Redwire Corporation announced a $44 million phase‑2 award from the Defense Advanced Research Projects Agency (DARPA) to develop and deliver the SabreSat platform for the Otter Very Low‑Earth‑Orbit (VLEO) mission. The contract, which is the second phase of a multi‑phase program, will fund the final manufacturing and launch‑ready delivery of the SabreSat satellite, a modular, air‑breathing platform designed for high‑performance, long‑duration operations in VLEO.
The award is a key milestone for Redwire’s VLEO strategy. VLEO satellites operate at altitudes below 500 km, offering superior sensor resolution, lower latency, and faster debris deorbit compared to higher orbits. The SabreSat platform’s optional air‑breathing propulsion allows it to use atmospheric air as fuel, extending mission life and reducing launch mass. By securing this contract, Redwire positions itself as a leader in the emerging VLEO market, which is expected to grow as defense and intelligence agencies seek closer‑orbit capabilities.
Redwire’s financial performance in the third quarter of 2025 shows a 50.7% year‑over‑year revenue increase to $103.4 million, driven largely by contract wins and acquisitions. However, the company posted a net loss of $41.2 million, a widening from the $97.0 million loss in Q2. Adjusted EBITDA has trended downward in recent quarters, reflecting higher operating expenses and investment in new technologies. The DARPA contract will contribute to revenue in the coming quarters, but the company’s profitability remains challenged by rising costs and the need for continued capital investment.
Tom Campbell, President of Space Missions, said, “With Otter and our SabreSat platform, we are delivering higher‑performance missions at lower altitudes—improving sensor perception, increasing revisit rates, reducing latency, and redefining mission resilience.” The quote underscores Redwire’s focus on leveraging VLEO’s unique advantages to meet defense requirements while also highlighting the company’s commitment to advancing satellite technology.
The contract strengthens Redwire’s position in a high‑growth segment, but the company must navigate ongoing headwinds. Net losses and declining Adjusted EBITDA signal that, despite revenue growth, cost pressures and capital expenditures are eroding profitability. Redwire’s management has indicated that it will continue to invest in VLEO capabilities while seeking operational efficiencies to support long‑term financial health.
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