Why Redwire Stock Keeps Going Up

Redwire (NYSE: RDW) stock jumped as much as 10% this morning before retracing to about a 3.9% gain as of 1:50 p.m. ET. It's a shame the space stock couldn't hold onto its gains, but it doesn't change the fact:

This is the third day in a row that Redwire stock has moved higher.

Image source: Getty Images.

Why Redwire stock keeps going up

Redwire first started moving higher on Thursday last week, after the company announced it had won an "eight-figure deal" to build two International Docking System Standard (IDSS) compliant docking systems for privately held The Exploration Company (TEC).

For a company that generated less than $300 million in 2025 revenue, the eight figures -- meaning at least $10 million in revenue -- is a significant sum, accounting for at least 3.4% of annual revenue. It also helps Redwire to expand further in what's already its most successful business, selling space infrastructure parts to European space firms.

Is Redwire stock a buy?

The contract also brings Redwire in on the ground floor, supplying docking systems to TEC, which is still a start-up company, and has only one vehicle, Nyx, that it hopes to use as an orbital service vehicle. If Nyx proves successful and TEC expands and grows its fleet, this could mean more contracts for Redwire over time.

That remains to be seen, however. In the meantime, a more immediate catalyst for Redwire stock to move higher would be if the company succeeds in turning free cash flow-positive next year, as analysts have forecast. Redwire's still not a "profitable" company, and analysts polled by S&P Global Market Intelligence don't predict GAAP profits before 2028.

Achieving positive free cash flow in 2026, though, would be a step in the right direction.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Redwire. The Motley Fool has a disclosure policy.