Rocket Lab completes critical design review for space defense program

Published 01/07/2025, 13:06
Rocket Lab completes critical design review for space defense program

LONG BEACH - Rocket Lab National Security LLC, a subsidiary of Rocket Lab USA (NASDAQ:RKLB), announced Tuesday it has completed the Critical Design Review for the Space Development Agency’s Tranche 2 Transport Layer-Beta program. The company, which has seen its stock surge nearly 688% over the past year and maintains a market capitalization of $16.5 billion, continues to strengthen its position in the space sector.

The milestone confirms the spacecraft design meets all mission requirements and allows the program to advance to full-scale production, following a successful Preliminary Design Review conducted in late 2024. According to InvestingPro data, Rocket Lab’s robust financial position is evidenced by its healthy current ratio of 2.08, indicating strong ability to meet short-term obligations.

As the prime contractor, Rocket Lab will deliver 18 spacecraft for the program, which forms part of the Proliferated Warfighter Space Architecture. This architecture aims to create a resilient, low-latency communications network in low Earth orbit to support real-time connectivity for U.S. and allied forces worldwide.

"The Proliferated Warfighter Space Architecture is reshaping how the U.S. secures space for the joint force," said Brad Clevenger, President of Rocket Lab National Security, according to the company’s press release.

The spacecraft for the program will be based on Rocket Lab’s Lightning platform, designed for the power and data-handling requirements of national security constellations. The company manufactures its spacecraft buses and key subsystems in-house, including solar panels, composite structures, and flight software. With impressive revenue growth of 65% in the last twelve months, Rocket Lab demonstrates strong execution of its integrated space solutions strategy. For detailed analysis and 12+ additional insights, investors can access the comprehensive research report available on InvestingPro.

Rocket Lab, founded in 2006, provides launch services, satellite manufacturing, and on-orbit management solutions. The company’s Electron launch vehicle has become the second most frequently launched U.S. rocket annually, delivering more than 200 satellites to orbit since its first orbital launch in January 2018. Technical indicators from InvestingPro suggest the stock is currently in overbought territory, with analysts projecting continued sales growth for the current year.

The announcement was made in a press release issued by the company.

In other recent news, Rocket Lab USA successfully launched its 67th Electron rocket, deploying four satellites for HawkEye 360, a provider of radio frequency geospatial analytics. This mission, named "Get The Hawk Outta Here," represents the second of three planned launches under a multi-launch contract with HawkEye 360. Rocket Lab is preparing for another mission, "Symphony In The Stars," which is scheduled to occur less than 48 hours after the recent launch, marking the company’s fastest turnaround time from the same launch site. Additionally, Rocket Lab has secured a contract for two dedicated missions for an unnamed commercial customer, with the first launch set for June 2025. The company continues to demonstrate strong demand for its Electron rocket, with potential for over 20 launches in 2024. In analyst coverage, Goldman Sachs has assumed coverage of Rocket Lab with a Neutral rating, citing the company’s established position as a reliable launch provider. Despite its growth, Rocket Lab is currently not profitable and remains in an investment cycle with limited visibility into its path to normalized financials.

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