Rocket Lab Secures Historic Contract, Shares Soar to Record High

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Rocket Lab USA has announced the largest contract in its corporate history, sending its share price skyrocketing. The U.S. Space Development Agency will pay $816 million for the construction of 18 satellites. This landmark deal, revealed on Friday, propelled the company's stock to an all-time high, registering a gain of more than 22 percent across just two trading sessions.

The company's operational momentum provided a powerful backdrop for the contract news. On Sunday, Rocket Lab successfully completed its 21st launch of the year from New Zealand, deploying a synthetic aperture radar satellite for Japan's iQPS. This "The Wisdom God Guides" mission maintained a flawless 100 percent success rate for the Electron rocket in 2025, underscoring a key competitive advantage in the small-launch sector where reliability is paramount.

The agreement with the Space Development Agency represents a significant strategic evolution for the company. Rocket Lab is not merely supplying satellites for the Tracking Layer Tranche 3 program; it is also integrating its own proprietary subsystems, including the Phoenix infrared sensor and StarLite components for protection. This approach of vertical integration, controlling large portions of the supply chain internally rather than relying on external suppliers, is expected to bolster profit margins and reduce dependencies.

Financial Visibility and Future Prospects

For investors, the immediate impact is a substantial increase in revenue visibility. Prior to this award, Rocket Lab's backlog stood at approximately $1.1 billion as of the end of the third quarter. The new SDA contract expands this cushion to nearly $2 billion, providing a clear multi-year roadmap for the company's growing space systems division.

While the Electron rocket continues its record-setting pace and space systems drive growth, attention is now turning to the company's next major milestone: the medium-lift Neutron rocket. A breakthrough with this vehicle would position Rocket Lab to compete not only in the small-launch niche but also for larger missions. The company is anticipated to provide more concrete financial details and a breakdown of the SDA contract's revenue schedule in its Q4 2025 earnings report, scheduled for release on February 27, 2026.