Redwire’s wholly owned subsidiary Edge Autonomy secured a new contract with the Croatian Border Patrol to supply its Penguin C vertical‑takeoff and landing (VTOL) unmanned aerial systems and Octopus gimbal‑camera payloads. The deal is funded through the European Border and Coast Guard Agency (Frontex), which supports EU member states in managing external borders.
The contract follows Edge Autonomy’s earlier Frontex agreements in other EU countries and expands the company’s footprint in the European border‑security market. For Croatia, the Penguin C and Octopus systems provide advanced ISR capabilities that enable more efficient monitoring of the country’s borders and faster response to potential threats.
Redwire’s Q3 2025 results, released on November 5, 2025, showed revenue of $103.4 million—up 50.7% year‑over‑year—but the company missed analyst estimates of $128.7 million and widened its net loss to $41.2 million. The miss was driven by delayed U.S. government orders caused by the federal shutdown, higher cost inflation, and one‑time adjustments. Management lowered full‑year 2025 revenue guidance to $320–$340 million from a prior $500 million forecast, signaling near‑term headwinds.
The Croatian contract is a key milestone in Redwire’s multi‑domain strategy, which seeks to integrate space infrastructure with autonomous aerial systems. Edge Autonomy was acquired for $925 million in June 2025, and the new deal demonstrates the company’s ability to deliver UAS solutions to sovereign governments. CEO Peter Cannito said the acquisition “has immediately strengthened our positioning technically, operationally, and financially and we anticipate further revenue synergies as we scale.” CFO Jonathan Baliff noted that the company “remains focused on our path to profitability, realizing record revenue of $103.4 million in the third quarter of 2025.”
Market reaction to Redwire’s earnings was negative, with analysts cutting price targets and the stock falling after the earnings miss and guidance cut. The Croatian contract, while a positive signal for the UAS segment, was outweighed by the broader financial challenges. The deal adds to Edge Autonomy’s portfolio and supports Redwire’s long‑term growth, but the company must navigate near‑term headwinds to maintain investor confidence.
The contract win underscores Redwire’s expanding presence in the European defense market and reinforces its strategy to combine space and air capabilities. However, the company’s recent earnings miss and guidance reduction highlight the need for disciplined cost management and timely execution of U.S. government contracts to sustain momentum in the coming quarters.
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