Redwire Space is showing increased interest in the developing market for very low Earth orbit (VLEO) satellites by introducing a second spacecraft platform from its European subsidiary.
During a May 9 earnings call, Redwire revealed a VLEO satellite platform named Phantom, which was created by the company’s European business unit in Belgium. The Phantom platform is being developed for the European Space Agency's Skimsat mission.Redwire is partnering with Thales Alenia Space on the Skimsat mission, and they are now offering the Phantom platform to European and international customers.
Phantom is joining SabreSat, another VLEO satellite that Redwire announced in its previous earnings call in March. SabreSat is being developed by the company in the United States and utilizes different technologies compared to Phantom. During the call, Peter Cannito, the chief executive of Redwire, mentioned that SabreSat and Phantom are distinct platforms with different underlying technologies and performance parameters. He emphasized that this diverse approach reduces risks and broadens the coverage of customer requirements.
The Phantom bus is designed for missions at altitudes below 300 kilometers, which require more aerodynamic designs and propulsion to combat atmospheric drag. It can carry payloads weighing up to 50 kilograms and has a total spacecraft mass of up to 300 kilograms.
According to company documents, the spacecraft uses electric propulsion to maintain its orbit for missions lasting up to five years. At the GEOINT Symposium this week, company officials mentioned that they are seeing interest in SabreSat from U.S. government agencies seeking a platform that can provide improved imaging resolution from operating in a lower orbit as well as enhanced resiliency.Cannito confirmed on the call that the company has secured a study contract for SabreSat from an undisclosed customer.
He expressed excitement about the market recognizing SabreSat’s potential and the company's pursuit of meaningful opportunities for this potentially groundbreaking VLEO spacecraft. SabreSat and Phantom are considered a significant opportunity for the company to capitalize on the growing interest in VLEO systems, according to Cannito. He noted that the company is leading the industry in the development of spacecraft in VLEO.
These platforms are part of the company's strategy to transition from a supplier to a prime contractor, as announced earlier this year.
Cannito mentioned that Redwire won a $200,000 study contract from NASA to modify a commercial Earth imaging spacecraft for use at Mars, based on the Proba spacecraft developed in Europe, and not involving SabreSat or Phantom.
Redwire made $87.8 million in revenues in the first quarter of 2024, which is 52% more than the same quarter in 2023. The company had $4.3 million in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), the same as the first quarter of last year.
Cannito mentioned during the call that the company has now achieved five consecutive quarters of positive adjusted EBITDA and revenue growth, as well as two consecutive quarters of positive cash from operations. Although the company had a net loss of $8.1 million in the quarter, Jonathan Baliff, Redwire’s chief financial officer, stated that the overall results indicate the company's “continued positive momentum” as it works towards profitability. Redwire Space is increasing its focus on the growing market for very low Earth orbit (VLEO) satellites by introducing a second spacecraft platform from its European subsidiary. to carry out applications such as imaging and communications. Redwire’s $200,000 study is for modifying a commercial Earth imaging spacecraft for use at Mars, and Cannito said that would be based on the Proba spacecraft developed in Europe, and not SabreSat or Phantom.
Redwire reported revenues in the first quarter of 2024 of $87.8 million, a 52% increase over the same quarter of 2023. The company had adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $4.3 million, the same as the first quarter of last year.
Cannito noted on the call that the company now has five consecutive quarters of positive adjusted EBITDA along with revenue growth, and back-to-back quarters of positive cash from operations. While the company reported a net loss on the quarter of $8.1 million, Jonathan Baliff, Redwire’s chief financial officer, said the overall results showed “continued positive momentum” for the company as it moves towards profitability.
