Redwire Corp. (NYSE: RDW) shares surged 17.60% in pre-market trading on Monday following the release of its first quarter 2025 financial results. The space infrastructure company reported a smaller-than-expected loss, showcasing improved operational efficiency despite a significant decrease in revenue.

For Q1 2025, Redwire posted a loss of $(0.09) per share, beating analyst estimates of $(0.14) by 35.71%. This marks a 47.06% improvement from the $(0.17) per share loss reported in the same period last year. However, the company's quarterly sales came in at $61.40 million, missing the analyst consensus estimate of $83.86 million by 26.79% and representing a 30.07% year-over-year decline.

Despite the revenue shortfall, investors appear to be focusing on Redwire's operational improvements and future prospects. The company reported a significant year-over-year and sequential increase in its Book-to-Bill ratio to 0.92, indicating a healthy pipeline of future business. Additionally, Redwire achieved record levels of cash and total liquidity of $54.2 million and $89.2 million, respectively, primarily driven by the redemption of $82.9 million of public warrants. These factors, combined with the company's ongoing efforts in space infrastructure and innovation, seem to be driving the positive market reaction.