Redwire Corporation (NYSE:RDW) stock rose 9% after the space technology company announced it had been awarded a $44 million phase 2 contract from the Defense Advanced Research Projects Agency (DARPA) for its Otter Very Low Earth Orbit (VLEO) mission.

The contract will fund the completion of manufacturing and delivery of a spacecraft designed to demonstrate the world’s first air-breathing spacecraft capabilities. The mission will utilize Redwire’s SabreSat platform, which the company describes as an “Orbital Drone” designed for VLEO operations.

“VLEO represents an exciting new frontier for defense, intelligence, and communications missions,” said Tom Campbell, President of Space Missions at Redwire, in the announcement. “With Otter and our SabreSat platform, we are delivering higher-performance missions at lower altitudes.”

The spacecraft aims to showcase innovative systems designed to extend spacecraft life and enhance performance in low-altitude orbital environments. The contract award is for the fourth quarter of 2025.

This contract strengthens Redwire’s position in VLEO capabilities, adding to its existing work as prime contractor for the European Space Agency’s Skimsat mission and its digital engineering work for DeepSat’s planned VLEO constellation.

Redwire, which describes itself as a global leader in space and defense technology solutions, trades on the New York Stock Exchange under the ticker RDW.