed a strategic cooperation agreement with in-space propulsion leader Phase Four to build and deliver an advanced thruster technology called Valkyrie, which is designed for reliable, high-volume production to fill a gap in the supply chain. Redwire will leverage its scaled business operations, marketing resources, and extensive heritage as a trusted space system supplier to bring this in-space propulsion system to market. The Valkyrie thrusters are anticipated to go into full-rate production in 2025. These thrusters fall within the avionics and sensors core offering, which I mentioned earlier. Turning to the right-hand side of the slide, we have also recently shipped iROSA Wings seven and eight to Boeing. These wings are a follow-on to the six iROSA wings that have already been deployed on the International Space Station. Furthermore, as of September 2024, we had twenty-five iROSA wings contracted, a one hundred and seventy percent increase when compared to September of 2023. Roll-out solar arrays fall within our power generation core offering, which includes solar arrays and power distribution systems that generate the necessary power for space systems to operate regardless of size or location. Peter Cannito: Please turn to slide sixteen. Finally, turning to our venture optionality growth principle, I would like to take this opportunity to highlight the exciting progress we have made this year with our innovative space pharmaceutical platform, Pillbox. Redwire is proud of the launch cadence we have achieved for Pillbox since its first launch a year ago. At the beginning of this year, we stated that our goal was to launch six additional Pillbox systems to the ISS. I am very pleased to report that the twelve new Pillboxes launched earlier this week on SpaceX's thirty-one commercial resupply or CRS mission, bringing us to twenty-eight Pillboxes launched in total, clearly demonstrating the sustained operational tempo required to turn this into a viable business model. In addition, customer demand is building, and we are proud to have worked with a number of notable commercial partners, including Bristol Myers Squibb and Excesso Libro Pharma. We launched investigations this week on the CRS mission. The objective of our Pillbox strategy is to accelerate small molecule drug discovery to treat a variety of conditions and diseases on Earth. Since small molecule drugs comprise a majority of all marketed drugs, pharma companies are continually investigating the crystal structure of new and existing drugs to meet specific therapeutic goals. Pillbox is poised to be a game-changing innovation, and I am excited to report that in addition to our launch objectives, Redwire has achieved two critical milestones that further distinguish it as the premier space pharmaceutical development platform. As we have previously discussed, the first milestone is that Redwire has successfully and repeatedly demonstrated that small molecule drug crystals grown on orbit using our proprietary Pillbox system are larger and more highly ordered than terrestrially grown crystals. Today, I am excited to announce a second key milestone. In what we believe to be a first-of-its-kind achievement here on Earth, Redwire successfully replicated space-grown crystal forms using crystals returned from space as seeds or templates. Not only that, but we successfully replicated them through five generations of copies from copies. To detail this achievement, using Redwire's Pillbox system, we successfully formed two different small molecule drug crystals in space, preserved the space-flown crystal structures, and safely returned the crystals to Earth. The returned crystals retained their microgravity-induced attributes, and once on the ground, we used these seeds to grow new crystals with the same structure, successfully demonstrating that seed crystals formed in space can be used as a template to generate those same crystals on Earth. This pivotal step is required for future commercial expansion, and Redwire has now taken it. To our knowledge, this result is the first of its kind, and nothing close to it has been achieved previously. It is not only a technical achievement but also an important step towards taking one of our space-enhanced crystals to commercial production at scale on the ground. Peter Cannito: Please turn to slide seventeen. Going forward, we see two different avenues for our Pillbox platform. First, we will continue flying crystals on behalf of our partners as we have done this past year. Second, Redwire has developed a list of more than eighty promising small molecule targets for experimentation. Redwire will continue to fly experiments on our own behalf to generate a library of valuable space-developed crystal forms that will be protected as our own IP. We have already seen interest in licensing this information from commercial customers and see this as a viable means to realizing a business model based on back-end royalty revenue in the future. Ultimately, pharmaceutical manufacturers want new and better crystal forms regardless of whether they are produced on Earth or in space, as these new forms can provide new properties and unique approaches towards the treatment of human diseases. We believe in the value that those created in space will provide, and through Pillbox, Redwire is proud of our efforts to harness the power of space to support human health here on Earth. Peter Cannito: Please turn to slide eighteen. Now turning to our contract awards and backlog. Our contract awards during the third quarter of 2024 were $44.5 million. The last twelve months' book-to-bill ratio was 1.25 times for the third quarter of 2024. As we continuously reinforce, we often see lumpy contract awards growth from quarter to quarter, but we are continuing to maintain a healthy growth rate on an LTM basis. As you can see on the lower right-hand side of this slide, our contracted backlog has increased 30.2% year over year to a total of $330.1 million. The growth in contracted backlog is one of many factors that give us confidence in our growth as we look towards 2025 and beyond. Finally, as I mentioned earlier, we continue to expand our pipeline with an estimated $6.9 billion of identified opportunities, including year-to-date as of September 30th, 2024. This is a result of our moving up the value chain and scaling production growth principles leading to larger bids. As you can see on the upper right-hand side of this slide, this represents a significant increase of 306.2% over the corresponding year-to-date period ended September 30th, 2023. The growth in bids submitted is a result of our efforts to increase the average size of the individual opportunities we are pursuing. As previously mentioned, we are now bidding on individual programs in the $100 million plus award value on a more regular cadence. Of course, there is no guarantee we will win these opportunities, but we now have a pipeline of bids that could result in a substantial increase in backlog if we land some of these larger opportunities. We are able to pursue these opportunities because of the critical investments we have made in building the Redwire platform. The foundation we have laid is yielding results. Peter Cannito: Please turn to slide nineteen. With that, I would now like to turn the call over to Jonathan Baliff, Redwire's Chief Financial Officer. Jonathan? Jonathan Baliff: Thank you, Pete. Before I turn to the financial results, I'd like to highlight the photo on this slide. It is of the four spacecraft for each mission that have been undergoing integration and testing at Redwire's state-of-the-art clean room facility in Antwerp, Belgium. Redwire is preparing to deliver two satellites for the European Space Agency's Proba-3 mission, which we talked about in the fourth quarter of 2024. As international customer demand increases, Redwire is proud to support critical innovation around the globe as part of our successful growth strategy. Jonathan Baliff: Please turn to slide twenty. Our third quarter and year-to-date results illustrate the positive momentum that Redwire has demonstrated during the last twelve months as of the third quarter of 2024. Revenues in the third quarter grew 9.6% year over year to $68.6 million as we once again achieved positive adjusted EBITDA of $2.4 million, a sequential increase over the second quarter of 2024. We will discuss the drivers of this quarter's revenue and adjusted EBITDA on subsequent slides. On this page, as you can see, we experienced a year-over-year growth in bids submitted, with $1 billion in total bids submitted during the third quarter of 2024 alone. This is an $800 million increase from the last time of the third quarter of 2023. Finally, as you can see, we had a use of cash from operations of $17.7 million during the third quarter, record levels of last twelve investments in these growth initiatives, many of which Pete already has expanded upon. When viewed on the last twelve-month or LTM basis, as shown on the lower right-hand box, we actually improved our usage of cash from operations by $10.6 million on a year-over-year basis, achieving third quarter LTM use of cash from operations of $8.7 million. These bids that Pete spoke about and the investments and improvements in our third quarter results are attributable to the capability and commitment and demand from our clients that our global team is satisfying. The confidence in Redwire as we continue to satisfy this demand as our space infrastructure is in this third quarter and into 2025. Jonathan Baliff: Please turn to slide twenty-one. Specifically for quarterly revenue, as you can see from the chart on the right, this quarter's revenue was $68.6 million, again, a 9.6% increase on a year-over-year basis. On a year-to-date basis, 2024 revenue as of September 30th, 2024, represents a 30.1% increase over the corresponding period in 2023. Our excellent growth was driven by our 47.5% year-to-date growth in national security revenue and an 83.6% year-to-date growth in commercial revenue year over year. Finally, during the quarter and similar to past years, our backlog has a solid foundation, with more than 85% of our revenue derived from funded government programs or from global market customers. We are delivering in the areas of national security, commercial satellite proliferation, and the exploration of space and the moon, to name just a few areas. Jonathan Baliff: Please turn to slide twenty-two. On a quarterly basis, Redwire achieved positive quarterly adjusted EBITDA of $2.4 million in Q3 2024. That's a sequential increase of 50.2% and almost a $1 million increase over the second quarter of 2024. Gross profit was $12.0 million in the third quarter of 2024, with quarterly gross margins of 17.5%, an improvement over previous sequential quarters. These results were negatively impacted by a net $1.6 million EAC adjustment during this third quarter, 2.3% of third quarter revenue. Our team is very focused on reducing our net unfavorable EACs, and these third quarter results are the lowest in the last twelve months, almost 60% less than the average of the previous three quarters. Our quarterly adjusted EBITDA performance was also improved by excellent cost control, continued operating leverage being driven by the scale as Redwire's SG&A expenses were 25.5% of revenue, a year-over-year decrease from 29.2% in last year's third quarter. We continue to drive revenue increases without growth in SG&A on a quarterly year-over-year basis. That's the benefit of our operating leverage and scale improving, mostly from organic growth. Jonathan Baliff: Please turn to slide twenty-three. Throughout the third quarter, we made significant investments to drive the revenue growth we've seen in the last twelve months, while also funding industry-leading innovation and global business scale. During the year-to-date period through September 30th, 2024, we made $6.9 million in capital expenditures, including $2.8 million in capital expenditures in the third quarter alone, our highest quarterly CapEx spend in 2024. Plus, $4.7 million investments in internal research and development, and $3.1 million in a variety of important core corporate investments through SG&A. We also obviously had an acquisition in Harith in the third quarter. We continue to demonstrate our ability to financially perform now while also making these significant investments for growth, risk reduction, and profitability in 2025 and beyond. Similar to previous quarters, on the left-hand chart, we show operating and free cash flow. As a reminder, free cash flow provides a metric based on our US GAAP cash from operations minus capital expenditures. Jonathan Baliff: For the third quarter of 2024, net cash used in operating activities was $17.7 million, and free cash flow was also a use of $20.5 million. These quarterly results were due to the deliberate organic and M&A investments we've made following quarters of free cash flow generation, as you can see on the left-hand chart. On a twelve-month basis, we've actually achieved a year-over-year improvement in cash from operations of $10.6 million. We do expect these investments to yield better revenue growth, scale, and returns on invested capital in FY 2025 and beyond. On the right-hand chart, you see our significant and record total liquidity for this year as of the end of the third quarter, of $61.1 million. That comprises $45.8 million in available liquidity and $15.3 million in restricted cash, which consists of a short-term cash-collateralized standby letter of credit for a large submitted proposal. Jonathan Baliff: Please turn to slide twenty-five. A brief discussion of the outlook for the remainder of 2024. We delivered another quarter of strong performance with significant investment. As a result, for 2024, we affirm full-year forecast revenue of $310 million, which represents a 27% year-over-year growth rate. On a year-to-date basis, we have achieved 76% of our $310 million annual revenue guidance forecast. Finally, through our excellence and execution initiatives, we continue to focus on improving our program management to reduce EAC volatility while also creating more operating leverage and cost efficiency to continue on our path to profitability. We enter the final quarter of 2024 and full year 2025 with great momentum. I will now turn the presentation back over to Pete to provide brief final remarks before Q&A. Peter Cannito: Thank you, Jonathan. Please turn to slide twenty-six. And with that, I want to thank the entire Redwire team for their contribution to our results this quarter. A total global effort. We'll now open the floor for questions. Operator: Ladies and gentlemen, we will now begin the question and answer session. I would like to remind everyone for one question, one follow-up. Should you have a question, you can press star followed by the number one on your touch-tone phone, and you will hear a prompt at your hand, hit raise. Should you wish to withdraw, kindly press the star followed by the number one again. If you are using a speakerphone, please lift the handset before pressing any key. Our first question comes from the line of Suji DeSilva from ROTH Capital. Please go ahead. Suji DeSilva: Hi, Pete. Hi, Jonathan. Congratulations on progress here. Thank you very much. Start with. Sure. I want to start with a high-level question. Obviously, the elections are a red sweep here. Curious to your thoughts on the impact potentially on space spend and government national security launch and satellite broadband was featured prominently in victory speeches. So just curious about your thoughts there. Peter Cannito: Yeah. No. I mean, interesting question. Certainly, we're watching. The interesting and exciting thing about space is that the infrastructure is so critical that I think regardless of any administration, there's going to be continued investment there. But we have usually, I don't try to comment or predict these things, but we do have four years of precedent from a previous Trump administration where they pushed the Artemis program and a number of, you know, created the Space Force and really invested heavily in space. So we're not making any predictions, certainly. But from what we're hearing and what I think, you know, everybody who's followed it, heard, and had seen since the last time this administration was in place that they are space investors. Suji DeSilva: Yep. Sounds right. And then you mentioned in the prepared remarks, you're seeing larger bid sizes, hundred plus million bid programs. Can you talk about as that competitive process narrows down, how many competitors you're seeing typically in the last round and what do you think your win rate is at some of these as these become more prominent, helmet severe? Revenue opportunity. Peter Cannito: Yeah. So it's highly variable. Right? In some areas, there is more competition than others in areas that are more emerging. Capability set. There's less competition. I don't think we're focused as much on the quantity of competition. Although, I will say that space being still a relatively new market, you have a lot of opportunity with fewer companies to perform. But regardless of whether the competition is higher or more moderated, we focus on our differentiation and, you know, that basically our go-to-market strategy is to leverage technical capability or unique infrastructure like our class infrastructure that we've invested heavily in to differentiate ourselves. In terms of win rate, I think on the hundred million dollar plus contracts, we have too small a sample size to give you any meaningful data there. Suji DeSilva: Okay, Pete. Appreciate that. And then last question, I'll pass along. Curious, in the microgravity Pillbox area, heard maybe talked for the first time that I've heard of developing your own IP with molecules. I'm curious if you have the in-house assets to determine which molecules to experiment on or if that's a partnership or what you have in-house to support that? Peter Cannito: Yeah. So good question. So we do have in-house scientists, very senior scientists, actually, PhDs that are part of the community. They are often out there publishing papers. We participate in the conferences. And through the experimentation phase of this, what we've been active on for many years now, we've made key relationships with the right people to help us identify those compounds. In fact, we have a little scientific group, if you will, of both internal and external partners that put that list together for us of the high-value opportunities. So, yeah, we definitely have the expertise in order to select the ones that we think have the most potential. Jonathan, did you want to add something? Jonathan Baliff: You know, with CFO, we have been very explicit that we've invested, you know, over $65 million both obviously client investment funds which obviously, we deployed quite effectively in our own funds, but mostly client investment funds. So we've invested a significant amount of money to gain all of the relationships, the capability internally, and obviously, the results are starting to show. You don't go from, you know, an expectation that, you know, was pretty high dealing with sixteen Pillboxes to now twenty-eight. And beyond in these partnerships now, the new one with Bristol Myers, that doesn't happen by accident. And we're very measured when we talk about it, Suji, to you in the market because we are creating something that is both unique and can also significantly scale from a revenue and return on invested capital standpoint. We're very measured in how we talk about it, but we're very excited about the results, which were significantly higher than expectations. And I would go out to our social media sites, and you can see some talks and interviews given by Dr. Ken Sabin that I think could get a lot of additional data on that. But I think the part that we're particularly starting to emphasize now is that I think you mentioned we had previously talked heavily about was the fact that we are building our own IP here as we've spent a lot of time studying the drug development process. And leveraging our expertise to take a look at where we're gonna fit in and what are the opportunities for potential business models. And as we tried to articulate, it's developing the seed crystals in space that can operate as a seed that can then be replicated on Earth, so you don't have to do it all in space. You just bring down that critical intellectual property, that seed crystal down, which is very small. And because we've demonstrated that we can replicate it on Earth, we can now take those seed crystals as IP and partner with the next chain in the value chain of drug development. And that's where we're focused on taking this IP we're developing as part of flying the small molecules on our own is to have our own IP that we can partner with biopharma companies that are in the business of the full development life cycle, partner with them, providing this unique IP in exchange for some sort of royalty structure. Early days, no doubt, but this is super exciting to us because we get a lot of questions from people about where is all of this heading, and I think we have a clear path to a real potential business model here to leverage this now. Not a lot of more investment. I have to emphasize, not a lot more investment. Right? That's key. Right. It's really about now harvesting. Suji DeSilva: Great. Thank you very much. Bye. I'll pass the line. Operator: Thank you. Our next question comes from the line of Greg Conrad from Jefferies. Please go ahead. Greg Conrad: Good morning. Greg, maybe it's a little bit too early to talk about next year. But just thinking about the 2024 growth strategy that you've laid out, how do you think about the changes into next year? Just thinking about the weight of those four levers and how do you think about venture optionality levers playing into next year? Peter Cannito: So for the first part of it, I believe and one of the reasons we focus on bids submitted in pipeline in our presentation here is that is probably one of the best leading indicators for Redwire. Right? So that's how we think about it anyways. When we go to look at 2025, you know, we have to look at, you know, how many opportunities do we have in the pipeline. These things have a relatively longer, meaning not measured in weeks and days, but in months, sales cycle. So what's in the pipeline now or, you know, things have to in order to achieve bookings in 2025. You have to have a fair amount in the pipeline now. Based on that quantitative metric, I think we're really well positioned for 2025. Now we have to win, so win rate is the other, as you all have pointed out repeatedly, other side of that calculation. And although because of the size of the sample set, we don't really have a meaningful win rate to provide based on statistically significant track record of historicals here, we do win and we have demonstrated that we win over the last couple of years, and that's how we've achieved this remarkable growth that we've achieved today. So we're pretty confident in our ability to bid and win. So if you take that and you combine it with the fact that we have a lot of really good qualified opportunities in the pipeline, and we've invested in not only the capacity but also the production capacity, but also the ability to or the technologies like full spacecraft systems to go after bigger programs, I can I expect that trend to continue into 2025, which is very positive. Jonathan Baliff: And there's historical precedence for this, Greg. If you remember, we spoke two years ago about ROSAs. Because we were just starting to win a number of contracts. Seeing a hundred and twenty-seven percent increase in those ROSAs contracted compared to last year, that was much higher than what we thought two, three years ago. But it was based on pretty significant CapEx investments that we made in the twenty-one and twenty-two periods to increase their production capacity. Many of you have been out to that facility in Goleta, we're continuing to use that embedded capital for higher returns on capital and just growth, right, in those ROSAs. So that's a get you know, it gives us confidence that what we're doing now leads to fruition in twenty-five. Greg Conrad: Okay. And then at the time of the Harith acquisition, I think you guys had disclosed that 2023 revenues were $15 million. Can you maybe clarify how much of that's included in this year's guidance? And then just you mentioned the acquisition in your cash comments, but it's a little bit unclear from the cash flow statement. Any color on the price of that deal? Jonathan Baliff: So now that we've actually been able to put some disclosure out, if you look carefully at the cash flow statement in the earnings release and will be expounded upon in the ten Q, actually say this is a recycling of capital. We actually ended up doing a disposition that created cash of more than $4 million of which as you can see in the cash flow statement, there was a use of cash for acquisitions. Again, we haven't disclosed the full price. That's actually obviously net of cash that we receive in that acquisition also. But you can see it's an efficient use of that capital as we move forward. If you look also in the earnings release, you'll see how we actually acquired some pipeline, you know, with Harith because you can actually see we haven't done another acquisition in almost twenty months. You can see that revenue, you know, for the quarter, which was only one month of the third quarter, was about $1.8 million. We spoke about guidance and the increase in guidance quarter from three hundred to three hundred and ten million, we actually said that that increase was partially due to Harith. Also due to organic growth that we're seeing, and we're sticking to that disclosure. Greg Conrad: Thank you. I'll leave it at that. Operator: Our next question comes from the line of Brian Kinstlinger from Alliance Global Partners. Please go ahead. Brian Kinstlinger: Great. Thanks so much. Congrats on the Harith acquisition. Peter Cannito: Thank you. Thanks, Brian. Brian Kinstlinger: As it relates to proposals outstanding, wondering if you can touch on the sales cycle. How long does it generally take for proposals to get adjudicated, especially on these larger deals? And then last year, Redwire bid on less than a billion dollars of contracts. This year, in each of the last two quarters, you've bid on more than a billion dollars or at least a billion dollars. Has anything changed in the market outside of management's focus on larger deal sizes? Peter Cannito: I'll take the last part first. No. I don't think so. I think it's been us putting the systems and foundation and capability in place to go after larger and larger programs as part of our 2024 growth strategy. In terms of the first part? Sales cycle. What's that? Oh, sales cycle, it varies. You know, some of the smaller subsystems and components, especially if commercial, you can turn it around really quickly. We can just get an order in. They can ask for something that is really mature. On other ones that are large government procurements and particularly, they tend to take a little bit longer. There's a lot of information out there on how typically the average length of a large government procurement based on size tends to take. So I think the important aspect is because we do we have that portfolio effect of subsystems and components as well as now larger bids. Increasing the larger bids, we have a nice blend of revenues that can be achieved in fairly short order all the way up to some much larger opportunities that we chase that take months to play out. Jonathan Baliff: Got it. The only thing I would add to Pete is, you know, again, these larger bids generally you can look up online or we, you know, we don't give specifics because we don't give specifics, but they do take as Pete said, measured in months and longer sales cycle. Right. The other thing I would say is that many of these bids, you know, are longer from a contractual standpoint. Like, they would extend, you know, we've always said our average life of a contract is about two years and that's been getting higher over time. Many of these bids would increase that also. So there are actually more multi-year contracts as opposed to a bit shorter term. Brian Kinstlinger: Great. Thanks. My second question, maybe one for Jonathan, and correct me if I'm wrong, the primary reason is there's a high percentage of low-margin hardware and material purchases for some of your large contracts that have begun. My question is, is it reasonable to assume that gross margin from last year is still achievable in the long term or medium term? And when do you expect if so, we begin to see a shift in the mix and therefore the margins begin to recover from the growth side. Jonathan Baliff: Look. You're asking a direct question. I'm gonna give you a direct answer. We believe that the margins will increase. And we've shown that from the second quarter to the third quarter. It's marginally increased, you know, about ninety basis points, almost one hundred basis points from the two quarters. Some of this is mix. Right? Because we're actually investing, you know, as part of some of these programs. It's EACs, we've talked about that before with you, Brian, too. So don't forget that there is some EAC growth there, but it's also we're starting to manage that a bit better. But the answer is we are very focused on improving those margins and getting back up into the twenty-plus percent margins. We don't give specific guidance on that, but the answer is any business that's trying to achieve scale is also, you know, getting spec'd in on some of these programs should see increasing margins as we go forward. It's not gonna be linear. It's gonna take steps forward and steps back, but as we start to achieve scale, it's really the EBITDA margins also that really start to step up, which we're also quite focused on, which is why we mentioned operating leverage so much. Peter Cannito: Yeah. Although it's early days, I thought we'll reverse it here and John, so you guys go first, I get to add. That's it. That's fine. It certainly did. You know, we in the last earnings call, if anybody was paying attention, I articulated a key concept that we rally around called strategic balance. I believe in that context, I was talking about balancing between profitability today and the investments it's required to achieve extraordinary growth over time. But strategic also comes into many of our conversations internally when we look at opportunities to say, alright. Are we focused on gross margin improvement here? Are we focused on the absolute value of free cash flow generation? And I think at this stage in our company as we look at achieving operating leverage, we will. We will bid higher programs with low margins that can have an outsized effect on our blended margin but create more absolute value from a free cash flow generation perspective. And that's just, I think, healthy for the company. So everything Jonathan has said is correct, but I do want to highlight so that I'm not back on this call later and we win a much larger opportunity that has a large material purchase associated with it, that dilutes our margins on a blended basis but generates a lot of additional free cash flow because we're getting all the operating leverage, and that's why Jonathan brought up EBITDA. But we will do that, and that is a possibility. Brian Kinstlinger: Great. That's helpful. Thank you. Operator: Thank you. Again, if you have any questions, kindly press star one. Our next question comes from the line of Griffin Boss from B. Riley Securities. Yes. Go ahead. Griffin Boss: Hi. Good morning. Thanks for taking my questions. So a lot of good progress here. I'll start with the ROSAs. Obviously, you mentioned the strong growth there year over year, but you didn't talk about the Thales contract program you're working on. I wonder if you could provide some more details on how that's progressing and any potential investments you're making to ramp up on that program? Peter Cannito: Yeah. So it's progressing well, and we're making the investments that we envisioned at the beginning of the program. So I wouldn't take our not speaking on the topic because anything other than we had a lot of new other stuff to talk about. But, yeah, the program's progressing well and those investments are playing out. Jonathan Baliff: And, you know, what I would say, Griffin, is, you know, take a look at that growth in the commercial revenue. Right? When we look at our year-over-year commercial growth, a lot of that is because now we've been able to disclose more about Thales and what those ROSAs are going on, and we're very excited about continuing to move forward with that. But really other clients, because of our differentiated, you know, power generation. Griffin Boss: Great. Thanks for that color. And next for me, it does look like you paid quite a low multiple for Harith. So just if you could provide more details on sort of M&A going forward and what you're seeing in the marketplace in terms of options for M&A and maybe valuations you're seeing in the market as well? Peter Cannito: Yeah. So the valuations have come down. Without getting too much into our strategy, because obviously, it's a competitive process for these, is we believe there are companies out there that have invested millions of dollars in capital in creating some really extraordinary technological capabilities and just ran out of capital. And as a result, there are opportunities to find complementary opportunities where they can join the Redwire platform and we can take advantage of all the capital that went into the tech development part of their evolution. Right? So we're excited about that. I've said previously in earlier calls, although I'm not sure everybody had labeled us as one of those that come out the other side of this early stage of space, but the winners do get to and those that move forward and maintain fiscal discipline get the opportunity to strategically look at those companies that have some really great tech but need to be part of a longer-term deck, and so that's exciting to us. And more broadly, we do think that valuations have come down. And as a result, I think you'll see that we've well, we've never stopped being active. As I tried to highlight on this call, inorganic growth and M&A are a core competency of Redwire. We have a team here who has done it many times now and has I hope people look at where we are sitting today after our nine, now ten acquisitions and see that we have the ability to integrate and capitalize on that. So that's gonna be kind of part of our game plan going forward. It would be strange for it not to be. So I think as you see us going forward, we're highly selective. We don't like to overpay, and we look for technological differentiation. That's always the way we've been, and that's the way we're gonna be going forward. Griffin Boss: Excellent. Very helpful. Thank you, Pete, and thank you, Jonathan. Peter Cannito: Thank you. Appreciate it. Thank you, Griffin. Operator: Thank you. That concludes our Q&A session. I would now like to turn the call over back to Jeff Zunick for closing comments. Jeff Zunick: Great. Thank you for your questions and for participating in today's call. We appreciate everyone taking the time to listen to us today and go Redwire. Operator: That concludes our conference today. Thank you for joining us. You may now disconnect. Thank you, everyone.

Operator: Greetings, and welcome to the Redwire Space Second Quarter 2024 Earnings Call. At this time all participants are in listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jeff Zeunik, Senior Vice President, Financial Planning and Analysis and Investor Relations. Please proceed. Jeff Zeunik: Thank you, Latanya, and good morning, everyone. Welcome to Redwire's Second quarter 2024 earnings call. We hope that you've seen our earnings release, which we issued yesterday afternoon. It has also been posted in the Investor Relations section of our website at redwirespace.com. Let me remind everyone that during the call, Redwire management may make forward-looking statements that reflect our beliefs, expectations, intentions or predictions of the future. Our forward-looking statements are subject to risks and uncertainties that are described in more detail on Slide 2. Additionally, to the extent we discuss non-GAAP measures during the call, please see Slide 3, our earnings release, or the investor presentation on our website for the calculation of these measures and their GAAP reconciliations. I am Jeff Zeunik, Redwire's Senior Vice President of Financial Planning and Analysis and Investor Relations. Joining me on today's call are Peter Cannito, Chairman and Chief Executive Officer; and Jonathan Baliff, Chief Financial Officer. With that, I would like to turn the call over to Pete. Pete? Peter Cannito: Thank you, Jeff. During today's call, I will take you through a discussion of our key accomplishments in the second quarter of 2024. Jonathan will then present the financial highlights for the same period, after which we will open the floor for Q&A. Please turn to Slide 6. The second quarter of this year was another excellent quarter for Redwire, during which we continued our positive momentum from the first quarter. We once again delivered year-over-year revenue growth and positive adjusted EBITDA while delivering a strong performance in bids submitted and contracts awarded. During the second quarter, we achieved $78.1 million in revenue, a 30% improvement over Q2 2023. It was another strong quarter for revenue. We had positive adjusted EBITDA of $1.6 million. We improved ending liquidity of $55.8 million as of June 30, 2024. We had $114.4 million in contracts awarded during the quarter with a last 12 months or LTM book-to-bill of 1.28 times. We had a net loss of $18.1 million for the quarter, which includes a $900 million negative impact due to an increase in the private warrant fair value. And finally, we had positive LTM net cash provided by operations of $5.7 million as of the second quarter of 2024. It's important to note that we were able to achieve these strong financial results while simultaneously investing in new technologies, expanding production capacity and maturing corporate infrastructure throughout the first half of the year. We continue to balance near-term results with long-term growth. Please turn to Slide 7. Each quarter, we outlined Redwire's growth strategy as a framework for our performance. Our 2024 plan is centered around four key principles: protecting the core, which means continuing to deliver on our strong foundation of existing products with proven reliability and demonstrated flight heritage, it is about continuing the growth momentum of our successes in 2023. Scaling production, which means winning and delivering on increasingly larger orders to meet growing demand. Moving up the value chain. This means leveraging our proven capabilities in developing and deploying space subsystems and components in the next-generation spacecraft and integrated mission payloads. And finally, venture optionality, which means continuing to pursue breakthrough developments on advanced technologies that could create new markets with game-changing potential. Over the next few slides, I'll discuss examples of successes in each of these key growth areas from the second quarter of 2024, including an in-depth look at our moving up the value chain growth area. Please turn to Slide 8. Starting with our protecting the core growth area. During the second quarter, Redwire is proud to have supplied fine and coarse sun sensors for the National Oceanic and Atmospheric Administration GOES-U satellite, which launched on June 25 and is intended to provide sophisticated weather and solar activity monitoring. This is the fourth satellite in the GOES-R family for which Redwire has supplied these critical guidance navigation and control components. Sun sensors come from our avionics sensors core offering, which includes spacecraft subsystems and components that are used for navigation, control and imagery collection. Also, during the second quarter, Redwire was awarded a contract by the European Space Agency to develop a robotic arm prototype for ESA's Argonaut Lunar Lander called MANUS. The MANUS system will be developed at Redwire's Luxembourg facility and will enable crucial logistics operations on the lunar surface, such as offloading, precise pointing, and retrieval of objects and positioning of the lander. Robotic arms are part of our structures and mechanisms core offering, which includes a variety of space infrastructure that provides critical mechanical functionality for our on-orbit operations from launch release mechanisms and deployable booms to berthing and docking systems. Please turn to Slide 9. Looking at our scaling production growth principle, this quarter, we announced another order for our rollout solar array or ROSA wings for Thales Alenia Space's Space Inspire satellites, the company's newest product line of geo-telecommunication satellites. Our participation on the project was initiated last year and additional orders underscore that this is a growing area of the business with recurring revenue potential. Rollout solar arrays fall within our power generation core offering, which includes solar arrays and power distribution systems that generate the necessary power for space systems to operate regardless of size or location. Throughout the second quarter of 2024, Redwire continued to execute on antenna production. Redwire has delivered over 50 flight antennas and has more than 180 additional antennas in development for multiple government missions. Antennas are part of our radio frequency systems core offering, which includes the systems and payloads that enable space-to-space and space to earth communications. Please turn to Slide 10. Turning to our venture optionality growth principle. In the second quarter, we continued our amazing breakthroughs in micro gravity, starting with the successful bioprinting of live human heart tissue using our 3D bio-fabrication facility or BFF, on the International Space Station. 3D printed live human heart tissue could eventually be used to create heart patches as a treatment for damaged heart tissue and opens the door to more effective personalized medicine in the future. On the next BFF mission, Redwire plans to 3D print human blood vessels in space. Also in the second quarter, our PIL-BOX 3 experiment that examined various crystal molecules designed for pharmaceutical use in partnership with Butler University successfully returned from the International Space Station for analysis on Earth. In addition, we have now launched four additional drug manufacturing investigations in our PIL-BOX system. These new investigations flew to the International Space Station on board the NG21 commercial resupply mission on August 4. Finally, we are also excited to announce ExesaLibero Pharma, a company focused on developing new small molecule drugs to treat bone disease as one of our commercial partners for an upcoming PIL-BOX mission expected to launch later this year. Please turn to Slide 11. Next, on the following few slides, I would like to provide a more in-depth look into our third principle, moving up the value chain by focusing on Redwire's leadership in developing and providing VLEO capabilities to enhance defense and intelligence operations. In Q2, we achieved a major milestone in our VLEO SabreSat strategy with the award of a prime flight contract from the Defense Advanced Research Projects Agency, or DARPA, on the Otter program. As the prime mission integrator for DARPA's Otter program, Redwire is responsible for the development of a revolutionary air breathing satellite that will demonstrate the use of novel electric propulsion systems in VLEO. This is a major validation from the market. Very Low Earth Orbit or VLEO bridges the gap between air and space and provides opportunities for better performance and earth observation and communications. Redwire has two platforms to bring this untapped orbit from concept to full-scale operations, SabreSat in the United States and Phantom in Europe. These platforms are both designed to overcome the challenges of operating in VLEO, such as atmospheric drag, while providing strategic advantages, including the following: resiliency, as satellites in VLEO operate in an unimpaired environment above airborne anti-access and area-denial defenses and below the threats in LEO, spacecraft in VLEO complement unmanned aerial systems and LEO satellites by providing an additional operating environment that gives greater resiliency to overhead, defense and intelligence operations. Proximity, by operating at a lower altitude, VLEO spacecraft are twice as close to the action on the ground and therefore, better able to provide the potential for higher fidelity resolution first observation and strong signals for communications while better optimizing performance and cost. Mobility, the increased drag in VLEO enables spacecraft to rapidly maneuver within their orbit to provide a more dynamic operational environment that can rapidly move that satellite into a variety of positions to optimize mission requirements. And sustainability, by operating closer to Earth’s atmosphere, VLEO operations significantly reduced the orbital debris issue. When a VLEO's spacecraft ceases to operate, atmospheric drag will rapidly deorbit the spacecraft and the material will burn up in Earth's lower atmosphere. VLEO is a self-cleaning orbit and therefore, considerably more sustainable over time. We have received very positive market reception, including the award of the Prime Flight Program from DARPA, and this has further validated our movement of the value chain through our VLEO offerings. This Prime contract for SabreSat provides Redwire with a funded program and critical customer to advance our design to flight in this new and exciting domain. Turning to Slide 12. With 2 platforms to bring this untapped orbit from concept to full-scale operations, both in the United States and abroad, Redwire's operations in VLEO are a testament to the power of our heritage plus innovation strategy. Showcasing our heritage, our first study contract for the European Space Agency Skimsat program was announced in June 2022. The Skimsat program is a VLEO satellite mission that aims at reducing the cost of earth observation and telecommunications while increasing performance by operating at substantially lower altitude. With this award, we have been working to mature our spacecraft design. And in May of 2024, we unveiled our Phantom platform for the first time. Phantom is being developed for Skimsat out of our Belgian office. And as we have said before, the potential for this transformative program is extraordinary. We announced our SabreSat platform in March of 2024 and announced our first VLEO study award in May. Later, during the second quarter, we then announced that Redwire was selected for the Otter program. As the prime contractor, Redwire will be responsible for building the SabreSat bus, advancing the critical technologies necessary for the mission and integrating, coordinating and leading the team for the project. As Redwire moves up the value chain, we are very excited that SabreSat and Phantom expand Redwire's offering of full satellite system development and operations that include the Redwire International PROBA satellite. With now three spacecraft platforms, we are well positioned for future growth. Please turn to Slide 13. Now turning to our contract awards and backlog. Our contract awards during the second quarter of 2024 were $114.4 million. It was an excellent quarter for bookings at Redwire. This is a 226% sequential increase in bookings compared to last quarter. Our last 12 months book-to-bill ratio was 1.28 times for the second quarter of 2024 as we continuously reinforce, we often see lumpy contract awards growth from quarter-to-quarter, but we are continuing to maintain a positive growth rate on an annual basis. As you can see on the lower right-hand side of this slide, our contracted backlog has increased 29.9% year-over-year to a total of $354.3 million. The growth in contracted backlog is one of many factors that gives us confidence in our future growth. Finally, we continue to have a healthy pipeline with an estimated $5.7 billion of identified opportunities, including approximately $1.9 billion in proposals submitted year-to-date as of June 30, 2024. As you can see on the upper right-hand side of this slide, this represents a significant increase of 288.5% over the corresponding year-to-date period ended in June 30, 2023. This growth is a result of our efforts to increase the average size of the individual opportunities we are pursuing. For example, we are now bidding on individual programs in the $100 million-plus award value on a more regular cadence. Although there is no guarantee we will win these opportunities, we now have a pipeline of bids that can result in a substantial increase in backlog if we land some of these larger opportunities. Please turn to Slide 14. With that, I'd now like to turn the call over to Jonathan Baliff, Redwire's Chief Financial Officer. Jonathan? Jonathan Baliff: Thank you, Pete. Before I turn to the financial results, I'd like to highlight this photo on the slide which is of the groundbreaking ceremony for Redwire's 30,000 square foot microgravity payload development and space operations facility. This facility located within the Nova Park Innovation and Technology Campus in Floyd County, Indiana, is an investment in state-of-the-art locations and supports our cutting-edge space biotechnology programs that Pete spoke about last quarter, making it possible for the biopharma industry to achieve game-changing outcomes in space. Turning to Slide 15. Our second quarter and its first half of 2024 results demonstrated the positive momentum with which we entered this year. Quarterly revenue was a record for a second quarter of $78.1 million. We also achieved positive adjusted EBITDA in the quarter of $1.6 million. We will discuss the drivers of this quarter's adjusted EBITDA on subsequent slides, but note that it was negatively affected by EAC adjustments of $3.1 million. This also impacted our Q2 net loss, which was also impacted by other one-off items such as a $9.0 million or $0.14 per share basis loss associated with change in fair value of warrants on a noncash basis. On this page, as you can see in the lower left-hand box, we experienced significant growth in backlog and bids submitting $1 billion more in the second quarter year-over-year for a total of $1.3 billion of submitted bids in the second quarter of 2024. Finally, although we had a use of cash from operations of $9.5 million during the second quarter of 2024, and as we said on previous calls, our quarterly cash results can be lumpy. So when you look at the last 12 months or on an LTM basis, we achieved an increase of $33 million in cash from operations on a year-over-year basis. As a result, second quarter LTM cash from operations was a positive $5.7 million, and this allowed for the increased level of investment to fund growth as we're going to talk about in 2024. These second quarter results are attributable to the capability and commitment of our global team members and our clients' confidence in Redwire as we satisfy their growing demand for space infrastructure. Please turn to Slide 16. Specifically for quarterly revenue, as you can see from the chart on the right, this quarter's revenue of $78.1 million is a 30% increase on a year-over-year basis and represents both a record second quarter revenue for Redwire as well as the second highest revenue quarter in the company's history. On a year-to-date basis, 2024 was $165.9 million as of June 30, 2024, and this represents a 41.0% increase over the first half of 2023. Finally, during the quarter and similar to past years, the revenue in backlog has a solid backing with more than 91% of our revenue derived from funding government programs or from global marquee customers for delivering the areas of natural security, satellite proliferation and the exploration of space to just name a few. Please turn to Slide 17. On a quarterly basis, Redwire achieved positive adjusted EBITDA of $1.6 million in Q2 2024. And on the last 12 months basis or LTM basis, Redwire achieved a 94.6% increase in LTM adjusted EBITDA from $6.5 million in Q2 2023 to $12.6 million in Q2 2024. Adjusted EBITDA was previously impacted by results in gross profit and gross margin. Gross profit was $13 million in the second quarter of 2024, with quarterly gross margins at 16.6%. These results were primarily impacted by $3.1 million in EAC adjustments during the second quarter. These adjustments are largely resulted from unplanned design and tech cycles required to meet customer requirements on many contracts. Offsetting these gross margin declines, our quarterly adjusted EBITDA performance was supported by excellent cost control and the continued operating leverage driven by scale as Redwire's SG&A expenses were 23.2% of revenue, a meaningful drop from 29.4% in last year 2023 second quarter. We continue to drive tens of millions of dollars in revenue increases with much lower growth in SG&A on a year-over-year basis, and that's the benefit of operating leverage and scale kicking in. Please turn to Slide 18. Throughout the second quarter, we continue to make large investments to support the revenue growth we spoke about and create industry-leading innovation and global business scale. During the year-to-date period through June 30, 2024, we made $4.1 million of capital expenditures plus $2.8 million in investments in internal research and development and $1.8 million in a variety of other corporate investments that mostly flow through the SG&A line. We continue to demonstrate our ability to financially perform now while also making investments for future growth, risk reduction and profitability, all while maintaining high levels of liquidity. Please turn to Slide 19. Similar to last quarter, and on the left-hand chart, we show operating and free cash flow. As a reminder, free cash flow provides a metric based on our U.S. GAAP cash from operations minus capital expenditures. For the second quarter 2024, net cash used in operating activities was a use of $9.5 million and free cash flow, which was also a use of $11.2 million. However, on a last 12-month basis, we have achieved significant improvement from net cash used in operating activities of $27.3 million on an LTM basis to a cash provided by operating activities this quarter of $5.7 million on an LTM basis. As you can see on the right-hand chart this yields available cash and cash equivalents of $30.8 million as of June 30, 2024, with $55.8 million in total available liquidity, a 54.1% increase over June 30, 2023. Please turn to Slide 20 for a brief discussion on the outlook for the remainder of 2024. We delivered another quarter of strong performance. And as a result, for 2024, we reaffirm full year revenue at $300 million, which represents a 23% year-over-year growth rate. On a year-to-date basis, we have achieved 55% of our $300 million annual revenue guidance forecast. Finally, through our excellence and execution initiatives, we continue to focus on improving our program management and reduce the EAC volatility while also creating more operating leverage and cost efficiency to continue on our path to profitability. I will now turn the presentation back over to Pete to provide brief final remarks. Pete? Peter Cannito: Thanks, Jonathan. Please turn to Slide 21. With that, I want to thank all of Redwire's team for their contributions to this quarter's results. We will now open the floor for questions. Operator: Thank you. We will now conduct a question-and-answer session. [Operator Instructions] Our first question comes from Griffin Boss with B. Riley. Please proceed. Griffin Boss: Hi. Good morning, Pete, Jonathan. Thanks for taking my questions. So first for me, I just want to start off where you guys left off on the reaffirmed guidance. With the big 2Q beat on the top line, the guide is implying a much softer second half versus first half. I mean, and I know, obviously, results get lumpy in the first quarter had outsized benefit from long lead items. But just given the strong bookings, I guess I'm surprised to see a muted outlook for the back half of the year. Can you just elaborate on your perspective there? And then perhaps with that outlook in mind, how you view margin expectations in the back half of the year relative to the first half? Peter Cannito: Yes. Hey Griffin, thanks for your question. So I wouldn't call it muted. I mean we've set a plan for the year at $300 million. And in the first quarter, we talked about how we had some lumpiness associated with material buys on the Thales ROSA contract. So that added some revenue to the first quarter that won't be regular run time associated with the remainder of the year. But we like where we are for the year, and we're executing against our plan as a result. And so with that, we're constantly doing what I call strategic balance in the company. When you think about an emerging market like space, our team is constantly and what I think is doing effectively a really good job of strategic balance, finding that Goldilock's position between revenue growth, a profitability and investing for the future while maintaining what I think is a prudent level of liquidity. So we have our plan for $300 million a year and we're on Beacon to do that, while at the same time, we got to make sure that we're balancing that growth trajectory with our ability to deliver on our programs as well as continue our investments as well. Jonathan Baliff: Griffin, its 23% growth Griffin year-over-year, but keep going, Griffin. Griffin Boss: I just meant relative to the first half, but I understand what you're saying, and I appreciate the color. And then Jonathan, obviously, it's going to come as no surprise; I'm going to dig into the EAC adjustments again. You mentioned it a little bit, but can you just give a little bit more color on the mix there in the second quarter? And where those adjustments are primarily coming from, whether it was primarily one program or several that would be helpful? Jonathan Baliff: Yes. This quarter was the small adjustments spread over a larger number of contracts. There's not one