Redwire Stock Is Up 80% in 2026. Is It Too Late to Buy?

Shares of Redwire (NYSE: RDW) have surged 80% so far in 2026. The company is benefiting from increased interest in the space sector, especially amid SpaceX's much-awaited initial public offering (IPO) this month. Besides the excitement surrounding the space economy, the Pentagon's recent announcement of a $1.1 billion drone program has been another tailwind for Redwire's stock.

With the stock surging this year, investors may be wondering: Is it too late to buy? Here's what they should know about Redwire and its long-term outlook.

Redwire's space and drone businesses are growing

Redwire has historically produced hardware, including sensors, solar arrays, and on-orbit manufacturing, for customers in the space industry. During NASA's recent Artemis II mission, the company's advanced optical imaging and solar sensors were used on the Orion spacecraft. It has also developed the first commercial greenhouse for space, and its facility on the International Space Station supports orbital agricultural research.

Last year, Redwire expanded its capabilities by acquiring Edge Autonomy for $925 million, transforming it from a space infrastructure company into a defense technology business. This acquisition provides it with Edge Autonomy's uncrewed aerial systems (UAS), such as the Penguin, which has been extensively used in Ukraine's war with Russia.

SpaceX's public debut this month has put a spotlight on the space economy and its vast potential, and Redwire has benefited from these strong tailwinds. The company is viewed as a pick-and-shovel stock for orbital infrastructure. It has also been exploring its ability to supply solar energy generation systems for space-based artificial intelligence data centers to help support the growing global demand for compute.

First-quarter results were boosted by its Edge Automony acquisition

In its defense segment, Redwire is already reaping the benefits of this acquisition. In the first quarter, the company saw over $20 million in purchase orders from the Marine Corps. It also saw a $15 million follow-on order from the U.S. Army and a major tactical drone modernization contract with a NATO ally. This strong growth comes as the Pentagon spends $1.1 billion on the Drone Dominance Program.

Image source: Getty Images.

In the first quarter, revenue grew 58% to $97 million, and its contracted backlog surged to $498.1 million, up from $411.2 million at the end of last year. Of this, $359.7 million, or about 72% of its backlog, is attributed to its space segment. Its defense technology segment revenue surged to $44.3 million, driven by the acquisition of Edge Autonomy.

An early stage growth stock

Redwire is seeing strong revenue and backlog growth, which bodes well for earnings. The company did lose $76.5 million in the first quarter, and its free cash flow was negative $12.7 million. And it recently announced a $500 million at-the-market equity offering to raise capital, which helps support long-term growth, but the resulting shareholder dilution could keep pressure on the stock price in the near term.

The shares are still up 80% but are also down 48% from their most recent peak from late May. Investors bullish on the space economy and expanded drone spending may find Redwire attractive here. With that in mind, the company is still early in its scaling-up growth phase, and its recent at-the-money equity offering illustrates the risks for investors buying the stock today.

Courtney Carlsen has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.