Redwire Corporation announced a new partnership with Italian technology firm Eurolink Systems to supply its Edge Autonomy unmanned aerial systems to the Italian defense sector. The deal will bring the Stalker Block 30 and Block 40 platforms, as well as the Penguin C vertical‑take‑off and landing (VTOL) aircraft, into Italy, giving Redwire a local partner with expertise in rugged computing and system integration.
The partnership comes in the wake of Redwire’s Q3 2025 earnings, which saw revenue rise 50.7 % year‑over‑year to $103.4 million but still fell short of the $130.9 million consensus estimate. Net loss widened to $41.2 million from $21.0 million a year earlier, and the company cut its full‑year 2025 revenue guidance to $320 million–$340 million from a prior $500 million forecast, citing delays in U.S. government contract awards caused by the federal shutdown. These results underscored the company’s ongoing transition to profitability after the $925 million acquisition of Edge Autonomy.
Strategically, the deal aligns with Redwire’s multi‑domain vision that emerged after the Edge Autonomy purchase in January 2025. By partnering with Eurolink, Redwire gains a domestic channel to integrate its ISR‑focused UAS into Italian procurement programs, potentially opening doors to future contracts for surveillance, reconnaissance, and rapid‑response missions. Eurolink’s established relationships with the Italian armed forces and its experience in SWaP‑optimized solutions position the partnership to accelerate market entry and reduce integration risk.
The partnership is a positive catalyst for Redwire’s European expansion, but it arrives amid a challenging earnings environment. Investors and analysts have focused on the earnings miss and guidance cut, which have tempered enthusiasm for the new deal. While the partnership signals growth potential, the company’s current financial trajectory suggests that short‑term profitability remains a concern as Redwire continues to invest in scaling its defense portfolio.
Overall, the Eurolink partnership marks a strategic step toward establishing Redwire as a key player in European defense markets, but the company’s recent financial performance and guidance revisions highlight the need for continued cost discipline and execution focus to realize the partnership’s full value.
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