Rocket Lab secures 10 more launches with Japanese satellite firm

LONG BEACH, Calif. - Rocket Lab Corporation (NASDAQ:RKLB) has secured a second multi-launch contract with Japanese satellite company Synspective for 10 additional dedicated Electron launches, the company announced Monday. The deal comes as Rocket Lab demonstrates strong business momentum, with revenue growing 54% over the last twelve months to $504 million.

The new agreement brings the total number of upcoming Synspective missions to 21, making it Rocket Lab’s largest order of dedicated Electron missions from a single customer. These launches will deploy Synspective’s StriX Synthetic Aperture Radar (SAR) satellites through the end of the decade from Rocket Lab’s Launch Complex 1 in New Zealand. According to InvestingPro data, the company maintains a strong financial position with a current ratio of 2.67, indicating robust ability to meet short-term obligations. Get access to 12 more exclusive ProTips and comprehensive analysis with InvestingPro.

Rocket Lab has already successfully deployed six StriX satellites for Synspective across six dedicated launches and has been the company’s sole launch provider to date.

"Regular and reliable launch on a flexible schedule is essential to the build out of Synspective’s constellation," said Rocket Lab founder and CEO Sir Peter Beck in the press release.

Synspective founder and CEO Dr. Motoyuki Arai cited Rocket Lab’s "precision and track record" as factors in the decision to extend their partnership.

The Electron rocket has become a preferred choice for satellite operators building constellations due to its reliability and deployment accuracy. Most of Rocket Lab’s launches this year have been part of multi-launch contracts with commercial constellation customers.

Synspective, founded in 2018, aims to develop a constellation of 30 SAR satellites by the late 2020s. The company provides satellite data and analytics solutions for disaster response, national security, and environmental monitoring.

Rocket Lab, which went public on the Nasdaq in 2021, provides launch services, spacecraft, and satellite components for commercial, government, and national security markets. The company’s stock has shown remarkable performance, delivering a 373% return over the past year. InvestingPro’s analysis indicates the stock is currently overvalued relative to its Fair Value, with detailed insights available in the comprehensive Pro Research Report, part of InvestingPro’s coverage of over 1,400 US equities.

In other recent news, Rocket Lab USA has delivered two identical spacecraft to NASA’s Kennedy Space Center for the ESCAPADE mission, which will study solar wind interactions with Mars’ magnetosphere. The company also announced a new at-the-market offering program to sell up to $750 million worth of common stock, collaborating with multiple investment banks as sales agents. Additionally, Rocket Lab has adopted a Senior Executive Cash Incentive Bonus Plan, with bonuses tied to performance targets set by the company’s board. This plan aims to align executive performance with company-wide goals and individual objectives.

In another development, Rocket Lab successfully launched its 70th Electron mission, reinforcing its status in the small orbital rocket sector. The company is also set to expand its U.S. semiconductor manufacturing capacity, supported by a $23.9 million award from the Department of Commerce under the CHIPS and Science Act. This expansion will nearly double its production capacity over the next five years. The investments will enhance Rocket Lab’s recent acquisition of Geost, an electro-optical payload provider. These developments highlight Rocket Lab’s ongoing efforts to strengthen its market position and operational capabilities.

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