Rocket Lab won an $816 million contract to design 18 satellites for U.S. national security missile tracking.
Quiver AI Summary
Rocket Lab USA, Inc. has secured a significant prime contract from the U.S. Space Development Agency, valued at $816 million, to design and manufacture 18 satellites for the Tracking Layer Tranche 3 program. This contract represents Rocket Lab's largest single award to date, reinforcing its reputation in the national security space sector. The satellites will feature advanced missile warning and tracking capabilities and include Rocket Lab's next-generation Phoenix infrared sensor payload and StarLite space protection sensors. Additionally, the contract opens up further subsystem opportunities, potentially elevating its total contract value to approximately $1 billion. The satellites will be built using Rocket Lab's vertically integrated manufacturing approach, allowing for efficient production while ensuring quality and affordability. This new contract follows a previous $515 million award from the SDA, bringing Rocket Lab's total awarded contracts to over $1.3 billion, showcasing its growing role as a prime contractor for the U.S. Space Force and its competitive position against traditional aerospace firms.
Potential Positives
- Rocket Lab has been awarded a landmark $816 million prime contract by the U.S. Space Development Agency to design and manufacture 18 satellites, marking its largest single contract to date.
- This contract underscores Rocket Lab's growing reputation as a trusted prime contractor in national security space, enhancing its competitive position against traditional defense primes.
- The contract involves advanced technology, including the next-generation Phoenix infrared sensor payload and StarLite space protection sensors, showcasing Rocket Lab's innovative capabilities in missile detection and tracking.
- With this contract, Rocket Lab's total awarded value from the Space Development Agency reaches over $1.3 billion, indicating strong confidence in the company's ability to execute large-scale national security programs.
Potential Negatives
- Potential reliance on a single contract for a significant portion of revenue, which could expose the company to risks if the program experiences delays or cancellations.
- Concerns may arise regarding the ability to meet the high demands and expectations set by the U.S. Space Force for operational readiness and quality due to the scale of the project.
- Forward-looking statements indicate inherent uncertainties that could adversely affect future performance, raising caution among investors and stakeholders.
FAQ
What is the significance of Rocket Lab's new contract?
Rocket Lab's $816 million contract with the U.S. Space Development Agency marks its largest single contract, enhancing its reputation in national security space.
How many satellites will Rocket Lab manufacture?
Rocket Lab is set to design and produce 18 satellites for the Tracking Layer Tranche 3 program.
What are the advanced features of Rocket Lab's satellites?
The satellites will include missile warning, tracking sensors, and Rocket Lab’s Phoenix infrared sensor for hypersonic threat detection.
How does Rocket Lab ensure production efficiency?
Rocket Lab utilizes a vertically integrated manufacturing approach, producing all critical components in-house for enhanced speed and cost efficiency.
How does this contract impact Rocket Lab’s market position?
This contract strengthens Rocket Lab's standing as a prime contractor, positioning it as a key competitor to traditional aerospace firms in national security.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$RKLB Insider Trading Activity
$RKLB insiders have traded $RKLB stock on the open market 82 times in the past 6 months. Of those trades, 0 have been purchases and 82 have been sales.
Here’s a breakdown of recent trading of $RKLB stock by insiders over the last 6 months:
- PETER BECK (CEO) has made 0 purchases and 25 sales selling 5,018,857 shares for an estimated $269,325,511.
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$RKLB Revenue
$RKLB had revenues of $155.1M in Q3 2025. This is an increase of 47.97% from the same period in the prior year.
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$RKLB Hedge Fund Activity
We have seen 365 institutional investors add shares of $RKLB stock to their portfolio, and 249 decrease their positions in their most recent quarter.
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$RKLB Analyst Ratings
Wall Street analysts have issued reports on $RKLB in the last several months. We have seen 4 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- Needham issued a "Buy" rating on 11/25/2025
- B of A Securities issued a "Buy" rating on 11/19/2025
- Keybanc issued a "Overweight" rating on 10/17/2025
- Cantor Fitzgerald issued a "Overweight" rating on 08/08/2025
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$RKLB Price Targets
Multiple analysts have issued price targets for $RKLB recently. We have seen 9 analysts offer price targets for $RKLB in the last 6 months, with a median target of $63.0.
Here are some recent targets:
- Ryan Koontz from Needham set a target price of $63.0 on 11/25/2025
- Ronald Epstein from B of A Securities set a target price of $60.0 on 11/19/2025
- Kristine Liwag from Morgan Stanley set a target price of $67.0 on 11/12/2025
- Erik Rasmussen from Stifel set a target price of $75.0 on 11/11/2025
- Michael Leshock from Keybanc set a target price of $75.0 on 10/17/2025
- Peter Arment from Baird set a target price of $83.0 on 10/16/2025
- Andres Sheppard from Cantor Fitzgerald set a target price of $54.0 on 08/08/2025
Full Release
LONG BEACH, Calif., Dec. 19, 2025 (GLOBE NEWSWIRE) -- Rocket Lab USA, Inc., a wholly owned subsidiary of Rocket Lab Corporation (Nasdaq: RKLB) (“Rocket Lab” or “the Company”), a leading launch and space systems company, today announced it has been awarded a landmark prime contract by the U.S. Space Development Agency (SDA) to design and manufacture 18 satellites for the Tracking Layer Tranche 3 (TRKT3) program under the Proliferated Warfighter Space Architecture (PWSA). The award is Rocket Lab’s largest single contract to date and underscores its growing reputation as a trusted prime in national security space.
