From space medicine to Mars colony: Redwire believed to offer triple-digit upside

By 2035, the global space economy, from satellite communications to AI-driven analytics, will reach $1.8 trillion, according to projections by McKinsey and the World Economic Forum in Davos. Yet while most eyes are on Elon Musk’s SpaceX launches or visions of colonizing Mars, the real money is often being made in the less glamorous corners of the industry. One such player is the small-cap Redwire, the Motley Fool highlights in a list of seven space stocks to buy "without hesitation." Wall Street expects Redwire stock to double, even though the company remains unprofitable.

Redwire, as the company itself says, is a provider of solutions and infrastructure for the next-generation space economy, was founded in 2020 by investment firm AE Industrial Partners, which brought together several businesses already operating at the time.

From 2020 to 2024, Redwire acquired a dozen more companies, including microgravity 3D-printing pioneer Made In Space and spacecraft design specialist Deep Space Systems. In 2021, through a merger with the SPAC Genesis Park Acquisition, the small-cap company went public. These acquisitions are part of Redwire’s strategy to cover as many segments of the future space economy as possible, the company said in its 2024 report.

Today, Redwire manufactures spacecraft, avionics, and various sensors for use in low Earth orbit and deep-space missions. In cooperation with Lockheed Martin, it participates in NASA’s Artemis lunar exploration program. It also independently supplies onboard computers for two upcoming European Space Agency missions, one to test how to alter an asteroid’s trajectory to prevent a potential collision with Earth, and another to study a yet-to-be-determined comet far from the Sun.

Redwire’s portfolio includes deployable solar array systems for spacecraft and in-space applications. The company recently announced that it had received NASA approval to advance technologies for building infrastructure on the Moon and Mars. Its Mason spacecraft is meant to be capable of constructing berms, landing pads, roads, and foundations for habitats beyond Earth.

According to the Motley Fool, Redwire is "pioneering... manufacturing in microgravity." The company notes in its annual report that the microgravity environment enables production of certain materials and products with properties unattainable on Earth. In 2024, it 3D-printed a meniscus aboard the International Space Station, as well as the first sample of human heart tissue. Redwire believes these advances could transform regenerative medicine.

Working with pharmaceutical companies, Redwire aims to develop and test drugs in space. For example, research with pharmaceutical giant Eli Lilly has shown that insulin crystals grown in microgravity exhibit superior properties compared with those produced on Earth. In a partnership with the biotech Aspera Biomedicines, Redwire has agreed to conduct space-based research and explore new cancer treatments using technology from its Pharmaceutical Space Laboratory. The company also has contracts with NASA to perform biopharmaceutical experiments aboard the ISS.

In August, Redwire announced the launch of SpaceMD, a venture capital arm dedicated to commercializing pharmaceutical innovations developed in space. At the same time, it signed an agreement with ExesaLibero Pharma, which is developing a drug to combat bone degradation associated with cancer, diabetes, and certain other diseases. If ExesaLibero’s treatment receives FDA approval, SpaceMD will earn royalties from its sales.

With Redwire, "investors are positioning for a future where manufacturing in space becomes as routine as manufacturing on Earth," the Motley Fool wrote.

Most Wall Street analysts are upbeat on the outlook for Redwire stock, according to MarketWatch: seven rate Redwire a “buy” versus only one “hold.” The average target price is $20.63 per share, more than double the current level of about $9.00 per share. The stock has fallen 45% year to date but is up nearly 55% over the last 12 months.

In July, Freedom Finance Global also recommended buying Redwire shares, setting a short-term target price of $22.20 per share. Redwire faces intense competition in the satellite segment from both startups and established players, and Freedom focused on its most promising business lines, analyst Sergey Glinyanov noted.

The company itself lists high competition among key investment risks. Some larger industry players can absorb higher costs, while others benefit from protective measures or government support in their home markets, Redwire said in its annual report. In the second quarter, revenue fell 9% year over year to $61.8 million, while the net loss widened more than fivefold to $97 million. Redwire has been unprofitable since its founding, and it warns that this may continue as the business grows.

Glinyanov of Freedom Finance Global notes that most peer companies carry elevated risks for investors. Even so, he highlighted three small-cap names that may warrant attention.

The AI translation of this story was reviewed by a human editor.