contract. And again, I'll let Pete talk a little bit more about it. But when we look at the balance that Pete's talking about and doing a number of things, we're continuing to deliver for clients and we're doing really what I consider is yeoman's work in being able to put some of these large contracts in place. And on a percentage basis, so you'd have to look at it from last year to this year, we're still looking at, on a percentage basis, the EACs being smaller on a percentage basis of revenue this year than it was on an LTM basis last year. So we continue to work on it. We don't believe it has a big impact on cash flow and other things like that. We're continuing to move forward on improving our profitability and scaling. That's why you see the SG&A continue to be a focus area for us. But again, it wasn't any one contract. Peter Cannito: Yes. And again, I'll go back to this idea of strategic balance, right? So we had 30% year-over-year revenue growth. You got to execute on that and expand accordingly. So we're comfortable with where it is as a percentage of total revenue. But in a highly technical complex some might say, hard industry-like space, you're going to run into small bumper along the way when you're growing at 30% year-over-year. So we got to balance out that revenue growth with our operational execution, and that's exactly the kind of levers, Jonathan, myself and the team are working on every day. Griffin Boss: Sure. Got it. Thanks for that. And then last one for me, and I'll jump back in the queue. Maybe more broadly, obviously, the U.S. presidential election has been a particular topic of interest and conversations that we've been having. I think generally speaking, it's probably safe to say there's bipartisan support for space funding, but would love to hear directly your thoughts on how you're handicapping the implications of a Republican or Democrat administration for Redwire and maybe the industry in general. Peter Cannito: Yes. No, it's an interesting question. We're not really handicapping it. Like you said, we believe space is a bipartisan imperative. Our focus is staying in the swim lanes that are must-dos, like national security. I think we've talked about on previous calls, but for those who are tracking space as an emerging war fighter domain. These are things regardless of administration that the country is going to have to invest in. I'd also remind everybody that roughly a third or 29% or in that order, it fluctuate quarter-by-quarter. But a fair amount of our revenue comes from overseas. So our diversification, as we've talked about numerous times is one of Redwire's biggest strength in terms of resiliency regardless of who's ultimately sitting in the oval office. Griffin Boss: Great. Excellent. Yes, that's perfect. I’ll hop back in the queue. Thanks for taking my questions. Appreciate it. Operator: The next question comes from Greg Konrad with Jefferies. Please proceed. Greg Konrad: Good morning. Maybe just to start with the submitted bids, I mean you called out more $100 million-plus programs within that $1.9 billion number. I mean, any more color in areas where you're seeing this opportunity and just thinking about noticeable trends between maybe commercial versus more government work as you step up your submits? Peter Cannito: Yes. I mean in terms of where it's coming from, it's a mix. So there's scalable opportunities across all of the different targeted market segments. So yes, it's a mix of those different things. I think the two predominant flavors of these directly tied to two of our core growth principles for 2024 scaling production and moving up the value chain, right? So as part of our scaling production, we're going after larger quantity orders of our existing projects, right? So these things start to take root in the marketplace as the constellations that I know you're aware of, continue to scale. As we mentioned, for instance, the antenna work we do for the government [indiscernible] scale are order quantities and that results in bigger bid submissions. And then of course moving up the value chain when you start doing full spacecraft prime contracts and bidding programs of that ilk, they tend to be larger in size because you're getting the full scope of the program as opposed to just a single subsystem. Greg Konrad: And then maybe just touching on a third of the four items, the venture and optionality portfolio. It seems like there continues to be a step-up of kind of positive data points around that portfolio. I mean how do you think about the timing of that business being really meaningful and kind of the path to increased monetization just given some of these early items that you're seeing in the market? Peter Cannito: Well, so we're optimistic. I mean we're trailblazing here. So there isn't a lot of context to make and a lot of data to make predictions on timing. So we don't as a result. But as hopefully we've been able to articulate quarter-by-quarter, there's a lot of momentum in this area, and it's moving from what could be characterized as one-off experiments more towards an emerging regular cadence of production-like activity, particularly in PIL-BOX. So as the data is analyzed and as momentum builds, we continue to have an optimistic outlook for what we're doing. And we're really encouraged by both repeat orders from existing partners to do more investigations as well as an increase in the diversity and the number of different partners that are interested in working with us. So again, difficult to predict due to the first-of-a-kind trailblazing nature of the technology, and that's why we refer to it as venture optionality. But qualitatively, we have a lot of really encouraging results. Greg Konrad: I'll leave it too. Thank you. Peter Cannito: Thanks. Operator: Our next question comes from Brian Kinstlinger with Alliance Global. Please proceed. Brian Kinstlinger: Hey. Thanks so much. Peter Cannito: Hey Brian. Brian Kinstlinger: How are you? Peter Cannito: Good Brian Kinstlinger: You submitted an impressive $1.3 billion, proposal in the second quarter. Can you talk about capacity? I assume you're going to continue to submit bid at an accelerated pace? And then maybe talk about the average win rate over the last two years and whether that's different between large proposals versus smaller proposals. Peter Cannito: So on the last part first, we don't report our win rates, and we don't as a result break it down. Of course, being part of an emerging and highly dynamic market. I'm not sure past historic data would be relevant over time during this early period of our growth. I think the key is in the results that you see in terms of 29.9% growth in contracted backlog year-over-year. As we continue to move up the value chain and increase production, it's less a function anyways of the percentage of individual wins that you have, it's the right wins that matter, and it's bidding the right way that is important to us, and that's what we've been focused on. And like we highlighted, from a big capacity perspective, we're increasing the average size of our individual bids. So the number of bids varies from quarter-to-quarter, but what's in the pipeline goes up, and we see that as encouraging towards future potential bookings. Brian Kinstlinger: Sorry, I meant some capacity from your ability to deliver. I know you have a new facility, but if you keep increasing bids and winning, how do you think about capacity can deliver, I mean sorry. Peter Cannito: Yes, yes, yes. No, that's a fair question. So again, going back to that idea of strategic balance. When we go into a bid, we do a really detailed level of planning into the what happens if we win here to make sure that we have the capacity at the ready should we be awarded the program. So we feel pretty comfortable by the time we get to the actual bid submission portion that if we're selected, we will have the capacity or the plan to execute on attaining the capacity associated with the timeline that we submit as part of our bid. So for instance, some really large awards may start with a design period initially that would then allow for simultaneously ramping up of the physical production site as well. So it's a detailed process that we do when we go to submit a bid, and one of the gates that we have to pass for our internal review is do we ultimately have the ability to execute, and that's part of this strategic balance that we work on every day. Jonathan Baliff: But I mean, Brian, I do want to get to the financial element of the question you're talking about. When we submit these bids, we take into account most of, if not a vast majority of the contract costs are obviously included in these bids. We've talked about in the past, our CapEx is quite low compared to our revenue, and it stayed fairly low because our clients pay for a lot of these costs to be able to get to the capacity to deliver. And we've seen this and delivered on that credibility over the past number of years. And as we've said, to achieve the $300 million of revenue guidance, we do not believe we need to issue any securities or anything like that. That is, again, part of the strategic bidding that we do to make sure that we're covering our costs. Brian Kinstlinger: Great. And then my other question relates to the EACs, it's been a bit high for the last three quarters. And Jonathan, you mentioned it's a variety of contracts. So I'm curious how this impacts your pricing strategy going forward? Can you price fixed contracts a little higher to ensure you capture the appropriate margin? Jonathan Baliff: Yes. So we look at every bid in the context of what our financial and strategic goals are, right? So there are some things that we bid aggressively because it can have a strategic implication that's really important to us as an example, maybe breaking into a new product line or a new customer. And we balance that out with some of our more mature products where we're more in that increasing gross – where the focus is more on increasing gross margins. And what we like about where we're positioned is it's a portfolio effect, right? So measuring it on a quarter-by-quarter basis, if you look at it as just a snapshot or a moment in time, you see the strategic balance that I'm talking about moving around, and that's why we talk about, for instance, cash from operations over an LTM perspective because as you really grow revenue rapidly, that's going to introduce some level of challenges in the operational execution, as you focus on that operational execution, then you got to balance that with your strategic growth. So I think what you're seeing is basically a snapshot in time, and some of these are just a reflection of how we're bidding to balance financial performance as well as strategic positioning in the market. Brian Kinstlinger: Okay. Thank you. Jonathan Baliff: Thanks, Brian. Operator: The next question comes from Andres Sheppard with Cantor Fitzgerald. Please proceed. Andres Sheppard: Hi, good morning everyone. Thanks for taking our questions and congratulations on the quarter. A lot of our key questions have been asked. But maybe to take a step back, ROSA continues to make great progress. Some feedback that we are getting is that the solar industry kind of continues to experience some supply chain disruptions. So just wondering if you could share maybe what you're seeing there, maybe the latest pricing for your solar business. Thank you. Peter Cannito: So we're executing. Supply chain is always something that has to be managed. I don't think it's particular where we're not experiencing it being specific disorder rate only. Of course, our solar arrays aren't run of the mill, put on top of your house type solar arrays. So we have a strategic supply chain. And those supply chain partners from my perception of where I'm sitting, are very pleased with the growth of ROSA and the growth that Redwire is experiencing. And so, when we look at these bids, we're in there in the mix with critical suppliers, ensuring that they have the capacity to grow along with us. And the results are showing up in the numbers. Jonathan Baliff: Andres, when you start seeing expansion of an existing product or project, you're seeing that there's real demand for the amount of energy that's needed for specific satellites or spacecraft that obviously – we view that as an opportunity, right, because of our strong relationships, our unique technologies. And so, when you start seeing that expansion, you should assume that we obviously have those relationships in our supply chain to be able to, again, get to that capacity and then beyond. Andres Sheppard: Got it. Thanks guys. That’s super helpful. Maybe just switching gears to venture optionality. Can you just remind us the time line for the next PIL-BOX missions throughout this year? How big of an emphasis are you placing on this over the long term? It seems it's becoming more and more as one of your maybe core focus. So just curious on the time line and your thoughts there. Thank you. Peter Cannito: Yes, it's a good question. So we just launched another four. So that's going to keep us busy for a while. And of course, there's been a lot of headlines around trips to the ISS. So yes, so I think we're on target to continue the same operational items that we've been able to exhibit so far this year. And I agree with you that it's becoming a bigger focus as we achieve more and more successes. So I'd like to emphasize, this is a venture domain, even though we call it venture optionality. We're not losing millions and millions of dollars in putting these up. These are customers, and we get revenue associated with these, and they have their own profitability target. But the real potential is going to come from our ability to hit on a crystal or – and working with a partner to ultimately license that IP, and it's still early days. So I think, hopefully, what you and the market are seeing is that we have a really great momentum this year and turning this idea of pharmaceutical production crystals on orbit, and it's not just for pharmaceuticals, it's for other applications as well, is really at that nexus point from turning to just being in space experimentation to the ability to have a regular cadence of most production level cadence to go that out. And Redwire is at the lead in terms of the number of these things that we're putting up on a regular, what I would say, business level tempo. And that's what we're really excited about. But in terms of being able to start pointing at revenue contribution in out years, we're just not at that level yet in the product life cycle to start making those predictions. Jonathan Baliff: I mean, the prediction we gave you and is that there would be 16 additional PILL-BOX missions in 2024. We obviously now have disclosed the four that just went up. So we're continuing that accelerated cadence because, again, this time last year, we started talking about this development, it's not experimentation. Its development investigations of the drugs themselves. The PIL-BOX is working, right? We're getting our clients were really our partners, great results. But again, it's the development of these proteins, which we explained last quarter. So we're on track with those 16. And the only thing other thing I would say, Andres, is there's been a lot of investment in the last decade in this PIL-BOX and other parts of the biopharma and personalized medicine, over $70 million of investments for this. So we're benefiting from that. Where others in the venture part of space dealing with pharma and personalized medicine are just now starting their investment cycle. We've already got that investment in place, and now we're starting to reap the benefits. But like Pete said, we've been very conservative both in how we talk about our revenue forecast for this year, $300 million, but also how we talk to you about the venture optionality. We believe in it. Obviously, we wouldn't have invested $70 million if we didn't. But that being said, it's going to come with these new business models in space that are frankly mimicking a contract development and manufacture of biopharma terrestrial. So there is a business model that's now a knowable that will apply to space, but frankly, the same clients like Eli Lilly or Butler University. Peter Cannito: Yes. I think what Jonathan highlights is really important. If you really want to understand this aspect of the business, you have to look at it the way the venture investors are looking at competitive opportunity or competitive organizations that are just getting started, right? We've been – if you look at the tempo, we're moving from experimentation into production. We're not at the major loss what typically comes in a venture life cycle of major losses around a product that is not where we are with this aligned by any stretch of the imagination. It's generating revenue. I think we have a lot of excitement and are starting to prove out the market. So if you look at the analysis associated with how the valuations are being applied to those who are just getting into this area and you look at that and try to value the option that is embedded in Redwire associated with this segment considering we're further down the stream in terms of turning this into a real business, you start to see the full potential. Andres Sheppard: Got it. That’s super helpful. I really appreciate all the color. Maybe if I could squeeze one last one, really quick. Jonathan, how should we think about the free cash flow for the rest of this year and maybe into next year? I realize, obviously, you don't guide it, but any color there that you might be able to provide us with? Thank you. Jonathan Baliff: First of all, I appreciate you answering your own question. I won't give free cash flow or operating cash flow. I'll just give two, let's just say, aspects to at least give you some color on this in context. One, we're very proud of the operations teams. Obviously, this is a multiyear exercise of path to profitability. So we don't ever look at just any one quarter. We have a tendency, and we're kind of disclosing LTM basis to be able to generate cash from operations. We don't make any adjustments, its cash from operations to be able to invest. And that investment includes a number of things that are in our growth strategy such as moving up the value chain or that's this quarter's focus or last quarter's venture optionality. Although, again, like I said, we've already invested in that a lot. So when we talk about our LTM improvement of $33 million in cash from operations, that gives us the confidence that we can invest a bit more on a full year basis, which you see what we're doing. We have a page on those types of investments that are primarily in the technology and basically commercializing the technology. But also, it's in associated with creating global scale, which is why our SG&A has been coming down on an LTM basis percentage of revenue. So the two things simply put are we are generating operating cash flow to make higher levels of investment, and we're seeing that credibility in that we're seeing the revenue growth. Like if then we make those investments, they impact cash flow from operations on a quarterly basis, maybe one quarter, they can be lumpy. And then when you look at it on an LTM basis, the trends are our friend. And the other piece, the second piece, which is really important, is we continue to have high levels of liquidity, right? And that high level of liquidity allows us to also make sure that we're having a prudent capital structure and a prudent way to continue to invest. Andres Sheppard: Excellent. Thanks very much again. Congrats on the quarter. I’ll pass it on. Jonathan Baliff: Thanks. Peter Cannito: Thank you. Operator: The next question comes from Suji Desilva with ROTH Capital. Please proceed. Suji Desilva: Hi, Pete. Hi, Jonathan. Congrats on the progress here. I'll keep it to one question to keep on time. Someone asked by capacity here. I wanted to drill down into the VLEO capability you have. Just to understand how it's going to evolve from the current programmatic sort of feel where you're designing a building a spacecraft for two or three customers, I believe. Is it going to return to a situation where it's a per spacecraft revenue model? Or if it's program-based on a continued basis, what kind of capacity and how many programs can you simultaneously handle? Any thoughts there would be helpful. Peter Cannito: So if I understand your question correctly, you're asking whether it will be a handful of programs or whether it's scaling. Maybe if you could just clarify a little bit, I didn't totally understand. Suji Desilva: Either it's more programs layering on this one? Or each program has multiple spacecraft expect to be like which way that’s… Peter Cannito: Okay, both. I think you're going to initially see governments take the lead in this segment, and you're going to see investment in developing this next-generation spacecraft capability, it will predominantly be development at first. And then much like you saw the evolution that happened from SabreSat to proliferated LEO constellations as the spacecraft come online. So from our perspective, as Phantom and SabreSat move out of the development phase and become a very stable proven spacecraft platform, you're going to see larger and larger quantity orders increase over time. Did that answer your question? Suji Desilva: It did, yes. And just how many programs you simultaneously have capacity for, do you think right now or if you can think of that? Peter Cannito: Redwire has capacity for? Suji Desilva: Yes, sure. I'm sorry, for VLEO specifically, I'm sorry. Peter Cannito: In terms of an estimate, the number of VLEO opportunities in the market? Suji Desilva: That you could handle simultaneously I guess, yes. Peter Cannito: We can handle simultaneously, so as Jonathan articulated, I understand, I apologize. The nice thing about when we enter into a new space like this, particularly when it's imperative for the government and these are predominantly in government is we're growing our capacity along with the development associated with the government programs, right? So these tend to be multiyear development programs, where we move through key milestones like preliminary design reviews and then critical design reviews and then develop out new technologies until we get to a stable baseline. So during these early stages of development, we have the ability to scale our capacity along with each new program as they come in. And we did these things with a nice cash milestone profile associated with these bids. So the bids come along with the necessary resources and time we need to scale. So I'm not going to hazard a guess at a number, but I'm not spending my nights worrying about this idea that as the government continues to invest in more and more of these programs and as we go out and bid on more and more of these programs that we're going to run into a production bottleneck. Suji Desilva: Okay. Very helpful. Thank you. Operator: Thank you. At this time, I would like to turn the call back over to management for closing comments. Peter Cannito: Great. Well, I'd like to thank everybody for their questions, some really excellent questions today. And again, I want to thank all the Redwire employees across the globe for just a tremendous effort in delivering these results. None of this happens without our employees, our partners, our customers, our teammates. So thank you to all of them, and thank you to all of you and go Redwire. Operator: Thank you. This does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a great day.

Operator: Greetings, and welcome to the Redwire Space Corporation First Quarter 2024 Earnings Call. [Operator Instructions] I will now turn the conference over to your host, Jeff Zeunik, you may begin. Jeff Zeunik: Thank you, [ Shamali ], and good morning, everyone. Welcome to Redwire's First Quarter 2024 Earnings Call. We hope that you've seen our earnings release, which we issued yesterday afternoon. It has also been posted in the Investor Relations section of our website at redwirespace.com. Let me remind everyone that during the call, Redwire management may make forward-looking statements that reflect our beliefs, expectations, intentions or predictions of the future. Our forward-looking statements are subject to risks and uncertainties that are described in more detail on Slide 2. Additionally, to the extent that we discuss non-GAAP measures during the call, please see Slide 3, our earnings release, or the investor presentation on our website for the calculation of these measures and their GAAP reconciliations. I am Jeff Zeunik, Redwire Senior Vice President of Financial Planning and Analysis and Investor Relations. Joining me on today's call are Peter Cannito, Chairman and Chief Executive Officer and Jonathan Baliff, Chief Financial Officer. With that, I would like to turn the call over to Pete. Pete? Peter Cannito: Thank you, Jeff. During today's call, I will take you through a discussion of our key accomplishments in the first quarter of 2024. Jonathan will then present the financial highlights for the same first quarter 2024 period, after which we will open the floor for Q&A. Please turn to Slide 6. The first quarter of this year was another excellent quarter for Redwire, during which we continued our positive momentum from 2023. We have now delivered 5 consecutive quarters of positive adjusted EBITDA and revenue growth and 2 consecutive quarters of positive cash from operations. During the first quarter, we achieved $87.8 million in Q1 revenue, a 52.4% improvement over Q1 2023. It was a very strong quarter for revenue. Positive adjusted EBITDA of $4.3 million and net loss of $8.1 million, free cash flow of positive $0.4 million, a year-over-year improvement of $15.2 million. Cash from operations of positive $2.8 million, a year-over-year improvement of $16.8 million. And finally, we achieved a last 12 months or LTM book-to-bill ratio of 1.11x during the quarter. It's important to note that we achieved these positive financial results by developing and delivering reliable critical innovations for our valued customers throughout the first quarter. These results are directly attributable to the commitment and expertise of our workforce. Please turn to Slide 7. During our previous earnings call, I introduced Redwire's growth strategy for 2024 that is centered around 4 key principles: protecting the core, which means continuing to deliver on our strong foundation of existing products with proven reliability and demonstrated flight heritage. It is about continuing the growth momentum of our successes in 2023. Scaling production, which means winning and delivering on increasingly larger orders by scaling our production to meet growing demand. Moving up the value chain, which means leveraging our proven capabilities in developing and deploying space subsystems and components into next-generation spacecraft and integrated mission payloads. And finally, venture optionality, which means continuing to pursue breakthrough developments on advanced technologies that could create new markets with game-changing potential. On the next few slides, I will discuss examples of successes in each of these key growth areas for the first quarter of 2024. Please turn to Slide 8. Starting with our protecting the core growth area. During the first quarter, Redwire's cameras were onboard intuitive machines IM-1 Lunar Landing mission. These cameras come from our avionics and sensors core offering, which includes spacecraft subsystems and components that are used for navigation, control and imagery collection. Also, during the first quarter, NASA's solar sale for which Redwire developed deployment mechanisms and 100-foot booms, cleared a key technology milestone with the successful deployment of one quadrant. Solar sale falls into our structures and mechanisms core offering, which includes a variety of space infrastructure that provide critical mechanical functionality for on-orbit operations from launch release mechanisms and deployable booms to berthing and docking systems. Please turn to Slide 9. Looking at our scaling production growth principle, we are excited to announce that we are under contract with Rocket Lab for 18 ship sets of antennas and radio frequency hardware for the SDA Transport Layer Tranche 2 beta variant satellites; the third in a series of spacecraft that will make up the proliferated war fighter space architecture. Our radio frequency systems core offerings includes the systems and payloads that enable space-to-space and space-to-Earth communications. Also, in Q1, 2 ROSA wings were successfully deployed on Ovzon 3, which represents the first integration of ROSA technology with a commercial satellite. In addition, Redwire began executing on our $142 million contract award for Power Solutions to an undisclosed satellite manufacturer. These operations fall within our power generation offering, which includes solar arrays and power distribution systems that generate the necessary power for space systems to operate regardless of size or location. Please turn to Slide 10. Turning to our Moving Up the Value Chain growth principle, I'd like to highlight Redwire's U.S. and European operations in very low Earth orbit or VLEO. During the first quarter of 2024, Redwire was awarded a study related to our new U.S. VLE platform, SabreSat. This is a very exciting indicator that the market recognizes SabreSat's potential as a critical capability. We are very encouraged with the reception Sabre Sat has received since our announcement and continue to pursue meaningful opportunities for this potentially groundbreaking VLEO spacecraft. To continue to aggressively assert ourselves as a technology leader in VLEO, today, we are announcing Phantom, our VLEO platform for Europe and the international market. Phantom is currently being developed in our Belgian office for the European Space Agency Skimsat program, and we will be marketing this platform to other potential customers as well. Thales Alenia Space is the prime contractor for Skimsat, and Redwire EU is responsible for providing the VLEO spacecraft which we are now calling Phantom. Skimsat is the mission, Phantom is our platform. The Skimsat mission is a VLEO satellite mission that aims at reducing the cost of earth observation and telecommunication satellites while increasing performance by operating at substantially lower altitudes. The potential for this transformational program is extraordinary. Notably, SabreSat and Phantom do not share a common technological baseline. They are 2 different platforms with differing underlying technologies and performance parameters. This is important as missions and VLEO are as dynamic as all the other Earth orbits such as LEO and GEO and different approaches reduce risk and enable us to cover a broader set of customer requirements. As Redwater moves up the value chain, we are very excited that SabreSat and Phantom expand Redwire's offering a full satellite system development and operations that include the Redwire International PROBA satellite as well as our proprietary platform agnostic digital engineering and modeling and simulation solutions that enable rapid spacecraft development and deployment. Please turn to Slide 11. Lastly, I would like to spend some time providing a deeper look into our fourth principle, Venture Optionality by focusing on Redwire's in-space pharmaceutical development to benefit human health on earth. Pharmaceutical companies are constantly looking to deliver new optimized treatments for patients, and many of those treatments rely on crystals as their active ingredient. The form of the crystals will dictate a drug's properties and as a result, precision matters. Historically, a significant proportion of drugs have not made it to the market as a result of crystal formation challenges. Growing crystals and micro gravity could be transformative, potentially yielding a more uniform product with fewer imperfections and improving the drug discovery and development process. As pharmaceutical companies look to deliver new optimized treatments to help patients on earth, micro gravity could be a major differentiator. With the drug discovery market size having been estimated at approximately $80 billion in 2023, growing to approximately $180 billion by 2032, this represents a significant growth opportunity for Redwire. Redwire has already demonstrated the ability to develop crystals in space using our PIL-BOX facility on the International Space Station. Redwire's proprietary PIL-BOX is a proven cutting-edge in-space pharmaceutical manufacturing platform that builds on Redwire's extensive heritage in microgravity and offers pharmaceutical companies and biomedical researchers novel and flexible services to study small batch crystal growth of proteins. Redwire is at the forefront with our micro gravity technology built on decades of in-space manufacturing success. Our successful inaugural [PIL-01] mission demonstrated that insulin crystals grown on the ISS using PIL-BOX were larger and more highly ordered than terrestrial crystals. Our next step is to execute a production-level cadence of crystal manufacturing using a variety of compounds. Our second PIL-BOX mission has already returned, and the results are promising. We are currently manifested for 16 additional PIL-BOX missions this year. The economic potential for this technology is high and gaining momentum. Recent venture funding for related industry players has revealed a significant valuation premium for pharmaceutical microgravity development, validating that the venture optionality associated with this subset of Redwire's business has real value. Turning to Slide 12. The inaugural [PIL-BOX-1] mission launched in November 2023 and returned to Earth in late December 2023 for delivery to Eli Lilly, our research partner. Following closely on the heels of the successful PIL-1 mission, PIL-2, again in partnership with Eli Lilly, and PIL-3 in partnership with Butler University, launched to the International Space Station this past March, just 3 months later. The second PIL-BOX mission is focused on researching widespread chronic diseases, which have massive global demand for treatment. PIL-3 has now returned to Earth in April 2024 and PIL-2 is anticipated to return in the coming months, demonstrating the rapid cadence Redwire can execute with this capability. This tempo is critical to demonstrate the industry model is viable for sustained development and orbit. For the remainder of the year, we have 16 additional PIL-BOX missions manifested and a robust pipeline of interest from commercial entities. As launch costs decrease and commercial space station availability increases, the opportunity for on-orbit development and manufacturing at scale will expand, and Redwire is delivering tangible and useful results, not someday, but now. Please turn to Slide 13. Now turning to our contract awards and backlog. Our contract awards during the first quarter of 2024 were $35.1 million. Our last 12 months book-to-bill ratio was 1.11x for the first quarter of 2024. As we continuously reinforce, we often see lumpy contract awards growth from quarter-to-quarter, but we are continuing to maintain a positive growth rate on an annual basis. As you can see on the lower right-hand side of this slide, our contracted backlog has increased 10.9% year-over-year to a total of $318 million. The growth in contracted backlog is one of many factors that gives us confidence in our future growth. Finally, we continue to have a healthy pipeline with an estimated $6.3 billion of identified opportunities, including approximately $610 million in proposals submitted year-to-date as of March 31. As you can see on the upper right-hand side of this slide, this represents a 177.3% increase over the corresponding year-to-date period ended March 31, 2023. The momentum continues. Please turn to Slide 14. With that, I'd now like to turn the call over to Jonathan Baliff, Redwire's Chief Financial Officer. Jonathan? Jonathan Baliff: Thank you, Pete. Before I turn to the financial results, I'd like to highlight the photo on this slide, which is of the PROBA-3 satellite from Redwire's Belgium facility slated to launch later this year. The European Space Agency's PROBA-3 mission is composed of 2 spacecraft acting as one element and is the world's first precision formation flying mission in space. Turn to Slide 15. Our first quarter 2024 was an excellent start to the year, as Pete spoke about, as we saw continued positive momentum driven by customer demand. Quarterly revenue was a record $87.8 million. Though we did see a slight decline in net loss for the same period year-over-year, our adjusted EBITDA remained flat year-over-year at a positive $4.3 million. We will discuss the drivers of our adjusted EBITDA on a subsequent slide. The first quarter of 2024 also saw positive cash from operations of $2.8 million and free cash flow of $0.4 million, a year-over-year improvement of $16.8 million and $15.2 million, respectively. And this is after making significant investments in growth capital expenditures and internal research and development to advance our path to profitability. These impressive results are attributable to the capability and commitment of our global team members, satisfying our customers' growing demand for space infrastructure. Please turn to Slide 16. Specifically for quarterly revenue, as you can see from the chart on the right, this quarter's record $87.8 million represented a 52.4% increase on a year-over-year basis and an increase of 38.3% on a sequential basis. During the quarter, more than 90% of our revenue derived from funded government programs or from global marquee customers for delivering in the areas of national security, satellite proliferation and the exploration of space to name just a few. Finally, we'd like to note that after the completion of the full fiscal year post the Space NV acquisition, our Fiscal Year 2024 will no longer present year-over-year comparable revenues, which excluded the results of Space NV. Please turn to Slide 17. For quarterly adjusted EBITDA, Q1 2024 remained flat at positive $4.3 million compared to the first quarter of 2023, while increasing 151.2% on a sequential basis from the fourth quarter of 2023. Gross profit increased 4.3% from $14.2 million to $14.8 million. Quarterly gross margins over the same period declined to 16.9%. These results were primarily impacted by EAC adjustments during the first quarter, exacerbated by our record revenues. The $3.9 million in EAC adjustments largely resulted from unplanned design and test cycles required to meet customer requirements as we neared completion on discrete projects during the quarter. Offsetting these gross margin declines, our sequential quarter adjusted EBITDA improvement was also supported by excellent cost control and the continued operating leverage being driven by scale as Redwire's SG&A expenses are now below 20% of revenue, a notable drop from the 27.8% in the first quarter of 2023. We continue to drive tens of millions of dollars in revenue increases with single-digit growth in yearly SG&A. That's the benefit of operating leverage and scale kicking in. Please turn to Slide 18. As we have mentioned several times today, throughout the first quarter, we continue to make prudent investments to support growing customer demand, also industry-leading innovation. We're risk-reducing and we're also achieving global business scale. During the first quarter of 2024, we made $2.4 million in capital expenditures, our highest first quarter capital investments since going public, plus we made $1.0 million in investment in internal research and development and $1.0 million in a variety of other corporate investments that mostly flow through the SG&A line. We continue to demonstrate our ability to financially perform now while also making investments for future growth, risk reduction and profitability. Please turn to Slide 19. Similar to last quarter, on the left-hand chart, we show free cash flow. As a reminder, free cash flow provides a metric based on our U.S. GAAP cash from operations minus capital expenditures. On a year-over-year basis, quarterly free cash flow improved by $15.2 million to a positive $0.4 million for the first quarter, due to a $16.8 million improvement in cash from operations. Credit goes to the revenue growth already discussed, but in addition, we had more efficient and effective working capital management over the first quarter while continuing to invest at record rates as our cash generation now funds our growth. This is due to improving returns on our invested capital as compared to our cost of capital, creating a virtuous cycle that differentiates us in a very capital-intensive industry. On the last 12-month basis, we recorded both positive cash from operations of $18 million. And for the last 12 months, positive free cash flow of $8.1 million, a significant first for Redwire. As you can see on the right-hand chart, this yields higher available cash and cash equivalents, up $32.6 million as of March 31, 2024, with $47.6 million in total available liquidity. Please turn to Slide 20 for a brief discussion on the outlook for the remainder of 2024. Our first quarter was a strong start to the year. And as a result, for 2024, we affirmed full year revenue at $300 million, which represents a 23% year-over-year growth rate. This quarter's revenue achieved 29% of our $300 million annual revenue guidance forecast. And much of this outside quarterly revenue was due to the timing of long lead items associated with large contract wins in 2023. We are not currently forecasting similar large, long lead purchases during the remainder of 2024. Finally, through our excellence in execution initiatives, we continue to focus on improving our program management to reduce EAC volatility while we also create more operating leverage and cost efficiency to continue on our path to profitability. I will now turn the presentation back over to Pete to provide brief final remarks. Pete? Peter Cannito: Thank you, Jonathan. Please turn to Slide 21. I want to thank all of Redwire's team for this quarter's excellent results, a total global effort that we will work to continue in the second quarter of 2024 and beyond. We will now open the floor for questions. Operator: [Operator Instructions] We do ask all participants in the Q&A session to please limit themselves to only one question and one follow-up. And if you would like to ask additional questions, you may rejoin the queue. Our first question comes from the line of Greg Konrad with Jefferies. Greg Konrad: You have a good quarter and then people ask why isn't the outlook better, which is kind of what I'm getting at. But I mean, I think you explained some of it on the long lead items. But just thinking about the $610 million of submitted bids year-to-date, can you maybe talk about the dynamics around what type of win rates you see? And how do you think about typical conversion of awards? And then just thinking about the walk for 2024 and the rest of the year, what's kind of in backlog versus assumption of yet to win and just thinking about potential upside for the year? Peter Cannito: So that was like 3 questions in one. So, congratulations on your efficiency. Greg Konrad: I still get a follow-up. Peter Cannito: Yes. Well, the -- so the contracted backlog is printed, right? And you can see the best way I would think about that is you can see what our contracted backlog was at the beginning of 2023, what our forecast was 2023 was for, what the contracted backlog is at the start of 2024 and then evaluate whether or what you think of our forecast as a result of what's in contracted backlog now. So that's essentially how we think about contracted backlog and what that means to us. In terms of the bidding, you can see that bidding is accelerating, and that's a function of 2 dynamics. One is more aggressively going to market. But 2, as part of the growth principles is bidding those higher-level production contracts for higher quantities as well as some larger contracts were the full systems integrator, right? So that's really the takeaway from -- I think, the key takeaway from the increase in the number of bids. In terms of win rates, we're just dealing with too dynamic of a market and to small numbers, quite frankly, and such a variety of different bid sizes that the win rate tends to bounce around. So, we don't publish a win rate associated with that. But the key is, is that when you look on an annual basis, which I always like to emphasize is the best time scale to measure an emerging growth company like Redwire's performance, when you look at that on an annual basis, you can see that there is -- or you can make your own evaluation of whether the backlog plus the bid rate and size is enough to sustain our current year forecast, and we believe that it is. And that's how we came up with that number. In terms of the lumpiness, I think Jonathan did a pretty good job explaining this lumpiness cuts 2 ways. You have a nice lumpy quarter, in the fourth quarter, we have really strong contract awards and then the first quarter is lower. Same thing with like you can have a lower revenue quarter. And then due to the timing of critical subcontracts or long lead items, that number can go up. And it's just the first quarter, it's early in the year. So, we're very pleased with the results for first quarter revenue. But at this point, we're going to hold to our $300 million in revenue forecast for the year as we see the remainder of these quarters play out. Did I get every part of your question, Greg, or did I miss something? Greg Konrad: No, that was great. And now for the follow-up. EBITDA momentum, good SG&A rationalization, gross margins kind of bounced around. It was high 16% in the quarter dating back to the first 3 quarters of last year, I think you were more in the mid-20s. You called out the EACs, which is probably one driver. But just a sense of any impact from mix and does the higher long lead items have anything to do with the gross margin? Or is that generally booked at a pretty consistent gross margin? Peter Cannito: Yes. No, I think you're on to it, right? And so hopefully, obviously, you've been following us for a while, so you're really getting to know the company, that's exactly right, right? Like EACs, they happen from quarter-to-quarter. The important thing is that we drive through our excellence in execution to get -- to have those puts and takes even out over the year. And also, there's going to be ups and downs in terms of the contract mix of the revenue that's recognized by a quarter-by-quarter basis. So, when you tend to have more material purchases or really large subcontracts, they can have lower gross margins as opposed to where a lot of it is being driven by maybe labor utilization or some other dynamic. That all goes into the calculus. It also has to do with what are the products that are leading for that quarter, the really large-scale products have really high operating income on an absolute value basis but might on a percentage basis be lower, whereas -- and if those are the ones that are primarily driving revenue in a given quarter, that will bring it down. And then in other quarters, when we do maybe a delivery of a higher margin product set that can have an effect on a quarter-by-quarter basis. And that's why it's so critical that what we focus on as a management team is that overall annual balance in terms of either LTM looking backwards or what we look to be our future, and that all goes into our forecast. But I do want to add, and I've said this and tried to emphasize this in previous calls, that we're constantly trying to balance between top line and bottom line. And we have a goal or an objective to always be EBITDA positive and to drive towards profitability. But that doesn't necessarily mean in certain instances where it's really important that we go out and take market share that we may make decisions at times to go out and win large revenue projects that might have lower than average operating margin. So, I think that's -- what I'm trying to articulate is in certain cases, we may optimize for the top line and the future growth because we know we'll be able to squeeze the operating margins out longer term, and that can have near-term or short-term fluctuations that have an impact as well. Operator: Our next question comes from the line of Griffin Boss with B. Riley Securities. Griffin Boss: So, I want to dig into the venture optionality. I'm glad you guys sort of honed in on it in this presentation. You cite this $80 billion to $180 billion drug discovery market size. In the past, you've talked about your specific internal projection for a 5-year TAM of $5 billion to $10 billion for this Explore, Live and Work in Space. So, I guess my question is, are you seeing maybe a bigger near-term TAM for Redwire given that market size for drug discovery and what seems to be a rapidly growing interest in microgravity research? Peter Cannito: Griffin, thank you for that question. So yes, we are trying to focus -- I think each quarter will focus on a different growth principle because, obviously, part of this call is to help educate investors on the Redwire operating model. And this is a critical part of our business that I think sometimes gets overlooked that has real tangible value, especially based on some of the things that are already going out on the marketplace there, right? We do have a lot of venture funding and venture investing activity happening in this space that gives interesting comps in terms of trying to put a valuation on this venture optionality. So, we wanted to home in to make sure that investors understand where we're positioned in that context. And where we're positioned on this context is the TAMs are pretty much the TAMs that you just articulated. But what we want to do is start to educate investors just how far along we are in transitioning this from what I would call research or experimentation into an actual production level business. And that's why I tried to emphasize the cadence at which we're starting to do this. Previously, you would spend a lot of time kind of researching and developing. It took quite frankly, many years to come up with the ability for PIL-BOX to work quite frankly. And now it works. And we're transitioning out of that period. That investment has been made. As you look at what we're achieving in terms of the PIL-BOX and the cadence and you compare that to the amount that we have to invest on the slides that Jonathan showed showing our CapEx or IRAD, we're past the heavy investment phase in this capability. Now we have to produce, or we have to demonstrate, that we can reach a production level cadence. And we have started to do that now by showing that we had a launch, and we were able to do in mere 3 months turnaround another launch, and we have 16 additional launches for the remainder of the year manifested. One of the key questions we get around this technology is, can you get to the production level to really turn this into the business that would satisfy or help you get a large enough share of those TAMs? And that's really what that venture optionality is all about. We didn't deep dive too much into the tech, but just for some additional color, for these crystals -- there's 2 interesting things about the production model here. For the crystals to be valuable to biopharma companies, you need a symbol size level of what are called seed crystals. So, you're not trying to develop in microgravity, all of the crystals you'll need for production. You're delivering a seen crystal. It's actually the same way it's done on Earth. They build the seed crystals on earth, and then they use that in their production thing. And each one of these, what we call investigations, PIL-1, PIL-2, PIL-3 are looking at as high as -- I think we've done as high as 36 compounds in a single investigation. So, you're looking at 36 different crystals that you can develop a seed crystal for, when you start taking that, you say, okay, we have 2 that have gone up and down, a third that's still up there that should be back sometime this summer and then 16 additional manifested, you start to see that we can reach production level seed crystal development on the International Space Station, which has been a question for some. Is this something that you have to do on a commercial space station in order to achieve the correct volumes? Or is this something that can be done on the ISS? We believe we're demonstrating that this is something that can be done now on the ISS. And I believe our partnerships with Eli Lilly and Butler and everything like that, we're optimistic that these are going to be proved out over time. So, the TAMs are essentially the same. The -- what I think the critical milestones that we're achieving is that we're moving this from being a research project into actually developing these. We are getting smarter, and we're making the investments to really understand this industry, making seed crystals for biopharma is not anything new, doing it in space is what's new. We envision a day someday where we're in the marketplace and our customers don't even ask about where it was developed. They just want the best possible crystal there is. And the fact that it was developing space is really irrelevant to the execution of the business model. So -- but there has been some really interesting dynamics in the venture world that I think are worth noting in terms of when you start looking at what this venture optionality, how to value this venture optionality in Redwire that is critical to our longer-term growth plan. And I -- in my mind, think of venture optionality is something that's still 5 years away. That's how we differentiate between the space now that we deliver today that is generating revenue and EBITDA. I've talked about in the past, our heritage plus innovation strategy, where we're generating the cash flow generating and the profit-generating capabilities now on our infrastructure side, but those give us the ability, the optionality, if you will, to again use that word, to look forward and really position for some of these lean changing, yes, less defined, yes, still a few years out, but nevertheless, very valuable breakthrough technologies in the future. Jonathan Baliff: Yes. I just want to put a final financial element to what Pete just talked about. We gave your $5 billion to $10 billion TAM on that prior to PIL-BOX 2. The -- Pete talked about the up tempo to use an operational term. It's getting faster than we thought when we did the 5 to 10. We will update the 5 to 10. We will talk about it maybe being brought forward or again stay the same, but we are more confident in that 5 to 10 and we'll be giving an update to that. The second thing, and this is actually really important to demonstration of value. We are seeing tens of millions of dollars raised in the market today at hundreds of millions of dollars of valuation for companies that are very interested in doing this. And obviously, we're a competitor, so we don't give a lot of competitive information. But the bottom line is that the rapidity, the quickening of the pace here to development means that we can demonstrate value in this a number of different ways, but most importantly, it's to do it for our customers, right? And Eli Lilly is that customer with Butler University and that will accelerate. Griffin Boss: Great. That was exactly what I was looking for. Appreciate all the color there. And then just for a quick follow-up. You talked about moving up the value chain. We've seen it SabreSat, Phantom, great progress to see. Can you give some more color on this modified commercial Earth imaging spacecraft that you're developing, I think it's a study contract for NASA's Mars exploration program? Peter Cannito: So, we don't say which the study contract for the VLEO is oriented towards, right? Now we did also win a study for the Mars investigation. Those are 2 totally different things, right? So unrelated, I just want to be clear about that. So, the -- but to give a little additional color, I mean, what we're looking at is when we look at moving up the value chain is not -- picking and choosing where we're going to do the full systems integration and trying to avoid the mistake of being a follower and a me too in terms of that marketplace for spacecraft. Of course, we already do full systems integration now in Europe with the PROBA satellite, and we've run a number of missions for decades doing that. But we see a leap ahead opportunity in VLEO. And the potential of VLEO is really strong. You get -- there has been already a number of experimental missions that have operated in VLEO that show that being closer to Earth can reduce your power requirements. It can give you higher fidelity imagery. It can give you higher levels of communication. So, the VLEO moving up the value chain is not only about becoming a full systems integrator and expanding that part of our business, but also we see it as a leap ahead tenders are that we can achieve. Griffin Boss: Got it. Yes, that's helpful. I guess what I was trying to get at was specifically for that Mars exploration program and the Earth imaging spacecraft. Is that a new capability for you as in -- is that just another example of how you're showcasing rapid spacecraft development and deployment and just moving up the value chain in general? Peter Cannito: Yes. No, it is -- well, anything that goes to Mars is going to be new, but that particular... Operator: The line of Brian Kinstlinger with Alliance Global Partners. Brian Kinstlinger: Impressive submissions for the first quarter. As you look at the RFPs available for bidding the $6.3 billion pipeline in the commentary on bidding larger programs, should we expect to see proposal submissions to remain at this elevated level consistently on a quarterly basis? And then did I hear you accurately, you're bidding more as a prime than you have in the past? Peter Cannito: So, I'll take the last part first, yes. We are bidding more as a prime than we have in the past. The other part -- the number of bids, our goal is to continue to keep it at the level that it's at right now. We have to take into account, however, the RFPs come out on the time line that they do, right? So many of these are government -- large government procurements, but the commercial customers have their own tempo as well. So would I say that -- so the answer