Under the $816 million contract, Rocket Lab will deliver satellites equipped with advanced missile warning, tracking, and defense sensors to provide global, persistent detection and tracking of emerging missile threats, including hypersonic systems. The award includes a $806 million base contract plus up to $10.45 million in options. Each satellite will feature Rocket Lab’s next-generation Phoenix infrared sensor payload, a wide field-of-view (WFOV) solution designed to meet the evolving missile defense needs of national security space. To ensure mission resilience, the satellites will be equipped with Rocket Lab’s advanced StarLite space protection sensors, designed to safeguard the constellation against directed energy threats. Notably, StarLite sensors have also been adopted by other prime contractors developing TRKT3 satellites, further expanding Rocket Lab’s role in the program and unlocking additional contract value beyond its own satellite production. In addition to the $816M prime contract award value, as a leading merchant supplier into the other TRKT3 prime contractors, there are additional subsystem opportunities that could take the total capture value to approximately $1 billion for supplying items such as payloads, solar solutions, attitude determination and control components, software, and other solutions from our broad portfolio of capabilities.
Disrupting Traditional Defense Primes with Vertical Integration
Rocket Lab’s satellites will be built on its proven Lightning platform, leveraging the Company’s vertically integrated manufacturing capabilities to deliver an unmatched combination of speed, cost efficiency, and quality. All major components – from solar arrays, reaction wheels and star trackers to propulsion systems, avionics, payloads, and launch dispensers – are designed and produced in-house. This end-to-end approach enables Rocket Lab to rapidly scale production while maintaining control over cost and schedule, a critical advantage in meeting the urgent demands of national security missions.
“The Tranche 3 Tracking Layer constellation is part of the U.S. Space Force’s strategy to counter rapidly evolving global threats, ensuring the nation’s defense capabilities remain ahead of adversaries. Rocket Lab is honored to play a role in enabling this,” said Rocket Lab founder and CEO, Peter Beck. “Demand for resilient, scalable, and affordable space systems continues to grow, and this award demonstrates that Rocket Lab is uniquely positioned to lead the charge in delivering solutions that meet the needs of national security. As the only commercial provider producing both spacecraft and payloads in-house for the SDA Tracking Layer, Rocket Lab is delivering a truly disruptive solution that combines speed, resilience, and affordability. This contract underscores that Rocket Lab’s vertically integrated approach isn’t just a competitive advantage – we’re enabling a fundamental shift in how national security space programs are executed.”
Building on Momentum: $1.3 Billion in SDA Contracts Awarded
This contract builds on Rocket Lab’s existing $515 million award to deliver 18 satellites for SDA’s Transport Layer-Beta Tranche 2 program, which provides secure, low-latency communications across the PWSA. The more than $1.3 billion in contract value now awarded to Rocket Lab by SDA demonstrates strong confidence in Rocket Lab’s ability to execute on large-scale, high-stakes national security programs.
Rocket Lab’s growing role as a prime contractor for the U.S. Space Force highlights its emergence as a formidable competitor to legacy aerospace primes. By combining technology, vertical integration, and a proven track record of delivering results, Rocket Lab is redefining what’s possible in national security space.
+ Rocket Lab Media Contact
[email protected]
+ About Rocket Lab
Rocket Lab is a leading space company that provides launch services, spacecraft, payloads, and satellite components serving commercial, government, and national security markets. Rocket Lab’s Electron rocket is the world’s most frequently launched orbital small rocket; its HASTE rocket provides hypersonic test launch capability for the U.S. government and allied nations; and its Neutron launch vehicle in development will unlock medium launch for constellation deployment, national security and exploration missions. Rocket Lab’s spacecraft and satellite components have enabled more than 1,700 missions spanning commercial, defense and national security missions including GPS, constellations, and exploration missions to the Moon, Mars, and Venus. Rocket Lab is a publicly listed company on the Nasdaq stock exchange (RKLB). Learn more at
www.rocketlabcorp.com
.
+ Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding our launch and space systems operations, launch schedule and window, safe and repeatable access to space, Neutron development, operational expansion and business strategy are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “strategy,” “future,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to the factors, risks and uncertainties included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as such factors may be updated from time to time in our other filings with the Securities and Exchange Commission (the “SEC”), accessible on the SEC’s website at www.sec.gov and the Investor Relations section of our website at www.rocketlabcorp.com, which could cause our actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e286a68c-9f46-4d4c-8dd5-2f7d305b67ff