Redwire acquires defense company Edge Autonomy for $925 million, increasing sales and free cash flow potential

From Nasdaq: 2025-01-27 07:07:00

Stock markets reopened with Redwire (NYSE: RDW) investors enjoying a strong week after President Trump’s space commitment. Redwire’s acquisition of Edge Autonomy, a defense company, will cost $925 million and broaden its portfolio. The combined business is expected to generate $535-605 million in sales this year, doubling Redwire’s solo revenue. Analysts see Redwire’s free cash flow growing rapidly in the coming years, making it a potential buy. However, Redwire wasn’t among the 10 best stocks identified by The Motley Fool Stock Advisor team for investors.

Edge Autonomy produces drones for the military, with capabilities for up to 25 hours of flight and ranges up to 110 miles. Redwire aims to become a leader in multi-domain autonomous technology by acquiring Edge. The acquisition will be financed with $150 million cash and $775 million in Redwire stock, potentially leading to positive free cash flow this year. Analysts foresee Redwire’s free cash flow reaching $171 million by 2027, making the stock a potential long-term investment.

Redwire’s purchase of Edge Autonomy will position the company as a global leader in autonomous technology, complementing its space activities. The acquisition will involve $925 million in total purchase price, with Redwire expecting to generate $535-605 million in sales this year. Analysts predict rapid growth in Redwire’s free cash flow over the next few years, making the stock a potential buy for investors. However, Redwire did not make the list of the 10 best stocks identified by The Motley Fool Stock Advisor team.



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