to your question, like I said, is we're bidding more prime and we want to keep our bid rates up, and it's really the bids under review that are really critical that we have that number up, but it will also fluctuate like anything else from a quarter-to-quarter basis based on if you turn something in, somethings due the week before the end of the quarter and it's a really large procurement, that's going to affect the numbers or likewise if something -- the RFP gets turned in and the bid gets submitted in the first week of the following quarter, that's going to -- you can get some of these quarter-by-quarter deviations that look lumpy, but it has more to do with the timing of the submission than anything else. Does that answer your question? Brian Kinstlinger: It does. And my follow-up in regard to the EAC adjustments, what are the lessons learned for Redwire, and what can they glean on these? Is it price of [user] contracts and/or accounts for flexibility and changes the program requirements and its contracting? Peter Cannito: Yes. No, it's a great question. Well, first of all, it just underscores the fact that capability and the ability to deliver with operational excellence is key. And you have to also be able to be disciplined in the way that you bid. But it's a bit of a cliche now, but many cliche's start because it's true, is that space is hard. So, you're going to -- we bid a lot of firm, fixed price contracts and sometimes you're going to have an EAC. And although these things do have an impact on financial performance on a near-term quarter-by-quarter basis, if you're running a really good operation, you're going to see that, that levels out over time. So, we focus on our long-term profitability, not the perturbations that happen on a project-by-project basis, which, in some cases, can be high relative to a small base in the near term. However, these things also indicate that in this particular case, we found something in test, and we had to move out and fix it. So, what may seem as a large EAC in the near term, also underscores the quality of our processes to know that we are testing these things and we're finding deviations, and we're moving out. As we get better and better at executing firm fixed prices and some of these are just the result of growing pains in addition to space being really hard, as we get better and better at that, we hope that you see balances. Firm fixed price contracts also offer the opportunity to overperform where you may have a reserve or you find that you can execute well, with more efficiency, where the overall impact can move in the other direction. And we've seen that in previous quarters where we've had a tailwind in terms of realizing a profit on particular programs greater than what we had expected. So, the critical thing is that I'll just continue to emphasize is that we look at our performance on an annual basis. We not -- and we recognize that sometimes these metrics are going to move up and down on a quarter-by-quarter basis, depending on what's going on in that quarter. Operator: Okay. Our next question comes from the line of Suji Desilva with ROTH MKM. Sujeeva De Silva: Congrats on the revenue in the quarter. I just want to ask about the nonrecurring recurring seasonality of your -- the bookings and the fact that it seems to come in at the end of the year. I'm just wondering if that's a trend you're observing and if there's any kind of explanation for that or whether it's just happenstance and it wouldn't necessarily recur? Peter Cannito: It's strange, right? So, I would say it's not a trend. It's a 2 data point trend. So, it just happened to kind of fall out that way. If there is something associated with our underlying maybe the flow of our RFPs or how quickly we respond from Christmas break and all of a sudden start ramping up for the rest of the year, we haven't been able to figure that out yet. So, I don't want to say that 2x has us looking at it, but I'm not ready to declare it some sort of seasonality or anything like that because I don't think we understand. Jonathan Baliff: Definitely due to the weather, Suji. It's -- or anything like that. I mean we make light of it because we really do believe that the nature of this is to look at our company on an annual basis or a set of annual. And if you look at the LTM, we're banging away. We're doing what we're saying what we're doing on the bidding strategy and the amount of contracts we're winning. I think what's most notable is that for this quarter to see the number of bids move up almost 200% and also for us to then disclose that we're seeing more of that in the future is, I think, notable. How that then translates into quarterly contract win is just look at us on more on an annual basis. And that's why we're starting to talk a little bit about LTM last 12 months as part of that to give more education to you and the rest of the investor community. Sujeeva De Silva: Got it. Sorry, I cut out there briefly. And then also my other question is following up on micro gravity. With the 16 missions in manifest, are those new customers or existing more Eli Lilly-type business? Or is it 100% commercial? Or is there some government mix in there? And most importantly, can the customers move -- customer readiness move at the cadence that you're trying to do in terms of production? Can they pull off being ready for those cadences you're trying to achieve? Peter Cannito: Yes. Well -- so we obviously don't disclose who our customers are in every mission until we do. And -- but it's -- there are a mix of customers that are interested in all of these. And in certain instances, if we don't, and we're looking harder at this, have a customer, there are compounds out there that are open that are not protected that Redwire can fly on its own behalf to generate its own intellectual property, and that's really exciting as well. So, we will make, I guess, the takeaway is we will make each one of those 16 missions useful. Jonathan Baliff: Yes. And it's important to note, these are partner customers, right? And the nature of how we do this. We don't lose money on this, right? The research and development has been put in place. We are now in the development phase. As part of that, the economics start to change and adjust and become more like a contract developer a manufacturing office or organization, which in the biotech world is a very [no], Suji. You know this world. It has economics that could create multiples of value for the invested capital that we put in already. And again, we are decades further ahead than many of our competitors. We've been doing this for a very, very long time, and it's starting to come to fruition with the intellectual property being Redwire intellectual property. Operator: Our next question comes from the line of Andres Sheppard with Cantor Fitzgerald. Andres Sheppard: Congratulations on the quarter. You know, I think a lot of our questions have been asked by now. But maybe just to follow up on an earlier question on margins. How should we think about gross margins throughout the rest of the year? And I guess, how should we think about those EACs as well for 2024? Peter Cannito: So, I'll start us off and then I'll let Jonathan jump in. I think we talked about all the different dynamics that play into gross margins and the strategic decision-making that we have to make on a really a bid-by-bid basis as to whether say, the absolute value of margin contribution from a particular bid or maybe the strategic value of a large win whether in that particular case we're willing to sacrifice maybe an operating margin run rate, if you will, as a result. So, that's going to vary over time as those opportunities present themselves. We very deliberately give revenue forecasts for the year and shy away from giving an EBITDA forecast, although our -- we are driving, as Jonathan has said multiple times, towards profitability. And that's because that leaves us the opportunity to make good strategic decisions around our operating margins. So, I think our philosophy has exposed itself in terms of our 2023 performance, but we maintain the flexibility to not have that inhibit us from doing something really smart throughout the year. But -- and that's at the strategic level. I think Jonathan can maybe perhaps reaffirm this idea that product mix and many other dynamics such as EACs and such, I'll go into that. The only other thing that I'll add before I hand it over is we look at -- our goal is towards overall margins, although operating margins are important, controlling our SG&A, making sure we're efficient there plays into our overall profitability dynamics as well. Jonathan? Jonathan Baliff: Well, I want to answer your question directly and use a historic basis because, again, number one, we do not give operating margin or gross profit forecasts for 2024. That being said, what have we said before? In FY 2022, we had almost 18% gross margins. In FY 2023, we had almost 24% gross margins. We have said that we will not increase those gross margins as much in 2024 because of the significant revenue growth that we're seeing. 23% organic revenue growth is something that we believe is conservative, but also very achievable. And as we go through the year with our bids and our win rates, we'll be able to talk about that. As far as the gross margins are concerned, on the EACs, we are driving towards low volatility, right? We don't want to see this level of EAC on an absolute basis. But it's really looked at on an LTM basis, not on a quarterly basis. You could see a movement up, but we are really trying to drive towards what great program management looks like, which is 0 EACs. And what, like Pete said, we can actually achieve higher through better performance and some of our contracts allow for that. So going from 18% to 24%, which we did last year, we're not going to see that this year. But that doesn't mean, again, getting to the third point, which is really important is that we are driving towards much higher profitability margins, whether it be EBITDA margins because SG&A now is going below 20% or importantly, because we haven't gotten this question, but we're very focused on it at Redwire, which is cash flow, right? We continue to be able to produce higher returns on invested capital, which then yields better cash flow than funds that growth that Pete's talking about, right, which creates that virtuous cycle. So, look more at the bottom line. Obviously, for us, it's cash flow. We are focused on EPS to guidance. So, just for all the analysts out there, we do want to talk to you guys later. Our EPS is eventually -- we're on a path to profitability, which includes improving that, too, as we go forward. But again, look at the revenue being conservative. Margins not going to increase as much in 2024, but that doesn't mean that we can't achieve better bottom line profitability margins, especially on the cash flow side. Andres Sheppard: Got it. That's super helpful. I appreciate all that context. Maybe just to end, can you remind us and maybe investors, what are some of the most important near-term catalysts that we should be highlighting or that we should be monitoring for this year? Peter Cannito: So, I would point everybody -- if I understand correctly, catalyst in terms of executing our plan, the near-term catalysts are executing on our 4 principles of growth. So, what we're going to try to do on a quarter-by-quarter basis is highlight our progress against that, hence, the structure of the presentation today. We want to continue to reassure everyone that we have a really strong foundation in our core business offerings. And that's going to continue. There's strong demand for our, what we call protecting the core, and we need to continue to execute there. And it's actually -- we've achieved really good growth just on our foundational technologies, but we also have a number of initiatives focused on the near term to continue to show that we can scale production, and that will lead to higher revenues over the long term that we can move up the value chain that will also lead to a nice pace of revenue growth as well as to execute on this venture optionality and unlock what I think is some of the more hidden potential value in the enterprise as well. So those are the things that I would track is essentially our progress. In terms of near term in the market, just for the space industry writ large, I think we just have to keep watching the budgets and the continued growth and excitement around real capabilities out there like participating in FDA programs, being selected as one of just half a dozen of what I think are some of the best of the best in the industry for Mars exploration, for being -- looking at who's being selected for future lunar infrastructure programs and whether Redwire's portfolio of programs aligns really well with the strong trends in the industry. I think if you were to line those up, quite frankly, we look pretty good. But I would point investors to those dynamics as well. Because we're focused on the growth trends in the industry, and that's where we're moving to is where the puck is going. Andres Sheppard: Wonderful. That's very helpful. Appreciate it. Congrats again on the quarter and I'll pass it on. Peter Cannito: Thank you. Operator: And we have reached the end of the question-and-answer session. I'll now turn the call back over to Peter Cannito for closing remarks. Peter Cannito: Yes, some excellent questions. Thank you very much. I appreciate everybody participating in today's call. And thank you for taking the time to listen. Go Redwire. Operator: And this concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

Operator: Greetings, and welcome to the Redwire Space Fourth Quarter and Full Year 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jeff Zeunik, Senior Vice President, Financial Planning and Analysis and Investor Relations. Thank you. You may begin. Jeff Zeunik: Thank you, Jesse, and good morning, everyone. Welcome to Redwire's fourth quarter and full year 2023 earnings call. We hope that you've seen our earnings release, which we issued yesterday afternoon. It has also been posted in the Investor Relations section of our website at redwirespace.com. Let me remind everyone that during the call, Redwire management may make forward-looking statements that reflect our beliefs, expectations, intentions or predictions of the future. Our forward-looking statements are subject to risks and uncertainties that are described in more detail on Slide 2. Additionally, to the extent we discuss non-GAAP measures during the call, please see Slide 3, our earnings release or the investor presentation on our website for the calculation of these measures and GAAP reconciliations. As previously mentioned, I am Jeff Zeunik, Redwire Senior Vice President of Financial Planning and Analysis and Investor Relations. Joining me on today's call are Peter Cannito, Chairman and Chief Executive Officer; and Jonathan Baliff, Chief Financial Officer. With that, I would like to turn the call over to Pete. Pete? Peter Cannito: Thank you, Jeff. During today's call, I will take you through a discussion of our key accomplishments in the fourth quarter and full year 2023, followed by a discussion of our outlook for 2024, and Jonathan will present the financial highlights for the same fourth quarter and full year 2023 period, after which we will open the floor for Q&A. Please turn to Slide 6. The fourth quarter of last year was another excellent quarter for Redwire, during which we continued our positive momentum, we have now delivered four consecutive quarters of positive adjusted EBITDA and revenue growth. During the fourth quarter, we achieved $63.5 million in Q4 revenue, an 18.2% improvement over Q4 2022. We achieved positive adjusted EBITDA of $1.7 million in Q4, a $2.5 million increase on a year-over-year basis from the fourth quarter of 2022 to the fourth quarter of 2023. We narrowed our net loss to $8.2 million, a $17.7 million year-over-year improvement from the fourth quarter of 2022. We achieved free cash flow of positive $12.6 million, a year-over-year improvement of $18.1 million. We also achieved cash from operations of positive $15.7 million, a year-over-year improvement of $20.5 million. And finally, we achieved a book-to-bill ratio of 2.81 times during the quarter. It was a fantastic quarter for bookings. Please move to Slide 7. In addition to a strong fourth quarter, I am very pleased to report that 2023 was a record year for financial performance at Redwire. Our ability to deliver differentiated, high-quality solutions and products to our customers resulted in tangible financial results for our shareholders. During 2023, we achieved record revenues of $243.8 million, which was at the top of our annual guidance range of between $220 million to $250 million. We achieved positive adjusted EBITDA of $15.3 million and positive cash from operations of $1.2 million for the full year. We also received $300 million in contracts awarded during the year and had a full year book-to-bill ratio of 1.23 times. Our heritage plus innovation strategy is working. Please turn to Slide 8. By focusing on the fundamental building block of space, we are meeting the expanding demand of our customers for Redwire's differentiated core offerings. For the full year of 2023, we grew revenue 51.9% from 2022 to 2023. We narrowed our net loss to $27.3 million, a $103.4 million improvement from 2022 to 2023. We improved adjusted EBITDA by $26.3 million from 2022 to 2023. And with disciplined cash management, we improved cash from operations year-over-year by $32.9 million and improved free cash flow year-over-year by $28.7 million in 2022 to 2023. It is important to note that we achieved these positive financial results by developing and delivering critical innovations for our customers throughout the year. We are not a maybe someday space company. In 2023, 24 Redwire solutions were deployed on 14 launches, whether deploying antennas for natural security, rolling out solar arrays for the International Space Station or meeting our milestones on full satellite solutions for the European Space Agency, our reliable technical performance for our customers throughout 2023 was the foundation of our positive financial results. These results are directly attributable to the commitment and expertise of our workforce. Thank you, though [ph] all the employees of Redwire for a great year. Next, we would like to focus forward and discuss our outlook for 2024. Please turn to Slide 10. With the continuing trend in the decreasing cost of launch, deploying space infrastructure is more affordable than ever. As a result, we continue to see signs of a massive expansion in demand for space infrastructure. The image depicted on this slide underscores the breadth of the opportunity. Space infrastructure expansion not only includes small satellite constellations in lower Earth [ph] orbit, but also includes expanding investment in infrastructure for medium Earth orbit, geostationary Earth orbit, cislunar, lunar, deep space and even very low Earth orbit or VLEO to name a few. As a provider of the fundamental building blocks of space infrastructure across all these areas, Redwire is participating in the growth of the entire space ecosystem from VLEO to Lunar and beyond. From our perspective, the strong demand for space infrastructure is driven by three key developments. First, as we hear and read about routinely in the news, space is increasingly a warfighter domain with peer and near-peer threats continuing to target U.S.-based superiority, major investment is occurring across the entire space domain. Second is the growth in demand for lunar infrastructure. The U.S. is heading back to the moon and this time we plan to stay, whether participating in groundbreaking programs like Argument or the recent intuitive machines commercial Lunar Landing where we provided critical components, Red wire will play a significant role. Third is the rapid expansion of proliferated LEO satellite constellations. Both government and commercial customers see tremendous value in a new proliferated architecture of small satellite constellations for a wide variety of applications such as communications and earth observation. This is resulting in increased spending for satellite systems, subsystems and components. These factors and others are positive indicators of continuing demand for Redwire space infrastructure products and solutions for the foreseeable future. With that, please turn to Slide 11. In an effort to focus and optimize our go-to-market strategy for 2024 and clearly emphasize where we are delivering value, Redwire has grouped our products and solutions into six core offerings that we consider the fundamental building blocks of space infrastructure. First is Avionics and Sensors. These are the spacecraft subsystems and components that are used for navigation, control and imagery collection. Then Power Generation. This includes solar arrays and power distribution systems that generate the necessary power for space systems that operate regardless of size or location. Next is Structures and Mechanisms. These include a variety of space infrastructure that provide critical mechanical functionality for on off orbit operations from launch [ph] release mechanisms and deployable booms to berthing and docking systems. Red wires radio frequency systems are the systems and payloads that enable space to space and space to earth communications. Next, Platforms, Payloads and Missions. This includes full satellite systems such as the Redwire PROBA satellite, as well as our proprietary digital engineering and modeling and simulation solutions that enable spacecraft development and operations. And finally, Microgravity Payloads, which includes next-generation biotech and material and space manufacturing payloads that utilize the microgravity environment to manufacture innovative new products that are difficult to manufacture on earth. These offerings can be thought of as the picks and shovels of space with broad utility to nearly all space markets and many space assets that are being developed by national security space customers, civil space agencies and commercial companies globally. Please turn to Slide 12. With a clear focus on our six core offerings, we are executing an optimized growth strategy for 2024 that is centered around four key principles, protecting the core, scaling production, moving up the value chain and venture optionality. On the next few slides, I'll describe these principles and provide an example of a recent success that best represents these principles in action. Turning to Slide 13. Our first growth principles protecting the core means continuing to deliver on our strong foundation of existing products with proven reliability and demonstrated by heritage. It is about continuing the growth momentum of our success in 2023. An example, in December 2023, Redwire announced that our L-band Link-16 Antenna successfully demonstrated the transmission of Link-16 signal from space. This is a major milestone for the development of warfighter communications. Redwire has delivered antennas supporting more than 50 spacecraft for a national security constellation being developed. With the opening of our new manufacturing and testing facility in Longmont, Colorado announced in January, Redwire anticipates being able to triple the amount of hardware throughput in the next few years, building on the successful heritage of our RF systems. Please turn to Slide 14. Our second growth principle, scaling production means winning and delivering on increasingly larger orders by scaling our production to meet growing demand. As an example, I am proud to announce that during the fourth quarter of 2023, Redwire won a $142 million contract award for ROSA Power Solutions from an undisclosed satellite manufacturer. This award is a testament to the differentiation, innovation and on-orbit success of our rollout solar array technology and demonstrates that our heritage is leading to increasingly larger orders. This announcement comes on the heels of another announcement that we were selected as a strategic supplier for Blue Origin's Trailblazing Blue Ring Space Mobility Platform, where we were awarded a contract to develop and deliver for ROSA wings as well as multiple ARGUS cameras and low-voltage distribution units. With these two awards, we have begun to scale our production capabilities, while continuing to add to the heritage of our power generation offerings, which demonstrates how we are being baselined on to growing systems. As the systems we are baseline into such as Blue Ring and a new set of satellites using ROSA continue to sell and scale, Redwire will grow with our customers. Please turn to Slide 15. Our third growth principle, moving up the value chain, means leveraging our proven capabilities in developing and deploying space subsystems and components into future success developing and deploying next-generation spacecraft and integrated mission payloads. As an example, I am also excited to announce that Redwire has invested in the design of a Very Low Earth Orbit for VLEO spacecraft known as SabreSat. VLEO is a crucial domain for the future of defense and intelligence operations for the U.S. and its allies. With the SabreSat design, we are offering customers an innovative approach to explore a leap-ahead orbital platform that could meet future mission needs for a new breed of vehicles with the performance potential between that of an unmanned aerial system and a standard LEO satellite. This is just one example of how we are exploring opportunities to move up the value chain by designing and developing differentiated next-generation spacecraft that will fill identified gaps in the market for future space infrastructure. Please turn to Slide 16. Lastly, our fourth principle is to maintain venture optionality by continuing to pursue breakthrough development on high potential technologies that could create new markets with game-changing potential. Earlier this year, Redwire was pleased to announce the second mission of our in-space pharmaceutical development platform, PIL-BOX, again, in partnership with Eli Lilly, the second PIL-BOX mission is focused on researching widespread chronic diseases, which have massive global demand for treatment. PILL BOX 2 follows closely on the heels of the successful inaugural PILL BOX 1 mission, which launched in November 2023 and returned to Earth in late December 2023 for delivery to the customer. Please turn to Slide 17. Now turning to our bookings and backlog. Our bookings during the fourth quarter of 2023 were $178.2 million. Our book-to-bill ratio was 2.81 times for the fourth quarter of 2023. We continue to see lumpy bookings growth from quarter-to-quarter, but a consistently positive growth rate on an annual basis. Finally, as you can see on the right-hand side of this slide, our contracted backlog has increased 19.1% since the end of 2022 to a contracted backlog of $372.8 million. The growth in contracted backlog is one of many factors that gives us confidence in our future growth and stability. We continue to have a healthy pipeline with an estimated $4.8 billion of identified opportunities, including approximately $944 million in proposals submitted during the full year of 2023. Please turn to Slide 18 for a brief discussion of the outlook for 2024 and why Redwire management believes the performance momentum from 2023 will continue into this year and beyond. Our fourth quarter was a strong finish to 2023, with record revenues and positive adjusted EBITDA, positive cash from operations and positive free cash flow, plus sequential improvement in the liquidity and contracted backlog. As a result, for 2024, we are forecasting full year revenue to be $300 million, which represents a 23% year-over-year growth rate. Through our excellence in execution initiatives, we continue to focus on improving operating leverage and cost efficiency, and we expect to continue on our path to profitability in 2024. Please turn to Slide 19. With that, I'd now like to turn the call over to Jonathan Baliff, Redwire's Chief Financial Officer. Jonathan? Jonathan Baliff: Thank you, Pete. Before I turn to the financial results, I would like to highlight the photo on this Slide 19, which is of the RF testing chamber that Pete spoke about at our newly expanded Longmont, Colorado facility. This chamber is just one of the many investments we made during the year in support of future growth to serve the customer demand for Redwire's space infrastructure. Please turn to Slide 20. Our fourth quarter 2023 saw continued positive momentum driven by this customer demand and Redwire's excellence in execution focus. We achieved record revenue of $63.5 million, while also achieving our fourth consecutive positive adjusted EBITDA quarter since becoming a public company and our second positive free cash flow quarter as a public company. As you can see on this chart, all of our critical financial metrics saw significant year-over-year improvement on a dollar amount and on a percentage basis. Record revenue also led to a $17.7 million year-over-year narrowing in our net loss to $8.2 million and a $2.5 million improvement in adjusted EBITDA to $1.7 million. This result is also attributable to the disciplined project program management and continued cost controls. The fourth quarter 2023 also saw record positive free cash flow of $12.6 million, a year-over-year improvement of $18.1 million, and this is after investing over $4 million in growth CapEx and research and development during the quarter. Please turn to Slide 21. As you can see on this page, and similar to Page 16, all of our critical financial metrics saw significant year-over-year improvement in the full year 2023 on a dollar amount and a percentage basis. Redwire's excellence in execution yielded revenues of $243.8 million, 51.9% growth while also achieving four consecutive quarters of positive adjusted EBITDA and our first full year of positive cash from operations. Record revenue also led to $103.4 million year-over-year narrowing in our net loss to $27.3 million and a $26.3 million improvement in adjusted EBITDA to $15.3 million. But importantly, Redwire improved cash from operations year-over-year by $32.9 million, leading to our fiscal year 2023 cash from operations of a positive $1.2 million. Operating cash flow led to year-over-year improvement in full year free cash flow of $28.7 million to a use of cash of only $7.1 million. These impressive results are attributable to the capability and commitment of our global team members, and were achieved by investing over $13 million in growth CapEx and research and development for our future businesses. Please turn to Slide 22. Specifically for quarterly revenue, as you can see from the chart on the right, this quarter's record $63.5 million represented an 18.2% increase on a year-over-year basis, an increase of 1.4% on a sequential basis. During the quarter, more than 85% of our revenue derived from funded government programs or from global marquee customers were delivering in the areas of national security, satellite proliferation and the expiration of space to name just a few. Excluding the revenue contributed by Space NV, our fourth quarter revenues were $48.6 million, an excellent organic growth of 15.5% on a quarterly year-over-year basis through work on existing contracts and incremental revenues from bookings - bookings increase that Pete spoke about that resulted in a strong fourth quarter book-to-bill ratio of 2.81 times. Please turn to Slide 23. For the full year 2023, not only did we grow revenues by 51.9% on a U.S. GAAP basis, and this is excluding revenue by Space NV, but revenue grew organically at 26.9% compared to 2022. Additionally, during 2023, 71% of our revenue by location of the customers were attributable to the U.S. and 29% were attributable to Europe and other geographic locations. Finally, let's step back and look at Redwire's growth since 2021, a period of significant change for the space sector, significant interest rate increases and a slowing of the global economy and a very challenging capital market for small cap companies. During the period from 2021 to 2023, the compounded annual growth rate of Redwire revenue on a U.S. GAAP basis has been 33.1%, while also achieving positive cash from operations in 2023. Please turn to Slide 24. We drove an improvement in adjusted EBITDA of $2.5 million year-over-year from the fourth quarter of 2022 to a positive $1.7 million in the fourth quarter of 2023. Once again, our year-over-year adjusted EBITDA improvement was primarily driven by an improvement in gross profit with fourth quarter gross profit growing 1.2 times higher from $8.6 million to $10.7 million on a year-over-year basis. This gross profit improvement was primarily driven by better contract mix and the maturing of our program management. The sequential decline in adjusted EBITDA was primarily driven by discrete EAC adjustments on select projects, partially offset by higher revenues during the fourth quarter. And just to note, on a year-over-year basis, Redwire saw a significant reduction in our net EAC adjustments compared to FY '22, while also growing revenue by over 50%. Our adjusted EBITDA improvement was also supported by excellent cost control from Redwire's fourth quarter SG&A revenues that were 26% of revenue, a notable drop from the 30.8% in the fourth quarter of 2022. On a year-over-year basis, we saw an improvement in adjusted EBITDA of $26.3 million. This was primarily driven by excellent increase in operating leverage year-over-year on both a percentage and an absolute basis. For the full year, SG&A margin decreased from 43.8% in 2022 to 28.1% in 2023, with a reduction in total absolute spend of almost $2 million from $70.3 million to $68.5 million. Please turn to Slide 25. As we have mentioned several times today, throughout last year, we made significant prudent strategic investments. During 2023, we made $8.3 million in capital expenditures, which is double 2022's CapEx of $4.2 million, plus $5 million in investments in research and development and $3.6 million in a variety of corporate investments in systems and infrastructure that flow through SG&A. Clearly [ph] we continue to demonstrate our ability to perform and deliver now while also making investments in future growth and profitability, which we're beginning to self fund. Please turn to Slide 26. Similar to last quarter, on the left-hand chart, we show free cash flow. As a reminder, free cash flow provides a metric based on our U.S. GAAP cash from operations minus capital expenditures or CapEx. On a year-over-year basis, quarterly free cash flow improved by $18.1 million to a record positive $12.6 million for the fourth quarter due to a $20.5 million improvement in cash from operations. Credit goes to the revenue growth and profitability improvements already discussed. In addition, we had more efficient and effective working capital management over the fourth quarter, and this is helped by a diversity of core offerings, customers, new contracts, which cascades down to our cash flow from operations. Again, we continue to invest a significant amount of CapEx and research - in CapEx and research and development. We saw improvement in year-over-year quarterly cash from operating activities while continuing to invest in the business and actually make other expenditures associated with the resiliency of Redwire. These expenditures are intended to grow, diversify our revenue, scale the operations and accelerate our path to profitability. On the right-hand chart, we show our available liquidity as of December 31, 2023, which totaled $48.3 million, including $30.3 million in cash and cash equivalents. This quarter's liquidity is a significant sequential improvement as we continue on our path to profitability. I want to thank all of Redwire's team for this quarter's excellent results, a total global effort that we will work to continue in 2024 and beyond. Please turn to Slide 27. I will now turn over the presentation to Pete to provide brief final remarks. Pete? Peter Cannito: Thank you, Jonathan. For perfect clarity, I would like to go back and reemphasize from Slide 23 that the 51.9% growth on U.S. GAAP was including Space NV, and Redwire grew organically at 26.9% compared to 2022, excluding Space NV. I too would also like to thank all the Redwire professionals around the world for their hard work and excellent fourth quarter and full year 2023 and all our customers for trusting Redwire. We will now open the floor for questions. Operator: Thank you. Ladies and gentlemen, at this time, we will be conducting our question-and-answer session. [Operator Instructions] Our first question is coming from the line of Suji DeSilva with ROTH MKM. Please proceed with your question. Suji DeSilva: Good morning, Peter. Good morning, Jonathan. Congratulations on the revenue growth here and the profitability that's coming with a really good execution here. Peter Cannito: Hey, Suji. Suji DeSilva: Yeah. Hi, guys. So the $300 million guide for '24, can we just understand some sense of linearity there? Is there any back-end loading? Or is that fairly lineate first half to second half? And maybe you can talk about the backlog visibility you have into the next 12 months versus the overall backlog? Peter Cannito: Yes. So the backlog visibility is really good for both '24 and into '25. The 300, I would say from a -- how that's going to play out, like we've been saying, one of the reasons we don't give quarterly guidance is that our revenue tends to come in lumpy. This is because some of our programs have pretty significant material buys. So I would think about it as a distributed annually, but there's the opportunity for certain quarters to be much higher or lumpy than others that could be when you're looking at a big material buy in a particular quarter that could skew the numbers. Does that answer your question? Suji DeSilva: Yes, it does. Absolutely. And then perhaps for Jonathan, a question on the gross margin trend. I think the fourth quarter was down a little bit. Just how should we think about gross margin going into 2024? What's the right framework for that? Jonathan Baliff: Yes. No, look, you saw - and I'll answer it more historical than future, because we don't give gross margin, gross profit guidance. But look, we saw a really nice steady increase in gross margin and gross profit through 2023. Very similar to what Pete said, again, a lot of our revenue comes in, it's a bit lumpy. I would say also that our contract mix is as such that you're not going to see the level of increases that we saw in '23 and '24, right? I think that the nature of the significant increases, we've gotten a lot of benefit and we'll continue to do better on project management and program management. But some of the contract mix, especially as we get larger products. Again, I just -- I want to say that we don't expect that level of increase to happen. That being said, our EBITDA margin, remember, we're seeing a lot better SG&A margin decreases as the operating leverage in the business improved. And so EBITDA margin, again, for us is something we also look at because we're continuing to make investments, which come on the SG&A line, but we're growing revenue a lot more than SG&A and therefore, EBITDA, you see a lot more of it dropping to the bottom line. And so that's how I kind of answer that question because a lot of these bigger projects, you're just not going to be able to see the same level of growth from a contract mix standpoint. Pete, I don't know if anything else here. Peter Cannito: Yes, that's right. I mean I think it's product mix and the larger the programs, sometimes the lower the gross margins and it's a mix of materialized and also -- but the absolute value of the gross profit over the years will continue to be positive for us. Suji DeSilva: Understood. And then one last question probably for Peter. Just the very topical in the headlines about government funding trends in various space endeavors, particularly there was a specific headline in OSAM-1, I'm just curious on the implications for you guys. Maybe talk about national security as a growing opportunity for you and how that maybe is a mix shift. Peter Cannito: Yes. No, that's a great question. So first and foremost, we have no exposure to OSAM-1. We weren't involved in that program in any way. As a matter of fact, we see the winding down of OSAM-1 and freeing [ph] up dollars in the NASA budget that we certainly will be throwing our hat in the ring and engaging with the customer to see if that can free up some dollars for programs that we're largely interested in. So no impact there. National security, I love that question. We actually doubled our national security revenue in Q4. So we're experiencing pretty significant growth in national security. We did put out a press release about our new office in Chantilly that has some pretty sizable secure space associated with it. I think I've mentioned on previous calls that I think Redwire hits above its weight class in terms of our clearances and our insights in the national security. I have a high-level security clearance and have worked in national security for my entire career, and we have a number of contracts that have the associated documentation in there to allow us to operate at high levels of classification. So we're really bullish on the current trends going on in national security and Redwire's ability to participate in that growth. Suji DeSilva: Okay. Thanks, Peter. Thanks, Jonathan. Peter Cannito: Thanks, Suji. Operator: Thank you. Our next question is coming from Griffin Boss with B. Riley Securities. Please proceed with your question. Griffin Boss: Hi, Pete, Jonathan. Thanks for taking my questions. So yes, first off, for me, the growth in pipeline and bids submitted is really impressive, especially given the strong backlog growth we saw in the quarter. Can you just give us some more color on the breakdown of that pipeline, just generally speaking, kind of what areas you're seeing with the most opportunity tying it back to those six core offerings that you talked about? Peter Cannito: Yes. We don't really break down the individual opportunities in the pipeline. But I will point you to our four growth principles for 2024, because I think that represents really what's going on in that continued growth in our pipeline and proposals under review. Again, as we continue to scale and as we continue to demonstrate on-orbit performance, that is leading to us being baselined on larger and larger programs. I think we have in many of our products, a lot of customer confidence. And so we're bidding on bigger programs, as well as moving up the value chain, like I mentioned, and starting to take some bigger swings on larger subsystems, fully integrated mission payloads and even full satellite mission solutions. As you're probably aware, in Europe, we provide full satellite missions with our Probus [ph] satellite and have done so for many years, we're now starting to look at other opportunities to move into white space, like I mentioned in VLEO [ph] spacecraft, as well that will result, I think, in a growing pipeline over time. Griffin Boss: Got it. Yes. Thanks for, thanks for that, Pete. Obviously, a lot of exciting developments in space right now. I guess I'll just turn over to -- I mean, you called out the growth in lunar infrastructure. And obviously, there's been a lot of press about that with the recent lunar landing from Intuitive and you guys are ingrained on that. How big of an opportunity do you guys see NASA's CLPS program in general? And are you working with any of the other CLPS awardees beyond Intuitive? Peter Cannito: So one of the great things about Redwire is we have -- we participate across multiple opportunities in all of the different areas. Off the top of my head, I can't think about what we've announced in this area or not, but we were certainly proud to be part of the Intuitive machines bid. And I think that you'll find whenever Redwire provides capability that is successful in one mission, we're often -- we build the credibility that makes us a highly sought after partner ion other missions as well. But yes, lunar infrastructure was -- we're very proud to be partner in that mission was very successful for us. We talked about, I think, earlier last year, our Mason program that we won, where we're providing the technology and researching with our partners at NASA, technology for building landing pads on the moon. I think that if there was a landing pad on the moon, the probability of a smoother - Lunar Lander, at least we think, would be higher. So maybe some of the early attempts underscore the potential benefit of that technology. But yes, we're very focused on lunar infrastructure. We talked about our -- also our VSAT partnership as well where we'll be providing some solar arrays for lunar infrastructure in the future as well. So a nice trend for Redwire, and that's one of the reasons I chose to put up that slide trying to reemphasize everybody that space infrastructure just isn't about LEO satellites, although that's a really fast-growing and really important part of the market. We're not -- our TAM includes going beyond just satellites to things like the rapid and exciting growth we're seeing in the future of the moon. Griffin Boss: Yes. Excellent. I really appreciate the detailed response, Pete. And then just one more, if I could, for Jonathan. Just turning back to the EAC adjustments. Obviously, as you mentioned, they came down significantly year-over-year, and I mean it's becoming somewhat of a moot point given the size and scale of your revenue. But can you just give us some more color on where those were coming from in the fourth quarter? Was it one or two specific programs or more widespread on a smaller scale? Jonathan Baliff: It definitely wasn't widespread. What I would say is like 2022, generally, our EAC investments are in our, let's call it, lower TRL. We have very mature projects and a little less mature products. We do - the equivalent of some R&D as we create the next-generation space infrastructure. Certainly, those EACs are with those type -- that type of infrastructure. But again, I have to emphasize, we cut it in half while doubling -- I'm sorry, while bringing up our GAAP -- U.S. GAAP revenue by over 50%. So again, I think kudos goes to our operations group and our presidents for really making sure this program management is happening on time because the key to these EAC adjustments and net EAC adjustments is on-time delivery, which we're very focused on as part of our excellence in execution. Griffin Boss: Got it. Okay. Thanks for taking my questions and great to see the progress. Jonathan Baliff: Thank you. Operator: Thank you. Our next question is coming from the line of Andres Sheppard with Cantor Fitzgerald. Please proceed with your question. Andres Sheppard: Good morning, everyone. Congratulations on the strong financial quarter, and thanks for taking our questions. I guess I was just wondering, considering you reported a positive free cash flow in Q4. I know - I realize you're not guiding free cash flow throughout 2024. But just curious if you can maybe give us some color as to how we should continue to think about that for modeling purposes. Should we expect a continued growth quarter-over-quarter? Or what's the best way to think about that? Thank you. Peter Cannito: Well, I'll link a bit of our cash flow generation in that fourth quarter with a large contract win, which we disclosed. And so some of the cash comes in and you see it on the balance sheet. That being said, we've said in the past, and that's one of the nice things about the fourth quarter is that we're bidding on projects that are greater than our annual revenue, right? And those are projects that obviously had multiyear. But the bottom line is we generally in our projects want a decent amount of cash coming in on the front end for material subcontractors and just generally because we're running a much tighter shift on our working capital. That being said, again, mimicking what Pete said, it can be lumpy. But I will say, we believe now we have a very nice liquidity profile and cash flow from operations. This is a company that can fund a significant amount of its growth as not just witnessed in the fourth quarter, but also we generated positive operating cash flow, and that's in addition to an IRAD spend that was significantly higher in the fourth quarter and the full year '23 than we did in the previous years. So again, we don't give specific quarterly guidance on that, but we continue our path to profitability, and we're again focused on making sure that we can fund a lot of our own growth. Andres Sheppard: Got it. That's super helpful. And I guess that's actually a great segue to my next question. So regarding that recent $142 million contracts to produce the solar arrays. I'm wondering how should we be thinking about that translating into revenue over what time period might you expect to recognize the majority of this contract? Thank you. Peter Cannito: Yes. No, great question. So we'll be recognizing that over '24 and a little bit of '25, like many Redwire's contracts, its there. Well, I don't want to make a broad characterization, but many of our contracts are 2-year contracts. And it's already kicked off and started. So we'll be seeing the impact of that all through Q1, all the way through the rest of the year. Andres Sheppard: Got it. I see. Okay. So then I could assume that that's embedded in the revenue guidance for 2024, I guess? Peter Cannito: That's correct. Andres Sheppard: Got it. Okay. And maybe just one last question, if I may, one for Jonathan. How are you thinking about activity in the M&A market for 2024? I know historically, you have grown inorganically as well as organically. So just curious if you're looking to remain active in this market. Thank you. Jonathan Baliff: The answer is yes, but we're very focused on our return on invested capital, cash flow and profitability. I'll hand it over to Pete. But again, from a CFO standpoint, we are - we've obviously shown an ability to do successful M&A both on a commercial operational and financial basis. We continue to look at it, but we're pretty disciplined when it comes to M&A. Pete? Peter Cannito: Well, the good news is we know how to do it. We've done it nine times so far, I believe. So the -- so that's a really viable tool in our toolkit. But we're constantly scanning the market for the best value out there. And yes, if we find something that makes a lot of sense both strategically and has a really nice financial profile that meets our overall objectives, we're certainly out there and active. Andres Sheppard: Got it. Very helpful. Congratulations on the quarter again. I'll pass it on. Thank you. Peter Cannito: Thank you. Operator: Thank you. [Operator Instructions] Our next question is coming from the line of Brian Kinstlinger with Alliance Global Partners. Please proceed with your question. Brian Kinstlinger: Great. Thanks so much. Solid bookings, and thanks for all the backlog and pipeline stats as usual. You submitted more than $944 million in bids in 2023. Can you quantify the value of bids that have yet to be awarded? And then as we look at the $4.8 billion in the pipeline, how much of that do you expect to bid in 2024? Will it be more than 2023? Peter Cannito: So I'm not sure I totally understand the question, but if I don't answer it, just let me know. So in terms of characterizing the proposals under review, we don't give any specific data on that, but I'll say they all vary in size. So we have a variety of larger programs, as well as a really strong, like I like to say, protecting the core basis for repeat orders as well. So that's how I would characterize what is under the bids that are under submission right now if that's what you are asking. In terms of the pipeline, again, I'll point everybody back to our four growth principles for 2024. We see the pipeline continuing to expand as we move up the value chain and continue to scale production. I think, obviously, it's really exciting to win a $142 million contract and so just the near-term 2024 impact of that in our financial projections is really exciting. But it also underscores our ability to compete for and win larger and larger programs. So with that kind of success under our belt, I would anticipate that the intent is for - when it comes to the pipeline that we're going to continue to include larger swings in that pipeline. Did I answer your question? Brian Kinstlinger: Kind of. I'm curious, do you expect to bid on more in 2024 than 2023? Peter Cannito: The pipeline falls out, how it does many times. But yes, we're investing in our bidding proposal and if we execute on our plan of bidding on larger programs, then you should see that number go up. Jonathan Baliff: And you've seen it go up, Brian, in the last few quarters, both pipeline and bids. And so that trend, again, we've seen two quarters of it increasing. That trend, we expect to, again, to continue bidding on larger projects. Like we said, we've announced, obviously, a win on that, but there's - again, we don't set expectations based on pipeline, but again, the last two quarters has shown a good trend. Peter Cannito: That's why I wanted to underscore what we see as the three demand drivers. So I think the market could support us getting more. Brian Kinstlinger: And then one follow-up on the visibility question that one of the analysts asked. I'm curious, as I've listened to some other contractors discuss guidance. I'm curious how much of your $300 million in revenue guidance do you expect to come from the current backlog versus how much do you need to generate in awards or revenue from awards that are yet to be won in 2024 to hit your 2024 goals? Peter Cannito: So we don't break it down. But I think if you look at backlog at the start of 2023 and then how we were - what we ended up from a revenue point, I think if the trend continues, you could see that with our current backlog in comparison, which I don't have the exact number. I believe it's 3... Jonathan Baliff: Yes, 372.8 is this - we're entering the year with 37.8. Last year, on an equivalent basis, I've emphasized that contracted backlog, last year, it was $313.1 million. So you're talking about a very significant increase in backlog with -- remember, we had almost $244 million of revenue. So we are -- you're seeing an increase of the increase on contracted backlog on an apples-to-apples basis, Brian. So getting to your question, we don't give that. But if you look at -- again, we always say that our contracts are around 2 years. Now Redwire 101, we talked about that profile, you can see that we're getting good visibility into '24 and '25 with this level of backlog increase. Peter Cannito: Yes. The numbers are 372 to 300 forecast is a reasonable amount of backlog to support our forecast of the year. Brian Kinstlinger: Okay. Thank you. Operator: Thank you. Our next question is coming from Greg Konrad with Jefferies. Please proceed with your question. Greg Konrad: Good morning. Peter Cannito: Hi, Greg. Jonathan Baliff: Hey, Greg. Greg Konrad: Maybe just to ask the last question in a different way. You carried a range for revenue guidance throughout the year, even into the final quarter. And this year, you're guiding to more of a point estimate. Has anything changed in terms of how you guide or what you're seeing or risks that cause that variability that make you more comfortable this year to give a point estimate versus a range? Peter Cannito: Our forecasting, we believe is maturing. So we are trying to tighten the range. I think in this particular case, it was just about keeping it simple. A lot of times in last year, we found that if we gave a range, people get selected the midpoint. So we thought that it would be more appropriate to just select where we think that things are going to come out and then keep it simple throughout the year. Greg Konrad: And then maybe just to follow up on drivers. I mean I appreciate laying out the six core offerings, and we probably could place it that way regionally or even by customer. But at least near term, thinking of those six core offerings, are there one or two areas that drive more of the growth and then maybe longer-term areas of those six that are lead to maybe more upside? Or how are you thinking about growth across those six areas? Peter Cannito: So I think all of them have significant growth potential. If you were to say currently, and we don't break it down by specific numbers, but the solar array business has been really strong. There's been a really positive reception to our rollout solar array technology, highly differentiated. It has a lot of great heritage. So I think certainly, solar is a big part of it. Moving up the value chain and looking at more platforms and full payloads, like I said, in that segment has a lot of high growth potential as well. I think one of the things that I find most exciting about Redwire is the portfolio effect of our offerings. Again, we don't break it down this way, but we have some offerings that I would characterize as very high volume potential, but perhaps lower gross margin. We have other offerings that I would characterize as having maybe more limited total addressable market, but tend to have better gross margins. So we can take that portfolio effect and manage our offerings and focus our growth dollars in a way that help us balance our revenue and profitability over the long term. Greg Konrad: I'll leave it at two. Thank you. Peter Cannito: Thank you very much. Greg. Jonathan Baliff: Thanks, Greg. Peter Cannito: I did -- just to follow up, go back into the archives and see that we announced that we are partnered with Firefly on the Blue Ghost Lunar Lander. So in addition to Intuitive machines and Firefly and we obviously know all the other ones as well. So just a follow-up on that. Operator: Thank you. We have reached the end of our question-and-answer session. So I'd like to turn the floor back over to management for any additional concluding remarks. Peter Cannito: All right. Well, we appreciate the engagement, as always. Thank you for participating in today's call and go Redwire. Operator: Thank you. Ladies and gentlemen, this does conclude today's teleconference and webcast. We thank you for your participation, and you may disconnect your lines at this time.

