• KeyBanc initiated coverage on Redwire Corporation (NYSE:RDW) with a "Sector Weight" rating due to concerns over dilution from deals.
• Redwire's stock has seen a significant decline, dropping 30% last month and over 75% from its all-time highs, attributed to executive changes and shareholder dilution.
• The company has a current backlog of $355 million and a book-to-bill ratio of 1.25, indicating a healthy influx of new contracts.

Redwire Corporation (NYSE:RDW) is a defense and space startup that went public in 2021. The company specializes in defense and space solutions, offering products like autonomous aircraft, space exploration, and space defense technologies. Redwire aims to capitalize on the growing investment in space defense, despite facing significant challenges in recent times.

On December 18, 2025, KeyBanc initiated coverage on Redwire with a "Sector Weight" rating. At that time, the stock was priced at $7.02. This decision was influenced by concerns over dilution from deals, as highlighted by TheFly. The stock has experienced a 9.01% increase, with a change of $0.58, fluctuating between $6.93 and $7.48 today.

Redwire's stock value has seen a significant decline, dropping 30% last month and over 75% from its all-time highs. This downturn is attributed to executive changes, increasing shareholder dilution, and substantial free cash flow burn. Despite these challenges, Redwire is attempting to leverage the growing investment in space defense with initiatives like the proposed Golden Dome contract.

The company has shown rapid growth, with a current backlog of $355 million and a book-to-bill ratio of 1.25. This indicates a healthy influx of new contracts relative to its billing. However, the financial strain from its aggressive expansion and acquisitions has raised concerns among investors, contributing to the recent stock decline.

Redwire's market capitalization stands at approximately $1.16 billion, with a trading volume of 14.41 million shares on the NYSE today. Over the past year, RDW has reached a high of $26.66 and a low of $4.87. Despite the challenges, Redwire continues to focus on its growth strategy in the defense and space sectors.