While some companies burn cash to fuel expansion, others struggle to turn spending into sustainable growth.
A high cash burn rate without a strong balance sheet can leave investors exposed to significant downside.
Unprofitable companies can burn through cash quickly, leaving investors exposed if they fail to turn things around.
Without a clear path to profitability, these businesses risk running out of capital or relying on dilutive fundraising.
Mason, a lunar and Martian construction tool by Redwire Corporation, has passed a key NASA milestone, aiming to cut costs and improve safety for future space missions.
Aerospace and defense company Redwire (NYSE:RDW) missed Wall Street’s revenue expectations in Q1 CY2025, with sales falling 30.1% year on year to $61.4 million. Its GAAP loss of $0.09 per share increased from -$0.17 in the same quarter last year.
Redwire Corporation (NYSE: RDW) shares rise 19% premarket after delivering onboard computer developed by subsidiary for ESA's Comet Interceptor mission.
A number of stocks jumped in the morning session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.
Whether you see them or not, industrials businesses play a crucial part in our daily activities. But they are at the whim of volatile macroeconomic factors that influence capital spending (like interest rates), and the market seems convinced that demand will slow.
Due to this bearish outlook, the industry has tumbled by 5.7% over the past six months. This performance was disheartening since the S&P 500 held steady.
Aerospace and defense company Redwire (NYSE:RDW) fell short of the market’s revenue expectations in Q1 CY2025, with sales falling 30.1% year on year to $61.4 million. On the other hand, the company’s full-year revenue guidance of $570 million at the midpoint came in 32.2% above analysts’ estimates. Its GAAP loss of $0.09 per share was 76.3% above analysts’ consensus estimates.