Operator: Greetings. Welcome to the Redwire's Space Q3 2023 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded. I'll now turn the conference over to your host, Jeff Zeunik, Senior Vice President-Financial Planning & Analysis and Investor Relations. You may begin. Jeff Zeunik: Thank you, Shamali, and good morning, everyone. Welcome to Redwire's third quarter 2023 earnings call. We hope that you've seen our earnings release, which we issued yesterday afternoon. It has also been posted in the Investor Relations section of our website at redwirespace.com. Let me remind everyone that during the call, Redwire management may make forward-looking statements that reflect our beliefs, expectations, intentions, or predictions of the future. Our forward-looking statements are subject to risk and uncertainties that are described in more detail on Slide 2. Additionally, to the extent we discuss non-GAAP measures during the call, please see Slide 3, our earnings release or the investor presentation on our website for the calculation of these measures and GAAP reconciliations. As previously mentioned, I am Jeff Zeunik, Redwire's Senior Vice President of Financial Planning and Analysis and Investor Relations. Joining me on today's call are Peter Cannito, Chairman and Chief Executive Officer; and Jonathan Baliff, Chief Financial Officer. With that, I would like to turn the call over to Pete. Pete? Peter Cannito: Thank you, Jeff. During today's call, I will take you through a discussion of our key accomplishments in the third quarter of 2023, followed by Jonathan, who will present the financial highlights for the same period. We will also discuss our continuing outlook for the remainder of 2023, after which we will open the floor for Q&A. Please move to Slide 6. I'm pleased to report that the third quarter was another record quarter for financial performance at Redwire. Our ability to deliver a wide breadth of high quality solutions and products to our customers is enabling us to deliver tangible financial results for our shareholders. During the third quarter of 2023, we once again achieved record revenues, gross profit and adjusted EBITDA. We expanded our margins with a beneficial shift in product mix. We continued to balance top line and bottom line growth which supports our sustainable financial position and we demonstrated resilience from our diversity of products, customers and end markets during a highly dynamic period in the space industry. Please turn to Slide 7. The third quarter of 2023 was another excellent quarter for Redwire, during which we continued our momentum from the first half of 2023. We have now delivered 3 consecutive quarters of positive adjusted EBITDA and revenue growth. We achieved $62.6 million in Q3 revenue, a year-over-year quarterly growth of 68.1% from the third quarter of 2022 to the third quarter of 2023. We achieved positive adjusted EBITDA of $4.9 million in Q3, a $6.4 million increase on a year-over-year basis from the third quarter of 2022 to the third quarter of 2023. We achieved a net loss of $6.3 million, a $4.1 million year-over-year improvement from the third quarter of 2022 to the third quarter of 2023 and we achieved free cash flow of negative $5.9 million, a year-over-year improvement of $6.7 million. Lastly, we also achieved cash from operations of negative $3.3 million, a year-over-year improvement of $8 million. It is important to note that we achieved these positive financial results by developing and delivering critical innovations for our customers. In Q3, we continued our established track record of delivering dependable, flight-worthy products and launched 5 solutions on 3 launches in the quarter. Beyond the numbers, this reliable performance for our customers provides a foundation for future growth. Please turn to Slide 8. At Redwire, our breadth of products and customers provide strength and resilience to the business. Our ability to balance our focus across multiple customer markets provides stability to the organization. Therefore, it can be instructive to discuss some of the trends we see across these markets. First the national security market which encompasses U.S. and allied national security organizations including classified projects. It is important to note that we see this as our fastest growing target market in the near future. Current geopolitical dynamics most notably in emerging space race with China are driving significant growth in the market and we are well positioned to capitalize on this growth trend. As example, we are participating on the Space Development Agency programs with multiple prime contractors on multiple tranches, providing critical capabilities that will enable the Space Force National Security Space Architectures. One particular differentiator worth noting is our ability to perform on classified contracts. These contracts require facilities and personnel that take time and funding to put in place. Redwire already has this capability, which puts us ahead of some of our competitors. This barrier to entry increases our total addressable market, or TAM, with limited competition. Another customer market we serve is the commercial space market. This market predominantly includes commercial space companies providing commercial services for a variety of end customers. At Redwire, it is our opinion that the commercial space market has tremendous opportunity for growth. However, recent volatility in the capital markets has created a near-term headwind for this market. A reduction in capital for commercial space companies is delaying awards in this target market and we're seeing some significant pipeline opportunities pushing out into the future quarters. However, large well-funded commercial entities still show demand for Redwire's capabilities because of our spaceflight heritage. Fortunately, the growth in national security should offset this near-term trend and in some cases, our commercial customers are also ultimately targeting growth with national security customers. Lastly, we are also working in the civil space market, which includes civil space agencies such as NASA and ESA. It is appropriate to acknowledge that there is some risk associated with the NASA budget due to potential congressional budgeting outcomes playing out in the U.S. government. However, again, our diversity here provides us some mitigation as demand for the European Space Agency remains strong. In addition, we are seeing strong demand signals from other multinational civil space agencies across the globe. So the bottom line is this, the space industry has entered a dynamic period with a number of different market trends affecting overall market demand. However, Redwire's access to a rapidly growing national security market to include classified budgets provides balance to some emerging headwinds in commercial and U.S. civil space markets. Additionally, our global footprint allows us to participate in multinational civil space opportunities with expanding budgets, such as in Europe. The net result is a resilient position across diverse markets that provides many pathways to growth. Turning to Slide 9. As Redwire continues on its path to profitability, one of our key approaches is to balance top line growth and bottom line profitability. As a result, Redwire's approach to growth balances risk with profitability, avoiding growth at any cost. This disciplined approach drives our financial performance through selective bidding. In addition, as discussed last quarter, Redwire continues to make prudent strategic investments that drive our return on investment. We'll discuss these investments in additional detail later in the presentation. Balancing top line and bottom line growth ensures we create value in the present while maintaining a strong foundation for the future. Turning to Slide 10. As I just mentioned, our strong financial performance is driven by our proven ability to deliver differentiated solutions for our customers today, which is why we are confident that it is sustainable. On the next few slides we will share some examples of our recent operational successes and investments. As I mentioned, national security spend is on the ride. The U.S. Space Force budget request for fiscal year 2024 of $30 billion is $3.9 billion or almost 15% higher than the FY 2023 enacted budget. In addition, the Department of the Air Force's comprehensive strategy for the Space Force for August showed a sizable portion of the Space Force budget dedicated to classified projects through 2028. With secure facilities in multiple geographies, cleared employees with critical skill sets and leadership with proven national security experience, Redwire is well positioned to continue building its classified national security business. For the year-to-date period through September 30, 2023, 21.2% of revenues were from national security. Please turn to Slide 11. In our mission enabler focus area, Redwire is proud to have delivered 10 coarse sun sensors for the Psyche spacecraft, which will journey to an asteroid located between Mars and Jupiter. Redwire's sun sensors will help the Psyche spacecraft to accurately navigate the stars throughout its 2.2 billion mile journey. This is only the latest space mission to rely on Redwire's sun sensors which have supported a variety of high profile missions from multiple rover missions to Mars to NASA's Double Asteroid Redirection Test in 2022, an excellent example of the power of our space heritage. Please turn to Slide 12. Redwire recently announced first spaceflight mission for its cutting edge in space pharmaceutical manufacturing platform PIL-BOX aboard SpaceX commercial resupply services 29. The inaugural mission in partnership with Eli Lilly & Company will conduct 3 experiments focused on developing advanced treatments for diabetes, cardiovascular disease, and pain. To commemorate this breakthrough flight, Redwire developed the mission patch shown on the right of this slide. Building on Redwire's multi decade space crystallization flight heritage dating back to the space shuttle era, PIL-BOX is a striking example of Redwire's ongoing leadership in space biotech solutions. Please turn to Slide 13. Finally, space is a multinational endeavor and Redwire Space continues to be a global leader in international space missions. Redwire recently announced that it has been awarded a contract with OHB Italy to provide the onboard computer for the European Space Agency's Comet Interceptor Mission. Comet Interceptor will be the first spacecraft to visit a long period dynamically new comet. The onboard computer is a part of Redwire's third-generation advanced data and power management system, and as the brains of the spacecraft, it is designed to monitor and control other critical components. With our expanded multinational operations, we are very proud to have been selected to support exciting ESA activities including Comet Interceptor. Please turn to Slide 14. Turning to our bookings and backlogs. Our bookings during the third quarter were $46.5 million, an increase over our contracted awards for the second quarter of 2023, which totaled $45.6 million. Our last 12 months book-to-bill ratio was 1.38x as of Q3 2023. Finally, as you can see on the right hand side of this slide, our contracted backlog has increased 59.5% since September 30th of last year to a contracted backlog at the end of Q3 2023 of $253.4 million. The growth in contracted backlog is one factor that gives us confidence in our future growth and stability. We continue to have healthy pipeline with an estimated $4.5 billion of identified opportunities including approximately $714 million in proposals submitted year-to-date through September 30, 2023. Please turn to Slide 15. Not only did Redwire achieve positive adjusted EBITDA during the first 3 quarters of 2023, we did so while continuing to make prudent strategic investments. During the year-to-date period ending September 30, 2023, we have made $5.2 million in capital expenditures, $4 million in investments in research and development and $3 million in a variety of corporate investments in systems and infrastructure that flow through the SG&A line. Clearly, we continue to demonstrate our ability to perform and deliver now while also investing in our future. Please turn to Slide 16. With that, I'd now like to turn the call over to Jonathan Baliff, Redwire's Chief Financial Officer. Jonathan? Jonathan Baliff: Thank you, Pete. Before I turn to the financial results, let me just highlight on this slide it's rendering for NASA's upcoming Dragonfly mission. Redwire is proud to have been selected to supply critical navigation technology for this groundbreaking mission to advance humanity search for building blocks of life on Saturn's largest moon, Titan. Please turn to Slide 17. Similar to the other quarters this year, the next few pages will quantify and expound on a number of themes that Pete just talked about, including key financial takeaways starting with the financial quarterly metrics shown on these charts and then continuing on with other quarterly, year-to-date, and last 12-month financial information. An important point to reiterate in detail for this third quarter's financials is that Redwire's excellence and execution initiatives and our global team continue to deliver on our growth promises and our path to profitability as we scale our business with record revenues, record gross margin and profit, and record adjusted EBITDA once again this quarter. So, let's discuss the specifics. As Pete spoke about in his introduction, this chart shows the continuing 2023 trend of positive year-over-year results across all our financial metrics, starting with the achievement of record revenue of $62.6 million in the third quarter of 2023. We achieved our third quarter -- our third consecutive positive adjusted EBITDA quarter since becoming a public company, again a record adjusted EBITDA of $4.9 million in this third quarter. Similar to the last two quarters, better adjusted EBITDA occurred primarily due to a more than doubling of gross profit year-over-year and is attributable to disciplined program management and continued cost controls. These same factors also contributed to a $4.1 million year-over-year improvement in a net loss of $6.3 million in the third quarter of 2023. In the third quarter of 2023, we also achieved year-over-year improvement in free cash flow of $6.7 million, with that improvement and free cash flow being driven by the improvement in cash from operations of $8.0 million. Please turn to Slide 18. Specifically for quarterly revenue, as you can see from the chart and as I talked about before, this quarter's record $62.6 million represented a 68.1% increase on a year-over-year basis and an increase of 4.2% on a sequential basis. On a full year last 12-month basis, Redwire grew revenue at 58.2% rate, an acceleration of the revenue growth from last quarter's similar period of 45.6%. With more than 85% of our revenue derived from funded government programs or from global marquee customers that Pete talked, we're delivering in the national security area, LEO commercialization, and the exploration of space to name just a few. Excluding the revenue contributed by Space NV, our third quarter revenues were $49.1 million, an excellent organic growth rate of 31.8% on a comparable year-over-year basis, especially as this is more profitable growth. Please turn to Slide 19. For the year-to-date, for first 9 months of 2023, Redwire recorded $180.3 million of revenue, which is a 68.8% year-over-year revenue growth. Excluding the revenue contributed by Space NV, we grew organically at 31.3% compared to the first 9 months of 2022. We saw growth across all three of our primary focus areas, with space systems and subsystems as an integrated mission enabler, payloads and infrastructure to explore, live and work in space, and with Redwire Europe spearheading our multinational space leadership. The revenue percentage breakdown by customer type for year-to-date through September shown on this slide also shows the diversification of our revenue and adjusted EBITDA and cash flow streams with 45.9% of our revenue from civil, 32.9% from commercial, and 21.2% from national security customers, echoing Pete's comments about the strength from balance and resiliency of our operations. Of note, for the year-to-date period through September, our commercial customer revenues have seen the largest growth percentages of 90.2% year-over-year, our civil customer revenues grew at 78.5% year-over-year, and our national security revenues grew year-over-year by 30.5% through September. Please turn to Slide 20. Redwire's path to profitability that we've discussed on prior calls continued successfully in this quarter, as you can see from the progress made on the chart on the right, with a steady march of quarterly financial improvement in 2022 now continuing through 2023 third quarter. The 2023 adjusted EBITDA is improving $6.4 million year-over-year to a record $4.9 million. Once again, our record adjusted EBITDA improvement was primarily driven by our improvement in gross profit with the year-over-year third quarter gross profit growing 2.2x higher from $7.9 million to $17.1 million. The significant gross profit and gross margin improvement was primarily driven by better contract mix and the maturing of our program management. Our adjusted EBITDA improvement was also supported by excellent cost control with Redwire third quarter SG&A expenses at 29.2% of revenue, a significant drop from the 41.4% in the third quarter of fiscal year 2022. Please turn to Slide 21. Similar to last quarter, on the left hand chart, we show free cash flow. As a reminder, free cash flow provides a metric based on our U.S. GAAP, cash from operations minus capital expenditures or CapEx. On a year-over-year basis, quarterly free cash flow improved by $6.7 million to a use of cash of $5.9 million and this is due to an $8 million improvement in year-over-year cash from operations. Credit goes to the revenue growth and profitability improvements already discussed, but in addition, we had more efficient and effective working capital management over the third quarter, as you can see by the narrowing of our operating cash from operations. This is helped by our diversity of cash flow that is not dependent on any one product or solution or any one customer class. Improvement in year-over-year quarterly cash used in operating activities was also offset by over $5 million of planned capital expenditures and other expenses associated with growth and resiliency initiatives like our radio frequency test chamber and our ERP implementation in the third quarter of 2023, just to name a few. These expenditures are intended to grow and diversify our revenue, scale our operations and accelerate our path to profitability. On the right hand chart, we show our available liquidity as of September 30, 2023, which totaled $30.9 million. This quarter's liquidity has much improved from a year ago as we continue our path to profitability. And I want to thank all of the Redwire's teams for this quarter's excellent results, a total global effort that we will work to continue and improve upon through 2023 and beyond. Please turn to Slide 22, and I will now turn the presentation back over to Pete to provide a brief outlook for the remainder of 2023. Pete? Peter Cannito: Thank you, Jonathan. Please turn to Slide 23 for a brief discussion of the outlook for the remainder of 2023. For 2023, we reaffirm our full year guidance range of $220 million to $250 million, which represents 46% year-over-year growth at the midpoint of the range. As you can see from our presentation, Redwire continues on our path to profitability and continues to deliver now with strong operational and financial performance, while investing in our future, resulting in a strong pipeline and future backlog. With that, I'd like to thank all of the Redwire professionals around the world for their hard work and an excellent third quarter, and all our customers for trusting Redwire. We will now open the floor for questions. Operator: [Operator Instructions] Our first question comes from the line of Mike Crawford with B. Riley Securities. Mike Crawford: Thank you. Pete and Jonathan, first of all, I'm really impressed by not only the gross margins -- I know you mentioned mix, but also the jump in pipeline by I think $800 million from last quarter and the $200 million jump in bids submitted waiting for proposal. Can you just dive into that bid pipeline in a little bit more detail for us, like have you lost any bids? Are there any big awards that you're expecting before the end of this year? I know Q4 is usually a pretty good bookings quarter for you. Peter Cannito: Yes. Hey, Mike. How are you? Yes, this is Pete. Appreciate your question. Yes, so, again, we're always bidding, as a result, we're always losing, but we're also always winning. And I really am very proud of, quite frankly, the team for the growth in that pipeline. So thank you for calling it out, because we really have started to hit our rhythm in terms of regularly being out in front of new opportunities and increasing our bid tempo, and that's really important for our growth. We don't typically project awards by quarter. There's a lot of reasons for them, not least of which is that some of these are very hard to predict when you have a dynamic government situation, as well as just the general dynamic things going on in the space industry right now. But yes, we expect a regular tempo of awards. They do tend to be pretty lumpy. We are bidding things over $100 million in our pipeline. So I know that I'll -- if it's not your next question, one of the questions will be about our book-to-bill for the quarter, so I can start talking about that right away. But typically what will happen is we'll win a big bid and then we'll work it off for a while, while we're submitting more big bids. And then book-to-bill will pop up but the timing of that is pretty difficult to predict. And that's why we always try to guide people towards that yearly or last 12 months a book to bill ratio because the timing of our really large awards make it difficult to really have a meaningful number in terms of book-to-bill on a quarterly basis. Did I answer your question? Mike Crawford: Yes, partially Pete. Maybe if I come at it from a slightly different angle in the context of the reaffirmed guidance you gave of $220 million to $250 million for the year? I mean that implies that fourth quarter revenue could be anywhere from $40 million to $70 million with the range that you have, I would imagine we'd have to have an absolute government shutdown for you to be anywhere near $40 million. But what would have to happen or what are the things that could happen that could actually spike your revenue up to $70 million in the fourth quarter? Peter Cannito: Yes. Well, the timing of awards, it's the key to that, right. So, a lot of our customers, they're not focused on fiscal year-end -- or in the case of the government, their fiscal year ends in October or late September. So they're not seeing it as a calendar year dynamic. So the timing could materially shift things one way or the other. Although let me talk to you a little bit about our approach to guidance. As you know, we're a fairly young public company and we've set out kind of three guiding principles for our guidance. Number one is to keep it simple; number two is to take a long-term view; and number three is to be somewhat conservative on our approach, so we're not giving people -- we're not confusing the marketplace as we move forward here. So from the guidance perspective, the approach that we're taking is giving guidance at the beginning of the year and then sticking with that guidance throughout the year despite the quarter-to-quarter perturbation as a way of just kind of keeping the guidance simple, accurately reflecting our year-on-year pathway and delivering what we say we're going to do. Mike Crawford: I'll just ask one more, and it's more of a broader question about what you think the state of the -- what is the outlook for commercial LEO destinations in ISS that might -- provided that which might actually even be extended beyond 2030 now and where Redwire fits in amongst all that? Peter Cannito: So, what I'm excited about with Redwire is that we believe that the United States and our allies will always have a presence in LEO. Right now, that presence is the International Space Station. And we're participating a lot in the development -- research and development that's happening in LEO on the ISS. As commercial LEO destinations come online, we're actively engaged with all of the different providers out there to provide the capability that we've been providing to the ISS and quite frankly, not only NASA, but ESA. So they see us as a leader because we're proven and therefore the net-net on commercial LEO to us and of course, we're watching this very closely and weren't terribly surprised by the fact that NASA, if they need to, will extend the life of the ISS, we really basically continue to perform and generate revenue off of our services to LEO development, whether it's a government space station or whether it's a commercial space station. So, for us, we feel pretty comfortable both ways. Operator: Our next question comes from the line of Suji DeSilva with ROTH MKM. Suji DeSilva: Hi, Peter, hi, Jonathan. Congratulations on the progress here. So, just curious on the free cash flow, the CapEx spending. Is that spending -- does that need to happen ahead of your programs coming online or is that something that customers -- you're kind of doing on a success basis as programs ramp? Peter Cannito: Hey, Suji, how are you? Good to hear from you. It depends. So, we have CapEx expenditures associated with ground support equipment developing, are really large solar array wings for the power and propulsion element of gateway. That would be a good example of a CapEx supporting near-term programs. We also have our most recently built RF chamber that supports our antenna business for customers like the SDA, and a pretty large percentage of our future pipeline associated with antennas. So in some cases, it's to support ongoing operations, and in other cases, it's built to support a more recent and emerging program wins as well as what we anticipate to be growth areas in the company. Jonathan, I don't know if you want to add anything to that. Jonathan Baliff: No, exactly. I mean, the expenditures that we make for equipment, a lot of it's captured in the contracts themselves and paid for by the contracts, right? So -- but a lot of the CapEx that Pete for example used perfect examples is an example of CapEx that we can use, I mean these pieces of equipment last a long time and can be used on other contracts. That's why you're seeing a level of efficiency. The only I would add to Pete's comments is, the return -- we watch these return on invested capital, this CapEx very, very closely and that's why you're seeing the narrowing of our cash flow from operations has happened because we're focused on those returns happening for our investments earlier, and then obviously with a threshold that's got to meet. There's a discipline to this process, Suji. Suji DeSilva: And then sticking to the financials, the gross margin side, you talked in the prepared remarks about gross margin tailwind from mix. Can you just remind us the relative gross margins, how should we think about that in segments and where the mix tailwinds are versus headwinds in gross margin or relative gross margins? Peter Cannito: Yes, so we don't have segments, so our gross margin is our gross margin. What I can tell talk to you about gross margin is the way we think about it is, one of the key things that I tried to highlight in my comments was this idea of avoiding growth at any cost. And I would say a year -- potentially two years ago, the industry was -- quite frankly, the investor community was primarily focused on top line growth really at any cost. I'm not sure Redwire was ever all in on that concept. But certainly, in the past year, we've been very selective about what we bid and we've been working very hard at sunsetting other programs that either came through acquisition or otherwise that had gross margin less than what we're targeting. So, that disciplined approach of selective bidding on programs that where we feel that we can maintain our margins is what's driving the changes you're seeing in gross margins right now. Did that answer your question? Suji DeSilva: Yes, it does. And good to hear that you're doing that on the acquisitions. And then last question really on the demand in the civil area. You talked about some volatility around the U.S. government. Are you seeing actual program pushouts or positive reductions yet? Or is that just a sort of sense that there is some uncertainty there more broadly? Peter Cannito: Yes, I think it's being prudent about watching closely what's going on in terms of budgeting, specifically for NASA. So, I wouldn't say it's always difficult to understand why the government does what they do. They publicly, I believe, just announced that they were pushing the LTV procurement out for instance. I can't say I don't have firsthand knowledge as to why that is. But we have to be realistic about that some of the congressional budgets that are being out there, I believe some of them are looking at rolling back masses budget to 2022 levels. Obviously, we have a fair amount of congressional budgeting or I would say maybe just U.S. government dysfunction going on right now. So, that's certainly going to find its way into the planning cycles. And so we just need everybody to be clear eyed and realistic about the potential risk associated with those dynamics. Jonathan Baliff: I mean Suji, the only other thing I would say on that is, it is one of -- we're pretty deliberate about -- we're celebrating the year that we are partnered -- acquired Space NV, now Redwire Europe. And so, we're pretty deliberate about that. Obviously, we need our financial thresholds, which it's meeting, but also it allows us to diversify. And the ESA and other European governments are very much on a 3-year cycle of their budgeting as we've talked about with the investors and you. And that really helps diversify, as part of what the Redwire overall strategy is to be this, still grow this business, grow it profitably, but also make sure that it's a lower risk type of profile and take advantage of these opportunities as they come up globally. Operator: Our next question comes from the line of Greg Konrad with Jefferies. Greg Konrad: Maybe just to kind of bridge or follow-up to some of the prior questions. I mean, you're coming off the third straight strong quarter around EBITDA. I know you don't guide for the year, we can see what the revenue guidance is. But how are you thinking about the variability of profitability into Q4 and how much is tied to volume versus mix? I think you've talked investments in the past. And how are you thinking about maintaining positive EBITDA into the year-end? Peter Cannito: So if you think about some of the comments I made on balancing top-line and bottom-line growth, I already touched on one aspect of this approach, that's the idea of being selective in our bidding. But we don't want to pass on very significant opportunities that may present itself in the pipeline that requires some investment upfront, because we've kind of talked ourselves into a corner, if you will, around EBITDA, right? So we're very focused on being profitable. We're very focused on selectively bidding programs that we could be profitable on. But there are instances where going back to the discussion on CapEx, we may be required to make an investment, of course, that won't hit EBITDA, that'll hit cash flow more, but there's other internal SG&A or B&P or IRAD dollars that do flow through SG&A that we might have to ramp up on in order to take advantage of some your positioning that we have. And we don't want to sub optimize our approach based on something like the guidance we're giving or what have you. So that's what we mean by balancing top line and bottom line growth is, if there is A, opportunity out there that includes a high probability win that will really transform Redwire as a business and we need to spend some of our SG&A money to go after that, we're going to do it. So does that answer your question? Greg Konrad: Yes, that's helpful. And then maybe just to follow-up on PIL-BOX, and I think you've announced some other partnerships on the drug development side, plus with what you've done historically. Is there any way to think about the TAM of that market and just timing given some of your other partnerships and kind of where we are in terms of adoption and transition, given it seems like there's a lot of opportunities in that market? Peter Cannito: Yes, it's a very interesting market. In the past when I've talked about Redwire is having a blue chip foundation with venture optionality, the biotech segment of our business is certainly part of that venture optionality, which I think is very exciting and maybe not people who invest in the aerospace industry specifically, but certainly people who invest in the biotech industry can appreciate the value of that. It's interesting. There's a lot of opportunities there. We've obviously been working on this for a long time. So even though this is the inaugural launch of PIL-BOX, we have been working on crystallization, as I mentioned, all the way going back to space shuttle. There is some market information on there around crystallization done at Earth. I don't have the TAM figures at my fingertips right now. Perhaps that's an item for follow-up in a future earnings call that we have where we can talk about that, but this is an existing market. The only thing that we're bringing to the market is an innovation where we could potentially, if the experiments are successful, change that. But it's pretty early days. I would say, the biggest step forward from a maturation perspective in my mind is the fact that we now have this partnership with Eli Lilly. So it's not just NASA funded research for the sake of research. There are actual commercial organizations who are really interested in the potential here, very serious commercial organizations, mind you. So that's encouraging. But again, we got to fly PIL-BOX, it's got to work, we got to look at the results. And I think as this progresses forward, we'll learn more. The exciting thing about having a positioning where you have a blue chip foundation with venture optionality is the future where Redwire is not dependent on the success of that one singular mission. But if we do make great strides here along with -- if we make great strides -- obviously, we announced the 3D printing of our meniscus and we have a number of really exciting opportunities associated with the bio printing on orbit as well as with those and other biotech experiments that we're conducting on orbit, if one of those takes off, as you can imagine, it would be exciting for us as a company. Jonathan, you want to add anything? Jonathan Baliff: Just I want to remind you, Greg, that we do talk about in what we've disclosed is what we call our Redwire 101 that the explorer live and work in space for the benefit of humanity, which both of what Pete is talking about is for the benefit of us on Earth. It's a $5 billion to $10 billion TAM over the next 5 years. That includes some level of biotech, but it scratches the surface. Publicly disclosed numbers that we know the bio research, right, that doesn't include necessarily things associated with printing meniscuses, but just the pharma industry spends over $150 billion a year on research and development a year and this is the market that, just like they went to the Amazon 40 years ago, they're going to go to space. And so for us, we're going to be talking more about that in the future, but as Pete said, let's get our PIL-BOX successfully launched, but it's already planned in getting up there, and so let's talk about it later, Greg. But does give you some numbers here to allow you to see that we're only scratching the surface. Greg Konrad: I mean it's the perfect name for the product, so good to ever name the product. And then maybe… Peter Cannito: We will thank John, yes, [John Bellinger], you're out there. He runs this part and has been doing it for decades and so he named it, in association with Eli Lilly also. Greg Konrad: And then maybe just to dig into national security a little bit more, I mean in the prepared remarks you talked a little bit about SDA and tranches and that market is much more stable and you kind of have the drivers versus your commentary around some of the commercial near-term headwinds. I mean, what's driving that growth? I mean, is there any way to think about SDA versus some of the other areas of national security that are lifting that business today? Peter Cannito: So what's driving the growth national security space spending in general is obviously what I talked about in the prepared remarks about the geopolitical dynamics associated with space now being a warfighting domain? SDA in the near-term has been a big part of that. Proliferated LEO is fairly new, and so there's a fair amount of spending there. And as I mentioned, we're participating in those procurements on multiple teams, multiple tranches and we'll continue to do so. So that is obviously a big part of it, but there's also the classified budgets, which obviously are less public, but there's a lot of activity going on in there too through the intelligence community and other customers who operate against those budgets. So that's another, I think, critical aspect to the growth in national security. So again, without going into too much detail, there's a lot of -- with the idea that space is now considered a warfighting domain and the establishment of the Space Force, they really got their legs under them now as a service, and I think you're starting to see spending grow in a number of different areas around their mission set. Operator: And our next question comes from the line of a Brian Kinstlinger with Alliance Global Partners. Brian Kinstlinger: You reported bids submitted this year-to-date were $714 million. I'm curious first if you could share the value of the total bids that are still awaiting adjudication? I take it those numbers are not the same. What is your average win rate over the last year or two? And then as you've discussed the various market dynamics, what are your plans from now through, say, the end of 2024 in terms of investments, people or dollars, needed in sales and marketing to continue to grow your proposal efforts? Peter Cannito: Okay. That was a lot. So, let me take a couple of at a time. I'll start with the last one. We are making investments in growing our bid and proposal efforts. We're currently in the process as we are every year at around this time in building our budgets. So I don't have the exact figures for you for 2024, but we will continue to invest in that area. On the rest of it, I think Jonathan… Jonathan Baliff: Yes. Let me help you out, Brian. First of all, if you look at last quarter, the year-to-date submitted bids, it was roughly, let's call it, half. I'm not going to give the specifics, but it's publicly disclosed. A large increase in that are some of the bids that are pending. So, without -- because then we don't talk about what the future in the fourth quarter is doing, but you can get a sense of that from a number standpoint. Historically, the win ratio, which we have disclosed, we haven't disclosed it this year, but in the past, we've disclosed about a 40% win ratio, but I do have to emphasize what Pete talked about. We are very selective in what we're bidding to make sure that we are on that path to profitability of improved EBITDA, improved free cash flow, improved operating cash flow. It then gets the idea of then CapEx and other investments. We believe that this path to profitability has to take into account those investments. The whole idea of Redwire as a differentiated investment in space is to be more -- or as like any aerospace company to be able to fund a lot of our organic growth, if not most of it, through organic cash flow. And so that's -- we're on that path, a lot of it, we have to scale the business to be able to enjoy that, but we are on that path as you can see on a year to year basis. We don't give the specifics, but you look at the SG&A, a lot of that SG&A -- even though it's gone down significantly as percentage from 41% to less than 30%, a lot of that SG&A is for growth, right? We don't distinguish it, but it is for growth and resiliency. And so, you just need to understand that we have enough cash, we have enough liquidity to again continue with the growth rates that we talked about for 2023, but we're not going to do anything differently because it's working. Peter Cannito: The only thing I'll add real quickly is, so win rates change obviously a lot, right, depending on what you're bidding, it can go up, it can go down based on any specific award, especially if you're using total dollars or revenue awarded. So if the goal -- or what your question is getting at is this idea of taking the number of bids under submitted, and trying to apply a win rate to it to project, I would say that because of the dynamic nature of the number of things that we're bidding, the size, the outsize of some of the bids as well as just how fast things are changing in general, I wouldn't use that as a straight thing if you want to really try to -- if you're trying to kind of come up with an algorithm for projecting future growth. Brian Kinstlinger: Okay. Then I assume most of your contracts are fixed price, I'm not sure, may be you can share that. But in line with your strategy to grow profitably, how has your process for pricing of proposals changed over the last 12 to 18 months if at all? Peter Cannito: So correct me if I'm wrong here, you have the exact percentages? Jonathan Baliff: Yes, we generally say public disclosure, about 80% of our contracts are fixed price. Peter Cannito: So, I mean, again, one of the things that Jonathan mentioned in his prepared remarks was this concept of excellence and execution. Excellence and execution is an internal initiative that we have, that really focuses on understanding the business in the details on how we bid and then how that bid translates into recognizing revenue and making sure that we have the programmatic discipline in place to hit our financial goals. So in that context, we spend a lot of time looking at pricing, and it has changed significantly. Especially as I mentioned, we're not looking at growth at any cost. So for instance, when we look at our pricing, we're looking at making sure that we're pricing in a way that will give us the highest potential path to profitability. So when you think about it from in that context, we are looking at all the different cost elements that go in, we're making sure that we apply risk factors associated with our firm fixed price bids as is traditional in the market. So we have a number of internal processes in place now and are continuously implementing process improvement across the business to make sure that we stay disciplined. Operator: And we have reached the end of the question-and-answer session. And I'll now turn call back over to management for closing remarks. Peter Cannito: No, I appreciate everybody's questions. Once again, it was a really exciting quarter for us. We're very pleased with the performance. And I just want to thank all of our employees and customers out there, that is really what Redwire is all about. At the end of the day, it's our employees that delivered these numbers and it's the trust our customers given us that enable us continue to drive our overall performance. So, we appreciate everyone's time today. Thank you for listening and go Redwire. Operator: And this concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

Operator: Greetings, and welcome to Redwire's Space Q2 2023 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded. I'll now turn the conference over to your host Jeff Zeunik. You may begin. Jeff Zeunik: Thank you, Shamali, and good morning everyone. Welcome to Redwire second quarter 2023 earnings call. We hope that you've seen our earnings release, which we issued yesterday afternoon. It has also been posted in the investor relations section of our website@redwireSpace.com. Let me remind everyone that during the call, Redwire Management may make forward-looking statements that reflect our beliefs, expectations, intentions, or predictions of the future. Our forward-looking statements are subject to risk and uncertainties that are described in more detail on slide two. Additionally, to the extent we discussed non-GAAP measures during the call, please leave slide three, our earnings of our earnings release or the investor presentation on our website for the calculation of these measures and non-GAAP reconciliations. I am Jeff Zeunik, Redwire, Senior Vice President of Financial Planning and Analysis. Joining me on today's call are Peter Cannito, Chairman and Chief Executive Officer, and Jonathan Baliff, Chief Financial Officer. With that, I would like to turn the call over to Pete. Pete? Peter Cannito: Thank you, Jeff. During today's call, I will take you through a discussion of our key accomplishments in the second quarter of 2023, followed by Jonathan, who will present the financial highlights for the same period. We will also discuss our continuing outlook for the remainder of 2023, after which we will open the floor for Q&A. Please move to slide 6. I'm very pleased to report that the second quarter was another record quarter for financial performance at Redwire. Our ability to deliver high-quality solutions and products to our customers is in turn enabling us to deliver tangible financial results for our shareholders. During the second quarter of 2023, we achieved record revenue, gross profit and adjusted EBITDA. We recognized our first quarter of positive cash from operations and positive free cash flow, made multiple strategic investments in the business to drive future growth, expanded our margins and continued to execute and win more leading-edge high potential contracts. One such leading-edge contract is our recently announced award to develop trailblazing systems to build landing pads, roads and other forms of infrastructure on the moon, a rendering of which is shown on the right of this page. The future Lunar economy based on a permanent presence on the Lunar Surface will bring significant benefit to humanity. And we are very proud to be NASA's trusted partner for developing lunar infrastructure solutions to support this critical mission. Please turn to slide 7. The second quarter of 2023 was another incredible quarter for Redwire, during which we built on the momentum from the first quarter of 2023 for a very successful first half of the year. We achieved year-over-year quarterly revenue growth of 63.6% from the second quarter of 2022 to the second quarter of 2023. For adjusted EBITDA, I'm very pleased to report that we achieved a second sequential quarter of positive adjusted EBITDA, with an $8.4 million increase on a year-over-year basis from the second quarter of 2022 to the second quarter of 2023. Next, we are pleased to report we have achieved a $71.6 million year-over-year improvement in net loss. Also notably, in this quarter, we achieved positive free cash flow -- cash flow for the first time as a public company. In Q2, we achieved a year-over-year improvement in free cash flow of $6.3 million to positive free cash flow of $1.1 million. This is an important milestone for Redwire and an outstanding accomplishment on both an absolute and percentage growth basis. We also achieved year-over-year improvement of $7.1 million -- $7 million in cash from operations to positive $2.8 million in the second quarter of 2023. That's $7 million in cash from operations improvement. Finally, it's important to note that these positive financial results are due to strong performance in operations. In Q2, we continued our proven track record of delivering dependable flightworthy products and extended our already significant flight heritage as we launched 11 solutions on four launches in the quarter. Turning to Slide 8. As I just mentioned, our strong financial performance is driven by our proven ability to deliver differentiated solutions for our outstanding customers today. This is how we know it is sustainable. On the next few slides, we'll share just a few examples of our operational success and investments in the second quarter of 2023. During Q2, two additional Redwire Roll-Out Solar Arrays or ROSA Wings were installed on to the International Space Station, bringing the total number of ROSA Wing deployments and operating in space to six. In addition, during the quarter, Redwire announced the award of two more iROSA Wings number 7 and 8, and a follow-on contract from Boeing. Our performance and reliability are leading to follow-on contracts. Redwire also continues to advance the ROSA technology to power other space flight platforms and missions such as for the power and propulsion element for NASA's Gateway and for Astrobotics LUNAR vertical solar array. Turning to Slide 9. During the second quarter of 2023, Redwire provided advanced engineering services and payload deployment expertise for the Bolt Rocket from Crossbow systems their next-generation launch vehicle. Redwire developed and delivered four key components: the launch vehicle structure, separation system, launcher interface and ground support equipment. In addition, Redwire provided vehicle integration, launch and post-flight recovery services. The technology supporting this mission was developed by Redwire's team in Albuquerque, New Mexico, and this is the second successful mission that Redwire has supported with Crossbow systems and their suborbital rocket. Please turn to Slide 10. Also in Q2, Redwire had three successful experiments returned from the International Space Station. Materials from our PFMI-ASCENT ample space Maker Health and Plant Habitat 3A investigations will return to the respective researchers on earth for further study. These are excellent examples of the continuous cycle of in-space payload development and operations that Redwire is known for. Please turn to Slide 11. Finally, space is a multinational endeavor, and Redwire space is a global leader in international space missions. In the second quarter of 2023, Redwire's International berthing and docking mechanism or IBDM, successfully completed its first round environmental testing. The IBDM is the result of an extensive research and development program and was designed to overcome the limitations of conventional docking systems and to be highly versatile, resilient, high performance and low impact. It is fully computer controlled and designed for use with both large mass and very lightweight spacecraft. The IBDM will soon complete further testing with the goal of having a fully qualified system by the end of the year. We believe that the IBDM is the docking system for the next generation of space infrastructure, and as of the end of Q2, we have over $60 million of identified opportunities in our current year pipeline associated with this remarkable system. Please turn to slide 12. Speaking of pipeline, our bookings during the second quarter were $45.6 million, an increase over our contracted awards for the first quarter of 2023, which totaled $29.7 million. Our last 12 months book-to-bill ratio was 1.49 times as of Q2 2023. Finally, as you can see on the right-hand side of this slide, our contracted backlog has increased 68.3% since June 30 of last year to a contracted backlog at the end of Q2 2023 of $272.8 million. Growth and contracted backlog is one factor that gives us confidence in our future growth and stability. We continue to have a healthy pipeline with an estimated $3.7 billion of identified opportunities, including $512 million in proposals submitted and currently under review by our customers. Please turn to slide 13. Not only did Redwire achieve positive adjusted EBITDA and free cash flow during the first two quarters of 2023, we did so while continuing to invest in our future growth. During the year-to-date period ending June 30, 2023, we have made $2.5 million in capital expenditures. Examples of capital expenditures during the quarter include spend on our first-of-its-kind radio frequency test chamber in our Longmont, Colorado facility to support our rapidly growing space communications business, as well as investments in a trust for solar production in our Goleta, California facility. During the same period, we have also made investments in research and development, totaling $2.5 million, including significant investments in the IBDM. In addition, we have made a variety of corporate investments in systems and infrastructure totaling $1.9 million that flow through the SG&A line. Next, moving to slide 14. Redwire recently announced plans for a 30,000 square foot state-of-the-art microgravity payload development facility with a mission operations center at the Nova Park Innovation and Technology Campus in Floyd County, Indiana. Once complete, this facility will support increased demand for commercial companies and academic researchers focused on improving biopharma R&D, in-space commercialization, and enabling technologies essential for sustainable human space flight in low Earth orbit and beyond. Construction is expected to begin in the fourth quarter of 2023. Clearly, we are demonstrating our ability to deliver in the present while investing in the future. Please turn to slide 15. With that, I'd now like to turn the call over to Jonathan Baliff, Redwire's Chief Financial Officer. Jonathan? Jonathan Baliff: Thank you, Pete. Please turn to slide 16. Similar to last quarter, I will help quantify and expand on a number of the themes that Pete just talked about, including key financial takeaways, starting with the financial quarterly metrics shown on this chart, and then continuing with other quarterly, year-to-date, and last 12-month financial information, and also a brief update to our financial outlook for the remainder of the year. Important points to reiterate in detail for this quarter's financials. One, Redwire's excellence in execution initiatives continue to deliver on our growth promises and our differentiated path to profitability as we scale our business with record quarterly and first half revenues gross profit, adjusted EBITDA and now positive cash from operations and free cash flow. So let's discuss the specifics. We achieved record revenue of $60.1 million in the second quarter of 2023. We achieved our second consecutive adjusted EBITDA quarter since becoming a public company, a positive adjusted EBITDA of $4.4 million in the second quarter of 2023. And as said before, that's an $8.4 million increase on a year-over-year basis versus the second quarter of 2022. This record adjusted EBITDA occurred primarily due to a more than doubling of gross profit year-over-year which we will detail in a few minutes. This excellent progress in gross profit, program management and continued cost controls also contributed to a $71.6 million year-over-year improvement to a $5.5 million net loss in the second quarter of 2023. Second and notably, in Q2 2023, we achieved positive free cash flow for the first time as a public company. That was $1.1 million based on a positive $2.8 million of cash from operations. This is a year-over-year improvement in cash from operations of $7 million and a sequential $16.9 million improvement over the last quarter. Please turn to Slide 17. Specifically for quarterly revenue, as you can see from the chart on the right, and as I said before, we had a $60.1 million revenue stream for the second quarter of 2023 versus $57.6 million for the first quarter of 2023 representing an increase of 4.3% on a sequential basis. And as I said before, this is a 63.6% increase on a year-over-year basis. Excluding revenue contributed by Space NV, our second quarter revenues were $45.9 million, excellent growth of 24.9% on a comparable year-over-year basis. We were able to achieve this in the US businesses due to the significant growth in backlog. More than 85% of our revenue is derived from funded government programs or from global marquee customers who are delivering, for example, in the national security area, LEO commercialization habitation and exploration of space areas to name a few. Finally, on a Q2 2023 full year last 12 months basis Redwire grew revenue at 45.6%, an acceleration of revenue growth from Q1 2023's last 12 months of 33.5% talked about on last quarter's call. Turning to Slide 18. For this year-to-date or first half, Redwire recorded $117.7 million of revenue, which excluding the revenue contributed by Space NV was growth of 31% compared to the first half of 2022. Redwire's first half of 2023 saw 69.1% year-over-year revenue growth across all three primary focus areas, whether it be Space Systems as an integrated space mission enabler, or payloads to explore, live, work and space or with Redwire Europe and our multi-national space leadership. The first half revenue percentage by customer type, shown on this chart also shows the strength of the diversification of Redwire revenue, adjusted EBITDA and cash flow with revenue streams 45.4% from Civil, 33.5% from commercial and 21% from national security customers. Of note, this half, our first half 2023 commercial customer revenues have seen the largest growth percentage, 103.6% year-over-year. And our National Security revenues grew year-over-year by 43.9% in the half versus 9.1% growth in the first half of 2022 and almost five times acceleration of this customer class’s revenue. Please turn to slide 19. Redwire’s path to profitability continued successfully in this quarter, as you can see from the progress made on the chart to the right. With a steady march of quarterly financial improvement in 2022, now continuing in 2023 with Q2 2023 adjusted EBITDA improving $8.4 million year-over-year to a positive $4.4 million. This record adjusted EBITDA improvement was primarily driven by our improvement in gross profit. Our excellence in execution initiatives are showing results, better contract mix, the roll-off of lower margin contracts, better labor utilization, better program management, increased on a year-over-year gross margin basis from 19% to 26.5%, and our year-over-year gross profit grew 2.3 times higher from $7 million to $15.9 million. The adjusted EBITDA improvement was also supported by cost control, with Redwire's second quarter 2023 SG&A expenses at 29.4% of revenue, a significant drop from the 47.8% in the second quarter of 2022. Please move on to Slide 20. Similar to our first quarter, on the left-hand chart, we show free cash flow. As a reminder, free cash flow provides a metric based on our US GAAP cash from operations minus CapEx. As you can see, during the second quarter of 2023, we had positive free cash flow of $1.1 million compared with the first quarter of 2023's use of cash of $14.8 million, a sequential improvement of almost $16 million. On a last 12 months basis, free cash flow also improved 16.5% in the second quarter of 2023. Credit for this goes to the revenue growth and profitability improvements already discussed. But in addition, we had more efficient and effective working capital management over the second quarter and our management continues to be laser focused on this through 2023 and beyond. And remember, this cash flow improvement is after the almost $7 million of first half investments for growth that Pete spoke about earlier and is not dependent on any one solution or any one customer class. On the right-hand chart, we show our available liquidity as of June 30, 2023, which totaled an ample $36.2 million, a nominal change from Q1 2023. This quarter's liquidity is much improved from a year ago, and we continue our path to profitability, and I want to thank all of Redwire's teams for this quarter's results, a total global effort that will continue through 2023 and beyond. I will now turn the presentation back over to Pete to provide a brief outlook for the remainder of 2023. Pete? Peter Cannito: Thanks, Jonathan. Please turn to Slide 22. As you can see from our presentation, Redwire continues to deliver now with strong operational and financial performance while investing in our future, resulting in strong pipeline