Should You Buy Redwire Stock Below $13?

RDW shares climbed above $13 after the company reported second-quarter revenue of $117 million, beating expectations, and expanded gross margins to 27.8%. Redwire is sitting on a $542 million backlog and projects 49% sales growth ahead.

Despite the strong operational metrics, valuation concerns persist. The stock trades at 7.9x trailing sales—a steep premium to the 2x-4x multiples historically commanded by unprofitable space startups. Analysts don't expect RDW to turn profitable until 2028 or later, a milestone that would require revenue exceeding $700 million. One analyst is calling for investors to wait for shares to fall to $8 or below before initiating positions.

The tension is clear: robust revenue expansion and a healthy backlog versus stretched valuation for a company still years away from breakeven. The current multiple prices in aggressive growth assumptions that leave little room for execution missteps.