Redwire jumps after landing Taiwan Coast Guard drone deal

Redwire shares rose sharply Monday after the company won a contract to supply Penguin Mk2.5 vertical takeoff and landing drones to the Taiwan Coast Guard.

The stock gained 12% in afternoon trading, its biggest single-day jump in six months. Redwire announced the deal in a press release but did not disclose the contract value or delivery timeline.

The Penguin Mk2.5 is a VTOL drone designed for maritime surveillance, search-and-rescue and border patrol. Redwire has marketed the system to coast guards and navies in the Asia-Pacific region for several years.

Taiwan is modernizing its coastal surveillance capacity as Chinese military activity around the island increases. The Taiwan Coast Guard operates under the Ocean Affairs Council and has been adding unmanned aircraft to monitor fishing zones, illegal immigration and naval movements.

Redwire, based in Melbourne, Florida, generates most of its revenue from space hardware and defense electronics. The drone segment is smaller but has grown as the Pentagon and allied forces seek cheaper alternatives to manned aircraft for long-duration patrols.