and future backlog. For these reasons, for 2023, we reaffirm our full year guidance range of $220 million to $250 million, which represents 46% year-over-year growth at the midpoint of the range. With that, I'd like to thank all of the Redwire employees for their hard work and -- on an excellent second quarter and to all our customers for trusting Redwire. We will now open the floor for questions. Operator: And at this time, we will be conducting a question-and-answer session. [Operator Instructions] Our first question comes from the line of Mike Crawford with B. Riley Securities. Please proceed with your question. Mike Crawford: Thank you. Pete, maybe I'd like to start with your -- the numbers you gave for the proposals submitted and under review. So, the dexos $489 million at June 30th, you mentioned $512 million today. Is that accurate that there is a $23 million increase in the first month of the quarter? Peter Cannito: So, I think the -- we'll have to get back to you on that question, Mike. I think it's in that range and we might be confusing year-to-date submitted bids as of certain time period versus the year-to-date. Let me see here. But I'm going to pull up the number real quick. Mike Crawford: Okay. Well, maybe more importantly, you have this $3.7 billion pipeline and -- do you have enough experience at this point to characterize like potential win rate or thoughts on how you're going to turn that into a backlog in the coming year? Peter Cannito: Yes. No, it's a really good question. The answer is essentially no, at this point, we don't have a conversion rate that has enough consistency over time that we're comfortable reporting on. A number of those opportunities, there's some big swings in there, that could, for instance, change any conversion rate I were to give you anyways. So, I think the $3.7 billion really underscores that there's a lot of great opportunities for us to work against. And based on the backlog growth, you've seen we have a consistent enough win rate to include our growth over time here. Jonathan, did you have any additional comments on the $512 million versus $489 million? Jonathan Baliff: Yes, I think that on the $489 million, it's only those submitted during the year. So, $489 million, we just had a cutoff on the year-to-date submitted bids, $512 million includes a few other bids that have been submitted. Mike Crawford: Okay, perfect. And then Jonathan, I know you gave a few of the reasons the drivers of the improvement in gross margin with your excellence and execution, like roll out lower margin contracts, better program management, et cetera. But was there anything particular in the mix in this quarter and last, that led to these really sizable beats versus forecasted margins? And I guess the follow-through is, is that more of a new baseline for what we should expect going forward? Jonathan Baliff: Well, look, Mike, I always appreciate your question in trying to get at basically a projection of what our current gross margins, which we do not publicly give, but let me help you out here. Look, if you look at last year and the nature of a number of EAC adjustments and some program management, really what you've seen, it's improvement across all three focus areas, whether it be enabling space missions, live-work in space or what we call Redwire Europe and international or multinational, all three saw improvement in the gross margins and gross profit, but you really saw it in the space industries or basically the live work in space focus area. You really saw that year-over-year improvement. And that's just due to some new contracts coming on, better program management, fewer EAC adjustments, all the things that I talked about before. I do have to also mention when we talk about cost control, we don't just talk about cost control from the standpoint of SG&A and operating margin. We also talk about within the contracts themselves. And so being able to operate on time and do better on-time delivery of milestones, both helps us from a gross margin standpoint and gross profit and then obviously, from a cash flow standpoint. Mike Crawford: Okay. Jonathan Baliff: Does that help, Mike? Mike Crawford: Yeah, yes. So that was a great job of kind of answering the question, but not really. Jonathan Baliff: Look, look, we told you, Mike, in the past, we're not giving guidance, but we have an intent of getting these margins up, right? We just don't give any guidance, Mike, but we -- you can tell, we're making progress quarter-over-quarter, it's Pete's, direction to all the management team to continue this. It's not going to be an overnight, but you can see the progress. And then you see also the money dropping to the bottom line, which is really the operating leverage coming back into the business as a public company. Peter Cannito: Yeah. I'll just add that the -- again, the key factor is, as I mentioned in the pipeline, we have some pretty big swings. Some of these swings may be cost plus fixed fee for instance. And therefore, the gross margin profit could change based on landing one of these big swings, even though the absolute value of the profit would significantly increase with scale. So there's a number of different trade-offs that happens when you're kind of building a complex mix of programs like we are and an outsized cost plus fixed fee could be for -- is an example of a one of the reasons we're reluctant to put a mark on the wall for a gross profit margin. Mike Crawford: All right. Thanks, Pete. And I guess I have one closing kind of bigger picture question on if you look at space systems, space industries, multinational, is there one of these addressable markets that is most attractive, or are there different potential margin characteristics for any of those three, I wouldn't call them segments, but areas of focus? Peter Cannito: No, it's really about the portfolio effect in this instance. They each bring something to the table. Obviously, some of the focus areas are growing faster than others. Some have provide more scale. Others are really important for the future. Certainly, there's different growth rates occurring internationally versus the US market and the US market, as you saw from the percentages that Jonathan presented, you have a number of different dynamics in civil national security and commercial as well. So what's really, I think the important part is that each area of focus brings something to the portfolio that makes the whole come together in a really resilient, stable of growing way. Mike Crawford: Okay. Thank you. Thank you very much. A –Peter Cannito: Thank you, Mike Operator: Our next question comes from the line of Greg Konrad with Jefferies. Please proceed with your question. Greg Konrad: Good morning. I'm just going to… Peter Cannito: Greg, how are you? Greg Konrad: Good. How are you doing? Just got a follow-up on margins, not expecting an answer, but just coming at it a different way. I mean, you mentioned some of the variability around mix going forward. But I mean, when you think about the second half of the year, is there at least a baseline to maintain positive EBITDA. And if we do think about the biggest swings, is that more on the COGS line, or is there some variability around just thinking about OpEx spending. Peter Cannito: Yes. No, in terms of the margin mix, it's -- or the margins, it's really a function of the product mix and the type of contracts that we win as we scale. In terms of on what I call gross margin discipline, that's an area that we've been putting a lot of focus on, we've demonstrated as part of our excellence and execution initiative, the ability to continue to make great headway there, and that is our intention to continue that going into the future. Jonathan, do you want to add a thing Jonathan Baliff: Yes. The only thing I would add is, we continue to see improvement on the SG&A margin line. The SG&A margin line this quarter, still much better on a year-over-year basis. But this quarter, more than any other, we had a lot of investments in SOX, ERP that find its way into that SG&A line. So we really did see on a run rate basis our SG&A margin go down sequentially quarter-over-quarter. But it looks a little higher, but really, we had some specific investments is what I would call them, the one-offs. But we include and we don't try to say that they're not SG&A and do some adjustments. So that's why you're seeing that. But I think that we're -- once we continue to win these bigger projects and revenue, you're going to see that stay fixed on an absolute basis, and that's where operating leverage comes. On the gross margin basis, again, I know you're asking a specific question about the future. We really have an intent to keep this gross margin moving from the standpoint of being able to continue the past excellent on-time delivery, better on-time delivery, better programs that have higher margins. So we're going to continue -- that's an intent. We just don't give a guidance towards it, Greg, but I do, hopefully, you're getting a sense of what we're trying to do here. Greg Konrad: I mean there's been great momentum. And then, I mean, just switching to the outlook for the top line for the year. If we kind of take the midpoint of the guide, it's kind of a sequential flat in H2 versus Q2 levels. What is the variability? Is it the supply chain? Is it orders that you expect coming in? Is it capacity? Just how are you kind of thinking about revenues at least near-term? Peter Cannito: Yes. So it has to do with the size of orders and the timing of orders. As you know, in this industry, it can be very difficult sometimes to predict when, for instance, a government award occurs, so I would say that the majority of the uncertainty is about timing associated with awards. Jonathan Baliff: Yes. And just -- no, again, we want to be prudent in our guidance and sticking with that, we're halfway through the year. We're proud of what we've been able to achieve, team has done a great job executing. But like Pete said, it can be lumpy, but we're just trying to be prudent. Greg Konrad: And then just last one, I mean, in H1 Commercial led the increase. I'm not sure if -- how much of that is organic versus inorganic. But have you seen any broader changes in the Commercial realm. I mean, there's obviously a little bit of volatility around funding, before and some other items. Just can you talk about the broader trends in the commercial business? Jonathan Baliff: Yeah. I mean, I think you hit on it, and it talked a lot about in the news. Commercial is growing fast. There's a significant amount of opportunity there, but Redwire's emission enabler had some exposure to customers receiving their funding as well. So, depending on the funding profile of our customers, obviously, that trickles down to us as well. But overall, there's still a lot of enthusiasm around the Commercial segment of the market. And we believe that trend will continue overtime. We're also seeing a lot of breakout Commercial successes as well, that is leading to some tailwind. And then, while we're on the topic, I'll just I'll point out and reemphasize one of the areas we're excited about in the National Security area, which happens to be the area that's growing or accelerating the fastest as part of our growth. There's certainly a significant amount of opportunity emerging in National Security as well. And we think that Redwire based on some of our security infrastructure and contracts has a real opportunity to capitalize on those trends. Peter Cannito: Thank you. I mean just -- yeah, I mean, just to emphasize, without Space nv just asked to answer a specific question, we saw 31% growth without Space nv on a first half basis. And on an LTM basis, as you know, we saw 45.6% growth. And so we're making progress. That's the way I can say. Greg Konrad: Thank you. Operator: Our next question comes from the line of Suji DeSilva with ROTH MKM. Please proceed with your question. Suji DeSilva: Hi Peter. Hi Jonathan congrats on all the progress here. Peter Cannito: Thank you very much, Suji. Jonathan Baliff: Thanks. Suji DeSilva: Sure. So first of all, I just want to try to distinguish in the pipeline. Maybe this is a follow-up to some of the ask questions. The $500 million of contracts submitted versus the multibillion-dollar pipeline. And when you submit the proposal, does that give you some level of understanding of the timeframe for the award, or should I refer back to your prior comments here, Jonathan, where that is one of the most uncertain parts are kind of running the revenue line? Peter Cannito: Yeah. No, we don't control the timing of the award. So it can be highly variable. Government contracts are notorious for being awarded late. It can be a continuing resolution. Some it can be a protest. There's a lot that goes into the timing of these awards. So it's very difficult to predict. Suji DeSilva: And again… Jonathan Baliff: Yeah. I just think of note… Suji DeSilva: Go ahead Jonathan. Jonathan Baliff: No, I'm just making note, when you compare it to the last quarter, the pipeline has moved up almost $300 million from $3.4 billion to $3.7 billion. So we're seeing more coming through the pipeline. But as Pete said, the timing is something that we think long and hard about and be prudent about what we can predict. Suji DeSilva: Yes. So just ask a question a little more simply. I mean, is it reasonably expect that the one when you submitted a contract that will be awarded within the next 12 months, or is that not a reasonable way to think about it? Peter Cannito: So I would just repeat that the government has a number of things that they have to deal with as well as our commercial customers to include their financing. So it's very difficult to predict. Yeah. Yeah. I mean, I would think if I was going to try to focus on something, I'd focus on the backlog. We've had excellent growth in our backlog. We're very proud of that. Our team has done an extraordinary job in winning the confidence of our customers to increase that backlog. And that's where I would look to in terms of that reliable revenue moving into the future. Suji DeSilva: That's helpful, Peter. It's been a great execution on the backlog. And maybe you can, second question, do you focus on the national security part of the business? There's been a lot of talk, you know, to date about launch and about satellites and Earth observation. I just want to understand Redwire's sort of offerings to national security because that may be kind of highlight, have been, may have been highlighted a little less in the last few quarters. So be curious what the opportunities are there. Peter Cannito: Yeah, it's, we have interest across our entire portfolio mix from the national security segment of the market. It's not so much I would focus on which products they're interested in, specifically in list offerings, because it's pretty much across the board. What I would focus on is that RedWire has unique security infrastructure and personnel clearances and contracts, quite frankly, that if you follow the government contracting industry, you know that you have to have contracts that have documentation that allows you to participate in more classified work, and we have those elements as part of our business. So when I talk about the accelerated growth and when you see the accelerated growth, I think it's more a reflection of the fact that we're a trusted company that has that barrier to entry, if you will, in terms of the ability to work on some of the government's most sensitive space programs. Does that make sense? Suji DeSilva: Yeah. Absolutely. It's a very helpful perspective. And then maybe lastly, you cited the 85% government marquee customer data point in the presentation. I'm just curious, you know, does that make expect to the change next one to two years or stay roughly there? And maybe you could just kind of help us understand the 15%, are there large customers that you could cite in that to understand how that can grow or is that diversified across a lot of emerging customers? Thanks. Peter Cannito: I'll ask you to repeat the last part because I didn't totally get that, but let me jump on the first part first. You know, all of our mix, one of the exciting things that I like to talk about Redwire is that we hit above our weight class in terms of the opportunities that we're pursuing in the pipeline, right? So sometimes you have the potential to have really large wins in a particular area of the business that can have an outsized impact on our base, if you will, which is awesome and really exciting about Redwire, because these big swings are the kinds of things that are fueling our growth. However, at the same time, it makes it difficult sometimes to make bold predictions about a variety of different mixes like national security. We may be growing or any one of the different segments or even sometimes your gross margins as I referenced in this idea of that a very large cost plus fix fee win could change our profile there. So you might have an instance where you might have an increase in the number of wins in the commercial segment, except for the smaller dollar amounts compared to, say, a large -- very large single win in say, the civil or national security space, and that could again change these numbers. So, we like the mix. I think the most important thing to us is that we're operating across all these different areas successfully, and that gives us a lot of resilience and stability regardless of what the market is doing. Sometimes, when the commercial slows down due to maybe access to capital, we have really great stability associated with increases in national security growth. Civil is always there. Europe is one of the areas we're particularly excited about because they are really growing their budgets over there. So that gives us additional stability and resiliency in that portfolio effect I talked about earlier as well. I didn't understand the second half of the question about the 15%. What was that in reference to? Suji DeSilva: Sure. Yes, Peter, I think you answer one extent. The remaining 15%, whether it's across many smaller customers or whether there's one or two large customers dominating that portion? I think you already said it was relatively… Peter Cannito: Got it. Jonathan Baliff: Let me just -- I mean, I'm going to bolt on to that because when you look at the customers that we're doing current bids for, you have 85% that are marquee and government and we're pretty specific about how you get into that bucket. The other 15%, these are actually many of them very, very large customers, too, right? And when you look at the $489 million of bids this year, those are submitted to date. There's the 512, there was a little bit of residual coming out of 2022 that adds to that 49%. But the bottom line is that 15% are still really quality customers, too, right? Suji DeSilva: Got it. Great guys. Thanks Appreciate the details. Operator: And we have reached the end of the question-and-answer session. I'll now turn the call back over to Peter Cannito for closing remarks. Peter Cannito: Thank you, very much. I'd like to thank everybody for those outstanding questions. I'd like to really thank the team for another great quarter. Thank all of our employees and customers for the exciting work we do every day. Like I mentioned, we're really excited when a customer like NASA and trusts us with a really incredible program like the Mason program to build roads and launch pads on the moon. Again, that's what we're all about here at Redwire, and we appreciate everyone's time today, and thank you for listening. Go Redwire. Operator: And this concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

Operator: Greetings, and welcome to Redwire's Corporation Q1 2023 Earnings Call. At this time, all participants are in a listen-only mode and the floor will be open for questions, following the presentation. [Operator Instructions]. As a reminder, this conference is being recorded. At this time, it is my pleasure to turn the call over to Jeff Zeunik. Sir, the floor is yours. Jeff Zeunik: Thank you, Karen, and good morning everyone. Welcome to Redwire first quarter 2023 earnings call. We hope that you've seen our earnings release, which we issued yesterday afternoon. It has also been posted in the investor relations section of our website@redwireSpace.com. Let me remind everyone that during the call, Redwire Management may make forward-looking statements that reflect our beliefs, expectations, intentions, or predictions of the future. Our forward-looking statements are subject to risk and uncertainties that are described in more detail on slide two. Additionally, to the extent we discussed non-GAAP measures during the call, please leave slide three, our earnings of our earnings release or the investor presentation on our website for the calculation of these measures and non-GAAP reconciliations. I am Jeff Zeunik, Redwire, Senior Vice President of Financial Planning and Analysis. Joining me on today's call are Peter Cannito, Chairman and Chief Executive Officer, and Jonathan Baliff, Chief Financial Officer. With that, I would like to turn the call over to Pete. Pete? Peter Cannito: Thank you, Jeff. During today's call, I will take you through a discussion of our key accomplishments in the first quarter of 2023, followed by Jonathan who will present the financial highlights for the same period. We will also discuss our continuing outlook for the remainder of 2023, after which we will open the floor for Q&A. Please move to slide six. Before we get into the details, as I did last quarter, I'd like to start with an overview of Redwire's, high level positioning in the Space industry. Redwire is an integrated pure place Space infrastructure company with mission solutions and payloads for civil, commercial and national security Space customers, and our mission is to accelerate humanity's expansion into Space by delivering reliable, economical and sustainable infrastructure for future generations. With decades of proven flight heritage combined with innovative products and culture, Redwire is uniquely positioned to assist our customers in solving the complex challenges of future Space missions and industries. Redwire has three primary areas of focus that form our business, number one, as the fully integrated mission enabler Redwire is empowering Space mission providers such as government agencies and large prime contractors with a broad portfolio of Space, infrastructure systems, subsystems and components that can be proc -- that can be procured either as a single item or in a tailored bundle for maximum supply chain efficiency. In addition to efficiency, this scalable model is currently solving some of our customer's most critical supply chain issues by providing resiliency and reliability. Number two, providing the infrastructure and technology needed for people to permanently explore live and work in Space, increasing our understanding of the Moon, Mars and beyond, as well as developing breakthrough commercial technologies for the benefit of life on earth that can only be produced in microgravity. This area is generating real revenue and gross profit today. And lastly, supporting multinational access to Space for countries that recognize Space as a unique opportunity to build national prestige and accelerate economic development. We continually demonstrate our commitment to and expertise in our three key areas, focus areas in a variety of ways, such as by having Redwire products on two launches in Q1, having developed 20 research facilities for the ISS with 10 currently operating on the ISS to deliver world leading research. Possessing well over a hundred years of flight heritage across our various legacy business -- businesses and growing to over 700 employees at 10 facilities in both the United States and Europe. Please turn to slide seven. The first quarter of 2023 was another record quarter for Redwire. Our revenues of $57.6 million were the highest of any quarter-to-date. We achieved positive adjusted EBITDA of $4.3 million, an improvement of $5.1 million versus the fourth quarter of 2022. An improved our net loss to $7.3 million, a significant improvement from the same period last year. More on that in a moment. We entered the quarter with contracted backlog of $286.8 million as an administrative note. Starting with this quarter, we have switched from focusing on total backlog, which included both contracted and uncontracted backlog to simply reporting contracted backlog. There was no change in our calculation of contracted backlog from previous reporting, and we made this change to simplify reporting and increase comparability of the company's performance metrics with industry peers. Notably in this quarter, we also launched three solutions on two launches, continuing our proven track record of delivering real flight heritage. Please turn to slide eight, Beating our previous record in the last quarter of 2022, Redwire's revenue growth achieved a new record record level of $57.6 million during the first quarter of 2023. Year-over-year compared with the first quarter of 2022 Redwire's. Total revenue grew by 75.3% and on a sequential basis, we grew Redwire's total revenue by 7.3% over our previous record revenue in fourth quarter of 2022. Notably, even if you exclude revenue contributions from our acquisition of Space, NV Redwire revenues grew by 37.9% year-over-year, which demonstrates strong performance from our baseline operations in the same quarter last year. Please turn to slide nine. Although strong revenue growth is very positive, we are not solely focused on top-line growth. We are also focused on profitable growth. As such, we are pleased to report we have achieved a year-over-year improvement of net income on the order of a $10 million positive move to the upside as our losses decreased from a $17.3 million net loss in the first quarter of 2022 to a $7.3 million net loss in the first quarter of 2023. Moving to adjusted EBITDA, I am very pleased to report that our adjusted EBITDA has increased by $9 million on a year-over-year basis. For this first quarter of 2023, we generated an adjusted EBITDA of positive $4.3 million versus a negative $4.7 million adjusted EBITDA for the first quarter of 2022. Achieving positive adjusted EBITDA for the first time as a public company is an important milestone and an outstanding accomplish on both an absolute and percentage growth basis and has given us significant financial momentum heading into the remainder of 2023. Please turn to slide 10 now. Let's move beyond the numbers to continue to emphasize that this financial performance is driven by our proven ability to deliver differentiated solutions for our customers. Slide 10 to 15 share just a few examples of successes in the first quarter of 2023 that highlight the importance of our capabilities. For example, in Q1, the U.S. Space Force and SpaceX launched the GPS II SV-06 satellite from Cape Canaveral, Florida with two complete Redwire fine sensor -- fine sun sensor systems of or each sensor consisted of four fine sun sensor heads and two processor electronics. Redwire sun sensors are key navigational tools that provide sun acquisition, solar array pointing and fail safe recovery options for GPS II SV-06 as it orbits, 12,550 miles above the surface of the earth. Redwire has been a key supplier of critical sun sensors for more than 50 years, and this technology has enabled more than 70 NASA emissions. A clear example of our incredible Space heritage. Please turn to slide 11. During the first quarter of 2023, Redwire delivered two more Rosa wings, numbers five and six to Boeing to be launched on an upcoming commercial resupply mission to the International Space Station. Today, four Rosa Wings have been launched and installed and are operating efficiently and effectively. With the addition of Wings five and six, the overall power generating capability of the ISS will be improved by 20 to 30% a substantial increase. Rosas are not only used for the International Space Station. Redwire is also producing various modular versions of ROSA for many government and commercial Space flight applications, including the power and propulsion element for NASA's gateway program, Please turn to slide 12. As I mentioned at the beginning of this presentation, Redwire is a leader when it comes to developing breakthrough commercial intellectual property for the benefit of life on earth that can only be produced in microgravity. As an example, we are currently managing research and microgravity to discover a new type of electronic system during Q1, 20 days of on orbit. Experiments were completed with the Redwire managed poor Formation and Mobility investigation facility as part of the asymmetric Sawtooth and cavity enhanced Nucleation, Driven Transport investigation or PFMI ascent. The findings of the PFMI Ascent Space Physics study will help with the design of passive cooling systems for Spacecraft electronics, which are often limited by available Space and electric power and for consumer electronics here on earth. The five experiments that have been completed on orbit represent the first half of the PFM I Ascent investigation. Please turn to slide 13 as we enter a new era of Space exploration and commercialization. Redwire is a leader in developing inspirational content with commercial thought leaders to inspire future generations. As an example, Redwire is collaborating with Microsoft to create a unique learning opportunity inspired by Marvel's Studios Guardians of the Galaxy Volume three, to engage students in science, technology, engineering, the arts and mathematics topics, including 3D printing for future Space exploration and microgravity R&D and manufacturing for the benefit of humanity. In conjunction with Guardians of the Galaxy Volume three, Redwire and Microsoft have produced an engaging educational video to motivate the next generation of astronauts, engineerings -- engineers and scientists. In addition, through a sponsorship from the ISS National Laboratory, Redwire and Microsoft intend to 3D print a Microsoft Zoom on the ISS using Redwire's additive manufacturing facility to illustrate Space Space-based manufacturing in an engaging way. Redwire has manufactured more than 200 parts in Space and is the only company currently providing commercial 3D printing on the ISS Redwire was the natural choice to 3D print Star Wars zoom. On the right side of this slide, you can see our guardians of the Galaxy STEM promotional patch featuring Cosmo and Rocket from the movie, as well as a highly visible digital cube display in Times Square in New York City promoting the Marvel, Microsoft, and Redwire team. It is important to note that this effort was not a paid promotion by Redwire, but rather we were a paid partner as part of Microsoft's plan to leverage the power of Space in their branding. We believe this is an excellent template for future Redwire offerings to provide Space based branding content for other commercial partners. For more information on this effort, please visit zoom.net. Please turn to slide 14. Space is a multinational endeavor and Redwire Space is a global leader in international Space missions. In the first quarter of 2023, Redwire Space Europe, fully integrated two European Space Agency Proba three Spacecraft that will perform the world's first precision formation flying mission. In the Proba-3 mission, two small satellites will launch together and separate in maintaining a specific distance and working as one unit as they orbit around the earth. On this program, Redwire is building and integrating the satellites themselves to include developing the onboard computer and advanced avionics. This mission is important, improving orbital formation, flying technologies and rendezvous experiments for future science, astronomy, and earth observation missions that will require satellites to seamlessly cooperate on orbit. Please turn to slide 15. Next, I'd like to highlight a Redwire Space Europe project that kicked off during the first quarter of 2023, a 3D bioprinting system. We have discussed Redwire's NASA funded biofabrication facility on previous earnings calls, but this is a completely different mission funded by the European Space Agency. Redwire Space NV was awarded a EUR14 million contract to design, develop, and qualify the 3D print -- the 3D bioprinting system. System will leverage the latest 3D bioprinting technologies to provide a modular, powerful and unique system to sustain a large number of experiments. With the 3D bioprinting system, Redwire is expanding its leadership of in-Space manufacturing and bioprinting on the International Space Station for exploration and improving life here on Earth. Please turn to slide 16. Turning back to the numbers, our bookings during the first quarter were $29.7 million. However, as a reminder, our contracted awards for the fourth quarter of 2022 totaled $91.2 million. It is important to note that Redwire's bookings are typically lumpy and the first quarter historically is usually the lowest of the year, using a longer period of measure to smooth out the lumpiness. As of Q1 2023, our last 12 month book to bill ratio was 1.6. I'd like to point out that during the first quarter of 2023, Redwire made two changes with respect to our key performance indicators. First, we changed to using contracted backlog only. Second, we changed the book to bill calculation to present this metric on a last 12 months or LTM basis, whereas prior period disclosures were presented on a year-to-date basis. We believe these presentation change changes will provide meaningful insights and to contract award trends and increased comparability of the company's performance metrics with industry peers. Finally, as you can see from the bar chart on the right hand side of this slide, our contracted backlog has more than doubled since March 31, 2022 of last year to a contracted backlog at the end of Q1 2023 of $286.8 million. This 108.8% growth in contracted backlog is one factor that gives us confidence in our future growth and stability. With that, I'd now like to turn the call over to Jonathan Baliff, Redwire's Chief Financial Officer. Jonathan? Jonathan Baliff: Thank you. Please turn to slide 17. Before we begin the financial section, I'd like to highlight the picture shown on slide 17. This is the Redwire managed plant habitat zero three experiment on the ISS. The ability to grow fresh crops in Space will be critical for exploring, living and working in Space. One of the three focus areas for Redwire that Pete talked about. Redwire's doing critical work now earning revenue and gross profit now to support Space industries including the agricultural industry in orbit. Please turn to slide 18. Similar to last quarter, I will help quantify and ex expand on a number of first quarter 2023 themes that Peaches talked about, including one key financial takeaways, starting with quarterly revenue here on the right hand chart, and then continuing with other quarterly financial information and two, a brief update to our financial outlook for the remainder of the year. Key points to reiterate in detail for this quarter's financials, one, Redwire's excellence and execution initiatives continue to deliver on our promise and path to profitability as we scale our business with record revenues and record gross profit, we are providing our government and marquee customers with critical proven and differentiated Space infrastructure and payloads from the Rosa Wings, the GPS II SV-06 sun sensors to the PFMI Ascent and 3D BIOSYSTEM facility. These and other solutions, digital engineering and payload created in our over 300,000 square feet of facilities by our outstanding team members across the globe drove this first quarter 2023 revenue and gross profit growth. Two, first quarter 2023 saw our first positive adjusted EBITDA quarter since becoming a public company and record positive adjusted EBITDA overall. In the first quarter of 2023. Redwire has continued to win and deliver on more profitable contracts to more than double gross profit, but we are also doing this more efficiently as we drove more operating leverage into the business with absolute and percentage reductions in operating expenses and SG&A this quarter. Turning to revenue, as you can see from the chart on the right, we had $57.6 million for the first quarter of 2023 versus $53.7 million for the first, for the fourth quarter of 2022, representing an increase of 7.3% on a sequential basis. On a year-over-year basis this represents 75.3% increase over revenues of $32.9 million in the first quarter of 2022. On a last 12 months basis, we also grew at a rate of over 33%. Importantly, excluding the revenue contributed by Space NV. Our first quarter revenues were $45.3 million, a comparable 37.9% increase over Q1 2022 revenues. It almost 40% growth is an important milestone as historically the first quarter has generally been a lower revenue growth quarter. We were able to achieve this in the legacy US businesses due to the significant growth in backlog, not just due to the excellent partnership and acquisition of Space nv, as you'll see on the next slide, but also as our government business expanded. Over 85% of our revenue is derived from funding governed funded government programs or from global marquee customers who are delivering in the National Security LEO Commercialization and Habitation and Exploration of Space Domain. Please turn to slide 19, continuing with revenue, this is our year to date revenue slide for fiscal year 2023, so given it is our first quarter, the growth is identical to the previous slide, but let's discuss the makeup of that growth. First, Redwire saw year-over-year revenue growth across all the three primary focus areas, whether it be Space systems as an integrated Space, mission enabler, or payloads to explore live and work in Space or with Redwire Europe. With our multinational Space leadership, all focus areas saw growth year-over-year from a customer's perspective. Again, all customer types, national security, civil and commercial grew on a year-over-year basis. To remind you on the call of these types, civil customers are with civilian Space agencies like NASA, ISA or the Luxembourg Space Agency. National Security Revenue is derived from U.S and allied countries defense or security departments and ministries like Space Force, SDA, and Air Force Research Labs. Finally, commercial revenue is derived from predominantly large marque global prime aeroSpace systems and service providers, and it's important to note that this commercial type of revenue is mostly derived from funded government programs that ultimately face a national security or civil Space entity. Of note for this quarter, our commercial revenues have seen the largest percentage increase more than 129% year-over-year, so our customer diversity is balanced, especially now that our customer types include a larger portion globally. Please turn to slide 20. Revenue Redwire's path to profitability continued successfully in this quarter, as you can see from the progress made on the chart on the right with a steady march of quarterly financial improvement in 2022, now continuing in 2023 with growth, we discussed on the previous slides leading to more profitable growth over the past year. Under U.S GAAP, we had a significant improvement, $10 million improvement from a net loss of $17.3 million a year ago to a net loss of $7.3 million during the first quarter of 2023 and sequentially we improved even more compared to the fourth quarter of 2022. We also saw our quarterly adjusted EBITDA improve $9 million year-over-year to a positive $4.3 million, an improvement of 193% and sequentially this positive $4.3 million was an improvement of $5.1 million over the fourth quarter of 2022. This adjusted EBITDA improvement was primarily driven by our improvement in Redwire gross profit. Our excellence in execution initiatives, the roll off of lower margin contracts, better labor utilization, better program management and cost control increased our year-over-year gross margin from 15.7% to 24.7% with our year-over-year gross profit, nearly three times higher from $5.2 million to $14.2 million. The adjusted EBITDA improvement was also supported by being more efficient with our indirect operating expenses. First quarter Redwire SG&A year-over-year improvement occurred on both an absolute and percentage of revenue basis. Absolute SG&A declined 23.4% from $21 million in the first quarter of 2022 to $16 million in the first quarter of 2023, and now stands at 27.8% of revenue. This represents a significant drop from Redwire's first quarter of 2022 SG&A margins. Please turn to slide 21 similar to our fourth quarter. On the left hand chart, we show free cash flow. As a reminder, free cash flow provides a perspective based on our operating cash flow and CapEx unadjusted for one-time items. As you can see, during the first quarter of 2023, free cash flow consumption increased to a use of cash of $14.8 million compared with the fourth quarter of 2020 twos $5.5 million. Although we saw a significant improvement in our profit and loss statement, the sequential increase in free cash flow consumption was driven by historic increase in networking capital driven by our top line growth and given the significant backlog growth going into 2023. And this quarter's consumption was very different from last year's as the cash consumption was attributable last year to losses due to a significantly lower gross profit and much higher SG&A. This quarter's networking capital build was the primary result of growth in our contracted assets and decrease in our deferred revenue, and since the end of March, we are seeing much less cash consumption with a notable reduction in networking capital. Redwire's management remains very focused on improvement trend in our free cash flow as we execute on the revenue growth conversion of our $287 million of contracted backlog. On the right hand chart, we show our available liquidity as of March 31, 2023, which totaled $36.3 million. This quarter's liquidity is much improved from a year ago as we continued our path to profitability, and again, since the end of q1, we are seeing much less cash consumption with a notable reduction in networking capital. Finally, given our improved financial position, especially our improvement in gross profit in adjusted EBITDA and effective May 1, the company met the requirements to end the incremental 2% pick interest required under our credit facility with Adams Street Partners. This achievement saves significant expense and is a direct result of the global Redwire team's commercial and operational successes. Leading to an excellent start to the year that Pete and I have been discussing throughout this call. I will now turn the presentation back over to Pete to provide a brief outlook for the remainder of 2023. Please turn to slide 22. Peter Cannito: Thank you, Jonathan. Please turn to slide 23 for a brief reminder of the outlook for the remainder of 2023. Our most recent first quarter was a strong start to the year. As a result for 2023, we affirm that we expect our full year revenue to be between $220 million to $250 million, which represents 46% year-over-year growth at the midpoint of the range. With that, I'd like to thank all of the Redwire employees for an excellent first quarter. Thank you for all the hard work you do across the world every day to accelerate humanity's expansion into Space. Go Redwire. Thank you, and we will now open the floor for a question. Operator: Thank you. [Operator instructions] we'll take our first question from Mike Crawford from B. Riley. Please go ahead, Mike? Mike Crawford: Thank you. Just to, to start off where we, where we left off, I was hoping we could go a little bit further into your outlook where you're talking about better program management, cost control and increased gross margin and you expect gross margin improvement during the year, but do you expect, I know there's a big range of products with like star sensor, sun sensors on the, on the lower side and Rosa on the higher side, but what more can you tell us about gross margin percentages that you're targeting directionally for the rest of this year? Maybe we could start with that. Peter Cannito: Here you go. Hey, Mike, how are you? The thanks for your question. So that was a lot. So, I'll just go to the gross margin part cuz I think that was the, the, the sense of it is, yeah, as you can see we're significantly improving our gross margin over time, and some of the reason for this is if you think about the history of Redwire, one of the built-in systemic efficiencies that we're able to achieve is to take a lot of the companies that were previously small businesses and inject more programmatic discipline, better systems through things like ERP implementations and taking a hard look at the gross margins and the pricing power that we can achieve by going to market in integrated bundles and things like that as a much larger company. So all of those different improvements are what you see happening in gross margins to date and the improvements that you see there. And then we expect to continue to be able to improve on those gross margins as we continue into the future. And that's essentially the plan because I'll, I can tell you some of the really unique technologies that we have that are highly differentiated, like you mentioned, Rosa have increasing pricing power in the marketplace and are gaining much wider adoption now that we have so many wings on the iss. Jonathan, anything you want to add to that? Jonathan Baliff: I would just say, we, we improved our gross margin from $15.7 to $24.7. I would say that level of improvement is aspirational. Mike, I know you want a specific number, but we do believe we can start moving this gross margin, into from, not just from the mid twenties, but higher than that. It's just from a timing standpoint, just being able to do that in three, four months, it takes, it takes a number of months to do it, but we have an intent to do it. We're seeing the performance improvement, this is a 65% improvement over gross margin even last quarter. I just wanna warn you that being able to get that level of improvement on a quarter over quarter basis is more aspirational. I do believe we can get there just, I wouldn't want to put it all in 2023. Mike Crawford: And, and, and to that end, I I I do know there's a, a wide variant in margin on different products that you're delivering, and so it's not necessarily gonna be a straight line, is that correct? Jonathan Baliff: That's right, Mike. when we look at it, it's a bit of a product mix but I would say across all of our focus areas, whether it be enabling Space missions and Space industries, with the payloads and then Europe, we're improving margins across, across the board because of the excellence in execution that Pete talked about. And so, in certain areas you're seeing, multiple, four or 500 basis points of margin improvement. And as we again see the roll off of older contracts that people that Pete talked about, you just start to see that positive impact create kind of a virtuous cycle. Mike Crawford: Okay. And just one, one more on this if you don't mind. I, I think you mentioned 300,000 square feet of Space a lot of that manufacturing, and how much room does Redwire have to grow before you have to have significant CapEx, which was, hundred million dollars in the quarter? Peter Cannito: Yeah, no, great question. No, I I think that there's a healthy amount of growth in that Space that's already out there. As a lot of our facilities in ca not necessarily our facilities, but our capabilities that would otherwise be CapEx is paid for by customers in many cases. And because we've really acquired a lot of significant in place capabilities. I think we're, we're we have what we need to achieve the goals. We've we've outlined for 2023. Mike Crawford: Oh, okay. Peter Cannito: One of the reason we're seeing margin improve. Yep. One of the reasons we're seeing margin improvement is we're efficiently using these facilities. Mike Crawford: Oh, okay. And again, I, I do reference the question with, I know there's a, there's a mixed issue on revenue, so you can't answer, specifically regarding EBITDA, but I would think it's fair to assume a steady walk higher on SG&A now as opposed to those not going down further from here? Peter Cannito: So the SG&A, there's still opportunities to continue to improve on our sg and a as a percentage of revenue. So in an absolute basis, as revenue grows, of course, SG&A will grow as well, but we're very focused on maintaining SG&A in a level commensurate to our revenue that achieves our overall profit objectives. I think the, the, the broader idea is, would be within sg and a of the swing in internal research and development and how much we spend on that, that that will be more variable based on the number of opportunities that we have that present themselves throughout the year. Operator: Thank you. And we'll take our next question from Greg Konrad from Jeffries. Please go ahead, Greg? Greg Konrad: Good morning and, on a great quarter. Maybe not to continue the, the last set of questions, but, but obviously, EBITDA was, was very strong in the quarter. I mean, you, you talked about some of the drivers, you had the EACs last year, in some mix. I mean, how are you thinking about just sustainability on an EBITDA perspective just given tailwinds headwinds through the year? I mean, should we expect, to, to remain positive on, from an EBITDA perspective for the rest of the year? Jonathan Baliff: So again, just to kind of expand a little bit more on the the last question. So there's a fair amount of efficiency that we can continue to pull out just through excellence in execution. And that is kind of our broad nomenclature for this idea of enhancing our delivery systems through a more disciplined approach than perhaps some of the legacy organizations and some of the legacy projects that comprised Redwire as we came together over the last couple years. So there's a, there's amount of profitability that we can pull out of that. And that of course is typically tied to the EACs. However there's also what we, what we are doing from a strategic perspective, because when you look at our growth rates, 30% plus growth rates is, there's a lot of demand out there on the marketplace that we don't wanna miss out on if it required some sort of IRAD investment. So the swing factor in EBITDA for us is is going to be steady increases in efficiencies, but throttling up or down IRE based on the opportunities that are presented throughout the year. Does that make sense? Greg Konrad: Yeah. I mean, so, so there's some variability when you, when you think out in, in the plan based on, internal actions which Correct. Are gonna be a little bit harder to forecast. Just thinking about the revenue and, and obviously the last couple of years have been weird, but typically there, there's some sequential build through through the year, and if I just look at the midpoint of your revenue outlook, it, it kind of implies that revenues are kind of, flash sequentially through the year. obviously on the a, a good q1. Are there any puts or, or takes there? Can you maybe talk about the dynamics there? Just thinking about kind of how you built up the, the year's outlook? Jonathan Baliff: Yeah, no, it's interesting. One of the things we're very focused on is making sure that we look at the right time period and we don't react to things. And especially this is especially important for a company like Redwire because we have a programs and products that can materially move the needle on any given quarter, right? For example, we mentioned, and Mike mentioned, we have everything from the fine sun sensors all the way to the Roses. We have opportunities in the pipeline that are really big. And depending on when those hit, which can be difficult to pre to predict both in the government and the commercial sector based on their spending profiles. So, so quarter to quarter it's a lot more difficult to predict than year-over-year. So what we're really focused on is, if you go back to the idea that excluding Space nv we grew 37.9% last year. Our midpoint for this year is to grow 46% midpoint on the range that we gave. So the focus is really on having that 30 to 40% revenue growth year-over-year. And when it actually occurs, it can be more challenging to predict. Greg Konrad: And then maybe just lastly, you talked about some of the, the, the two changes around your KPIs. It looked like the pipeline, you know, still healthy, but, but stepped down quite a bit sequentially. What accounted for that, whether it was submitted bids or just evolution of, of programs moving in and out and just how you're thinking about the pipeline more broadly? Peter Cannito: Jonathan? Jonathan Baliff: Yeah, it's just mathematics. You know, right now we have a pipeline that's roughly five years, so we're coming into 2023. So now we extended out a year, right? And, and there's no doubt that there are going to be a filling of that pipeline in 28 as we go through the year. And the same thing happened last year. You'll start to see the pipeline start to move, right? So it's just a mathematics, we're shifting it out a year. And in that year, a lot of the 600 actually is found its way in the backlog, right? So a lot of what you see in this company, which is it's pretty special. You can see the pipeline turn into contracts that we're bidding on, turn into backlog, turn into revenue, and now you're seeing we have a path to profitability with this gross margin moving up, right? And we continue, again, there was a focus on the last analyst on gross margin. That's the place to look. That's where we're trying to really move the needle from the mid twenties, get that higher with the, with the, you know, idea that we're taking this larger pipeline, turning it into backlog revenue, obviously on our path to profitability to free cash flow too. Makes sense.? Greg Konrad: I'll throw in one more quick one. Can you maybe just talk about that, that 14 million Euro contract announced under ISA for the 3D biosystems? I, I think you did mention space nv, but I I know you also have quite a bit of, you know 3D printing technology before that. Can you maybe just talk about the legacy position and kind of cross-sell opportunities that you're seeing with that business? Jonathan Baliff: Yeah, absolutely. Well, so it's a good point in terms of taking a capability and moving beyond just the US to a much larger total addressable market worldwide, right? So Red Wire was already previously the leader in bio manufacturing on orbit with our bff. This creates, you know, expands our leadership to more of a global presence, presence. And I think the, the most critical factor here, and, you know, this applies to red wire's business overall, is there, there's a certain point in the company's history where it transition transitions from being about flying single experiments to actually building a business. And I think that's what you're seeing here in the biomanufacturing specifically is, you know, there may be startups, and of course many, you know, years ago some of these technologies started in startups. So it's a, it's an important part of the ecosystems, but the startup typically is flying single experiments, right, in order to prove out a technology. And in this particular case, what's really exciting about the 3D bioprinting coming outta ISSA when added to the bff, the biofabrication facility already funded by nasa, as you can see that this is shifting from being single experiment offerings to like a full offering within red wire with multiple customers. So it's really about scaling and building technical momentum in an area. And that's what I think is probably most exciting to us about when you see us combining these technologies and leveraging the broader red wire expertise in this area to grow that segment as not just an area where we're pushing technology, but a business offering that generates real revenue and profitability. I will officially leave it at that. Thank you. Operator: [Operator instructions] . And our next question comes from Suji DeSilva from ROTH MKM. Please go ahead. Suji DeSilva: Hi Peter. Hi John, and congratulations on ebitda positive, great accomplishment there. Looking at, yeah, looking at the revenue lines, just trying to understand this, I mean, this gonna be a hard question to answer, but you have, you cited metrics for the number of launches and the, and the, and the systems in there, and then also some of the sun sensor systems and the ROSA systems. I'm just curious, is there a way to think about an asp quote unquote kind of a revenue per here as you start to do more of these systems and provide those kind of unit metrics at least? Or is it just all over the map and hard to really trace out that way? Jonathan Baliff: Good Genesis. So Suji, first of all, I appreciate the question, and we do have, obviously the unit economics. We have a very good ID of it. We, we generally don't present those because of competitive reasons, right? That's, we can say that, you know, we are bidding and winning larger contracts that you're seeing directly in the improvement of margin to 24.7% in the first quarter. But we don't provide unit economics yet due to competitive reasons. However, we are going to be moving towards what I call a red wire one oh one in being able to talk to the investment community concerning unit economics based on our enabling space missions, explore live and work in space, and then obviously our European, but really global business with multinationals. So we will be able to do that in the future, but right now we don't give the specifics on different product areas for competitive reasons, which is common in the aerospace industry. Suji DeSilva: Appreciate, appreciate the sensitivity there. And then my other questions, on a longer term business model perhaps, I mean, you've had, you have this payload business and the ISA contract the first milestone, 14 million euro. Is there a opportunity for that business model to evolve longer term into a type of revenue share or, or per unit type of, or some sort of business like that versus staying a contract business with milestone payments? Peter Cannito: Yeah, I think that's right. So as the the market evolves, you're gonna see a lot more activity in commercial space which is going to generate a lot of different new ways of providing value. So right now, typically a lot of these things, like a bio printer for instance, is is funded through a government organization as a, a project like the 14 million euro we're having outta isa. But that's not the ultimately goal either for red wire, you know, or ISA for that matter. What they're trying to do is stimulate that economy in space where commercial organizations like Red Wire can have major breakthroughs on things like being able to print organoids that are really important to the pharmaceutical industry or cell manufacturing or on the in-space manufacturing side. Some of the work that we've done with forming crystals for pharmaceuticals. So ultimately you know, red wire in a way gets two bites of the apple. We get paid to develop these technologies as the government, you know, pushes the key technologies necessary for future space exploration and microgravity research. But we also maintain this critical intellectual property as we look at the commercial opportunities associated with what are the different products that could be manufactured at scale and space and sold on a per unit basis to you know, industries, like I mentioned, pharmaceuticals. Thank You. It's important to note that, that we're getting there and the margins on this business could be quite high. If we look at the ability, again, on going back to gross margin, you talk about the ability to generate higher gross margin this quarter versus 2022 first quarter. A lot of it was due to that explore live and work in space, but you, but mostly driven by the traditional business model of being paid by government customers. Operator: As a reminder, star one, if you do have a question or comment, and there are no further questions at this time, I'd like to turn the floor back over to management for closing remarks. Peter Cannito: Yes. Again, I'd like to thank everybody for joining the call. And reiterate just how proud red Wire is of our employees for delivering a great first quarter and looking forward to the remainder of 2023. Thank you and have a good day. Thank you.

