10 Worst Performing Defense Stocks So Far in 2025

7. Redwire Corporation (NYSE:RDW)

YTD Decline in Share Price: -32.87%

Redwire Corporation (NYSE:RDW) is a global space company, providing critical space infrastructure for government and commercial users. It is among the worst performing stocks in 2025, with a 32.87% decline in its share price this year.

In January, the company expanded into defense with a $925 million acquisition of drone maker, Edge Autonomy. On March 21, Redwire Corporation (NYSE:RDW) announced that it had received all regulatory approvals to complete its acquisition. The transaction is expected to expand the company’s portfolio to include combat-proven autonomous airborne platforms for critical national security needs.

However, Redwire Corporation (NYSE:RDW) has been under pressure due to ongoing investigations around the fairness of the Edge Autonomy acquisition to shareholders. According to media reports, a former attorney general of Louisiana and Kahn Swick & Foti, LLC are investigating the terms of the agreement. Halper Sadeh LLC, an investor rights law firm, is also inquiring into the deal.

On March 10, Redwire Corporation (NYSE:RDW) declared financial results for the fourth quarter of FY24. While revenue increased 9.6% year-over-year, the net loss for the quarter was $59 million higher than the prior year’s period. Free cash flow for the quarter stood at $3 million, down from $12.6 million in Q4 2023. The company’s annual loss was recorded at $114.3 million, worsening substantially from a loss of $27.3 million in fiscal 2023.