Rocket Lab Secures $816 Million US Contract Amid Neutron Program Setback
Rocket Lab received an $816 million contract from the U.S. Space Development Agency for satellite development until 2029. This marks a strategic shift towards integrated space services despite challenges with the Neutron rocket's development, including a recent failure in a qualification test. Financially, Rocket Lab saw a 48% revenue increase to $554 million in the past year, but reported a net loss of $198 million. Upcoming quarterly results on February 26 are expected to provide clarity on the Neutron timeline and future profitability.
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Rocket Lab secured an $816 million contract from the U.S. Space Development Agency for the design and construction of 18 satellites, effective until 2029, marking a strategic shift from launch services to integrated space solutions.
This deal could contribute approximately $200 million annually to revenue over the next four years. However, the company faced a setback when a tank ruptured during a qualification test of the Neutron rocket on January 21.
The management plans to provide updates on the Neutron timeline during the quarterly earnings report on February 26. Despite these issues, the Electron program remains stable with 21 planned launches in 2025 and a 100% success rate, contributing to a 48% revenue increase to $554 million last year, though a net loss of $198 million was reported.
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