Operator: Greetings, welcome to Redwire’s Fourth Quarter and Full Year 2022 Earnings Conference Call. My name is Sherry, and I’ll be your operator today. At this time, all participants are in a listen-only mode. We will take questions at the end of this presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host for today’s call, Jeff Zeunik, Senior Vice President, Financial Planning and Analysis. Ms. Zeunik, you may begin your conference call. Jeff Zeunik: Thank you, Sherry, and good morning, everyone. Welcome to Redwire’s fourth quarter and full year 2022 earnings call. We hope that you have seen our earnings release, which we issued earlier this morning, it has also been posted in the Investor Relations section of our website at redwirespace.com. Let me remind everyone that during the call, Redwire management may make forward-looking statements that reflect our beliefs, expectations, intentions or predictions of the future. Our forward-looking statements are subject to risks and uncertainties that are described in more detail on Slide 2. Additionally, to the extent we discuss non-GAAP measures during the call, please see Slide 3, our earnings release or the investor presentation on our website for the calculation of these measures and GAAP reconciliations. As previously mentioned, I am Jeff Zeunik, Redwire’s Senior Vice President of Financial Planning and Analysis. Joining me today are Peter Cannito, Chairman and Chief Executive Officer; and Jonathan Baliff, Chief Financial Officer. With that, I would like to turn the call over to Pete. Pete? Peter Cannito: Thank you, Jeff. During today’s call, we will take you through a discussion of our key accomplishments in the fourth quarter and full year 2022 from me, followed by Jonathan who will present the financial highlights for the same period. We will also provide some insights into how we’re thinking about 2023, after which we will open the floor for Q&A. However, before we get into the details for those that may be new to the call, I’d like to start with an overview of the space industry today and Redwire’s position within it. We are at the early stages of a multi-decade new global space race with space agencies in the U.S., Europe, and around the world increasingly focusing on space as a competitive domain. Additionally, the broader commercial market is demanding space in the present, not just some future promise, and we believe that Redwire is ideally positioned to capitalize on both of these dynamics. Please turn to Slide 5. Please turn to Slide 6. Redwire is the pure-play space infrastructure company with Mission Solutions and payloads for civil, commercial and national security space customers, and our mission is to accelerate humanity’s expansion into space by delivering reliable, economical, and sustainable infrastructure for future generations. With decades of proven flight heritage combined with innovative products and culture, Redwire is uniquely positioned to assist our customers and solving the complex challenges of future space missions and industries. Redwire has three primary areas of focus that form our business. These include enabling space mission providers such as government agencies and large prime contractors with a broad portfolio of space infrastructure, systems, subsystems and components. Secondly, providing the infrastructure and technology needed for people to permanently live and work in space. And lastly, assisting international spacefaring allies in the development of organic space capabilities. We demonstrated many successes in our three key focus areas throughout 2022, including having Redwire products on nine launches over the course of 2022 with five of those launches occurring in Q4, 15 payloads currently operational on the International Space Station and growing to over 700 employees at 11 facilities in both the United States and Europe. Please turn to Slide 7. Looking back, the fourth quarter of 2022 was the most successful quarter in Redwire’s history. Our revenues of $53.7 million were the highest of any quarter today. We ended the quarter in the full year with the total backlog of $465.1 million. We closed on our acquisition of Space NV, our second global acquisition. And our adjusted EBITDA for the fourth quarter of 2022 improved by over 47.5% versus the third quarter of 2022. And we launched a 11 products and capabilities on those five Q4 launches I mentioned previously, it was a great quarter. Please turn to Slide 8. Starting with backlog. I am very pleased to report that backlog has grown by 71.2% from the end of 2021 to December 31, 2022. As you can see at the end of 2021, our total backlog was a very respectable $271.6 million based on strong demand for our products and services total backlog grew to $465.1 million at the end of 2022. This was an outstanding achievement on both an absolute and percentage basis and gives – and has given us significant momentum heading into 2023. Please turn to Slide 9. 2022 was a record year for Redwire. For the full year 2022, we grew Redwire’s total revenue by 16.7%. This revenue growth was achieved across a highly diversified base of long-term government contracts and marquee commercial customers with strong financial backing such as Boeing, Lockheed Martin, and many others. This diversity and resiliency gives Redwire a stable foundation for our future growth. Please turn to Slide 10. So where did this revenue come from? Here at Redwire, we are a key mission enabler for our customers across their most important missions. For our most recent Q4 2022, the next few slides highlight just a few examples of successes that underscore the importance of our capability. For example, in Q4, two additional Redwire rollout solar arrays or ROSAs were installed on the International Space Station, bringing the total to four of our ROSAs providing critical power to that key international capability, and there are more on the way in 2023. That is a great example of how we are providing results now, not just in the future. On the bottom of Slide 10, we are highlighting how current flight heritage leads to future opportunities as we have been chosen to be a trusted provider of power on the lunar surface in the future. As we previously announced in Q4, Redwire was selected by the Astrobotic’s VSAT program to provide a retractable, vertical solar array that will rise to a height of 32 feet. This program is key to enabling critical power infrastructure on the surface of the moon. Please turn to Slide 11. On November 16, 2022, the United States once again made space history with the launch of Artemis I, and as one would expect Redwire was on board as part of this history making team. Redwire provided the Orion capsule a total of 11 internal and external cameras, which is why we refer to Redwire as the eyes of Orion and those cameras supported the entire 268,563 mile journey without fail. This was the farthest distance travel by a spacecraft designed for human transportation to date. And Redwire’s cameras clearly demonstrated why we are the trusted optics for the mission. Those amazing images sent back from the Redwire cameras on Orion will inspire generations to come and we look forward to being part of the team on future Artemis missions. Please turn to Slide 12. As I mentioned at the beginning of this presentation, Redwire is a leader when it comes to facilitating man’s ability to explore, live and work in space. And in doing so, we are on the cutting edge of microgravity research with the potential to significantly change our lives here on earth. For example, Redwire has the first bioprinter permanently installed on the ISS. And in Q4, we launched a mission to use our BioFabrication facility to print a meniscus, a critical part of the knee, which will spend a total of 14 days being cultured in an advanced science experiment process that was also provided by Redwire. This research is an important step towards understanding how microgravity may be the key to unlocking the future production of bio structures that could revolutionize healthcare and Redwire is at the forefront. Please turn to Slide 13. Successfully bringing agriculture to space will be critical to unlocking humanity’s ability to explore, live and work far away from earth for long periods of time. And Redwire is working on the key. In Q4, aboard Northrop Grumman CRS-18 commercial resupply to the ISS 240 seeds were sent to space for our Plant Habitat-03 investigation, which will spend 91 days growing inside the habitat. The information gleaned from this experiment is helping establish the foundation of – foundations of knowledge necessary to take space agriculture to large scale production. Understanding agriculture and microgravity is important to building a permanent human presence in space. And I’m confident that as we learn to grow plants in space, we will also collect data that will help grow plants more effectively here on earth along the way. Please turn to Slide 14. Of course, space is an international endeavour and to underscore the amazing programs and complementary capabilities of our newest members of the Redwire team, I would like to highlight a Space NV program that launched in Q4 aboard the SpaceX CRS-26 mission to the International Space Station called T-Paola. T-Paola is an experiment that was designed and built by Redwire Space NV in Belgium that will try to determine new principles for the control of solid particles in liquids. It leverages the Space NV selectable optic diagnostic instrument that has investigated over 30 liquids in space over the past 13 years. That is some incredible space heritage. Please turn to Slide 15. As you can see, the acquisition of European base Space NV in Q4 2022 has significantly expanded Redwire’s global footprint and scope of business. Space NV has a deep portfolio of highly synergistic and complementary core space infrastructure offerings and add significant heritage with over 100 missions for human spaceflight, satellites and interplanetary exploration and over 35 years of on-orbit experience. Space NV’s 2022 revenue was approximately $58.9 million, adding $11.7 million to our annual revenue between the closing of the acquisition on October 31 and the end of 2022. Please turn to Slide 16. As I mentioned, Q4 was a strong finish to a record year at Redwire setting us up for continued success in 2023. In 2022, we had a book-to-bill ratio of 2.04 and contracted backlog more than doubled growing by 124% leading to a total backlog at the end of 2022 of $465.1 million. This gives us confidence in our future growth and stability. With that, I’d now like to turn the call over to Jonathan Baliff, Redwire’s Chief Financial Officer. And following Jonathan’s remarks, I’ll provide a few closing thoughts and then we’ll open the call for questions and answers. Jonathan? Jonathan Baliff: Thank you, Pete. Please turn to Slide 18. Similar to last quarter, I will help provide financial detail on a number of the commercial and operational themes that Pete just talked about, including one, key financial takeaways, starting with quarterly revenue here on the right hand chart, and then continuing with other quarterly financial information. And two, key takeaways for the full year 2022. Key points to reiterate from Pete’s discussion for this financial highlight, one, Redwire continues to execute for our government and marquee customers with critical improvement space infrastructure and payloads including the Space NV T-Paola science experiment, iROSA [ph] Power Solutions, Artemis camera systems and the BioFabrication facility. These and other infrastructure solutions, systems and payloads created record fourth quarter 2022 and full year revenue, even without the contribution of Space NV. And two, speaking of Space NV, Redwire closes this financially accretive transaction in less than a month on October 31, 2022, adding to our revenue diversification with more government and marquee customers and improving our financial performance as we continue to scale and create more operating leverage into this business for 2023. Three, demand for Redwire infrastructure is leading to record growth in our total backlog and in particular our contracted backlog for this quarter. And finally, the addition of approximately $81 million in capital and improved free cash flow in the fourth quarter, Redwire strengthened our balance sheet and created a record high liquidity position going into 2023. As you can see from the chart on the right, we had $53.7 million for fourth quarter 2022 revenue versus $37.2 million for the third quarter, representing an increase of 44.2% on a sequential basis. This demonstrates progression of improved quarterly revenue and led to a 63.4% increase in Q4 2020 revenue versus the first quarter of 2022. Our fourth quarter revenue of $11.7 million was provided by Space NV since October 31 as Pete said. Our fourth quarter revenue also benefited from the $91.2 million in fourth quarter contract additions to total backlog and these were in addition to the $109.8 million of backlog that we acquired with Space NV. An example of this increase is one of the largest power supply infrastructure contracts in Redwire history, providing $5.5 million in revenue in the fourth quarter alone. Now excluding the $11.7 million of revenue contributed by Space NV our fourth quarter revenues were still a record $42 million. Please turn to Slide 19. Our full year 2022 saw higher revenues on a year-over-year basis, $160.5 million for full year 2022 versus $137.6 million for full year 2021, and this represents an increase of 16.7% on a year-over-year basis. Year-over-year increases in revenue from –were from all three of our primary customer types, civil, national security and commercial with 86.2% of our revenues coming from government and marquee customers. The year-over-year increase in revenues included contributions from Redwire’s Indiana business unit as well as infrastructure revenue from the deployables and solution space – deployables and engineering solutions space. As previously noted, Space NV provided a $11.7 million to yearly growth since October 31, 2022. Without this contribution, you would’ve seen an increase of 8.2% on a year-over-year basis, and this growth would’ve been even better, but was partially offset by the inflation and supply chain pressures that we spoke about on our third quarter call. And this resulted in an unfavorable EAC adjustment primarily in the Mission Solutions reporting unit. Customer adversity allows Redwire to absorb these declines in one customer type due to improved performance and another customer type, especially now that our customer types include a larger portion from Europe, but even if it exclude the Space NV contribution from 2022 revenues as if the acquisition had not occurred, Redwire would still have achieved revenues of $148.9 million, well within our full year 2022 revenue guidance of $140 million to $155 million. And this is also significant growth on a U.S. GAAP basis for the past number of years. It is important to note that we have seen a 98.3% compounded annual growth rate in GAAP revenues since the end of 2020. Please turn to Slide 20. Before I discuss our quarterly improvement and adjusted EBITDA in fiscal year 2022 shown on this slide on the right hand chart, I’d like to briefly comment on our net income, net loss results, although we did have an increase in our GAAP net loss during the fourth quarter to $25.9 million. This was primarily driven by a $16.2 million non-cash impairment charge. In addition for the full year 2022, the net loss of $130.6 million as compared to the net loss of $61.5 million for the full year of 2021 includes a $96.6 million non-cash impairment expense, which did not occur in the full year of 2021. And this non-cash impairment expense was primarily in our Mission Solutions unit. Now turning to quarterly adjusted EBITDA improvement in 2022, which again is on the right hand chart, you can see a 47.5% sequential quarterly improvement in adjusted EBITDA in the fourth quarter demonstrating the positive momentum we spoke about last year. We also saw an 83.4% improvement from the beginning of 2022, and this is due to a number of factors including; first, higher revenues due to new contract wins; second, an improved mix of larger and higher gross margin contracts, much of it in our deployable and components lines of business; and third, the streamlining of our corporate overhead following investments over the past 18 months, which continue to drive down SG&A on an absolute and percentage of revenue basis now at 30.8% versus 50.7% in the fourth quarter of 2021 and the 63.7% from our first quarter of 2022. This adjusted EBITDA improvement was impacted by the same inflation and supply chain pressures that resulted in unfavorable EAC adjustments and increased production costs primarily in our Mission Solutions reporting unit, so we would’ve seen even more improvement in EBITDA in the fourth quarter. Space NV provided $0.6 million contribution to adjusted EBITDA, but even if you exclude the Space NV contribution from 2022 adjusted EBITDA as if the acquisition had not occurred, Redwire would still have achieved adjusted EBITDA loss of $11.6 million within the 2022 guidance range of negative $13 million to negative $6 million provided. Please turn to Slide 21. Let’s discuss free cash flow, liquidity and balance sheet improvement for the fourth quarter. As we did on the third quarter call on the left hand chart, we show free cash flow. As a reminder, free cash flow provides a perspective based on our operating cash flow and CapEx unadjusted for onetime items, cash is cash. As you can see during the fourth quarter 2022, free cash flow consumption was improved 56% to a use of cash of $5.5 million compared to the third quarter 2022 of $12.6 million. Much of this improvement sequentially this quarter is due to the improvements in sequential revenue and adjusted EBITDA that I already spoke about. Redwire management remains focused on accelerating the improvement trend in our free cash flow. As we have noted, we continue and improve our free cash flow while we execute on the growth of our $465.1 million of backlog. On the right hand chart, we show our available liquidity as of December 31, 2022, which totaled $53.3 million, a record amount on a quarterly and year-end basis achieved through excellent cash management and the $81.25 million equity financing that both financed the Space NV acquisition and also strengthened our balance sheet with $28.3 million in cash and $25 million in available borrowings under our credit facilities Redwire entered 2022 with a stronger balance sheet and record liquidity. Please turn to Slide 22, and I will now turn the presentation back to Pete, provide an outlook for 2023. Pete? Peter Cannito: Thanks, Jonathan. Please turn to Slide 23. For a brief 2023 outlook for what Redwire management sees as continuing the performance momentum for 2022. Our most recent fourth quarter was a strong finish to the year with record revenues, improvements in gross profit, adjusted EBITDA and free cash flows, and a strong end of year backlog. As a result for 2023, we expect our full year revenue to be between $220 million to $250 million, which represents 46% year-over-year growth at the midpoint of the range. With that, I’d like to thank all the Redwire employees for a fantastic year and a record quarter. Thank you for working hard across the world to accelerate humanity’s expansion into space. And thank you all. We will now open the floor to questions. Operator: Thank you. [Operator Instructions] Our first question is from Greg Konrad with Jefferies. Please proceed. Greg Konrad: Good morning. Jonathan Baliff: Good morning, Greg. Peter Cannito: Hey, Greg. Greg Konrad: Maybe just to start a couple things around the outlook that you ended with, first just, in terms of Space NV, how are you thinking about the incremental contribution to 2023? Peter Cannito: So, hey, Greg, how are you? Good to have you on the call. Yes, so we don’t really break it out going forward in 2023. But what I can tell you is that at the time of closing the acquisition for Space NV on October 31, their contracted backlog was $109 million. And at the end of 2022 in December 31, it had already grown to $128 million in contracted backlog. So, we like the direction that Space NV is headed and we think they’re going to be a strong contributor to the overall Redwire going forward in 2023. Greg Konrad: And then just staying on revenues, I mean, how are you thinking about backlog conversion? If I look at the organic revenues in 2022, they were actually above the starting point of contracted backlog, 2023 outlook it lags the backlog a bit, including the acquisition contribution. Has backlog conversion maybe shifted a bit with the acquisition or just maybe some of the contracts that you saw in 2022? Peter Cannito: Yes, no, that’s a great observation and a great question. So the – some of it is the nature of having a really high book-to-bill. We’ve been booking a lot of revenue this year at a faster pace. And some of it is the nature of our contracts, as we’ve talked about in previous calls. Redwire has the ability to win large multi-year contracts comparatively to our revenue. So what I think you’re also starting to see is a trend towards some larger contracts in the backlog that span multiple years. Jonathan Baliff: Greg, just take a look at, if I may, Pete just take a look at our last 12 months backlog entering 2022, it was approximately 1.2 it now stands at 2, and we’re also starting to see, again, I want to reiterate in third quarter, we did say there were going to be delays, into the fourth quarter that actually happened. So, you’re seeing a bit of a quicker turn from backlog into that fourth quarter. Again, we’re viewing this as a much better entry into 2023 than we entered 2022, both from a backlog and then a obviously a revenue standpoint. Greg Konrad: That’s helpful. And then you guided for EBITDA last year, you didn’t guide this year. You did call out, some gross margin improvement and operating leverage. And if you look at, 2022, you had a nice progression towards breakeven, does that carry into 2023? Or how are you thinking about profitability for this year? Peter Cannito: Yes, no, great question. So the momentum definitely carries into 2023. We are very focused on controlling our costs increasing our gross margins. And although we don’t make a forecast for 2023, we expect to continue to drive that trend forward. Greg Konrad: Would you expect it to be at least positive for 2023 or not committing to that? Peter Cannito: Well, not committing, because obviously there’s a number of different investments that opportunities that can come along the way in 2023. But we are very focused on profitability as a company overall. And we’ve been able to demonstrate now, as you pointed out in 2022 to the ability to continue to drive in that direction. And we have no intention of letting up on that. Greg Konrad: And then, I mean, somewhat tied to that, I know you don’t guide to cash, but when you just think about the cost of growth, I mean, you highlighted the strong liquidity coming into this year. How do you maybe think about some of the drivers of cash, whether it’s working capital to support growth CapEx in general, or just how you’re thinking about the moving pieces of cash? Peter Cannito: I’ll give a quick answer, then I’ll turn it over to Jonathan. I mean, again, we’re very focused on being good stewards of cash, especially in the current environment. And but we do have investments that we’re making as well. So we keep a close eye on it. Fundamentally because of the way Redwire is built up with revenues in the hundreds of millions of dollars with a lot of space heritage with long-term contracts, many of them government contracts, we feel pretty good about our ability to maintain liquidity. And that’s basically the way we look at it going forward. Jonathan, I don’t know if you have anything? Jonathan Baliff: Yes, I think there’s three things I would talk about. I mean, look at our operational cash flow and the way that we manage that. We paid down actually a lot of AP, we ended up having on a net cash basis a much better balance sheet. And so we’re going to continue to work that our contracts and working our contracts, we want to receive a large amount of the cash upfront as we go and do the manufacturing of the infrastructure and the – a number of our different solutions. So, we’re very focused on making sure we get a lot of that cash up front. So, we’re not only converting the backlog to revenue and obviously positive adjusted EBITDA and then free cash flow and then net income. So, we’re very focused on that as we move forward. We demonstrated that in the fourth quarter, and we’re going to continue to drive towards that through the year. Greg Konrad: And then, sorry for all the questions, but maybe just sneak one last one in the, the $1 billion of submitted bids, that you called out in the presentation, is that what is outstanding? And then, I mean, how do you think about bidding strategy and any color around win rates, or what you’re seeing and then tied to that, any target for book-to-bill for 2023? Peter Cannito: So the $1 billion refers to the number of bids that were submitted the – in various stages. We don’t track exact win rates, but if you look at off of a $1 billion, having a contracted a backlog somewhere between $300 million, $400 million our win rates are roughly hovering between 30% to 40%. And that’s kind of what we would expect from a company like ourselves. We really don’t have a hard target for book-to-bill, a book in order for us to achieve our forecast you can do the math and we want a book-to-bill at least over 1.2. Greg Konrad: Thank you. Jonathan Baliff: And that would be on a LTM basis. Operator: Our next question is from Griffin Boss with B. Riley Securities. Please proceed. Griffin Boss: Hi, thanks for taking my questions. Maybe just one for me. I think, so taking a step back, can you guys give any color on commercial space station opportunities and whether you’re already in discussions with those who are building out commercial space stations to replace the ISS? Or is it too early to really say? Peter Cannito: Yes, no really appreciate you joining the call. The – we are absolutely engaged on commercial space stations. If you’ll look at the history of Redwire with 15 facilities, payloads currently operating on the International Space Station, some of the ones that I highlighted in a call today, we’re one of the very few companies that actually have the experience with the outfitting of meaningful content on space stations. So, we are not exclusive to any single commercial space station provider. There are a handful of them that are all very credible out there. We see that as a really excellent trend for Redwire, because again after those stations get on orbit, we’re the ones who have the meaningful content, the microgravity research, the biotechnology capabilities, the materials, the 3D printing that are going to make those space stations successful ultimately. That’s just on our payload side. In addition to that, I highlighted that we have the ROSAs, the rollout solar arrays on the International Space Station, we’re also actively engaging with the commercial LEO space station providers on key mission enabling subsystems like ROSA to enable the power for their systems, as well as other critical subsystems to make those commercial space stations viable as well. Griffin Boss: Got it. Excellent. Thanks for that, Peter. And maybe I’ll just sneak one in, apologies if I missed this. Did you guys break out the end customer group for your backlog number? Is that going to be heavily weighted to government customers as well? Peter Cannito: So, we didn’t break it out, but we tend to have a number of government contractors that’s where a lot of the growth in spaces occurring, I think, Jonathan, you want to add to that? Jonathan Baliff: Yes, I mean, you obviously see the over 86% in government and marquee client base. I do want to just break out for the full year. You’re talking about almost 40% civil, which is government client base. You’re – and I’m talking about revenue here. National security grew smartly to 27.4%. And then the commercial is 34%. And that commercial, even though they’re commercial customers many of the ultimate contracts are with the government. So, we’re excited about these marquee government and customers that backlog you’re seeing that grow. And again, one of the differences with the percentages is you’re only seeing a smaller percentage in the fourth quarter due to Space NV. Space NV, again has a mostly government and marquee client with ESA – ESA I’m sorry. And so that, that gives you a sense of how our backlog is developing to that pretty high quality client. Again, even the commercial clients themselves are multi-billion large customers. Griffin Boss: Got it. Okay. Great. That’s it for me. Thanks for taking my questions. Appreciate it. Peter Cannito: Thank you, Griffin. Operator: Our next question is from Austin Moeller with Canaccord. Please proceed. Austin Moeller: Hi, good morning. Nice quarter. Jonathan Baliff: Thanks, Austin. Peter Cannito: Hey Austin. Austin Moeller: Hi. My first question here, can you talk about what specific products in the revenue mix are expected to drive the gross margin improvement in 2023? And I assume you’ve included inflation costs escalators into the new contracts to improve margins relative to inflation expectations? Peter Cannito: Yes. Well first of all Austin, thanks for joining the call. Glad to have you on. Absolutely right. We’re bidding with inflation in mind, and of course, our customers understand they’re living the same issue. In terms of gross margin improvements, we’re really driving it across the board, right? So, as we continue to innovate and we have technologies like ROSA, like the cameras that are, have always had flight heritage, but now have really exceptional flight heritage on the Artemis, demonstrated flight heritage on the Artemis. These are really differentiated products. So that gives us additional pricing power in the marketplace. So really across all of our product mixes, we’re starting to incrementally drive our margins up. Jonathan you want to add? Jonathan Baliff: Let me give you the specifics here, because this is actually a really important, because it wasn’t just a record revenue quarter and you saw the progression, but we started gross margin in Q1 of 2022 at 15.7%. We’ve grown it pretty significantly through the quarter. And that’s including some EAC adjustments that negatively impacted it. So, we’re talking about getting to greater than 20% gross margins on an all-in basis. We’ll be providing some more detail as we go into 2023. One thing of note to the investor community is that, the nature of our ESA contracts with Space NV generally have them enjoin a very nice EBITDA margin, but some of their gross margins are going to be slightly lower just given the nature of the classification of their cost and sales. So just understand that. But on the U.S. legacy businesses, you’re talking about a very meaningful improvement in gross margins. When you combine that with the operating leverage that we’re getting as we scale the business, you’re talking about a business that’s driving towards profitability, not just on an adjusted EBITDA basis, on a net income basis and free cash flow basis. Austin Moeller: Okay, that’s helpful. And then just to think about 2023, you’ve got $272 million in the backlog, you expect $275 [ph] million in revenue. So considering you have 74% revenue visibility for next year. Do you expect most of that existing backlog to convert to revenue this year, or how should we think about the timing of that? Jonathan Baliff: Yes, Austin, let’s just get the numbers. Just again, you’re directionally correct. But let’s get them right. The contracted backlog more than doubled, 126% increase to $313 million. And then the overall total backlog was $465 million – greater than $465 million. And so from our standpoint, those are the numbers that we’re putting out Austin. And again, it’s a pretty significant increase. There’s no doubt that we are very focused on not just converting that backlog to revenue in 2023. And as Pete has said before, it can be kind of lumpy. Okay, guys. But that being said, we’re driving many of those contracts like we did in the fourth quarter to revenue and then obviously ultimately cash flow and profitability. Austin Moeller: Okay. And then – and just one more. Can you go into a little bit more detail about what specific programs are driving the backlog expansion here? Is it mainly iROSA and deployables, or how should we think about the overall percentages of each program – product line? Peter Cannito: Yes, thanks for that question, Austin. It’s actually a key point about Redwire. One of the significant contributors to our stability and our resilience is the fact that no one single program or product or solution is driving over 10% of our revenue. So it’s a pretty diverse base of programs collectively that are contributing to both our backlog and our revenue growth. Jonathan, you want to add anything? Jonathan Baliff: No, I gave as percentages on civil, national security and commercial. They’re pretty equal and the nature of our backlog follows that for the most part. Austin Moeller: Okay, great. Yes, thanks for the details on the strong diversification there. Appreciate it. Operator: Our final question is from Suji DeSilva with ROTH MKM. Please proceed. Suji DeSilva: Hi, Peter. Hi, Jonathan. Congrats on a strong 2022 there. Peter Cannito: Thank you very much, Suji. Suji DeSilva: Sure. A lot of questions have been asked. I’ll talk – let me ask about manufacturing capacity to think about that broadly for your company. Are you expanding that? Do you have sufficient as CapEx going to that? It seems like a relatively light CapEx budget for 2023, but just wanted to get color there. Peter Cannito: Yes, no, it’s great to have you on the call and I appreciate the question. We continue to make CapEx investments. We opened a very large facility in Goleta, California in 2022. This facility, I don’t know Jonathan, do you have the exact square foot? It’s the largest facility. Jonathan Baliff: It’s 52,000 square foot. Peter Cannito: Yes, in Goleta and it’ll house the power and propulsion element wings for the Gateway project. So it’s a massive manufacturing facility for our solar arrays. But we continue to invest too. We’re looking at investing in Longmont. We’re doing a CapEx investment in antenna facility there with a really state-of-the-art RF chamber that’s going to enable us to continue to do the testing for antennas for large constellation programs like the SDA tranches and et cetera. But for the most part, we’re pretty good, because we – of the way we grew through acquisition all of the different building blocks of Redwire came with significant facilities already which is great for us because we already have the capabilities in-house and we don’t have to make massive investments in manufacturing expansion in order to execute against our backlog. Jonathan Baliff: The other thing important is that our clients pay for a large part. We’re not a CapEx intensive company because our contracts pay for a lot of what you consider is the facilities. And getting the facilities prepared for the manufacturing and assembly of power systems and other solutions that we provide. So – because we’re – we have that greater than 86% government and marquee client, a lot of the contracts end up paying for that, which then again, these are not very depreciated type facilities. And therefore they can be used over and over again that provides that operating leverage that we’re talking about. Suji DeSilva: Okay, Peter. That’s very helpful. And then maybe last question on the power supply ROSA business. Should we think about any metrics kind of ASP unit metrics like kilowatts, things like that as a way to model the business going forward? Or is that not the right way to think about these large solar array contracts? Peter Cannito: Correct. That is not the right way to think about the large solar array contracts. The way I would think about the large solar array contracts is in the advantages of the capability associated with having solar arrays that can are flexible enough to be deployed in a small package and then roll out to a much larger package. So when you think about some of the great questions we got about commercial space stations, that’s a key advantage from a logistics and implementation perspective. When you think about things like Gateway and the PPE wings that we’re building, when you think about the win we had with Astrobotic for VSAT and you think about the future of power infrastructure that is going to be required on the lunar surface in order to sustain a human presence there. This Redwire IP associated with the Roll-Out Solar Arrays is garnering a lot of demand, especially because it has, I mean, what better use case and flight heritage can you have then having it on the ISS. So I think people are – when they go to – when a lot of these very power hungry solution providers come out, they look to Redwire and our proven capabilities. And I think about it that way because it’s not a mass manufacturing play of solar arrays across huge constellations. Suji DeSilva: Okay. Thanks for taking the questions. Thanks guys. Peter Cannito: Thank you. Operator: There are no further questions at this time. I would like to turn the floor back over to Peter for closing comments. Peter Cannito: Yes. Again, I’d just like to thank all the Redwire employees worldwide for the hard work they do every day for our customers. I’d like to thank our customers for believing in us and I’d like to thank all of you for joining the call today. And with that, we’re signing off. Go Redwire. Operator: Thank you. This does conclude today’s conference. You may disconnect your lines at this time. And thank you for your participation.

Operator: Greetings, and welcome to Redwire’s Third Quarter 2022 Earnings Conference Call. My name is Zico, and I’ll be your operator for today. At this time, all participants are in a listen-only mode. We will take questions at the end of this presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host for today’s call, Nicole Taylor, Vice President, Financial Operations and Investor Relations. Ms. Taylor, you may begin your conference call. Nicole Taylor: Thank you, and good morning, everyone. Welcome to Redwire’s third quarter 2022 earnings call. We hope that you have seen our earnings release, which we issued yesterday afternoon after market close, and it is posted in the Investor Relations section of our website at redwirespace.com. Let me remind everyone that during the call, Redwire management may make forward-looking statements that reflect our beliefs, expectations, intentions or predictions of the future. Our forward-looking statements are subject to risks and uncertainties that are described in more detail on slide 2. Additionally, to the extent we discuss non-GAAP measures during the call, please see slide 3, our earnings release or the investor presentation on our website for the calculation of these measures and GAAP reconciliations. As previously mentioned, I am Nicole Taylor, Redwire's Vice President of Financial Operations and Investor Relations. Joining me on today's call are Peter Cannito, Chairman and Chief Executive Officer; Andrew Rush, President and Chief Operating Officer; and Jonathan Baliff, Chief Financial Officer. With that, I would like to turn the call over to Pete. Pete? Peter Cannito: Great. Thank you, Nicole. During today's call, we'll start with a quarterly update for me, followed by Andrew, who will present operational highlights for the quarter, and then he will be followed by Jonathan, who will present the financial highlights for the third quarter. After we finish our presentation, we will then open the floor for Q&A. Before I begin, please note, all figures in this presentation do not include our recent acquisition of Space NV unless otherwise noted as that acquisition closed in Q4. Next slide, please. Before we begin, as it is traditional with all quarterly presentations, I'd like to point out that the imagery used in this slide deck are of actual missions that use Redwire solutions. On this slide, we have the NASA Surface Water and Ocean Topography or SWOT satellite mission developed by JPL. SWOT is the first satellite mission that will observe nearly all waters on Earth's surface, measuring the height of water in the planet lakes, rivers, reservoirs and the oceans. Redwire is providing critical navigation components called Sun Sensors to enable this mission and will be scheduled to launch next month on December 5. Please turn to slide 7. As we talked about in previous calls, we are at the early stages of a multi-decade new global space race with space agencies in Europe, the US and around the world increasingly focused on space as a competitive domain. This broader geopolitical landscape has driven increased US governmental budgets on national defense with notably larger increases for space. However, despite this strong demand, we have experienced some delays in contracts award here at Redwire. These delays, combined with a tight labor market for space talent and subcontractor supply chain disruptions have slowed our ability to ramp-up and quickly realize revenue after contract selection and award. But regardless, I am proud to report that Redwire was recently selected for multiple land and expand opportunities that are expected to increase growth momentum for power systems and structures, LEO commercialization and human space flight as well as navigation, avionics and digital engineering. These new opportunities resulted in a sequential increase in our total backlog to $304 million as of Q3 2022, which is up from $251.7 million as of Q2 2022. This is a historic backlog level for the company. Redwire continues to deliver on the promise of space in the present today with multiple launches planned in Q4 2022, including the recently successful launch of NG-18 and upcoming planned launches that include Artemis 1, SpaceX CRS-26, JPSS-2 and SWOT, which I previously mentioned on an earlier slide. Most recently, in the beginning of the fourth quarter, Redwire completed the acquisition of Space NV, which is expected to immediately provide increased scale, broader access to addressable markets and significant backlog to bolster our growth platform. So what's the bottom line upfront, was you will see in our update today, it was a successful third quarter as we saw sequential improvements across the board in revenues, gross margin, adjusted EBITDA and total backlog. Please turn to Slide 8. Specifically, we saw continued revenue momentum in the third quarter, which was up 14% in comparison to 2021 and 1.4% sequentially. We anticipate sequential improvement to continue in Q4 2022. Efforts to streamline operations resulted in gross margin increasing 34.9% on a quarter-to-date basis in comparison to the prior year and sequentially as a percentage of revenue by 2.3% over Q2 2022. Focus on overhead and SG&A cost efficiencies resulted in a pro forma adjusted EBITDA in Q3 2022 of negative $1.5 million compared to $0.3 million in Q3 2021 and negative $4.1 million in Q2 2022. This is another sequential improvement over the Q2 2022. Red wire will continue to focus on streamlining operations and reducing costs to achieve positive free cash flow in 2023. Additionally, early in the fourth quarter, we strengthened our balance sheet with an investment by Bain Capital and AE Industrial Partners, who together made an investment of $80 million in the form of a Series A convertible preferred stock which was used to finance the QinetiQ Space NV acquisition as well as to support Redwire's future growth. The company is building momentum, and Redwire expects to achieve improved bookings during the fourth quarter of 2022, continuing to increase total backlog. However, the delays I mentioned in contract award and a tight labor market for Space talent have pushed revenue execution into subsequent quarters. Therefore, Redwire is updating its previously provided 2022 full year guidance to be in a range of approximately $140 million to $150 million in revenue and pro forma adjusted EBITDA to be in the range of negative $13 million and negative $6 million. This guidance does not include contributions anticipated from the acquisition of Space NV. Please turn to Slide 9. Now a snapshot of this very exciting acquisition we just completed a Space NV from QinetiQ. This acquisition is important to Redwire from both an industry and financial standpoint, and it is expected to provide Redwire with broad access to addressable markets, significant contracted backlog to support our growth and increased public platform scale and profitability. Space NV is a leading pioneer of end-to-end space solutions with a multi-decade position supporting the European Space Agency. Their core product offering includes small satellite technology, berthing and docking equipment and space instruments, all critical infrastructure for space, which complements Redwire's current offering, both in the US and Europe. Their technological and programmatic focus widens Redwire’s apertures and provides access to multiple significant global opportunities at a time when space budgets are growing in Europe. Space NV adds significant flight heritage, much like Redwire as well as innovation and profitable top line growth. Please turn to Slide 10. Joining Space NV's business with Redwire enhances our company's scale and innovation in innovative capabilities across numerous high-growth space area and provides us expanded total addressable market and increase exposure to the European customer, including the European Space Agency and the Belgium -- and the Belgian Science Policy Office. The demand for space infrastructure in Europe is growing. The European space agency submits a budget request every three years and in their upcoming ministerial meeting they anticipate to submit a three-year budget with an increase of more than 25% from funding secured in 2019. Since the acquisition, we have renamed QinetiQ Space NV to Redwire Space N.V, and we will be combining the company with our Luxembourg business to create Redwire Europe. This new international platform positions us to be a global provider of critical space infrastructure with deep customer relationships with the world's premier space agencies. Also, it gives us decades of proven flight heritage, expands product offering and a very strong backlog to build on in 2023. And with that, I will turn it over to Andrew for an update on our third quarter operational highlights. Andrew Rush: Thank you, Pete. Before we get into the details of our last quarter, I'd like to point out this image. What you see here is the LOFTID technology demonstrator being inspected in preparation for launch alongside the JPSS-2 satellite later this month. LOFTID is set to demonstrate an inflatable heat shield technology useful for both landing on Mars as well as economically recovering rockets. Redwire is proud to have provided both cameras and a deployable data recorder for this demonstration. Please turn to Slide 12. We Redwire continues to be a trailblazer in space infrastructure for the next-generation space economy. As Pete mentioned, driven by continued progress in operational execution and subcontractor performance, we delivered more from both a revenue perspective and the gross margin perspective in Q3 compared to Q2 2022, as well as compared to Q2 of 2021. Redwire continues to demonstrate operational excellence through our on-time and early delivery of products and solutions despite supply chain pressures and macroeconomic headwinds. As many of you may have seen on the news recently, Redwire was a participant in NASA's successful execution of the Planetary Defense, Double Asteroid Redirection Test, which most people know is DART. We supplied mission-critical navigation components and rollout full arrays for that successful demonstration. NG-18 launched a few days ago and docked this morning with the International Space Station, delivering a Redwire built update 3D bioprinter, BioFabrication Facility or BFF, the Advanced Space Experiment Processor, which we call the ADSEP facility, and a few other facilities, which will investigate new treatments to aid military service members, expand crop production research and expand materials testing on orbit. Redwire also delivered some sensor components in advanced optical imaging technologies to NASA, which we anticipated for launch on NASA's historic Artemis 1 mission to the moon. And SpaceX CRS 26 is set to launch later this quarter with a second pair of ROSA wings to augment the power generation capabilities of the International Space Station, carrying that facility into the latter half of this decade. Please turn to slide 13. Our team's operational success and business development efforts have resulted in Redwire being selected for many strategic orders since our last earnings call. I'd like to highlight a few of them on today's call. First, let's turn to Spacecraft Power Systems and Structures. We continue to develop and deliver not only traditional rigid panel solar arrays, but also our patented technologically differentiated rollout solar arrays for both small satellites and larger scale space craft applications, such as the International Space Station and NASA's Lunar Gateway. We are also seeing more customers turn to ROSA as a solution for power generation on the lunar surface in support of future human and robotic exploration missions to the move. Solar arrays are a significant portion of nearly every spacecraft operating today, but they are not the only part of a spacecraft power system. Building on our expertise in satellite power systems and space compatible robotics, we have begun offering Solar Array Drive Assemblies or SADAs. SADAs are used to orient the solar array making the key piece of any satellite for spacecraft's power system. This product and work we perform in power distribution systems on satellites enables us to expand work share in spacecraft power systems across our organization. With respect to lower orbit commercialization and human space flight, we have recently been successful in securing multiple multiphase programs, which are set to expand capability and commercial opportunities on the International Space Station and other human-rated platforms in the future. Our heritage and innovative technology is enabling design, development and outfitting of future commercial space stations. We have also had success in our navigation, avionics, and engineering solutions. Wins here are providing increased momentum for large multiyear multi-ship Sun Sensor and Star Tracker programs. We are also testing and developing avionic software for commercial constellations, with healthy demand for critical thermal analysis, static load testing, and initial design and engineering services support. Please turn to slide 14. Redwire's strong backlog provides confidence in our long-term growth outlook and is further supported by consistent pipeline momentum. Contracted backlog stood at $158.9 million as of the end of Q3 2022, which is relatively consistent with our contracted backlog as of Q2 2022. There was a sequential increase in our total backlog to $304 million as of Q3 2022. That is up from $251.7 million as of the end of quarter two 2022. This represents a 20.8% growth and is a historic high for us. Also note that this does not take into account anticipated additions to contracted and total backlog from the acquisition of Space NV. Our 2022 year-to-date book-to-bill of 1.18 provides us with a strong tailwind for execution in quarter four of this year and beyond. Space is a growth market with a tremendous amount of opportunity available, as shown in our pipeline of more than $3.5 billion in opportunities. Year-to-date, we have submitted approximately $950 million in bids. We have approximately $342.6 million in bids that are submitted and expected to be selected in the next six months. I will now turn it over to Jonathan for a summary of our third quarter financial results. Jonathan? Jonathan Baliff: Thank you, Andrew. Similar to last quarter, I will help quantify and expound on a number of the themes that Pete and Andrew just talked about. But before I do, on slide 15 here, let me just highlight, our outstanding team members prepping the Solar Arrays for the DART impactor spacecraft in 2021 for the recently successful mission that Andrew just talked about, in which the spacecraft impacted Dimorphos on September 26th, 2022, exciting, but a bit bittersweet for Redwire to see two of our 28-foot Solar Arrays or ROSA Arrays, taking one for the team for Planet Earth. All right. Let's turn to slide 16 for some key financial takeaways. And just to be direct on these key points. One, Redwire continues to execute on exciting and proven critical infrastructure for our customers, DART, ARTEMIS, NG-18 Bioprinting just a few of these, these are creating the revenue growth year-over-year in our proved financial performance sequentially. Two, Redwar continues to grow our total backlog. Demand for our infrastructure is leading to growth in our total backlog and this quarter is at historical high-levels. Three, Redwar is back with a financially accretive M&A transaction, this fourth quarter with Space NV that will add even more to our total backlog, revenue growth, sequential financial performance, as we continue to streamline the business, get more operating leverage into the business for the rest of fiscal year 2022 and 2023. Four, and finally, Redwire is strengthening its balance sheet and liquidity position with the addition of approximately $80 million in capital, accretive financing for Space NV with additional capital expected to provide for future growth and stability. I will go over some of the revenue specifics very quickly, but just to reiterate, our third quarter fiscal year 2022, saw higher revenues year-over-year and sequentially, $37.2 million. And that is after the previously discussed delay in contract awards and supply chain ramp-up due to the factors Pete just spoke about. Revenues increased 14% year-over-year when you look at it from a third quarter 2021 standpoint. We also continued the trend last quarter, where we delivered better financial performance in this third quarter sequentially. With revenue increasing 1.4%, gross profit as a percentage of revenue is increasing 2.3% and better operating leverage, leading to an adjusted EBITDA sequentially improving 63.7%. Our total backlog grew 20.8%, as Andrew just spoke about. And we saw increased demand for our critical infrastructure, especially in avionics and navigation components as well as power generation and deployable structure solutions. As we ramped up to serve this total backlog we employed more working capital. We saw more cash utilized in the third quarter compared to the second quarter of 2022. The addition of Space NV, a transaction we announced on October 3rd and closed on October 31st, changed our operating scope and scale and will add meaningfully to our improved sequential quarterly performance and total backlog, but also importantly, the acquisition was financed by proven investors in our space, pardon the pun, Bain Capital, a $160 billion leader in multi-asset alternative investment management is joining with us and joining with our existing shareholder, AE Industrial Partners, a leader in aerospace investing, to provide $80 million in capital to fund the acquisition and provide working capital for the growth demonstrated by our record third quarter total backlog. Finally, our third quarter operating performance has shown improved commercial momentum, as Pete talked about, and better operating leverage. And this is expected for the remainder of 2022. But as we already spoke about, even with demand for space infrastructure remaining strong, we have experienced delay in contract award ramp-up. These move to the right contract start delays, combined with a tight labor market for space talent and subcontractor supply chain disruptions, has slowed our ability to ramp up and quickly realize revenue after contract selection. But we will recognize this revenue. It's tied to large contract awards within that $304 million total backlog. And there could be large swings in the revenue recognition in this fourth quarter. Consequently, management believes it is prudent to widen and revise the revenue guidance range for the full fiscal year 2022 to $140 million to $155 million. Consistent with this change, and also taking into account that we are delivering better gross margins and operating leverage, we are also revising the pro forma adjusted EBITDA ranges to be between a negative $13 million and negative $6 million. Note, this range does not include the meaningful financial contribution anticipated from our Space NV acquisition. Management will update you on the -- those positive impacts for the year on our fiscal year-end 2022 earnings call. Please turn to slide 17. As part of our third quarter call, we want to provide a bit more detail into Redwire's revenue growth by using a year-to-date GAAP comparison to show on the left, and then also on the right, the quarter sequentially. This is similar to what we showed in the second quarter. When looking at the chart on the left, and as you'll see, our year-to-date third quarter 2022 revenues of $96.5 million improved 10.7% to $106.8 million for year-to-date third quarter 2022. These increases are attributable to deployable and engineering solutions' space gains with meaningful wins with our national security and commercial customer base. These revenue increases on a year-over-year basis were partially offset by a small decline in the civil space customer base attributed to our in-space manufacturing programs and are based mostly in the first half of fiscal year 2022. Customer diversity allows Redwire to absorb these small declines in one customer base and due to improved performance in another customer base. On a sequential quarterly basis, our third quarter 2022 revenues increased 1.4% from the second quarter 2022, with modest increases attributable across our business lines and customers. And this is taking into account the move to the right contract start delays in September, combined with the tight labor market that I already spoke about. We anticipate we will see that delayed revenue in the fourth quarter of 2022 will then move revenue into that latter half of 2022 and the first half of 2023. Please turn to slide 18. Similar to last quarter, we want to provide a bit more detail concerning Redwire's adjusted EBITDA profile using a year-to-date third quarter bridge shown on the left and a sequential quarterly basis shown on the right. On the left chart, for the year-over-year bridge comparison, adjusted EBITDA decreased from a positive $1.8 million in year-to-date third quarter of 2021 to an adjusted EBITDA loss of $10.2 million in the year-to-date third quarter 2022. Adjusted EBITDA was positively impacted by the additional revenue growth we've been talking about. We continue to see revenue momentum with a positive $1.9 million contribution on a gross margin neutral basis. And this is attributable to the higher book-to-bills that we're seeing in the second and third quarter of 2022 compared with the second and third quarter of 2021. Our year-to-date gross margin, which is shown on the next bar, led to a negative $3.9 million, but this is driven by declines in the first half gross margin and masked the fact that the quarterly gross margin improved 34.9%, as Pete talked about, on a quarterly basis. And sequentially, it was up 13.8% over the second quarter of 2022. This excellent result was attributable to margin improvements in our deployable and critical components and engineering solutions programs. Similar to what we showed in the second quarter, as you can see on the next bar, the negative $10 million operating expenses demonstrates the impact we spoke about last quarter. Redwire made investments in business development, R&D and public company costs in 2022 that have helped expand the size of our contract opportunities and backlog, but it has also impacted our year-to-date EBITDA. Most of this $10 million in operating expenses occurred in the first quarter of the year, and we began a more deliberate focus on streamlining the business in the second and third quarters, as Pete addressed earlier and we will continue to do so. We are focused on these costs. As an example, in the third quarter of 2022, we reduced absolute SG&A to $15.3 million, the lowest in five quarters from $34.3 million in the third quarter of 2021 and $17.6 million in the second quarter of 2022. That's a significant decrease on an absolute basis, and note, this is before bringing on Space NV. On the right chart, the almost 64% sequential quarterly adjusted EBITDA improvement from our second quarter to the third quarter of 2022 demonstrates this operating leverage coming back into the company due to the factors I've just spoke about and a focus on cost. You can see the new contract wins, better contract mix, higher gross margins that we spoke about, much of it in our deployable and Engineering Solutions space programs increased gross margin. Second, streamlining the corporate overhead will continue following the investments of the past 15 months to continue to drive down SG&A on an absolute basis and even on a percentage basis. Our third quarter SG&A margin now is at 41.1%, but that's down from 105.1% a year ago, and we're going to continue to work on that. Please turn to slide 19. Let's discuss free cash flow and liquidity for the third quarter and finishing up with a liquidity balance sheet improvement update before I turn it over to Pete. As we did on the second quarter call, on the left-hand chart, we show free cash flow, and we've updated the management disclosures concerning free cash flow, as we told about -- as we told you we would do in the second quarter call. Free cash flow is now provided from the perspective of operating cash flow minus CapEx on an unadjusted basis. So cash is cash. And as you can see, the third quarter 2022 free cash flow improved 16.6% to a use of cash of $12.6 million compared to last year's third quarter 2021 $15.1 million use of cash. It was a higher use of cash in the second quarter of 2022, and the sequential use of cash was due to a number of factors. One, free cash did benefit from improved revenue and sequential gross margins. But two, it was impacted by continued operational and capital investments in the Redwire platform. And finally, three, it was impacted by working capital build for contract awards, where the cash is expected to be received in the fourth quarter and beyond. We're reinforcing in many ways our supply chain. Redwire management is very focused on accelerating the general improvement that we see here. We want to see better improvement in 