Rocket Lab on Track to Advance U.S. Defense Capabilities, Passing Major Milestone in Development of Spacecraft Constellation for Space Development Agency

Rhea-AI Summary

Rocket Lab National Security has successfully completed the Preliminary Design Review (PDR) for the Space Development Agency's Tranche 2 Transport Layer-Beta program. This milestone advances the $515 million contract awarded in early 2024 to deliver 18 advanced data transport satellites for the U.S. Department of Defense's Proliferated Warfighter Space Architecture (PWSA).

The comprehensive PDR covered mission architecture, space vehicle design, launch operations, and ground systems. The satellites will utilize Rocket Lab's vertically integrated subsystems including solar panels, composite structures, star trackers, and other components. The PWSA constellation is designed to provide secure, low-latency communications and missile tracking capabilities in low-Earth orbit.

Positive

• Secured $515 million firm-fixed-price contract for 18 satellites
• Successfully passed critical Preliminary Design Review milestone
• High vertical integration reducing supply chain risks
• Strong position in U.S. defense market with strategic contract

Negative

• None.

Insights

Defense Technology Analyst

The successful PDR completion for the $515 million SDA contract represents a important advancement in Rocket Lab's defense capabilities portfolio. The T2TL-Beta program's 18 satellites will form a critical component of the PWSA constellation, enhancing military communications and missile tracking capabilities in LEO. The vertical integration strategy employed here is particularly noteworthy - by controlling the manufacturing of key subsystems like solar panels, star trackers and avionics, RKLB significantly reduces supply chain risks and maintains tighter cost controls.

The defense sector's increasing reliance on distributed, resilient space architectures presents a substantial growth vector for RKLB. This contract solidifies their position in the high-value defense market segment, with potential for follow-on orders and expanded scope in future tranches. The firm-fixed-price nature of the contract also provides attractive revenue visibility and margins protection against inflation.

Space Industry Analyst

This milestone validates RKLB's evolution from a pure launch provider to a full-spectrum space solutions company. The company's ability to secure and execute on major government contracts demonstrates growing competitive advantages in the space systems segment. The vertical integration approach is particularly compelling - it differentiates RKLB from competitors who rely more heavily on third-party suppliers and provides better control over program execution.

For investors, this represents more than just a single contract - it's evidence of RKLB's successful strategic pivot toward higher-margin space systems work. The PDR completion significantly de-risks the program execution timeline. With a $13.4B market cap, RKLB is positioning itself as a key player in the rapidly growing defense space sector, which could drive multiple expansion as the market better appreciates their expanded capabilities beyond launch services.

LONG BEACH, Calif.--(BUSINESS WIRE)-- Rocket Lab National Security LLC (“Rocket Lab” or “the Company”), a global leader in launch services and space systems, today announced the successful completion of its Preliminary Design Review (PDR) for the Space Development Agency’s (SDA) Tranche 2 Transport Layer-Beta (T2TL-Beta) program. This milestone marks a critical step in Rocket Lab’s mission as a prime contractor to deliver 18 advanced data transport satellites for the U.S. Department of Defense’s Proliferated Warfighter Space Architecture (PWSA).

Artist's concept of Rocket Lab's data transport satellites for SDA's Tranche 2 Transport Layer-Beta program. Image credit: Rocket Lab

The milestone positions Rocket Lab to move into the detailed design phase of the $515 million firm-fixed-price contract awarded in early 2024. Under this agreement, Rocket Lab will design, integrate, test, and commission the 18 T2TL-Beta satellites. Rocket Lab leads a capable team of payload providers to provide vital capacity to the PWSA, a cutting-edge low-Earth orbit (LEO) satellite constellation designed to provide secure, low-latency communications and missile tracking to the warfighter.

The Preliminary Design Review is a comprehensive multi-day milestone that ensures the satellite design meets rigorous mission requirements and establishes a solid foundation for production, testing, and operations. The review covered the mission architecture, the space vehicle, launch, operations, and ground systems, along with planned integration and test activities, requirements, technology maturity plans, and overall operational concept.

“This milestone underscores Rocket Lab’s commitment to delivering world-class satellite solutions for national defense,” said President and CEO of Rocket Lab National Security, Brad Clevenger. “Our vertically integrated approach and innovative technologies enable us to meet demanding requirements with precision and efficiency. With this achievement, we are one step closer to deploying advanced satellite systems that will strengthen U.S. defense capabilities in space.”

All 18 satellites will use Rocket Lab’s vertically integrated subsystems and components, including solar panels, composite structures, star trackers, reaction wheels, radios, flight & ground software, avionics, launch dispensers, and more. This high degree of vertical integration gives Rocket Lab a unique level of control over its supply chain, enabling efficiencies and certainty on cost, schedule and quality.

+ About Rocket Lab

Founded in 2006, Rocket Lab is an end-to-end space company with an established track record of mission success. We deliver reliable launch services, satellite manufacture, spacecraft components, and on-orbit management solutions that make it faster, easier, and more affordable to access space. Headquartered in Long Beach, California, Rocket Lab designs and manufactures the Electron small orbital launch vehicle, a family of spacecraft platforms, and the Company is developing the large Neutron launch vehicle for constellation deployment. Since its first orbital launch in January 2018, Rocket Lab’s Electron launch vehicle has become the second most frequently launched U.S. rocket annually and has delivered over 200 satellites to orbit for private and public sector organizations, enabling operations in national security, scientific research, space debris mitigation, Earth observation, climate monitoring, and communications. Rocket Lab’s spacecraft platforms have been selected to support NASA missions to the Moon and Mars, as well as the first private commercial mission to Venus. Rocket Lab has three launch pads at two launch sites, including two launch pads at a private orbital launch site located in New Zealand and a third launch pad in Virginia. To learn more, visit www.rocketlabusa.com.

+ Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding our launch and space systems operations, launch schedule and window, safe and repeatable access to space, Neutron development, operational expansion and business strategy are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “strategy,” “future,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to the factors, risks and uncertainties included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as such factors may be updated from time to time in our other filings with the Securities and Exchange Commission (the “SEC”), accessible on the SEC’s website at www.sec.gov and the Investor Relations section of our website at www.rocketlabusa.com, which could cause our actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250109143960/en/

+ Rocket Lab Media Contact

Lindsay McLaurin

media@rocketlabusa.com

Source: Rocket Lab

FAQ

What is the value of Rocket Lab's (RKLB) Space Development Agency contract?

Rocket Lab secured a $515 million firm-fixed-price contract to deliver 18 data transport satellites for the Space Development Agency's T2TL-Beta program.

How many satellites will Rocket Lab (RKLB) build for the SDA T2TL-Beta program?

Rocket Lab will design, integrate, test, and commission 18 data transport satellites for the SDA's T2TL-Beta program.

What milestone did Rocket Lab (RKLB) achieve for the SDA satellite program in 2024?

Rocket Lab successfully completed the Preliminary Design Review (PDR) for the Space Development Agency's Tranche 2 Transport Layer-Beta program.

What components will Rocket Lab (RKLB) manufacture in-house for the SDA satellites?

Rocket Lab will manufacture various components including solar panels, composite structures, star trackers, reaction wheels, radios, flight & ground software, avionics, and launch dispensers.