B.Riley has reaffirmed its Buy rating and maintained a $15.00 price target on Redwire Corporation (NYSE: RDW) shares just before the company reports its third-quarter fiscal 2026 earnings. This valuation suggests significant upside from the current trading price of $8.39, with InvestingPro analysis indicating the stock remains undervalued. The research firm issued this update in anticipation of the earnings report scheduled for release after market close on November 4.
For the third quarter, B.Riley forecasts revenue of $126 million and an EBITDA loss of $3.2 million. These figures compare to consensus estimates of $127 million in revenue and a wider EBITDA loss of $4.6 million. The firm kept its full-year fiscal 2026 revenue estimate at $477 million, which aligns above the midpoint of Redwire's own guidance range of $450 million to $500 million.
Redwire entered the third quarter with a record backlog of $542 million, marking five consecutive quarters of expansion. Over the preceding twelve months, the company secured $647 million in contract awards. While analysts anticipate sales growth for the current year, profitability is not expected until later. B.Riley breaks down its third-quarter revenue projection into $70 million from the Defense Tech segment and $56 million from the Space segment. The firm also models a gross margin of 25.4 percent for the quarter and estimates $5 million in adjustments at completion for fiscal 2026, following $1.1 million in such adjustments during the first half.
Looking ahead, B.Riley maintained its fiscal 2027 estimates at $583 million in revenue and $34 million in EBITDA. Redwire is scheduled to host its earnings call at 9:00 a.m. Eastern Time on November 5. This analyst activity follows the company's second-quarter results, which exceeded Wall Street expectations with an adjusted loss of 9 cents per share against a forecasted 16-cent loss. Second-quarter revenue reached $117.07 million, surpassing the $107.91 million forecast, while the company achieved a record gross margin of 27.8%.
In other recent analyst developments, Piper Sandler initiated coverage on Redwire with a Neutral rating and an $11.00 price target. Similarly, Guggenheim began coverage with a Neutral rating, noting Redwire's strategic position in the space and unmanned technology sectors. These moves reflect a cautious outlook from some analysts despite the company's strong recent quarterly performance.
Sources: Investing.com News.