2023. As Pete said, we will continue to streamline the business as we continue our revenue momentum. On the right hand chart, we show our availability liquidity as of June 30, 2022, which totaled $17 million, comprising of $7 million in cash and $10 million in available borrowings under our credit facilities. But this has significantly changed this quarter, which I'll talk about on the next slide. Please turn to slide 20. On October 3, we announced the acquisition of the QinetiQ Space NV, now renamed Redwire Space NV. On October 28, the company entered into an investment agreement with AEI and Bain Capital for a combined investment of $80 million in October on – October 31, we completed the acquisition of Space NV. Here are the three takeaways for this. One, after giving effect to this financing and with zero synergies assumed in the calculation, the transaction is expected to be financially accretive immediately to Redwire’s adjusted EBITDA and free cash flow upon closing. Second, Space NV has experienced very profitable top line growth and features a strong financial profile. As Pete said before, for the year ended March 31, 2022 Space NV recorded a €49 million of revenue and €3 million of profit after taxes. Three, as of the third quarter 2022, Redwire's total backlog, as we talked about, rose to $304 million. This is a historic high for the company. But since the transaction closed, Redwire expects to directly benefit from Space NV's contracted backlog, which stood at €113 million as of March 31, 2022. The combined investment from Bain Capital and AE Industrial Partners puts Redwire in a much stronger financial position. Look at our liquidity on the right-hand chart. This update shows that after the Space NV purchase and related costs and working capital funding, we have more than tripled liquidity in the early part of this current fourth quarter. Concerning leverage, this financing adds $80 million of equity to our balance sheet, improving the credit willingness of Red wire in a number of important aspects. On November 1, 2022, Redwire entered into a fifth agreement with Adam Street Capital Partners. This Fifth Amendment to Credit Agreement, among other things, extended the suspension of the requirement concerning the company's maximum consolidated total net leverage ratio by an additional quarter and favorably amended the ratio that will apply during the first year following the resumption of this requirement. So Adam Street continues to provide support and their critical liquidity, as you can see, we need to grow. This investment in Redwire represented by two proven leaders in the aerospace and space industries are a strong vote of confidence in Redwire's position, both as a leader in the commercialization of the space as well as our strategy of providing critical infrastructure to our clients to provide growth and profitability. They bring a strong track record to the table and have a reputation of building great companies, and we were proud to partner with them. Redwire strong total backlog and proven track rode of success enable it to have access to capital during the period when many of these financial avenues are close to others. The quantity of capital raise above the purchase price of Space NV allows Redwire to strengthen its balance sheet and fund future growth projects. Please turn to slide 21, and I will turn it over to Pete for final comments. Pete? Peter Cannito: All right. Thank you, Jonathan. So to wrap-up, a very busy and exciting third quarter with some very notable subsequent events recently occurring in early Q4. Here are the high points we want you to take away. Most importantly, Redwire continues to deliver for our customers, not in the future, but in the present, we're generating revenue and backlog today. Andrew talked about a number of these different programs, the recent successful launch of NG-18, which was carrying our next-generation bio printer, our cameras that weather permitting are going to be launching on Artemis here in the next quarter. The set of iROSA Solar Arrays that are on SpaceX CRS-26, that are headed to the international space station. These and others created this third quarter 2022 revenue growth year-over-year and improved our financial performance sequential even with the delays in the contract ramp up which have impacted financial performance in 2022 guidance. Next, Redwire continues to grow total backlog. You’ve heard it a couple of times from myself, Jonathan and Andrew that we head a historic high in our total backlog. Demand for our infrastructure is leading to this historic growth. Thirdly, Redwire continues our successful track record of financially accretive acquisitions to scale our platform. We are notable in the industry for our ability to grow inorganically. And this quarter with Space NV, this will add to our total backlog. This will increase our revenue growth and will improve our sequential financial performance as we streamline and get more operating leverage into the business for the rest of fiscal year 2022 and 2023. We're very excited about this unique acquisition. And finally, as Jonathan just covered in great detail, Redwire is strengthening its balance sheet and liquidity position, with the addition of approximately $80 million in capital from highly respected industry investors, Bain Capital and AEI. This is resulting -- this has resulted in an accretive financing for Space NV with additional capital for future growth and stability. And with that, I now turn it over to the operator for Q&A. Operator: Thank you. We will now be conducting a question-and-answer session. [Operator Instructions] Our first question is from the line of Greg Konrad with Jefferies. Please state your question. Greg Konrad: Good morning. Maybe just to begin, just on guidance, you mentioned improved Q4 performance, but at the low end of guidance, it seems like revenues could be down sequentially. Can you maybe talk about with less than two months ago, what are the biggest variables? You mentioned labor, supply chain awards and driving that wide range for the year? And then tied to that, you mentioned nothing has been updated for Space NV. Is there a reason that, that wouldn't contribute to the final two months of the year? Peter Cannito: Yes. Hey Greg, how are you. That's a great question. Yes. So the -- I appreciate the question. So the biggest factor is really, as you saw, we're hitting historic highs in backlog is our ability to ramp up on those contracts. You hit the top two that we mentioned, the demand for space talent in the industry and the ability to hire to get those individuals up and running on our most recent contracts award, as well as getting our subcontractors to fulfill our orders as we're running out of time in the fourth quarter. So that's what's really driving the variability. It's not for lack of demand of our products and services. It's really about the ability to predict how quickly we're going to be ramped up -- be able to ramp up with the remaining time in the year. And considering the Space NV, we deliberately, because Space NV happened early in the -- the closing early, in Q4 have not included any of their numbers in our forecasting for the remainder of the year, but most certainly under our ownership for the fourth quarter, we will quantify the additional revenue and backlog that Space NV will bring probably during our next earnings call. But, notably, we will have a solid two months of run time plus with Space NV as part of us. So these projections do not -- and the forecast for the remaining year do not include any of that. That's all upside for us. Greg Konrad: That's helpful. And then on labor, can you maybe quantify some of the stress. I mean, the labor issues, obviously, aren't unique to you, and we've been hearing it across suppliers. But is there any way to think about what the requirements are and how that's been trending? And then how does maybe inflation and wages impact those numbers? Peter Cannito: Yeah. Also a very good question. So we don't have any quantitative data that we've prepared to share. But again, there's -- space industry is growing fast. There's a limited talent pool right now. So getting out there and competitively hiring people is taking longer than we had previously projected. We are growing. It just has to do with comparing it to what our previous plans were that ability to hire is pushing revenue into subsequent quarters. So we're ramping up slower. So -- but yeah, it's more qualitatively at this point that we have -- we put our recs out there, take a little longer to fulfill. I think we'll be probably concentrating on inflation more in our next call and looking at that, we are watching the macro environment very closely, but we don't have any numbers to share right now, but just like everybody in the industry, we're going to have to look at it from both sides of the coin, not only an increasing cost in our inputs, but also the ability to increase our prices and pass that along to our customers. So we'll take a note to talk a little bit more on that in Q1 of next year. I don't know, Jonathan, if you have anything you want to add to that? Jonathan Baliff: I mean internally, let's just say, we know the numbers and we know what we want to do. There are some competitive aspects to what you're asking, Greg, from the standpoint of contract bids and other things that we just are not prepared to talk about. But rest assured, internally, we have a very good sense of what we can do. And many of our newer contracts you're starting to see higher gross margins are taking it into account. So it's happening. It's happening internally, we're just not prepared on this call to disclose it for a number of reasons. Greg Konrad: And then, is there any way to maybe characterize the other stress you talked about, which was delays in contract awards because I mean, you have both the government and commercial side. Just wondering if this is a government issue or on the commercial side, it seems like maybe there's some funding issues. I mean, when you think about those awards, how do you kind of break that out between government and commercial? Peter Cannito: Yeah. I mean I think it's -- we're seeing the same trends in both. Sometimes, they're actually combined commercial contracts that are depending on some level of government funding. But I just believe that there's a lot of new opportunities and innovative capabilities in space that different companies are starting to get their arms around. And as they put their programs and their planning in place, it increases the variability of the time lines. So they're dealing with the same things we are. They're dealing with the ability to ramp up on staffing. They're dealing with their own subcontractor supply chain issues and the like. So it's across the board in both government and contracts. I don't know, Andrew, do you have anything you want to add to that? Andrew Rush: Yeah. I think that's well said. As we've talked about on previous calls, we have seen in the commercial side of things, we've seen folks have their projections kind of come back down to earth as it were. But most of that is flushed through our pipeline and our anticipated awards. So really what Pete was hitting on in terms of our commercial customers being thoughtful about getting their teams ramped up, getting their programs ramped up to execute is more what's driving slip to the right and contract awards rather than funding availability. Greg Konrad: And then maybe just one last one for me. I mean, I know it's a little bit early, but just looking at total backlog today, some of the headwinds this year I mean, how are you thinking about growth next year and just kind of puts and takes given that backlog, but also some contribution from M&A? Peter Cannito: Yeah, absolutely. So we're excited about the momentum going into 2023. We believe it's really strong. I'll point you to four numbers that we're specifically looking at is a really great indicator of where we're headed. We've mentioned multiple times, the $304 million and hitting historically high backlogs, we expect that trend to continue. Andrew mentioned on one of his slides that we have, I believe, $343 million in bids submitted. These are already under evaluation by our customers that we expect an award decision within the next six months. So $304 million backlog already on the books, we can work against that and another $343 million that we expect to hear from in the next six months. So that's great momentum. I'll add to that, our year-to-date 1.18 times book-to-bill. So our book-to-bill for the year continues to grow. We're growing faster than we're executing our revenue. So that's another really great indicator for the momentum to going into 2023. And then as you mentioned this well, as of March in 2022, which is the most recent audited information we have, Space NV had €113 million in backlog. There -- we have indications that that number is very solid or better for the year. So we know they're also experiencing great growth. So we're optimistic about their ability to finish 2022 strong and then increased momentum, specifically as part of Redwire and the different synergies that we can bring to the table there with that acquisition to increase and enhance our growth in 2023 significantly as well. So the numbers are indicating that, again, we'll have more to talk about in our next call. But all the numbers are indicating really strong momentum going into 2023. And with the significant improvement of liquidity on our balance sheet, we're really well positioned. Greg Konrad: Thank you Operator: Thank you. Our next question is from Austin Moeller with Canaccord. Please go ahead. Austin Moeller : Hi. Good morning, Pete and Jonathan. Peter Cannito : Hey, Austin. And Andrew is here, too. So thank you, Austin. Austin Moeller : Hi, Andrew. Andrew Rush: Hi. Austin Moeller : So my first question here, has the government enabled you to include inflation impacts in your existing contracts, or will that mostly be included in future contracts in the backlog? And what's the average length of a contract for Redwire programs Peter Cannito: Thanks for that question, Austin. So we have a variety of contract types with the government. We have cost-plus fixed fee contracts, firm fixed price contracts and the T&M. On the cost-plus fixed fee contracts, those are -- those allow us to very seamlessly collect any impacts due to inflation. On our FFP contracts and our -- and the T&M are also very similar to the CPFF, as I just mentioned. On the FFP contracts in contrast, we are more responsible because of the firm fixed price contract for any changes in cost versus a bid. However, we try to insulate ourselves as much as possible on that front by getting on contract with our subcontractors early and so many of our FFP contracts have already locked in subcontractor contracts at prices from previously established, insulating us against inflationary impacts. We also -- going forward in our bids, we are taking into account the impacts of inflation as well as being thoughtful about where we think things are going in our bids. And we are also introducing a level of -- introducing and continuing to follow level of rigor on our FFB contracts in terms of the cash milestone payments following industry best practices to stay ahead on cash and get our cash upfront where appropriate. Austin Moeller : Okay. Great. And that just that sort of touches on my next question was -- which was, are you planning to factor in more upfront cash collections on future contracts with customers, just given where we're at? Jonathan Baliff: Yes. Absolutely. Peter Cannito: Contracts type. Austin Moeller : Okay. Great. Yes. Thank you for the color. Jonathan Baliff : We didn't answer -- Austin, you did ask a question considering our contract length. It's generally 1.5 years to three years. So there is an ability to reprice on certain contracts even getting more inflation in. And you're seeing that bake into and how we think about the revenue momentum in 2023 and 2024, just by the way. Austin Moeller : Okay. Great. That's very helpful, Jonathan. Thanks. Operator: Thank you. [Operator Instructions] Our next question is from [indiscernible] with B. Riley. Please proceed with your question. Unidentified Speaker: Hi, there. So just a quick question here for me. So how much do you guys -- how much are you currently relying on subcontractors to fulfill orders versus your own employees? And then what's the difference in wages there, if you could? Peter Cannito: Yes. Hi, Kat. How are you? This is Pete. So we don't disclose that information for competitive reasons. But obviously, we have I believe, over 600 employees now. So we're doing a fair amount of fulfillment rest assured as Redwire. Jonathan Baliff: I mean, Kat, you've not spoken in past. It's Jonathan. Let me just add to that because I don't – Pete answering it the way we want to Kat. We have spoken to you and other analysts in the future, we are going to be able to provide you guys in 2023 a unit economics, right? We want to be able to do that for you guys so you can model out the nature of the unique economics to create a little bit more granularity. We are not prepared to do that right now. We're balancing, obviously, the disclosure obligations with the competitive information. This is a particularly critical and exciting time for us because you're seeing that momentum in our backlog build. Many of those have contracts that we're trying to frankly do more as part of those to get the margins up and be able to satisfy them and have more control over that. So just bear with us, but we're on it internally for sure. We just got to be able to disclose those unit economics to you in 2023. Unidentified Speaker: All right. Great. Thank you. And then just -- sorry if I missed it or sorry, I wasn't understanding correctly, but -- so were you not awarded contracts for limited proposals or have those contracts kind of been delayed and not awarded yet. Can you give any color there? That would be helpful. Jonathan Baliff: We have had delays in contracts, and we also have had contract ramp up. The change in guidance is associated primarily with the inability to ramp up with the remaining time on this increase to $304 million in backlog. It's really just about -- we came into the third quarter due to some delays we've talked about on previously calls, orders and contracts were that we were expecting in quarter two were delayed into quarter three. You've seen that bump now in our backlog. And now we have the remaining time to try to ramp up and execute. And we are putting in our revised based on looking at our analytics to determine how quickly we're going to be able to ramp up to execute on that. Unidentified Speaker: Okay. Great. And then… Peter Cannito: We're being fairly prudent, Kat. We're being fairly prudent it. Okay, Kat. Unidentified Speaker: Great. And then just a final one from me. So from a total pipeline perspective, so that like $3.5 billion number, are you seeing any new areas of growth, I guess, kind of what's going on directionally there, if there's anything new that you can share? Peter Cannito: Yes. I mean we're seeing growth across the board, both near-term and actually a lot of really great opportunities entering in our pipeline for the long-term. We've often talked about what we call our blue-chip foundation with venture optionality. And that blue-chip foundation we're referring to is our – what we also refer to as our picks and shovels offering. These are the things that every space program is going to need like power, avionics, antennas, capabilities like that digital engineering, so we have great demand currently in the present for the near-term for these picks and shovels. And then we're also seeing really good step-up in demand as we move towards a future, where there's going to be an incredible economy in LEO, not only on currently in the near-term on the International Space Station, but the planned commercial space stations that organizations like Blue Origin and their orbital reef are planning. We're seeing a lot of demand now that is coming because, these things are going to be built over the next decade, and that building has already started. So the demand signals are really strong, really across the entire board, the blue-chip foundation of our picks and shovels is seeing strong demand as the demand for space in general grows. And then, of course, there's venture optionality associated with one-of-the-kind technologies we have, like our in-space manufacturing, our bio capabilities. These are the payloads that are going to populate future commercial space stations. We know that because they are the capabilities that are populating the ISS today. You're going to see a significant uptick in that area as well. Unidentified Analyst: Great. Thank you. Operator: Thank you. There are no further questions at this time. I would like to turn the floor back over to Peter Cannito, for closing comments. Peter Cannito: Yes, I'd just like to thank everybody for joining the call today. We're very excited about our third quarter results, but we have work to do, and we're looking forward to sharing more information about our acquisition of Space NV's, the future – in the future. But thank you, everybody, for joining today. Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

Operator: Greetings, and welcome to Redwire’s Second Quarter 2022 Earnings Conference Call. My name is Kevin, and I’ll be your operator for today. At this time, all participants are in a listen-only mode. We will take questions at the end of this presentation. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to introduce for today’s call, Nicole Taylor, Vice President, Financial Operations and Investor Relations. Ms. Taylor, you may begin your conference call. Nicole Taylor: Thank you, Kevin and good morning everyone. Welcome to Redwire’s second quarter 2022 earnings call. I’m Nicole Taylor, Vice President, Financial Operations and Investor Relations and with me on the call are Peter Cannito, Chairman and Chief Executive Officer; Andrew Rush, President and Chief Operating Officer; Jonathan Baliff, Chief Financial Officer; and Chris Edmunds, Senior Vice President and Corporate Controller. We hope that you have seen our earnings release, which we issued this morning, and it is posted in the Investor Relations section of our website at redwirespace.com. Let me remind everyone that during the call, Redwire management may make forward-looking statements that reflect our beliefs, expectations, intentions or predictions of the future. Our forward-looking statements are subject to risks and uncertainties that are described in more detail on slide two. Additionally, to the extent we discuss non-GAAP measures during the call, please see slide three, our earnings release, or the investor presentation on our website for the calculation of these measures and GAAP reconciliations. With that, I would like to turn the call over to Pete. Pete? Peter Cannito: Thank you, Nicole. Starting with our agenda, you can see we will start with a quarterly update from myself, then I will turn it over to Andrew, who will give some operational highlights for the quarter, and then he will be followed by Jonathan Baliff, our new CFO, who will be giving the financial highlights. After we end our presentation, we will open the floor for Q&A. I also like every opportunity, going back to slide six, to point out Redwire hardware. So, as you can see, this beautiful picture of the International Space Station. On the right-hand side, you will see our rollout solar arrays that were deployed last summer, a remarkable technical achievement with our customer at NASA and our partners at Boeing, and we're very proud of that. Starting with the market overview. So, market demand remains strong despite the broader macroeconomic environment and this is primarily due to geopolitical competition for dominance across all segments of the space industry. There is a space station that is currently being deployed by China. We continue to have geopolitical space races with Russia, and this is driving a lot of demand in the industry. And it can't be underscored enough that this is a decade-long trend. This is not just a trend that is going on this year and will go away overnight, this is a decade-long race for competition in space and that is driving a lot of demand across our industry, across all of the different segments, and we're going to talk about that further on in the brief. On the commercial side, commercial space adoption has proven a little bit slower than expected, but the capability development outlook is still very strong. There are a lot of plans on the drawing board for extraordinary space capability. We are partnering with a number of commercial entities. And although, it is proving to take a little bit longer for some adoption rates and for some of these organizations to get their capabilities out, which does have an impact on near-term revenue, the plans are still there and the capability is still in high demand. So this will attract future growth. But in the meantime, our long-term government contracts across the civil and national security segment that are primarily with government entities, give us the financial strength required to remain patient while we wait for commercial space to reach its whole potential. And of course, there are some interesting developments that occurred in the last quarter, most notably the Russian threat to lead the ISS. That has increase the momentum behind commercial space stations such as Orbital Reef, of which Redwire is partnered on with our partners, Blue Origin and Sierra Space. Again, this is creating many new high-value opportunities for Redwire. Anecdotally, it just so happened that the Russians made this announcement that they retracted later during the International Space Station R&D conference in Washington. And the buzz that it created on the floor was extraordinary, and it really just underscores the imperative for a commercial space station. And so we're going to see a -- in the next decade, the development of these commercial space stations, and that's a huge demand driver for some of Redwire's unique capabilities. Moving to Slide 8. A couple of key takeaways that are going to be discussed in greater depth throughout the brief. One is that our demonstrated heritage on early-stage programs is creating much larger opportunity. We are establishing numerous cohorts on very large programs, and this is because of the heritage that we've been able to demonstrate in the past. I started out the presentation by pointing out our rollout solar arrays on the International Space Station. That is one example of how that deployment and the proven heritage that we established it with that capability, has garnered increasing demand for other organizations, who need the same capability. The result is that revenue momentum in the second quarter is up 14.2%, compared to the year prior and is up 11.7% sequentially. This is a result of this virtuous cycle that is being created as a result of our performance, leading to more contracts in higher-growth product lines. We have many high probability bids in the pipeline, some that are actually equal to or greater than our total revenue for 2021 in terms of total contract value. So, that just underscores the tremendous amount of opportunity there. So, we're executing a classic land and expand strategy. We have deep customer relationships. We have a long history of working with the marquee customers in the industry. We now have proven heritage on a number of really critical IP protected product lines, and this is leading to more and larger opportunities for our products. As you can see, our pro forma adjusted EBITDA, in Q2 2022, was negative $4 million compared to $2.1 million in Q2 2021 and compared to negative $4.7 million in the first quarter. So our EBITDA is improving, but we are making a significant number of investments and this is having an impact on EBITDA. Andrew and Jonathan will get into greater detail. But as an example, one contributing factor is an increase in our R&D spend. In order to support our revenue growth, we are making a number of investments in research and development. And as a result, our research and development has grown from roughly 3% of revenue in 2021 to almost 5% of revenue year-to-date. But as a result of these dynamics in the first and second quarter, we are revising our guidance for the remainder of the year, and we now expect revenue to be in the range of $165 million to $175 million for the year. This is compared to our previous estimate of $165 million to $195 million. So we are guiding towards the lower part of the range. That does still reflect anywhere from 20% to 27% revenue growth for the year, which we believe is healthy. And we are estimating pro forma adjusted EBITDA to be in the range between negative $2 million and $3 million, as we continue to make investments, and we work towards achieving operating leverage associated with additional scale. The investments, however, are starting to demonstrate signs of paying off; our investments in business development, innovation scale, drove Q2 2022 book-to-bill performance to $1.68 billion. And Redwire expects to achieve positive adjusted EBITDA in the second half of 2022, driven by this increase in revenue as well as a change in a contract mix with higher gross margins. Moving to slide nine. This slide gives you a high-level overview of some of the market trends by industry segment. We continue to see strong growth opportunities in the national securities segment, in particular, to include 40% growth in the Space Force, which is growing faster than the DoD budget top line. So in national security, which is a growing area, Space, in particular, is an even faster-growing area. So that, of course, gives us additional confidence in the demand for our sector. This is driven somewhat by that geopolitical competition. And that geopolitical competition goes well beyond just the US market. It also is stimulating additional demand in Europe, and we have seen many European nations are also planning to invest heavily in space in the future. On the Civil side, we see a trend towards increasing commercial dependency. I already mentioned that there is an imperative in the -- on the civil space side for a commercial state station, but there are also the successes of things such as commercial crew that are continuing to drive new public partner -- a private partnerships that is increasing demand for commercial services in the civil space segment. And of course, on the commercial side, although there is high volatility, we do see accelerated growth potential as many of the new commercial business models prove themselves out. Although, it is the segment with the most volatility, comparing to the government segment of national security and civil space, it is probably the segment with the greatest and fastest growth potential over time. Moving to the next slide and diving a little bit deeper into some ties specifically to Redwire wire. One of the very exciting dynamics that has been occurring over the last two quarters is that Redwire is providing critical components to some of the fastest-growing programs in the national security markets, to include working with the Space Development Agency on their tranche strategy. We have built a history on working on many of classified programs and we continue to make investments in security infrastructure to include investments in personnel, facilities, contracts and our robust security processes and policies. The important thing to note here is this is a significant barrier to entry for competitors, who are also trying to work with these customers. No organization can just come off the street and immediately start working in the classified domain of the national security sector of space. So by Redwire, having the history and the capability and the supporting infrastructure, this gives us a competitive advantage, and we continue to invest in this area to expand our ability to execute against a very robust national security pipeline. In the National Security sector, we are positioned to capture a number of high-end bespoke portions of the market to include in the power and radio frequency systems and our digital engineering sensors and cameras, as well as large deployable structures are all high-growth, high-demand areas in fast-moving swim lanes for the national security customers. So we feel that our product line, in particular, is well positioned for what the national security sector is buying. And as an example of that, we talked about last quarter, our recent success in procuring the Link-16 antennas for the FDA architecture. The net result is large multiyear contract awards in 2022 that have high probabilities of follow-on work. For those of you who follow the DoD sector, you know that the key is to be baseline and established at the beginning of a program, and once you're established in the baseline as the program grows and leads further into the production phases, this is a very strong result for multiyear reliable revenue. So the DoD will continue to spend in space and our technologies are being based on many of these high priority programs. Moving to the next slide. On the Civil side, I've already mentioned that plans for commercial stations in LEO are accelerating due to competition from the Chinese and the uncertainty with the Russian partnership on the ISS. Redwire in particular, with our on-orbiting manufacturing and leading space biotechnology solutions is positioned as one of the few companies with actually proven capability to outfit these future commercial LEO destinations. So as I mentioned, this is going to be a decade-long development cycle between now and 2030, where organizations are going to be investing in key Redwire capabilities to outfit these future commercial LEO destinations. But we can be patient, because as we are developing the next-generation technologies, we continue to provide our heritage technology on the ISS which will continue on to 2030. This gives us visible revenue streams in the near term, as we await many of the future revenue streams on the commercial side to gain steam. In addition, on the Civil side of the business, we're really excited about the Artemis I launch that is scheduled to occur on August 29. Of course, Redwire provides the eyes of Orion. We provide the camera systems for the Orion capsule as part of the Artemis program. So we're very excited to see that launch successful. And we're very proud of our participation in that program. Additionally, NASA is preparing to award a second human landing system award and Redwire is positioned to play a major role on multiple teams as a key supplier. So, there is now a race to the moon to establish a permanent presence and ultimately to Mars and this is creating additional demand for our capabilities, where Redwire is an industry leader in such IP critical-driven technologies like 3D printing in space. Moving to Slide 12. Of course, in commercial space, we're offering platform-agnostic technologies as a diversified portfolio and this is allowing us to get a diversified to hold with a number of key commercial entities across the industry. This diversification hedges the volatility associated with the commercial space segment. And in a very interesting dynamic, Redwire is establishing itself as a key player in the supply chain of many of these key commercial space capability providers. And in fact, we are turning our customer struggles with supply chain into a positive opportunity for Redwire because they are looking to strengthen their supply base on a number of key technology. As a matter of fact a number of companies have reached out to us to co-invest in developing products that are critical to their future plans, where they feel that the supplier base is weak which will ultimately lead to additional highly sought after subsystems and critical components that we will be adding to the Redwire portfolio based on proven customer demand. So we continue to – but in addition to being a key supplier, we continue to demonstrate new potential markets. We announced the first sale of our space manufactured optical crystals. So in some cases, we are a critical supplier and in other cases we are actually market makers and certainly in the area of space-based manufacturing and biotechnology, we're a market maker and we were very excited on the commercial front with our announcement of our biotech -- space biotech partnership with our partners at Eli Lilly, a clear demonstration that the future potential for space biotech is being looked at by many stalwart companies in the pharmaceutical industry. So, we talked about the imperative for a commercial space station like orbital Reef, and that is gaining significant momentum and we have a number of IP-driven products that are absolutely critical to the success of those platforms. Moving to Slide 13. Covering down our strategic positioning. So where does this leave us? Well, we're increasing our near-term investment in order to achieve higher revenue and profitability as we seek to gain operating leverage, Jonathan is going to cover that a lot in his segment as well. We are focused on operational efficiencies and financial resiliency to endure, uncertain economic conditions, our heritage, deep customer relations, long government contracts and our ability to work in the classified domain allows us to be patient as we see the commercial markets develop overtime. We are gaining many toeholds and improving our penetration in large multiyear programs with high production potential. This should lead to more rapid scaling in later phases of those programs. And of course, customer satisfaction and execution success is a key catalyst for follow-on opportunities, this is part of our land and expand strategy and is leading to significant momentum in our pipeline, which Andrew will talk about in greater detail. So at the end of the day, what's very exciting about Redwire is we have many modes. We have our existing flight heritage that just cannot be created overnight. We have deep customer relationships that are leading to co-investment to improve the supply chain. We have diversified products across all the different segments, but in -- particular in the commercial segment, this is giving us some resiliency against the volatility. We have long-term government contracts, which allows us to be patient, unique facilities to include an exciting new facility that Andrew is going to talk about in Goleta, where we're going to build the largest solar ray ever to be deployed, strong IP, particularly in the area of biotechnology and in space manufacturing and of course, that classified security infrastructure. These all together provide us a unique sustainable competitive advantage as part of our positioning as the market grows. So as you can see, Redwire's products and services of offering our flight-proven, wide-reaching strategically diversified products position us well for the future. To further expand on that, I'm now going to turn it over to Andrew, who will cover the operational highlights for the second quarter. Andrew Rush: Thanks, Pete. We are always proud to highlight missions that we're a partner and an enabler of. So here on Slide 14, we see the NASA and Johns Hopkins Applied Physics Lab laboratory mission, the double asteroid redirect test, spacecraft. This was launched this year and is powered by our rollout solar arrays and also uses our navigation components and is on its way to demonstrate the ability to kinetically impacted asteroid and change its trajectory, really, really awesome mission that we're proud to be a part of. So turning to Slide 15. I'd like to walk through some of our many operational highlights and project achievements. These will carry over to the next few slides in more detail. First, in quarter two, we continued deliveries of products and services for multiple national security, civil and commercial space customers including for multiyear, multi-ship set missions and satellite constellations. Our operational successes have led to additional projects and expanded workscope via cross-selling of products and services. Our teams increased on-time delivery, including for large solar programs and navigation component projects. These operational successes have led to increased backlog realization and have driven revenue growth and improved gross margins. Sales in the quarters have improved and we will spend more time on this in a moment, but as a preview, as Pete mentioned, our book-to-bill ratio in quarter two was 1.68, which was up from 0.45 this time last year. In order to fulfill our customer needs now and in the future, we are also continuing to make infrastructure investments to expand production capacity and increase execution efficiency. Finally, let me point out the image on this slide. Those are members of the Archinaut One extended structure additive manufacturing team who are presenting a one-third length test print. Light software and flight like avionics made this team a major assembly integration and test milestone as this first of its kind mission moves closer to launch. We are very proud of the progress that they are making. Now moving to Slide 16. As I mentioned, our teams have continued to deliver for our customers throughout this year, enabling a wide variety of NASA, national security and commercial missions to proceed. We delivered deployable structures on antenna to support national security missions. We delivered Roll-Out Solar Array for integration by a commercial customer as well as an important NASA mission, and turned over multiple satellites worth of navigation components to a new commercial customer for utilization on several missions. We delivered camera systems and wiring harnesses for human-rated and robotic spacecraft. We also readied our BioFabrication facility for launch to the International Space Station later this year to continue pathfinding commercial 3D bioprinting in space. In addition to the previously mentioned progress that we're making on Archinaut One, our teams have continued to provide digital, modeling and simulation services to satellite constellation operators. Of particular note, on-time deliveries improved in quarter two, giving us both more consistency and revenue generation as well as a tailwind for follow-on work. Quarter one of this year faced challenges in vendor performance delays as well as delays in subcontracting. I'm pleased to report that many of those challenges have been overcome, driving increases in quarter two revenue compared to quarter one as well as setting up a stronger second half of this year. Now supply chain pressures do remain, but we continue to explore ways to strengthen our supply chain by expanding our vendor base and building strategic partnerships. Redwire is poised to continue delivering on this momentum in the second half of 2022. Moving to Slide 17. These operational successes have driven improvement in our performance in quarter two compared to quarter one. Specifically, as Jonathan will detail in a few minutes, our revenues were $3.9 million higher in quarter two of this year compared to quarter one, and our gross margins increased 3.3% over the same period. In addition to driving those improvements in financial performance, operational successes are leading to expanded opportunities for new orders and programs. New and existing customers are expanding their orders with us. Many existing customers are also increasing Redwire's workshare by not only buying products that they have traditionally pursued from us, but also engaging Redwire to provide other products and services previously procured elsewhere. For some, Redwire is truly becoming a one-stop space shop. In quarter two, we have also been successful in expanding multi-shipset, multi-year programs and establishing beachheads with new constellations. These are clear signals that our business development and operational success is driving performance in future growth. Moving to Slide 18. Building on that, I'd like to next discuss in detail our backlog and sales pipeline. Our total backlog is a key business measure consisting three elements: contracted backlog, awards in negotiation and additional scope to complete existing contracts. Our total backlog consists of a diverse set of products and services, protecting against downside exposure from any single product or service. Between quarter one of 2022 and quarter two of 2022, our contracted backlog grew from $137.3 million to $162.1 million, an 18.1% increase. This growth in contracted backlog was driven by our team's doubling bookings made in quarter two relative to quarter one. Specifically in quarter two, we contracted $61.6 million in new work compared to $30.4 million in new work in quarter one of this year. This strong bookings performance led to a reduction in the awards and negotiation elements of total backlog, as well as an overall reduction of total backlog from $273.9 million to $251.7 million, over the same period. As I will discuss in a moment, our robust sales pipeline provides confidence that our total backlog will grow in the future. Importantly, the percentage of our total backlog that is now fully contracted went up from 50.1% to 64.6%, increasing our confidence in performance in the second half of this year and into 2023. As I mentioned, our book-to-bill ratio also improved to 1.68 for quarter two, compared to 0.5 this time last year. For comparison, our book-to-bill ratio for quarter one of 2022 was 0.93. This improvement in book-to-bill ratio and increase in contract backlog provides a tailwind for execution in the second half of 2022. Moving on to slide 19. Year-to-date, we have booked over $90 million in new work. Turning to our sales pipeline. We believe its robustness will drive increased sales momentum and increased total backlog. Our total pipeline is approximately $3.5 billion across approximately 500 opportunities. Of that total pipeline, $556 million is currently submitted to customers as proposals and awaiting their decision. This is up from $249 million in submitted bids at the end of quarter one of this year. Now, of these $556 million in submitted bids, $264 million of that, or approximately 47% has estimated selection date in 2022. In addition to that significant amount of outstanding bids, at the end of quarter two, our team was working on an additional 83.1 million in proposals, which have selection dates in 2022. The time between selection and contracting or authorization to proceed varies from customer-to-customer, between an average of one month to three months. Our pipeline is a healthy mix of national security, civil and commercial space opportunities, which increases its resilience to macroeconomic forces, while providing many opportunities for accelerating growth. Our high visibility into our near-term pipeline provides us with confidence in seeing growth on our bookings and total backlog in the second half of 2022 and into 2023. Moving on to slide 20. I'd like to turn to detailing how we are ensuring we have the capacity to continue to deliver for our customers as we scale. As a high-growth space company, we have made and are continuing to make investments in physical and operational infrastructure to increase our operating leverage and profitably deliver quality products and services on time. In quarter two, we commissioned approximately 30,000 square feet of new design and production space. These facilities provide us with expanded capacity for RF antenna production and deployable structured production in Colorado, and robotics and mechatronics production in Europe. Looking forward to quarter three, we are on track to complete a new 40,000 square foot facility to provide expanded solar production for both our Rigid Panel Solar Array lines and our Roll-Out Solar Array products. This facility [Technical Difficulty] Operator: Please standby, we seem to have lost the speaker's audio, please standby while we reconnect. Please proceed. Andrew Rush : Looking forward to quarter three, we are on track to complete a new 40,000 square foot facility to provide expanded solar array production capacity for both our Rigid Panel Solar Array lines and our Roll-Out Solar Array products. This we lead California-based facility will give us both increased throughput capacity for all signs and types of arrays as well as enabling the construction and test of even larger solar array. In addition to these physical plant infrastructure investments, we are continuing to improve and unify our processes and workflows to enhance our operational efficiencies. Importantly, these investments support proven technologies and product lines and are informed by customer demand signals, giving us high confidence and strong returns on these investments. They are not build it and they will come type of investments. Our physical and operational infrastructure investments are currently bearing fruit as seen in our increased revenue and gross profit. They will enable us to meet increased demand from our sales momentum in the second half of 2022 and beyond. With that, I'll hand it over to Jonathan to walk through our financial highlights. Jonathan Baliff: Thank you, Andrew. So, let's review the financial specifics of the second quarter and the first half of 2022. I will help quantify and expand on a number of the themes that Pete and Andrew spoke about. Please turn to slide -- well, turn to slide 22 in a second. 21, I'm going to do the same thing that Andrew repeated. These are our excellent team members here with the aforementioned ROSA, the Roll-Out Solar Arrays. So, I just want to mention that. All right. Let's turn to 22 for some key financial takeaways. As Pete spoke about, our second quarter fiscal year 2022 revenues increased 14.2% year-over-year to $36.7 million. Our second quarter net loss was $77 million compared to a net loss of $15.9 million in the second quarter of fiscal year 2021. This net loss included mark-to-market on our warrants, but also an $80.5 million non-cash impairment expense. Let's briefly talk about this non-cash impairment. During the second quarter, there was a decline in the company's market capitalization driven by general economic conditions, including heightened inflation, rising interest rates, and volatility in the capital markets, which triggered a test of our goodwill, tangible and intangible assets. Based on this test, we incurred a pre-tax impairment charge of $80.5 million. These impairments during the second quarter of fiscal year 2022 did not have any impact on Redwire's revenue or supply chain contracts, or liquidity or the company's compliance with our credit agreement with Adams Street Partners. Our adjusted EBITDA loss of $4.1 million in the second quarter of 2022, which adds back this non-cash impairment expense among a number of other non-cash and one-time add-backs are detailed on page 33 of this presentation. One of the themes of the second quarter is improvement over the first quarter in 2022 and a number of important commercial and operational areas already discussed. And Redwire has also demonstrated this financially with revenues that were 11.7% higher sequentially, gross margins that were 3.3% higher sequentially. The second quarter adjusted EBITDA loss of $4.1 million is 13.2% better than the $4.7 million adjusted EBITDA loss in the first quarter. Finally, second quarter free cash flow, which we care about a lot, it was a use of $500,000 is markedly better than the free cash flow use of $6.4 million in the first quarter of 2022. And with a book-to-bill of 1.68, which is detailed on Page 32 of this presentation, we anticipate this trend to continue as we expect to achieve positive adjusted EBITDA in the second half of fiscal year 2022. However, a number of factors we will speak about in the next few pages, including the investments in business development, R&D and public company costs that have helped expand our opportunities that Andrew and Pete talked about in 2022, have also impacted our adjusted EBITDA for the first half. Correspondingly, management is tightening our previously provided revenue guidance and now expects revenues to be in the range of $165 million to $175 million. And we are also revising the pro forma adjusted EBITDA to be in a range between a negative $2.0 million and positive $3 million. Please turn to Slide 23. As part of our second quarter call, we want to provide a bit more detail into Redwire's revenue growth but using a year-to-date GAAP comparison shown on the left and also the GAAP sequential quarter shown on the right. For the year-to-date second quarter comparison of 2022 to 2021, revenues increased by $5.8 million or 9.1% in for the six months ended June 30, 2022 compared to the six months ended June 30, 2021. As you can see from the buildup of customers, the revenue increases are distributed among them with no one class predominant, similar to what was previously discussed by Pete and Andrew. These revenue increases are principally attributed to our deployable and component lines of business. The revenue increases were partially offset by certain other lines of businesses year-over-year. But this is important to note, as in previous years, these other lines of businesses created much of Redwire's previous revenue growth, and they will do so in 2023 and beyond as their TAM is significant. This shows the benefit of Redwire's diversified infrastructure platform. When looking at the chart on the right, the sequential 2022 quarters show a rebound in our second quarter by 11.7% and again, this is driven by the deployable lines of business. The reason this is significant is the fourth quarter of 2021 saw a similar impact from this business line and also our components line. Two, we faced headwinds in certain lines of businesses in the first half of this year of 2022, and the revenue would have been higher. But much of that revenue in certain contract awards was delayed into the second half. And we'll see that revenue in second half 2022 and 2023. Redwire is not an inherently seasonal company when it comes to revenue recognition. However, our organic acquisition of our contracts can be uneven, as the sequential quarterly numbers show and its best predicted by our book-to-bill, which is currently, as we've talked about, 1.68. But a year ago, it was 1.28% in the second quarter of 2021. Please turn to Slide 24. Similar to revenue, we want to provide a bit more detail concerning Redwire's adjusted EBITDA profile using a first half year to bridge on showings the left and also a sequential quarter shown on the right. On the left chart, for the year-over-year comparison of 2022 to 2021, adjusted EBITDA decreased from $2.6 million in the first half of 2021 to an adjusted EBITDA loss of $8.7 million in the first half of 2022, even though revenue increased during that same period. As you can see from the bridge, our first half 2022 adjusted EBITDA was positively impacted by additional revenue growth. We continue to grow revenue. This was a $1 million positive contribution on a gross margin neutral basis, which is contributed by Redwire’s continued strategic positioning. But our year-to-date gross margins, which is shown on the next bar, contributed to a negative $4.9 million at this year-to-year decrease was driven by a contract mix that had lower gross margins and the upward development of estimated cost to complete certain programs. As you can see on the next bar, the negative $7.5 million contribution demonstrate what Andrew was speaking about and Pete, Redwire continues to make investments in business development, R&D and public company costs that helped expand the size of the contract opportunities and – but it impacted our first half of 2022 EBITDA, especially the first quarter of 2022. And this adjusted EBITDA included cost efficiencies that the management actually implemented. However, we have been deliberate about balancing those efficiencies with the investments. as one, we expect revenue to come in, in the first quarter that was delayed and now will come in, in the second half of 2022, and two, we are purposely investing in Redwire to achieve scale, operating leverage and profitable growth, with much of the incremental SG&A costs foundational in this unique and growing space company. On the right chart, this sequential quarterly adjusted EBITDA improvement from our Q1 to Q2 in 2022 demonstrates operating leverage coming back into the company due to a number of factors. If you compare the 2022 Q1 bar to Q2, you would see the opposite of what you saw on the left-hand chart. New contract wins, better contract mix and higher gross margins, much of it in our deployable components businesses increase that gross margin, contracts inherited in past acquisitions, which were priced with lower gross margins and did not have the one Redwire effect, they're rolling off, meaning that the second quarter of 2022 is an early indication and a better reflection of Redwire's profitable potential. Redwire's recent win of contracts were priced to reflect that one Redwire differentiated solutions and have higher gross margins. These contracts will displace the contracts that are rolling off. Finally, the investments that we made in operating expenses are leveling off, and we're going to be more efficient in the future to bring more operating leverage to Redwire. As an example, SG&A went down sequentially by 14.5% and actually went down from 63.7% as a percentage of revenue to 47.8% as a percentage of revenue in the second quarter of 2022. That is a 25% decline. Please turn to Slide 25. So to summarize the previous two slides and bring it together for our 2022 guidance, please see these two charts that we introduced on our earnings call on March 31. Concerning revenue, we assess our 2022 guidance based on our, one, actual revenue recognition as the year progresses. We're now in the first half; two, our total backlog and backlog quality that Andrew spoke about, and three, the expanded size of contract pipeline opportunities in 2022 with the book-to-bill trends that we also spoke about. These all helped quantify our revenue guidance range in a systematic way. Some thoughts, continuing Pete’s revenue momentum fee and the actual second quarter sequential revenue improvement, our 1.68 book-to-bill, our second half revenue outlook is markedly better than the first half. However, a number of factors that we already spoke about impacted the first half actual revenue. So management now is tightening our previously provided 2022 guidance range to $165 million to $175 million. Turning to adjusted EBITDA. We assess our 2022 adjusted EBITDA guidance on: one, the analysis concerning revenue guidance already spoke about; and two, our contract mix especially any accretion dilution to actual and forecast gross margins; and three, finally, the investments we made in operating expenses and those trends quarter-over-quarter and what we believe we can achieve in the second half. Again, continuing Pete’s revenue momentum theme, the actual second quarter sequential revenue improvement the 1.68 book-to-bill and the contract accretion we expect our second half adjusted EBITDA outlook is significantly and markedly improved than first half. However, a number of factors that we already spoke about for the first half actual adjusted EBITDA, notwithstanding the second half improvement, management is updating our previous 2022 guidance for pro forma adjusted EBITDA to a range of a loss of $2 million to a positive $3 million. Please turn to Slide 26. Let's discuss free cash flow for the second quarter and finish it up with liquidity before I turn it over to Pete. So free cash flow is computed as we've been doing for the last year as adjusted EBITDA less capital expenditures and changes in net working capital, and it provides a perspective on our unlevered free cash flow generating capabilities before noncash items and certain one-off expenses. This measure was used in last year's S-4, and we want to be consistent with what we've shown, because we do care about this, and we are improving upon it, and we're working to do even better in the future. Much of the improvement sequentially this quarter is due to the improvement in the sequential revenue and EBITDA that I already spoke about, and we expect the second half of the year to show improvement from the first year for similar factors. On the right-hand chart, we show our available liquidity as of June 30, 2022, which totaled $25.9 million, comprising $10.9 million in cash and $15 million in available borrowings under our credit facilities. And the chart shows that we stayed fairly steady from the previous quarter. Some points on liquidity are important to note. One, we are seeing excellent support from our shareholders and Adam Street Partners during the quarter. Our August 8, 2022 Redwire Fourth Amendment, which is detailed in our earnings release with Adam Street shows that, Fourth Amendment, among other things, suspends the requirement to concerning certain leverage ratios as we move into the future and also shows that there was a support guarantee limited one from our shareholder of $7.5 million. So we continue to provide support and obviously have the critical liquidity we need to grow. So let's finish this up. I'm going to turn it over to Pete for any concluding remarks on slide 27. Peter Cannito: Thank you, Jonathan. So in summary, we're building a foundation for near-term improvement and long-term growth. The first quarter and second quarter of the year were lower than expected, but Redwire is the kind of company that you measure in years, if not multi-years, due to the lumpy nature of our revenue and the extraordinary pipeline that we have developed as we continue to make investments. Demand for our products and services is strong, driven primarily by a decades long geopolitical competition for dominance in space. And our proven technology is not dependent on a build it and they will come scenario. We are generating value-added products today. We continue our pace of launches in 2022, and we are supporting slightly hardware now in the present. Redwire, as we mentioned, is continuing to make investments in business development and R&D and that has helped to expand the size of our programs, but this is having an impact on our adjusted EBITDA for the first half of 2022. However, the investments are paying off and our second half revenue growth underpinned by significantly higher 1.68 book-to-bill, and combined with a change in contract mix and higher growth margin provides for an improved outlook for the second half of 2022. As revenue and operating leverage improved sequentially, Redwire expects our financial outlook to improve, we see positive EBITDA for the second half of the year, and great momentum going into 2023. And with that, we will turn it over to the moderator for questions. Operator: Peter Cannito: Thank you very much, and have a good day. Operator: Thank you. That does conclude today's teleconference and webcast. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today.

