Rocket Lab’s Defense Division Gains Momentum with New Contract
16.02.2026 - 22:32:04
Rocket Lab USA, Inc. is strengthening its foothold within the U.S. defense sector through a recently confirmed mission. The space launch provider's strategy of offering frequent test flights for government agencies continues with the announcement of the "Cassowary Vex" operation. This development comes as the market anticipates crucial updates on the company's larger Neutron rocket program later this month.
The company's strategic pivot toward defense is yielding tangible results, addressing the Pentagon's demand for affordable and readily available testing for advanced high-speed technologies. This is clearly reflected in its financial metrics.
- Rocket Lab's total contract backlog currently stands at $1.1 billion.
- Specifically, its launch services backlog grew to $509.7 million by the end of Q3 2025, representing a 56% year-over-year increase.
For shareholders, the company's hypersonic testing work provides a more stable revenue stream, offering a counterbalance to the often volatile commercial satellite launch business.
Hypersonic Testing Accelerates
The "Cassowary Vex" mission represents another step forward for the Hypersonic Accelerator Suborbital Test Electron (HASTE) program. Rocket Lab will utilize a modified version of its Electron rocket to conduct a suborbital test flight for the Defense Innovation Unit (DIU). The payload will be the DART AE, a scramjet-powered platform developed by its Australian partner, Hypersonix.
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This latest contract highlights the rapid pace of Rocket Lab's defense segment activity. It will be the fourth hypersonic test mission the company has undertaken in less than six months. Launch is scheduled for late February from the Wallops Flight Facility in Virginia.
Stock Performance and Upcoming Catalyst
Despite these operational successes, Rocket Lab's shares have faced recent pressure, declining approximately 30% over a 30-day period. The stock currently trades at €58.00, notably below its 50-day moving average of €64.91. Market observers attribute this weakness to broader sector volatility and technical setbacks.
A key question for investors is whether the company can overcome technological hurdles with its new Neutron rocket in a timely manner. This issue has been in focus since a tank failure during structural tests in January 2026. The market hopes for clarity on February 26, 2026, when Rocket Lab reports its full-year 2025 results. Beyond confirmation of its Q4 revenue guidance of $170 to $180 million, investors are primarily awaiting a reliable updated timeline for the Neutron rocket's inaugural flight.
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