Rocket Lab Selected by Kratos to Deliver Hypersonic Test Launches for DoD with HASTE Rocket

Rhea-AI Summary

Rocket Lab (RKLB) has been selected as part of a Kratos-led team for a five-year OTA contract under the Multi-Service Advanced Capability Hypersonic Test Bed (MACH-TB) 2.0 program. The total potential contract value is $1.45 billion over five years.

The program, established by the Office of the Under Secretary of Defense, aims to create an affordable flight test bed for hypersonic testing. Rocket Lab will provide systems engineering, assembly, integration, test services, mission planning, and launch services using their HASTE (Hypersonic Accelerator Suborbital Test Electron) rocket.

HASTE, a modified version of the Electron rocket, features carbon fiber composite structures and 3D printed engines, with an increased payload capacity of up to 700 kg. The launches will be conducted from Rocket Lab's Launch Complex 2 in Wallops, Virginia.

Positive

• Part of a $1.45 billion contract opportunity over 5 years
• Already demonstrated successful HASTE launches for the program
• Expanded payload capacity of 700 kg for HASTE rocket
• Leverages existing Electron rocket technology and infrastructure

Negative

• Contract value share for Rocket Lab not specified
• Revenue dependent on actual task orders within contract

Insights

Defense Industry Analyst

The $1.45 billion MACH-TB 2.0 contract represents a significant strategic win for RKLB, positioning them as a key player in the critical hypersonic testing infrastructure. The HASTE platform's selection demonstrates strong product-market fit in the growing hypersonic defense sector, with RKLB's proven track record of successful test launches being a important differentiator. The five-year contract duration provides steady, predictable revenue streams and strengthens RKLB's relationship with the DoD.

The technical specifications of HASTE, including its 700 kg payload capacity and innovative carbon fiber composites, align perfectly with the DoD's requirements for rapid, flexible testing capabilities. This positions RKLB to capture a substantial portion of the growing hypersonic testing market, estimated to expand significantly as the U.S. accelerates its hypersonic capabilities development.

Financial Analyst

This contract's structure as part of a $1.45 billion total potential value over five years represents material revenue visibility for RKLB. While the exact revenue allocation among team members isn't disclosed, even a modest 10-15% share would translate to significant annual revenue contributions. With RKLB's current market cap of $13.86 billion, this contract reinforces their revenue diversification strategy and reduces dependence on commercial launches.

The partnership with Kratos (KTOS) as the prime contractor also opens doors for additional defense contract opportunities. RKLB's demonstrated execution with HASTE launches and established infrastructure at Launch Complex 2 reduces operational risks and supports higher launch cadence, potentially leading to margin expansion through operational leverage.

Aerospace Engineer

The technical synergy between HASTE and Electron showcases RKLB's engineering efficiency in leveraging existing technology for new applications. The modified upper Kick Stage and increased payload capacity demonstrate smart design adaptation while maintaining core reliability advantages. This approach minimizes development costs while maximizing return on R&D investment.

With 200+ successful payload deployments across their launch vehicles, RKLB's track record in complex mission execution is impressive. The ability to support high-cadence testing is important for hypersonic development programs, where rapid iteration and frequent testing are essential for advancing the technology. Their multi-site launch capability provides redundancy and flexibility that's highly valued in national security applications.

LONG BEACH, Calif.--(BUSINESS WIRE)-- Rocket Lab USA, Inc. (Nasdaq: RKLB) (“Rocket Lab” or “the Company”), a global leader in launch services and space systems, today announced it has been selected to be a member of the team, led by Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS) (“Kratos”), awarded a five-year OTA contract for the Multi-Service Advanced Capability Hypersonic Test Bed (MACH-TB) 2.0 under Task Area 1. The total potential value of the MACH-TB 2.0 Contract Award over a five-year period is $1.45 billion. The Office of the Under Secretary of Defense for Research and Engineering (OUSD (R&E)) Test Resource Management Center (TRMC) established MACH-TB to support OUSD’s National Hypersonic Initiative 2.0 by creating an affordable flight test bed to rapidly increase hypersonic flight test capacity. MACH-TB 2.0 will provide an affordable bridge between hypersonic ground tests and system level flight tests.

Kratos was awarded the prime role in Task Area 1 Systems Engineering, Integration, and Testing (SEIT), to include integrated subscale, full-scale, and air launch services to address the need to affordably increase hypersonic flight test cadence. Rocket Lab will join the Kratos-led team of subcontractors that will provide systems engineering, assembly, integration, and test (AI&T), mission planning and execution, and launch services.

Rocket Lab has already served the MACH-TB program, delivering multiple successful hypersonic test launches with the Company’s HASTE (Hypersonic Accelerator Suborbital Test Electron) rocket from Rocket Lab’s Launch Complex 2 in Wallops, Virginia. HASTE is a suborbital variant of Rocket Lab’s Electron launch vehicle, which is the United States’ second most frequently launched orbital rocket annually.

HASTE includes much of the same innovative technology as Electron, including carbon fiber composite structures and 3D printed rocket engines, but has a modified upper Kick Stage tailored for hypersonic technology tests and a larger payload capacity of up to 700 kg / 1,540 lbs. Combined, Rocket Lab’s HASTE and Electron launch vehicles have deployed 200+ payloads from its United States and New Zealand launch sites to date.

Rocket Lab’s Vice President Global Launch Services, Brian Rogers, says: “We’re thrilled to be part of the Kratos-led team for the next iteration of the MACH-TB program and ready to serve the U.S. Department of Defense with even more high-cadence hypersonic technology with our HASTE launch vehicle. Our demonstrated ability to date to deliver successful HASTE launches that test these new technologies is testament to our dedication in advancing hypersonic innovation for the nation alongside our government and industry partners.”

+ 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 flight proven spacecraft, 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 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 family of spacecraft 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/20250107239724/en/

+ Rocket Lab Media Contact

Murielle Baker

media@rocketlabusa.com

Source: Rocket Lab USA, Inc.

FAQ

What is the total value of the MACH-TB 2.0 contract that RKLB is participating in?

The total potential value of the MACH-TB 2.0 contract is $1.45 billion over a five-year period.

What is the payload capacity of RKLB's HASTE rocket?

The HASTE rocket has a payload capacity of up to 700 kg (1,540 lbs).

Where will RKLB conduct the HASTE hypersonic test launches?

The HASTE launches will be conducted from Rocket Lab's Launch Complex 2 in Wallops, Virginia.

How does RKLB's HASTE rocket differ from the standard Electron rocket?

HASTE is a suborbital variant of the Electron rocket with a modified upper Kick Stage tailored for hypersonic technology tests and larger payload capacity.

What services will RKLB provide under the MACH-TB 2.0 contract?

Rocket Lab will provide systems engineering, assembly, integration, test services, mission planning, and launch services as part of the Kratos-led team.