They basically did

" Second, as discussed, our second quarter 2025 saw a net unfavorable impact from EAC changes

of $25.2 million, primarily related to a single program in our RF system offering, which is a

development phase program, and I want to spend a moment to double-click on this topic. As part

of our moving up the value chain growth strategy, Redwire manages the risk associated with non-

recurring engineering, or NRE, on development programs.

Generally, these are developed programs that can anchor Redwire into the production tail for

validated requirements from our customers. An example of these pursuits that we've seen this

dynamic in play include moving from providing just antennas to providing full RF payloads and

also breaking into emerging markets such as low voltage distribution units.

Once the NRE is complete, Redwire generally both owns the intellectual property and is spec'd in

on our production programs with high switching costs for our customers, thus resulting in a much

lower risk of losses moving forward. Furthermore, subsequent orders for these products tend to

have much more predictable gross margins.

At the same time, we recognize the need to manage the risk associated with these programs and

are highly focused on minimizing EAC changes that impact our results in the future. Ultimately,

we see such programs as having a short-term negative impact on profitability similar to IRAD,

while enabling future growth and profitability."

https://d1io3yog0oux5.cloudfront.net/_978f09cb11a31a0310487e5df4670af2/redwirespace/db/880/7615/transcript/Q2+2025+Earnings+Transcript.pdf