Key Takeaways
- Rocket Lab USA shares skyrocketed after it received a U.S. government contract worth as much as $515 million.
- The deal calls for the satellite launch firm to design, build, deliver, and operate 18 space vehicles.
- Last week, Rocket Lab launched its 42nd rocket and 10th this year to deliver a Japanese company’s Earth-imaging satellite.
Shares of Rocket Lab USA (RKLB) blasted off after the satellite launch company said it had received a U.S. government contract worth up to $515 million.
In a regulatory filing, the company wrote that the agreement calls for Rocket Lab to “design, manufacture, deliver, and operate 18 space vehicles.” It is to receive a base amount of $489 million, plus a potential $26 million in incentives.
Rocket Lab explained that work would begin immediately, with delivery of the vehicles scheduled for 2027. Operation of the satellites would run through 2030, with an option to extend that to 2033.
Rocket Lab was founded in 2006 by rocket engineer and CEO Peter Beck. Last week, the company successfully launched its 42nd Electron rocket and deployed a satellite for Japan-based Earth imaging company the Institute for Q-shu Pioneers of Space. It was the 10th Electron flight this year, a record for the company.
With today’s gains, shares of Rocket Lab USA were up more than 25% this year.
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