Why Redwire Stock Skyrocketed 37.9% Last Month and Has Kept Soaring in 2026

Redwire (NYSE: RDW) stock posted explosive gains in December trading. The company's share price surged 37.9% in the month, according to data from S&P Global Market Intelligence. The S&P 500 was roughly flat over the same stretch, and the Nasdaq Composite declined 0.5%.

Redwire rallied last month as excitement surrounding the space industry continued to heat up. Despite the rally last month, the company's stock closed out 2025's trading down roughly 54%.

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Redwire stock surged amid a great month for space stocks

News hit last month that SpaceX is gearing up for an initial public offering (IPO) late in 2026. The announcement triggered big gains for Redwire and other space stocks.

The confirmation that SpaceX is set to go public helped strengthen bullish convictions for the broader space industry, and comments from CEO Elon Musk suggesting that shares could be priced in a range that values the company at roughly $1.5 trillion caused investors to assign higher valuation multiples for other businesses in the category.

In addition to the SpaceX news, Redwire stock got a boost after the company announced that it had landed a contract to provide docking systems for The Exploration Company. The press release described the new contract as an "eight-figure deal" and will see Redwire provide two docking systems used for The Exploration Company's Nyx spacecraft.

Following the contract news, H.C. Wainwright published new coverage on Redwire and maintained a buy rating on the stock. Wainwright's analysts said that they see more favorable dynamics for Redwire in 2026 and expect the company to win new contracts connected to the U.S.'s "Golden Dome" missile-defense system and Army reconnaissance programs. The firm's analysts maintained a one-year price target of $22 per share on the stock, representing potential upside of roughly 100% as of this writing.

Redwire has been red-hot early in 2026

Redwire and other space-tech stocks have continued to soar early in 2026's trading. After last month's big rally, the stock has risen another 44.5% in January.

The U.S.'s move to oust Venezuelan President Nicolás Maduro last weekend kicked off a surge in bullish momentum for Redwire. President Donald Trump's comments that the U.S. defense budget could be raised from roughly $1 trillion up to $1.5 trillion for 2027 also helped boost the company's valuation.

On Jan. 9, Truist published new coverage on Redwire stock. The investment firm kept a hold rating on the stock, but it raised its one-year price target from $8 per share to $13 per share. Truist's analysts think that dynamics for the broader aerospace-and-defense industry will remain favorable in 2026. As of this writing, the new price target represents potential upside of 18.4%. 2026 is shaping up to be a big year for space-tech and defense stocks, but the firm's analysts cautioned that it's important to keep valuation concerns in mind.

Keith Noonan 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.