The government signed its future, and it bought itself an empire
Rocket Lab (ticker RKLB) is no longer "the one that launches small rockets." Today it's a national-security prime —it builds the satellites that watch for missiles— and it just pulled off the most ambitious move in the space sector. The Faro pattern is here in its purest form: follow the public contract, and follow who buys whom.
$816 million from the Pentagon into orbit
The Space Development Agency awarded Rocket Lab a ~$816 million prime contract to design and build 18 missile-tracking satellites (Tranche 3 of the PWSA constellation). It was its largest contract to date and moved it up a class: from launch provider to prime contractor of orbital defense.
The key for an investor: space defense isn't a one-year expense, it's multi-year tranches (Tranche II, III…) that are hard to cancel. Revenue with a date and a public signature.
The Iridium acquisition: ~$8 billion
In June 2026 Rocket Lab announced the acquisition of Iridium for $54 per share in cash and stock — an enterprise value of ~$8 billion (24% premium). Expected to close in mid-2027.
A constellation of 66 satellites (+14 spares), its own L-band spectrum, a global communications network and 500+ partners. It becomes a fully vertical space company: it builds, launches and operates its own network.
Iridium booked ~$871.7M in 2025 with $114.4M of net income. Rocket Lab booked $601.8M at a loss. The deal adds revenue scale and cash flow all at once. It stops depending only on launching rockets.
Record quarter
The engine of the record is Space Systems (the satellites), driven by the SDA Tranche II and III contracts. The $2.2B backlog —more than double a year ago— is visibility into future revenue already signed.
Neutron: the rocket that changes the game
Neutron is Rocket Lab's big, reusable rocket —its direct entry into competing for the heavy payloads SpaceX dominates today—. The company signed its largest contract in history with a confidential customer for Neutron and Electron through 2029, plus 5 Neutron launch agreements and 31 new Electron/HASTE ones. If Neutron flies successfully, it changes the scale of the entire business.
The risks
- Space is expensive and hard: a failed launch or a Neutron delay weighs heavily on the stock.
- Rocket Lab is still not sustainably profitable (net loss in 2025).
- The Iridium acquisition is not closed: it depends on shareholder and regulatory approval (expected to close mid-2027).
- Demanding valuation: a lot of optimism is already in the price; the stock is volatile.
- Dependence on public budgets and on technical execution.
High potential, high risk. Measured position and a plan before entering — never the other way around.
Faro tools for RKLB
The documents, no middlemen
The complete research: official presentations and Faro's analysis. Open them and draw your own conclusions.
Files not loading yet? They activate once the PDFs/images are uploaded to the site folder.
Open your Robinhood account with the Faro link and start with a plan.