Rocket Lab (RKLB +34.08%) looks to be extending its three-year winning streak. The company, whose stock is up 2,500% over the last three years, just signed its largest launch contract to date.
On top of that, the company, which provides rockets and end-to-end launch services, spacecraft, and satellite components to governments and private companies, also agreed to purchase Motiv Space Systems, which is a specialist in advanced space robotic systems used on NASA Mars rover missions.
Rocket Lab is becoming a critical player as governments seek to outsource space-related projects. Now armed with an expanded launch backlog, Rocket Lab will seek to expand long-term customer relationships and become a dependable growth stock.
Let's take a closer look at the deals and how they may impact Rocket Lab.
Rocket Lab rockets higher
First, let's look at the incredible growth trajectory of Rocket Lab.
|
Year |
Revenue |
Net Income (loss) |
Earnings Per Share |
Increase in Stock Price |
|---|---|---|---|---|
|
2023 |
$244.59 million |
($182. 57 million |
($0.38) |
46.7% |
|
2024 |
$436.21 million |
($190.17 million) |
($0.38) |
360.6% |
|
2025 |
$601.79 million |
($198.20 million) |
($0.37) |
173.9% |
|
2026 (through March 31) |
$200.34 million |
($45.02 million) |
($0.07) |
46.5% (through May 8) |
Source: Rocket Lab
To be sure, building a launch program takes a lot of money. Despite consistent net losses, Rocket Lab is growing its revenue and building out its customer base, and that's why you're seeing the increase in stock price each year.
The company has two launch pads in New Zealand and one in the U.S., in Virginia. To date, Rocket Lab has successfully completed 87 launches, including eight this year -- the most recent being a mission to deploy spacecraft for the Japan Aerospace Exploration Agency (JAXA). It has upcoming missions this year for commercial Earth observations, national security, and defense.
It has also worked successfully with the U.S. Space Force, the U.S.-based company BlackSky Technology, and other commercial companies. Rocket Lab's spacecraft are also being used in NASA's Escapade mission to Mars, which launched aboard Blue Origin rockets in November.
Revenue in the first quarter was $200.3 million, up 63.5% from a year ago, and the company now boasts its biggest-ever backlog of $2.2 billion, up 20% from the previous quarter. The company signed 31 launch contracts in the quarter -- more than it signed for all of 2025 -- and now has more than 70 launch contracts under contract on its manifest.
The contracts include the largest launch contract in history, signed with a confidential customer to complete multiple Neutron and Electron missions. The company's Neutron rocket is a next-generation vehicle designed for satellite deployment, cargo resupply, and human spaceflight. Its Electron rocket is a smaller, two-stage vehicle for small satellites.
The company is also promoting its agreement to acquire California-based Motiv, which it says will help it complete lunar and planetary exploration missions while bringing in-house the design and manufacturing of robotics technology needed for planetary exploration.
Image source: Getty Images.
What should investors expect from Rocket Lab stock?
Not every stock grows by double digits every year, but Rocket Lab is getting closer to profitability as it scales up its launch contracts and capabilities. Management is projecting revenue in the second quarter between $225 million and $240 million, which, at the midpoint, would be a 60% increase from a year ago. Analysts surveyed by Yahoo! Finance project Rocket Lab to have revenue of $853.5 million this year, rising to $1.25 billion in 2027. And they're expecting the company to break even, or come close to it, next year.
NASDAQ: RKLB
Key Data Points
While Rocket Lab is unprofitable for now, it is an impressive growth stock attracting serious attention from companies and governments seeking a reliable partner in the private sector. If it can continue its growth trajectory, Rocket Lab looks to be an emerging space stock.
