Redwire Volatility Lingers With Drone Bets Driving RDW Moves

New York, May 29, 2026, 06:03 EDT

Redwire Corporation shares traded at $25.90 ahead of the U.S. open Friday, sticking close to their 52-week high after jumping for three days. The space-and-defense supplier ended Thursday at $25.90, up 7.9% on the day, putting its gain at about 48% since last Friday’s $17.49 close in this short trading week.

Investors are piling into drone-related defense stocks, not just space names. U.S. markets looked ready for a normal open after the Memorial Day break. The NYSE calendar still lists Memorial Day as May 25, and shows no holiday on May 29.

Drone stocks jumped as the Wall Street Journal said the Trump administration is in talks to fund U.S. drone makers, Reuters reported. Redwire wasn’t singled out in those talks, but traders have included it in the broader drone trade due to its uncrewed aircraft systems, or UAS, used in military and surveillance.

Peer moves lifted the sector. Red Cat, AeroVironment and Kratos all gained after funding headlines, Investors Business Daily said. That was enough for a bid in Redwire, even with no news from the company itself in the last two days.

Redwire kept up its contract flow this month. The company announced on May 20 that it got a $15 million follow-on order from the 1st Aviation Brigade, U.S. Army Aviation Center of Excellence, for Stalker UAS. That brings total recent orders from the same customer to $24.8 million over the past eight months. “Stalker was purpose built for multiple mission needs,” said Steve Adlich, president of Redwire Defense Tech. Redwire Corporation

Redwire said it landed a high-eight-figure, multi-year deal from an unnamed NATO country for the Penguin Mk3 tactical UAS. CEO Adlich called the system “scalable, adaptable” for allied defense buyers. The company said it has supplied over 250 Penguin aircraft to Ukraine. Redwire Corporation

Redwire posted first-quarter revenue of $97.0 million, up 57.9% from last year, and backlog hit a record $498.1 million. CEO Peter Cannito said demand remained “very strong.” The company kept its full-year 2026 revenue guidance in place at $450 million to $500 million. Redwire Corporation

There are some drawbacks. Redwire reported a $76.5 million net loss for the first quarter, with operating cash use at $6.7 million in the same period. That loss profile can weigh more when shares have already rallied. The company issued around 6.9 million shares through its at-the-market facility in the quarter, pointing to dilution as an ongoing part of Redwire’s capital story.

Redwire analyst calls are trailing the market move. Canaccord Genuity’s most recent target is $14, set May 11, according to Benzinga data, while the street-wide consensus sits at $11.93. Both targets are under where shares ended Thursday. This hasn’t stopped some traders from chasing momentum, but the cushion for any letdown is thin.

Redwire’s upside depends on drone-funding talks in Washington turning into real orders. If that doesn’t happen, or if funds pull out of drone names, the stock could give up some of this week’s move fast. Management also has to turn its backlog into revenue with stronger margins, not only roll out new contract wins.

Redwire is moving the way stocks usually move in a hot sector. The company has actual defense-drone business, some recent orders, and more revenue to work with. But the shares are trading as if Redwire has already shown a much smoother track record than it really has.

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