RDW Stock Slips Premarket: Exec Says Drone Tactics That Worked ‘Maybe Two Weeks Ago’ No Longer Work In Ukraine

Redwire targets rising defense demand with over 300 Penguin aircraft delivered to Ukraine, and $13.8 million in National Guard orders.

• Redwire’s Josh Stinson says drones need constant upgrades to keep up with changing battlefield threats. 
• Redwire has landed a $13.8 million order to supply Stalker drones for National Guard training. 
• Last month, U.S. Defense Secretary Pete Hegseth announced plans to modernize the military with autonomous weapons.

Redwire Corp. is betting that constantly upgrading its drones will set it apart as battlefield threats evolve, with Co-president and Chief Growth Officer Josh Stinson saying investors may be overlooking how important those upgrades are.

Redwire stock edged 0.8% lower in Monday’s premarket. 

Redwire Says Investors Are Overlooking Drone Upgrades 

In an interview with NYSE, Stinson stressed that reliability, endurance, and continuous upgrades remain central to Redwire's approach, especially as the war in Ukraine highlights the need for adaptable military technology.

“Redwire has been in this business for quite some time. So on our Stalker platform that we have here, we delivered that to the Department of Defense in 2006.
Not the same one you see today, but it's been through a lot of iterations,” said Stinson.

He added that the company has adapted its systems to operate in extreme heat and cold, as well as in environments where adversaries actively try to disrupt military operations. 

“So that's been a constant iteration of process and improvements, right? So that's what we've been kind of going over. And I think that's kind of what a lot of people are missing today in today's market.”

Redwire has delivered more than 300 Penguin unmanned aircraft systems for use in Ukraine, according to Stinson. He described the conflict as a rapidly changing environment in which tactics and threats can shift within days. 

“What worked maybe two weeks ago, doesn't work today, right? So it's that another thing that we highlighted earlier, constant iteration and improvement on the capability to continue to operate in such a contested environment.”

Redwire’s National Guard Drone Orders And Pentagon’s “Autowarcom” 

Earlier this month, Redwire secured about $13.8 million in orders to supply its Stalker uncrewed aircraft to the U.S. National Guard Bureau. The Stalker aircraft will help instructors prepare National Guard personnel to fly unmanned systems, perform field maintenance, and deploy equipment for different mission requirements. 

Redwire supplies unmanned aircraft, optical systems and energy technologies for government and commercial customers in the U.S. and allied markets. Piper Sandler started covering Redwire on Oct.15 with a ‘Neutral’ rating and a $11 price target. While its presence across space and defense is promising, the firm is unsure whether Redwire is large enough in either market to deliver strong results. 

Drone manufacturing has gained attention as U.S. Defense Secretary Pete Hegseth announced initiatives to modernize the military, focusing on autonomous weapons and robotics. U.S. plans to establish a new four-star Autonomous Warfare Command, called “Autowarcom,” which is expected to become operational by October 2027 to speed up the military’s adoption of robotic and autonomous systems. 

Redwire’s Manufacturing Investments Support Expansion

Stinson said Redwire is expanding its factories to boost prodiuction. The company has a 100,000-square-foot facility in San Luis Obispo, California, and a 68,000-square-foot factory in Huntsville, Alabama. Redwire plans to expand its Huntsville facility to 164,000 square feet. 

Redwire also has an 85,000-square-foot facility in Ann Arbor, Michigan, and a 105,000-square-foot site in Riga, Latvia. Stinson said the European facility supports customers and partners in the region while providing additional room to increase output.

RDW Stock: Retail View 

On Stocktwits, retail sentiment around the stock improved to ‘bullish’ from ‘neutral’. 

RDW stock has gained 10% year-to-date. 

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