Operator: Good day, ladies and gentlemen, and welcome to Redwire’s First Quarter 2022 Earnings Conference Call. My name is Kyle, and I’ll be your operator for today. As a reminder, this call is being recorded. I would now like to introduce your host for today’s conference call, Michael Shannon, Treasurer and Head of Investor Relations. Mr. Shannon, you may begin your conference. Michael Shannon: Thank you. And welcome to Redwire’s first quarter 2022 earnings conference call. I’m here today with Peter Cannito, Redwire’s Chairman and CEO; Andrew Rush, Redwire’s President and COO; and Bill Read, Redwire’s CFO. I will begin by referring you to the Safe Harbor disclaimer in our earnings press release, which is posted to the Investor Relations section of the website. During today’s call, we will make certain forward-looking statements. These statements are based on current expectations and assumptions and as a result, are subject to risks and uncertainties. Many factors could cause actual events to differ materially from the forward-looking statements made on this call. For more information about these risks and uncertainties, please refer to the press release issued today. Readers are cautioned not to put undue reliance on forward-looking statements, and Redwire specifically disclaims any obligation to update or revise any forward-looking statements that may be discussed during this call. During this call, we will also refer to both, GAAP and non-GAAP financial measures. You could find definitions and reconciliations of our GAAP to non-GAAP measures included in our press release. And lastly, this call is also being webcast with a supporting presentation and a replaying copy of the presentation will be available on our website for two weeks. With that, I’d like to turn the call over to Peter Cannito. Peter Cannito: Thanks, Mike. And thank you everyone for joining the call today. Today, we will be discussing our key business accomplishments for the first quarter of 2022. Before moving to the slides, I wanted to highlight that our goal here at Redwire is to deliver the foundational technologies for the present and future of space infrastructure. To do this, we are focused on continuously improving and scaling our products and solutions for our customers. Redwire solutions range from innovative payloads to digital engineering, solar arrays, key navigation and communications components, and In-Space Servicing, Assembly and Manufacturing. Our technology is enabling new space missions that support partners like NASA, the U.S. Space Force, the Intelligence Community and commercial customers. I would also like to flag for everyone on the call that we posted our glossy annual report wrap with many projects we are proud to have accomplished in the last year. Many of the images you will see in the annual report and throughout this presentation are actual images of real Redwire capability deployed today. Please take some time to read the letter and look through the report. We have a bold vision, but this is not science fiction. Many of these programs are being executed in the present day. As I highlight our results, please follow along, starting on slide 7 of the presentation, that we have posted with our earnings release today. In the first quarter, we continued to execute on our long-term strategy with some critical business and technical milestones. There are strong demand signals coming from customers in key areas, where Redwire is an industry leader such as In-Space Servicing, Assembly and Manufacturing, also known as ISAM, more on that in a few moments. We are also seeing strong continuing demand for our patented Roll-Out Solar Arrays or ROSAs, which as we have already highlighted, the first pair was installed on the ISS last June. This is an example of how a critical win and proven performance with a breakthrough technology like ROSA can lead to much larger opportunities. As such, we recently delivered ROSA wings 3 and 4 to the customer and anticipate growing orders for ROSA from current and new customers in the future. Another example of how proven performance on a key opportunity can lead to larger orders is our Link-16 antenna developed for national security mission. Building on our recent success demonstrating our Link-16 antennas, Redwire has been contracted to deliver multiple high gain antenna systems for a national security space LEO satellite constellation. Proven performance on orbit is leading to larger opportunities as new constellations and other large programs move into full rate production. This is how we will scale. To meet the anticipated demand, we are leaning forward and have increased investment in business development, R&D and corporate infrastructure to build a strong foundation for near-term growth and profitability. Of course, this has a cost impact as well. But it is critical to growing revenue and market share and that is where we are focused. The first quarter performance was slightly below our expectations due to delays in contract awards and supply chain issues impacting subcontractor order fulfillment, and we have experienced some volatility associated with orders from emerging commercial space contracts. However, our revenue profile is such that a shift of a key milestone, large new order or sizable subcontract delivery can materially change the timing of our revenues throughout the year. Despite near-term shifts, and delays that impacted the size of this year’s first quarter revenue, we have confidence in our 2022 forecast range and expect sales to be more heavily weighted towards the back half of the year. We saw the same pattern in last year’s revenue profile as well. Moving on to slide 8. As I previously mentioned, the demand signals for the space market remain strong. The national security sector is seeing strong demand driven by 26% growth in the Space Force budget. The tragic Russian invasion of Ukraine has highlighted the criticality of space assets during conflict and underscores the need for resilient space architecture. Many Redwire capabilities are critical for tactical communications, remote sensing, tactically responsive space, modeling, simulation, and training and other national security priorities. We are continuing to invest in growing our national security capabilities and have unique security infrastructure and contracts that will enable us to effectively support this customer. Moving to civil space. Despite delays caused by the continuing resolution, this segment is very stable and growing. The approved NASA budget has grown 8% and we are now seeing increased investment in the Artemis program including the recent announcement of a second human landing system. Civil space is an important component of our -- Redwire’s revenue. Our legacy of delivering for NASA provides us a stable foundation and the staying power to deliver for exciting new space missions, regardless of economic conditions. For example, we recently delivered the camera controller, wireless antennas and cable harnesses for the Artemis III Orion Camera System, and an array of inspection and navigation cameras developed for NASA’s Orion Spacecraft. This is a segment which is foundational to our pipeline throughout FY 2022 and FY 2023. And this past Tuesday, we were pleased to host a visit from NASA Administrator Bill Nelson at our headquarters in Jacksonville, Florida. Lastly, the emerging commercial space segment has tremendous growth potential over the next 5 to 10 years that could far outpace the other segments in annual growth rates. However, recent development in the macro environment has created near-term volatility and some companies are having difficulty raising the capital required to support their growth objectives. Since Redwire provides foundational technologies to many of these commercial providers, changes in their forecast or deliveries can have a direct impact on our forecast as well. Regardless, we still see incredible potential from this segment over the long-term and as the other two segments rely heavily on a vibrant commercial space sector. The long-term growth trajectory for this segment is easier to predict than the timing. Slide 9. I’d like to take a moment to focus on a specific demand signal in the government segment that is very positive for Redwire. The White House has recently released an interagency In-Space Servicing, Assembly and Manufacturing national strategy. This ISAM national strategy is very exciting news for Redwire. As you all know, Redwire is uniquely positioned as a first mover and technical leader in the area of In-Space Servicing, Assembly and Manufacturing. And this provides additional validation and momentum to our business plan. One key change is that this area used to be referred to by our customers in the industry as OSAM or On-Orbit Servicing, Assembly and Manufacturing. But this strategy broadens the focus from on-orbit to in-space to underscore that the opportunity is much greater than just in earth orbit, but rather extends into all areas of space, such as cislunar, lunar and interplanetary space. The White House ISAM strategy provides strategic goals for the agencies under the executive branch to advance ISAM capability development discussed in the United States based priorities framework. It underscores the nation’s commitment to the critical ISAM technologies that Redwire has been developing, like 3D printing in space and our ISAM program Archinaut, which will demonstrate the first satellite to use ISAM to manufacture and assemble key components once on orbit, as well as our lunar regolith 3D printer that won 2021 Popular Science Award for Innovation and is critical to developing a sustained human presence on the moon. This is a very positive development for Redwire as this strategy should increase the number of acquisitions for ISAM capability. Moving to slide 10. As I mentioned in the intro, a critical win and proven performance with a breakthrough technology can lead to much larger opportunities. This is how Redwire will scale. We saw numerous examples of this starting to bear fruit in the first quarter. I already mentioned how the success of our ROSA wings on the ISS has led to more orders and the success of our Link-16 antenna led to a procurement for many more on a national security constellation. But there are other examples across the Company as well to include large orders of our navigation components, and digital engineering software that could lead to longer term, large scale procurement. As a critical supplier to the space industry across all three segments, we are planting the seeds of future growth by having our solutions base-lined on programs with significant growth potential and large production tails. This ties right into slide 11. In order to capitalize on these growth opportunities, we are leaning forward on our investments in business development, R&D and capital expenditures. We have increased our spending over 70% in each category to ensure we have the business development resources to capture new opportunities and the facilities and production capabilities needed to scale with our customers. Although these numbers have a cost impact in the near-term, they will normalize with scale when the subsequent growth from these investments will result in better operating leverage. And as you can see on slide 12, business development and R&D activity is essential in order for Redwire to compete effectively and support the number of bids in our pipeline. Our backlog was $274 million as of March 31, 2022, consistent with the previous quarter. But, we are now seeing several high-probability bids that should lead to contract wins, which will be highlighted in future quarters. There are over $546 million in bids that Redwire has submitted to our customers that are awaiting decisions. A few examples of the size and types of bids we have submitted are highlighted on this slide. Moving on to slide 13, the final slide in my section, I’d like to highlight Redwire’s current positioning as we continue to execute on our plan for the remainder of 2022. As I just highlighted, Redwire has increased our investments to fuel growth and to achieve higher revenue and higher profitability, as we gain operating leverage. The demand signals are strong in all three segments of the market and we are leaning forward to prioritize revenue growth. As Bill will cover in more detail in his section, we currently have access to sufficient capital to execute on our growth plan. This is critical, as we are starting to see some potential for rocky roads ahead for the larger economy. We believe that when you combine our access to sufficient capital with our already existing strong backlog of business and long-term history with stable government customers like NASA, the DoD and intelligence customers, we have the staying power and financial resilience to endure uncertain macroeconomic conditions, should they occur. In fact, this may lead to new opportunities as we anticipate an increase in potential accretive M&A as smaller companies see the benefit of joining a larger, more diversified platform. Regardless of the impact of the broader U.S. and global economy, however, we still see significant demand for the space industry. Expanding government investments from NASA and the defense and intelligence community are key elements in our growth strategy. Penetration on large, multi-year programs with production potential should lead to more rapid scaling in later phases and we look forward to providing our customers innovative solutions for these and other important missions. We continue to have confidence in our forecast for 2022 and expect sales to be more heavily weighted toward the back half of the year as key procurements work their way through the acquisition system. With that, I will now turn the call over to Andrew to outline some of our specific technical achievements and key programs. Andrew Rush: Thanks, Pete. I’d like to walk through some of our many operational highlights and give you updates on successes in quarter one. Looking at slide 14, I’d like to think of this chart as our today and tomorrow slide, as you look at both missions that we are flying today and the future of space commercialization. You can see many missions that Redwire has enabled with our 50-plus years of flight heritage and over 200 space flight missions. This slide also highlights the industrialization and commercialization of space, specifically next generation observatories, remote sensing systems, human habitats around and on the moon, permanent outposts on Mars and more. Just as Redwire supports the missions of today, we also are working to enable the missions of tomorrow and deliver on the future of space commercialization. Our strategic focus areas of In-Space Servicing, Assembly and Manufacturing, low-earth orbit commercialization, advanced sensors and components, space domain awareness, and digitally engineered spacecraft, support, national security, commercial and exploration missions today, and provide capabilities that will enable this second golden age of space that you see here. Now, to get into the details of the progress that we’ve made this quarter, let’s turn to slide 15. Here are highlights of several updates I’ll get into in detail in a moment. As Pete alluded to, we’re delivering multiple products and services for national security and commercial satellite constellation, as well as multiyear, multi-ships at missions. Penetration of these constellations and larger missions provides growth and long-term upside for us. Solar arrays and deployable solutions are very important part of our company. We’re excited to report that we’ve delivered the third and fourth wings for installation on the International Space Station and are set to dramatically increase the number of solar array wings that we deliver this year. Redwire products and services continue to be successfully deployed at a high cadence. Thus far, our hardware has been deployed on four missions this year, and continues to operate on the International Space Station. We also recently were selected as a provider on the Air Force’s $950 million Advanced Battle Management System IDIQ. This builds on work we’re doing for other customers, which I’ll get into in a moment. If you look at the middle of the page at that satellite icon, I’m proud to provide updates on our progress with our Archinaut One mission, which recently carried out its mission CDR, a major milestone on the way to demonstration and adoption of our in-space manufacturing and assembly of satellites technology. Finally, Redwire has leaned forward and made investments necessary to increase production capacity for many of our high-growth potential product lines, including solar arrays, robotic capabilities, and RF antenna production. Turning to slide 16, we’ll first talk about our solar array product lines. As you know, we are building six wings to ultimately be installed on the International Space Station and augment its power generation capability. The first pair of those wings, wings 1 and 2, were installed last year and are performing at or above their performance targets. I’m pleased to report that in the first quarter of 2022, we delivered wings 3 and 4, and wing 4 was actually delivered ahead of its baseline schedule, a major operational win for us at Redwire. We’re now in production on wings 5 and 6 and on track for an on-time delivery against our baseline schedule. Successful operation of our Roll-Out Solar Array technology on the International Space Station and on other missions like DART and improved scheduled performance validates requires commitment to excellence and gives our customers the confidence to have us do their power generation for their assets. Turning to slide 17, let’s talk about the outlook for our solar array product line. We anticipate our solar array wing deliveries triple in 2022, based on our backlog and our pursuits, which include multiple constellation orders, and range from small satellites to extremely large solar arrays. In quarter one, we have faced some challenges with subcontractor performance, which have impacted our Q1 financial results. These include subcontractor delays, as well as delays in definitization of contracts with subcontractors. We anticipate resolving subcontractors start delays in quarter two and quarter three, and maintaining our delivery targets in the calendar year. We’re also proactively seeking to strengthen our supply chain by expanding our vendor base and building strategic partnerships with trusted vendors. Our solar array product line is strong despite these near-term performance impacts. Turning to slide 18. We’ve had many successful deployments in the first quarter, including including four separate satellite launches on GOES-T, a commercial satellite that was taking the space on SpaceX’s Transporter-4 for and hardware going -- that went to the International Space Station on both NG-17 and Crew-4. Redwire hardware and services will continue to be deployed throughout 2022 and beyond. Now, let’s turn to slide 19 and discuss the expansion of our modeling and simulation capabilities and services. We’re awarded a position on the $950 million IDIQ contract to support the U.S. Air Force’s Advanced Battle Management System. We’re expanding our ability to support the national security mission via utilization of our cutting edge modeling and simulation capabilities and our systems engineering. The works that we would provide on this IDIQ is similar to works that we are currently providing for other customers in the government and commercial spaces. Turning to slide 20. I’ll provide an update on our in-space manufacturing and assembly of satellites technology demonstration mission, which is known as Archinaut One or OSAM-2. This technology will be the first demonstration of the ability for a satellite to manufacture and assemble itself, which is truly a paradigm shift in the way that we can do satellite design, manufacture and operation and disruptive to the $20 billion satellite manufacturing market. We recently completed our major critical design review on our OSAM-2 mission, which clears the way for us to do construction, test and deployment of this mission. In quarter one, we did experience subcontractor delays on this program and rework, which did impact our schedule -- the schedule for this program. These delays are in family for a first of its kind technology demonstration, such as OSAM-2. Validating Redwire’s leadership and the long-term potential of in-space manufacturing and assembly of satellites was the White House’s announcement of a national ISAM strategy to encourage the adoption of this technology, but really provides a major tailwind for adoption. We’re seeing increased uptake and interest in this technology, which validates its long-term potential, in spite of delays and impacts that we’ve had in quarter one. Turning now to slide 21. Let’s talk about the investments that we have made in infrastructure to support production capacity at Redwire. We’re building out an additional 70,000 square feet of design, development and production space to enable us to deliver on our existing backlog and pipeline. We’re focusing on the future by making this investment by heavily investing in our facilities to support building more solar arrays, a wider range of solar arrays, increased robotic capabilities and increased RF antenna production. Of note in this build out is a production facility that has a 35-foot high bay, which will enable us to build the largest solar arrays that have yet been deployed on the NASA Gateway, Power and Propulsion Element program. This production capacity also sets us up for success in production and delivery for major multi-shipset, multiyear program and satellite constellations. With those updates, I’d like to turn it over to Bill Read, our CFO. Thanks. Bill Read: Thank you, Andrew. As Pete and Andrew noted, we started 2022 off with several important customer deliveries and key program wins. Our backlog is healthy and our pipeline of new business continues to be very strong. Our total backlog, including both contracted and un-contracted backlog grew from $272 million at the end of ‘21 to $274 million as of March 31, 2022. Contracted backlog at the end of the period was $137 million and our selected backlog along with add-ons to existing contracts also stands at $137 million. Contracted backlog represents firm contract commitments we have received, and the remaining backlog includes contracts in the process of award, as well as contract extensions that have been verbally awarded, priced, fully scoped and are expected to be executed. As we indicated in our previous update, the long delay in the approval of the U.S. Federal Government’s budget and the resulting continuing resolutions negatively impacted both the timing of contract awards and the length of time required to get programs under contract. Additionally, the continuing impact of COVID including, the Omicron variant in the fourth quarter of 2021, and continuing into Q1 impacted contract awards, negatively impacted supply chains and caused subcontractor performance delays. As a result revenues from several programs moved to later in the year. GAAP revenue for the first quarter was $32.9 million, an increase of $1.2 million or 4% from the prior year, driven by $3.7 million in revenue contributed by our 2021 acquisitions and the timing of product deliveries in our deployables and engineering services businesses. On a pro forma basis, revenues are down $5.2 million or 14% due to several large subcontract activities in Q1 of ‘21 that were not repeated in this quarter, and macroeconomic challenges, including inflation and supply chain pressures. We see significant variability in the timing of revenue on many of our programs based on the relevant activity on the program from one period to the next. Because of this inherent variability in the nature of our programs, we expect to see long-term growth over time while I’m not necessarily expecting continuous quarter-to-quarter growth. Cost of sales for the quarter increased $3.7 million to $27.7 million. As mentioned, we experienced significant delays in getting programs under contract, which created labor inefficiencies in several of our facilities. In addition, we experienced supply chain challenges, inflationary pressure, increased material and subcontractor cost and delays in subcontractor performance. Cost of sales, as a percentage of net revenue was 84%, compared with 76% for the same period in the prior year. Gross margin declined $2.3 million to $5.2 million in the first quarter. The decline in margin is driven by the previously mentioned cost impacts, as well as increases in program estimates, especially in our in-space servicing and manufacturing related programs. Several of our programs are one-of-a-kind development activities. Therefore, it is not unusual to have adjustments to program estimates over time as the related engineering challenges are better understood. SG&A expenses for the year increased $9.7 million to $20.9 million for the quarter. The increase versus Q1 of ‘21 is due to several new costs associated with being a public company and some one-time expenses. SG&A for Q1 of ‘22 as compared to Q1 of ‘21 includes one-time costs related to the recently concluded independent investigation of $2.3 million, higher business development spending of $1.5 million, new non-cash charges for stock-based compensation expense of $4.4 million, increases in the insurance cost of $1 million, investments in our new ERP system rollout and higher fees and expenses related to being a public company. In Q1, we started a global conversion to a single ERP solution for all of our sites. The conversion is expected to take approximately two years to complete and is expected to drive synergies across sites and help create significant efficiency gains. Interest expense for the quarter was $1.5 million which is comparable to the same period last year. For the first quarter of 2022, GAAP net loss was $17.3 million. When taking into consideration unusual costs associated with investigation cost, non-cash stock-based compensation, non-cash changes in warrant liabilities, capital market fees, ERP conversion related expenses and other costs related to becoming public, adjusted EBITDA was a loss of $4.7 million, compared to a gain in the first quarter of ‘21 of $1 million. We are reaffirming our guidance for full year revenue and adjusted EBITDA. As Pete mentioned, revenue in the first quarter was lower than revenue expected in future quarters and relative to the full year. We have confidence in our forecast range and expect sales to be more heavily weighted towards the back half of the year. The combination of our existing backlog and a strong near-term pipeline gives us confidence in an increasing revenue profile for the remaining quarters of the year. As mentioned, this higher volume is expected to generate significant operational efficiencies and leverage increasing profits and return Redwire to the positive operating cash flows. As a result, management’s reaffirming previous guidance for full year 2022 revenue of between $165 million to $195 million and full year adjusted EBITDA to be between $8 million and $15 million. To reiterate, Redwire is seeing very strong market demand for our products and services across all of our market segments. We have invested and are continuing to invest heavily in public company infrastructure, business development and R&D to drive growth and position us to drive operational efficiencies and leverage profitability, as our revenue grows. With recently executed actions, we are confident that the Company has sufficient resources to execute on our initiatives and fuel ongoing growth. We ended the quarter with $30.9 million in available liquidity comprised of $5.9 million of cash and cash equivalents, and $25 million in available borrowings on existing credit facilities. Recently Redwire secured an increase to our revolving credit facility with Adams Street Partners from $5 million to $25 million. With this increase in revolver capacity and our strong backlog of business. We believe our existing sources of liquidity are sufficient to meet our operational and working capital needs for the foreseeable future. In April, the Company entered into a Committed Equity Facility with B. Riley, which provides the Company the opportunity, but not the obligation to sell up $80 million in equity to fuel future accretive growth. And now, I’d like to hand it back over to Pete for his closing comments before our Q&A session. Peter Cannito: As you can see, we expect to continue our strong momentum throughout 2022, and Redwire’s building a solid foundation as a key mission enabler and pure play space company with scale. Thank you all for your time today. I will now turn the call back over to our operator to open it up for Q&A. Operator: [Operator Instructions] Our first question is from Greg Konrad with Jefferies. Please proceed with your question. Greg Konrad: Maybe just to start. I appreciate the near-term headwinds around supply chain, the budget, COVID, and the second half-weighted outlook. But can you maybe just talk about what was contemplated when you initially gave the ‘22 outlook and confidence in those headwinds lifting, and then maybe puts in takes towards the lower end of revenue guidance versus maybe what needs to happen or accelerate to get closer towards the upper end? Peter Cannito: Yes. Hey Greg, how are you? Thank you for your question. This is Pete. Yes. No, I think, when you look at our backlog -- I’m going to take the second half of your question first. When you look at our backlog plus the number of bids we have submitted, what’s really going to drive the second half is executing on that backlog, and then, of course, the win rate and size of the bids that we convert to backlog. So, with $547 million in bids out there, many of which have been submitted for a while and have been under review for a while, the timing and awards of those bids will drive us either to the lower or upper end of our forecast. In terms of some of the supply chain headwinds, I’m going to turn it over to Andrew Rush, our President and COO, and he can talk about some of that. Andrew Rush: Thanks for the question, Greg. As we discussed in the prepared portion of the call, we have faced in subcontractor performance issues that we did not anticipate going into Q1 in addition to delays in definitization of contracts with subcontractors. We have seen our subcontractors, watching inflation like everybody else and pushing for higher prices in response to those concerns. We anticipate in the latter portions of this year resolving the subcontractor delays, resolving the definitization issues, while striving to maintain our gross margins in light of the inflationary pressures that we are experiencing. Greg Konrad: And then just thinking on the expense side, you called inflation, higher bid and proposal, and internal R&D, and at least on the latter two I would say, that’s maybe a little bit more predictable, or at least within plan. Just as it relates to inflation, how do you think about the pricing or ability to offset or maybe just contract structure and kind of the impact when you just think about profitability going forward? Bill Read: It’s a great question and it’s one that we pay a lot of attention to, because we are bidding on multiyear programs here, and it’s something we have to think about constantly and look ahead of. I think it just reemphasizes for us the importance of making sure that we’ve got those good relationships with our subcontractors, and when we lock in their pricing at the time of the bid and proposal, so we’re not getting squeezed in between later in the program. Andrew Rush: To end of that, we have several different types of contracts where we’re -- our CDFF contracts, inflationary pressures or costs are passed along to our ultimate customer, where as Bill mentioned we’ve had pricing locked in for some time that reduces our exposure to inflationary pressures. However, you don’t typically lock in every single price at the beginning of a program. So, we do experience some impacts due to inflation. And then, from a forward-looking perspective, as I mentioned earlier, that’s something that we are doing -- we’re negotiating aggressively to keep our cost growth low, so we can provide great value to our customers and to our shareholders. Greg Konrad: And then, just appreciating those emerging commercial space, I mean, that was helpful how you kind of bucketed some of those opportunities? I mean, I think we appreciate the significant growth potential and acceleration. And any way to think about what that’s meant for Redwire so far, just thinking about the opportunity captured versus how much is out in front? And then, I mean, you kind of called out that it can disrupt Redwire’s forecast, but any real examples or at least thinking about this year’s guidance? I mean, have those -- some of those programs been pushed out or is that just thinking about the timing of when some of these future opportunities materialize? Peter Cannito: Yes. I think the point really was just to highlight the difficulty in predicting the timing. So, one of the interesting things about Redwire and one of the key benefits that we have is as demand is strong across the industry, as a key mission partner and a supplier, we benefit from that. But in a sector like the commercial space part of the market, if for instance, they don’t get the amount of funding that they anticipated and then end up revising down their forecasts, as a result that can have an impact on our forecasts, or if they run into regulatory issues and that slows down the timing of their forecast, us as a critical supplier to many of these commercial space companies, that can affect the timing. So, I think overall, the point that we are just trying to highlight is the potential is tremendous, and we see the demand signals as really strong, but it’s very easy for a key order to move from one quarter to the next, based on some sort of unanticipated change in the forecast of some of our commercial customers. Greg Konrad: And then just last one for me, I mean, one area that maybe you were a little bit more definitive in. I mean, you called out solar array deliveries expected to triple in 2022. I mean, can you maybe talk about this product area a little bit? And what does that mean for revenues? I mean, are revenues tripling, how important is that of a product category for total finances? Or just any more color you can give on that would be helpful. Andrew Rush: Yes, absolutely. So, for us, our solar array product lines, our other kind of deployable solutions, antennas and deployable structures for instance is a fast-moving, fast-growth area for us. ROSA, our Roll-Out Solar Array technology became operational last year on orbit. And we are seeing a lot of customers now baseline that as -- for future opportunities and for active programs. And the really awesome thing about that is it becomes very sticky. When your solar array is baseline, for instance, on a satellite bus that gets used for many, many different missions. That’s a very sticky relationship. We also have some solar arrays coming on line for smaller satellites for LEO, for low-orbit as the class oriented satellites that are optimized for constellations that are optimized for multi-shipset systems. And there’s strong sales there, strong interest from customers there. And these are also significant and that it enables us to sell multiple component, multiple products shipsets to customers. So, that provides a buoying effect for us that we’re seeing in our bids and seeing in our opportunities in other components, whether it be cameras or navigation components. So, looking forward, this is an area that is a significant driver for us in post -- we do expect to continue -- to continue to see growth here, both in customer uptake, as well as more so -- more satellite design missions coming on line driving sales for us. Peter Cannito: Yes. I’d like to jump in on that. Because right now Redwire is the only company out there that has a Roll-Out Solar Array with flight heritage. And for that reason, you can see that the successful deployment of that has led to more orders. And that’s really critical to understanding how we’re going to scale. We got -- we wanted to deploy it on the International Space Station. And that success and the success of the DART program that gives the customer confidence in using a ROSA for the Lunar Gateway, which then has also sparked additional interest from a number of different customers who want to take advantage of that unique capability of which it is the only demonstrated version of that unique capability that has any flight heritage with it. So, that gives us the ability to scale, as there’s more and more demand for that product line. And that product line in particular is a very high end, high revenue driving product for us. Operator: Our next question is from Mike Vermut with Newland Capital. Please proceed with your question. Mike Vermut: I got a couple of questions here for you. I guess, the first one is, I guess, when we first went public, the initial slide decks gave a long-term project trajectory for us. First of all, has anything changed on that? Has it gotten bigger? Has it -- you’ve become more worried about that? And the way I’ve always looked at it, if we come even close to any of those numbers, this is going to be a phenomenal company. But on that, can you discuss the national security opportunity out there? I know this is developing and it’s moving really quick, and the size and scope of that has grown dramatically. And also some of your larger constellation programs, the size of this, and how the tails work on these? Once we land these contracts, how that gives you confidence in growing into those kind of original goals that you set for us over the next two, three, four or five years? Peter Cannito: Yes. No, that’s an excellent question. It’s particularly on the national security side, because there is tremendous amount of growth in the national security budgets. And with the tragic occurrences that are going on with the Russian invasion of Ukraine, I think it’s really underscored how important space is to our national security. And that’s why you see these budgets going up. So, Redwire is in a position to be able to execute on those budgets, first and foremost. And that’s really important because not all space-based suppliers have the contracts, the clearances and the security infrastructure to do national security work. So, we do. So, that’s really important in terms of being able to execute against those growing budgets. So, we continue to see that as a fast-growing part of the market, and we have the capacity to participate in that sector. In terms of how we scale, what we’re doing is we’re planting a lot of seeds. And to use another national security analogy, it used to be when you got specked in on a particular program, early on, that led to very sticky revenue in the long-term, because a once a national security program has specked, they rarely change. Well, that actually is true across all of the different sectors we have. So, one of the things that we’re excited about is the diversity of our pipeline, where we’re planting a lot of seeds in emerging constellations. I believe we recently, in the past six months or so, put out a announcement of our providing some capability to PlanetiQ. That’s an example as their constellation scales, we’ll scale with it. We mentioned the success of the Link-16 antenna, and how that capability now having flight heritage and being demonstrated led to a procurement for a larger constellation -- national security constellation. As that constellation grows and other communications constellations, like it grow will grow along with it. So, what you’re really seeing is in kind of the early days us planning a lot of seeds and getting specked in on these really large programs that have just tremendous production details associated with them. Mike Vermut: Excellent. Another question, you said you have -- I forgot the exact number, $550 million of I guess bids out there, that’s roughly the number. Peter Cannito: Yes, $547 million. Mike Vermut: What’s the historical win rate that you would get from that? I’m not holding you to anything, but what’s normal for us historically? Peter Cannito: Yes. Well, it’s difficult to predict, specifically to that $547 million, so. And, unfortunately, because of the way that Redwire came together, we don’t have good historical data. So, I wouldn’t hazard a guess. But when you look at the $273 million in backlog and the $547 million in bid submitted, you could run some sensitivity analysis against that and at different potential win rates and see where that kind of shakes out in terms of -- against our overall forecast. Mike Vermut: Going back to the question before, you had in that initial slide deck, I guess, nine months ago or so, you kind of had a great trajectory over the next five or six years. Is there anything that’s changed to that? Granted, we can push it. It’s very common, what happened to you guys in this first quarter. So, in the longer run, is there anything that says, oh, you can’t get to $1 billion in revenues in five, six years, or in your mind has any changes to become greater the opportunity out there, less, more uncertain? Can you just go into that? Peter Cannito: I think that with the rapidly changing economic conditions, the uncertainty has gone up. We’re not actually tracking too far off relative for the market that we’re in, comparatively. So, I think if we were to say that anything has changed, it’s a little bit of uncertainty about the timing, like I talked about as a lot of the commercial space companies in our sector, that we are a supplier to change their forecast over time. I mean, you have to kind of think in some regards of Redwire as being a reflection of the combination of the growth rate and the national security, civil and commercial markets, we see national security as being a really high growth area for us. And we see a lot of the stability regardless of the future economic conditions. We see that as very predictable coming from NASA and slightly up. But, the fact of the matter is, if the commercial space segment does not deliver on their forecasts, in line with the projections that were pervasive this time last year, that adds uncertainty to our forecasts over the next five years as well. Mike Vermut: Got it. But we’re not talking about -- okay, I guess, the number out there was $1.2 billion. So, if it goes to $800 million -- the numbers are so huge for -- you to say, take a company that we have a $200 million market cap now. It’s not my point, it’s not that far off, nothing’s changed that dramatically that -- I was like saying if you can even get to $800 million in five or six years, that’s great, right? So nothing has changed that dramatically. Peter Cannito: Yes. And I think -- yes, and I appreciate what you’re saying, Mike. I think what I would point to is, we put a lot of thought into highlighting at the beginning the incredible demand signals that are out there. So, when you look at what’s going on and the demand the ISAM, there is a national strategy, and as long as that policy drives large acquisitions and large procurements through the system overall, Redwire will see great opportunity. And as long as national security budgets continue to grow, we’ll continue to drive opportunity. The commercial sector is a little bit more vulnerable to changes in economic conditions and capital markets and the ability for a lot of the new space companies to execute on their plans up against regulatory headwinds and alike, their own supply chain issues as well. But overall, the demand signal for space is really strong and still very -- is exciting as it was before. Mike Vermut: Excellent. One last question -- and this isn’t anything specific here. Amazon is building out this whole internet satellites project, is it Kuiper? I forgot what it was called exactly. But there is a lot of stuff out there, like going that -- and I’m not saying this one in -- yes, this one in particular. But are we going to be involved in areas such as this, and I’m not saying this one specifically, because I know you haven’t announced anything yet or have or haven’t and you probably can’t. But are there things like this out there that we are bidding on? Peter Cannito: Yes. So, I can’t comment, obviously, on the specifics of any one bid or program... Mike Vermut: I’m saying it in general. Yes. Peter Cannito: Yes, yes, yes. I was just doing my upfront disclaimer. But, what I will tell you is that every time a constellation comes out, that’s an opportunity for Redwire. So, every constellation that is out there is an opportunity for Redwire, and we are actively discussing and partnering and planting seeds to get base-lined. And then from -- with a number of different technologies, one of the interesting things about Redwire is we are -- we have a lot of heritage across a diverse range of products. So, even if one individual product line doesn’t penetrate a particular constellation, we get multiple at that for every constellation, because we can offer different products and services for each one. And we are on commercial and national security constellations now. So, that kind of heritage underscores our ability to deliver and that’s valuable to people who are putting constellations up. Mike Vermut: And then, last item, this is just a kind of a statement is that we’ve been buying stock all the way down here. I know you guys have had been at blackout period for a long time. I would hope that we’re at $3.70 at close today. Is that management, the Board, and possibly our backers would all make a significant statement and purchase stock when the window opens? I hope that you guys look at it and it’s not me saying it that this is probably the best thing you could do with your money right now at $200 million valuation. So, that’s the opportunity that I see out there. And these hiccups happen. This has been a tough market for everybody. So, hopefully, we’ve seen the bottom here. Peter Cannito: Yes. We definitely believe in the long-term value of our stock that I think. Operator: Our next question is from Griffin Boss with B. Riley Securities. Please proceed with your question. Griffin Boss: Hi. Thanks for taking my question. Yes, most of them have been answered already, but I do have a couple of quick ones here. Just regarding the -- you guys mentioned the $950 million IDIQ for the Air Force ABMS. I was just curious what role Redwire has on that contract and who it was you were or are competing against for that? Peter Cannito: Yes. Thanks, Griffin. I appreciate the question. So, that’s an IDIQ contract and indefinite delivery and indefinite quantity contract, which is really an opportunity to bid on past quarters as they come out. Redwire is -- had some really great technology that’s very relevant to JADC2 and the ABMS opportunities out there, in the sense that we have a digital engineering enterprise software package that can in high-fidelity model and simulate constellations at scale. This is really important as the JADC2 architecture comes together, because when they look at all of the different command and control architectures, they can use our software to simulate the space environment in a realistic way. So, obviously, the goal -- the space national security architecture and the JADC program in general is to bring a different disparate data sources together to achieve better situational awareness. And by being able to be a key provider of software that can simulate how space plays into those different concepts of operation and different scenarios, that’s a really great opportunity for Redwire. And that contract represents just one of actually a couple of contracts that Redwire can use to access the national security customer. And that’s why I tried to underscore that I think in one of the earlier questions that a startup just can’t come off the street tomorrow and start doing work in the national security sector. So, if you’re not already positioned to be doing national security growth with the right contracts with the right security infrastructure, with the right personnel with clearances, then you can’t take advantage of that double-digit budget growth that we talked about for the U.S. Space Force and organizations like the FDA and that. Whereas Redwire, because we do have those capabilities can take advantage of contracts like the ABMS IDIQ. In terms of who are competing, that’s actually a pretty broad contract. I don’t know the exact number of awards that were made on it. But like many IDIQs, it is multiple-award. But our software that we have is unique and we feel that it’s differentiated, so that gives us great opportunity. Griffin Boss: And then just last one for me, I was just curious, jumping back to the backlog, how much of that current $274 million that you guys expect to recognize as revenue in the remainder of 2022? And then, I know you -- we sort of talked about this earlier and you noted, in order to get to the high end of your revenue guidance in the year that obviously comes down to the timing awards of the $547 million bids that you guys have in place. But, I was curious, sort of what the general duration is of your backlog, historically, and then sort of layering in that $547 million bid and proposal pipeline, just the general duration, maybe we can expect there if you guys have any insight into that? Bill Read: Okay. Well, I’ll take the first backlog question, and Andrew or Pete may have some more color on the on the bid piece. But generally, for the backlog that we have today, we’re expecting about another $100 million of it to turn into revenue this year. And our backlog is typically made up of multiyear contracts. And so, it can vary substantially depending upon the nature of the contract. So, there’s it’s not kind of a clean answer that says it’s always going to burn out over this period of time. But, that’s -- on the bid question, I think it’s similar to the to the backlog question. It’s a variety of programs, and they’re -- the variety of links. And so, it’s very difficult to kind of say, what number is going to turn into revenue over this given period of time. Andrew Rush: In terms of your question of the pipeline portion, that $547 million in submitted bids that Pete was talking about, I just want to highlight that that is only a portion of our sales pipeline. That’s the part that’s like, the closest to closed one. And that’s a subset of a broader pipeline that is measured in the billions of dollars. We expect as Pete was talking about, we -- our historic win rates are in family for the sector. And so, we expect a meaningful portion of those submitted bids to turn into wins. We’ve been seeing some nice sales here in Q2, and we expect to see that continue to pick up going forward, and as well as things that are not yet bid convert to backlog in the future. Operator: We have reached the end of the question-and-answer session. And I’ll now turn the call over to Peter Cannito for closing remarks. Peter Cannito: I’d just like to thank everybody for joining us tonight, and have a good evening. Operator: This concludes today’s conference, and you may disconnect your lines at this time. Thank you for your participation.