Rocket Lab Corp. (NASDAQ:RKLB) pushed the first flight of its Neutron rocket into 2027 late Wednesday, citing a manufacturing flaw in a carbon-composite propellant dome on the first stage. The company expects to complete testing in the first quarter and set a launch date afterward.
Neutron is Rocket Lab’s entry into medium-lift launches, a larger market than the one served by its Electron rocket. But set Neutron aside, and a simpler question emerges: What does an RKLB share actually own today?
- RKLB stock is sinking. See the chart and price action here.
The Revenue Engine
Rocket Lab reported record second-quarter revenue of $234 million in August, up 62% from a year earlier. Backlog surged 137% to $2.36 billion, and management forecast third-quarter revenue of $250 million to $265 million.
Neutron contributed nothing to those results. The rocket has yet to fly.
Most sales come from space systems: satellite buses, solar arrays, reaction wheels, flight software and other spacecraft hardware. Electron, the company’s workhorse small launcher, handles orbital missions. HASTE, Electron’s suborbital version, flies hypersonic tests for the military.
The mix carries a cost. In August, Rocket Lab guided third-quarter gross margins below Wall Street expectations as lower-margin satellite platforms make up a bigger share of its business, Reuters reported.
The Government Book
Defense work gives Rocket Lab’s bull case its weight. In July, the U.S. Space Force handed Rocket Lab a $266 million firm fixed-price contract for 12 suborbital launches, with options for six more.
Most flights will launch from the Pacific Spaceport Complex in Alaska, and the work runs through Dec. 31, 2028. Rocket Lab called it its largest launch deal. Earlier in the year, the Pentagon awarded a separate $190 million contract tied to hypersonic flight testing.
August brought the bigger prize. The U.S. Space Force selected Rocket Lab for a $397 million award under its Space-Based Airborne Moving Target Indicator program. The company will build, launch and operate a fleet of flat “Flatellite” spacecraft designed to track airborne threats from orbit.
Both awards landed after the second quarter closed, so neither shows up in the $2.36 billion backlog. In August, CEO Peter Beck said new deals signed since the quarter ended had already pushed third-quarter contract wins past $1 billion.
One caveat matters here. The Flatellites are slated to ride Neutron. Building the spacecraft sits inside the existing space systems business, but the launch leg now waits on a rocket with no firm date.
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What Sits on the Books
Strip out Neutron and the RKLB holder owns a fast-growing satellite manufacturer, a proven small launcher and a defense pipeline measured in billions.
However, the company still loses money. Neutron remains Rocket Lab’s path to heavier payloads and fatter margins, and Wednesday’s delay pushes the payoff further out.
RKLB Stock Price Activity: Rocket Lab stock was down 11.22% at $52.54 at the time of publication Thursday, according to Benzinga Pro.
Photo courtesy of Rocket Lab Corp.
