Rocket Lab joins US and UK hypersonic programs

LONG BEACH, Calif. - Rocket Lab USA, Inc. (NASDAQ:RKLB), known for its launch services and space systems and currently valued at $8.7 billion, has recently been selected to support two significant government programs in the United States and the United Kingdom, focusing on the development of hypersonic technologies. The company’s stock has shown remarkable performance, delivering over 400% returns in the past year, though InvestingPro analysis indicates the stock may be trading above its Fair Value.

The U.S. Air Force has chosen Rocket Lab to partake in the Enterprise-Wide Agile Acquisition Contract (EWAAC), a $46 billion initiative aimed at the rapid procurement of innovative technologies and services to enhance the Air Force’s capabilities. The contract spans until 2031, offering a broad and flexible approach to funding and deploying new technologies. This aligns well with Rocket Lab’s strong revenue growth trajectory, which InvestingPro data shows reached 78% in the last twelve months, supported by a healthy current ratio of 2.04.

In parallel, the UK Ministry of Defence has also selected Rocket Lab for its Hypersonic Technologies & Capability Development Framework (HTCDF), a program valued at approximately $1.3 billion. As a supplier for the HTCDF, Rocket Lab will have the opportunity to bid on providing various services and technologies to aid in the UK’s pursuit of sovereign hypersonic technology.

Rocket Lab’s involvement in these programs will be centered around its Hypersonic Accelerator Suborbital Test Electron (HASTE) launch vehicle, designed for testing hypersonic technology. The HASTE is a suborbital version of the Electron rocket, featuring similar innovative technology such as carbon fiber structures and 3D printed engines, but with a modified upper stage tailored for hypersonic tests and a larger payload capacity.

The company has successfully conducted three launches for the U.S. Department of Defense using the HASTE from its Launch Complex 2 in Wallops Island, Virginia, demonstrating its capabilities in rapid deployment.

Sir Peter Beck, CEO of Rocket Lab, expressed pride in the company’s involvement in both programs, emphasizing the importance of affordable and frequent testing to advance hypersonic technology. He highlighted the ability of HASTE to provide a comprehensive platform for such tests at a commercial price and cadence that aligns with the missions of both nations.

Rocket Lab’s track record includes over 200 payloads deployed using its launch vehicles from sites in the United States and New Zealand. The company continues to expand its services, with spacecraft selected for NASA missions to the Moon and Mars and the development of the larger Neutron launch vehicle for constellation deployment. Analysts maintain an optimistic outlook, with InvestingPro showing 13 additional key insights about the company’s financial health and growth prospects. For detailed analysis and comprehensive valuation metrics, investors can access the full Pro Research Report, available exclusively to InvestingPro subscribers.

This information is based on a press release statement from Rocket Lab USA, Inc.

In other recent news, Rocket Lab USA has been the focus of several significant developments. The company is on track to complete the Neutron Rocket, with its initial launch expected in the second half of 2025. This advancement is crucial as it positions Rocket Lab to compete directly with SpaceX’s Falcon 9 in the medium-large launch market. Cantor Fitzgerald has maintained an Overweight rating and a $24.00 price target for Rocket Lab, emphasizing confidence in the company’s market position and future prospects. The firm notes Rocket Lab’s strong vertical integration and its strategic advantage from proprietary launchpads, which enhance flexibility in launch windows.

Additionally, Rocket Lab introduced a new line of customizable solar arrays named STARRAY, aimed at meeting various satellite power needs. This product line reflects the company’s unique ability to offer vertically integrated solar array manufacturing capabilities. Meanwhile, the proposed budget cuts to NASA’s fiscal-year 2026 funding have raised concerns about potential impacts on space-related companies, including Rocket Lab. These cuts could affect contracts and opportunities, given NASA’s role in space exploration and research.

Rocket Lab continues to make strides in its space systems division, which has been a significant revenue contributor. The division’s ongoing progress with a $515 million award from the Space Development Agency underscores its financial stability. As the company advances its technology and expands its capabilities, stakeholders will be closely monitoring these developments.

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