Rocket Lab Signs Multi-Launch Contract for Neutron with Confidential Commercial Satellite Constellation Operator

Rhea-AI Summary

Rocket Lab (RKLB) has secured a multi-launch agreement with a confidential commercial satellite constellation operator for its new Neutron medium-lift rocket. The contract includes two dedicated missions starting from mid-2026, launching from Wallops Island, Virginia. The Neutron rocket can deploy 13,000 kg to low Earth orbit and is designed for constellation deployments, national security missions, and science payloads. The launch vehicle is positioned to compete in a $10 billion market with over 10,000 satellites needing launch services by 2030. Neutron's 2025 debut also positions it for the U.S. Government's National Security Space Launch program, a $5.6 billion contract opportunity.

Positive

• Secured new multi-launch contract for Neutron rocket
• Potential to expand contract to entire constellation deployment
• Positioned to compete for $5.6B NSSL Lane 1 program
• Targeting $10B total addressable market by 2030
• Could become fourth provider in NSSL program

Negative

• First Neutron launch not until 2025
• Revenue generation from contract delayed until mid-2026

Insights

Space Industry Analyst

This multi-launch contract marks a significant milestone for Rocket Lab's Neutron program, demonstrating early market confidence in their medium-lift launcher. The timing is particularly strategic with launches starting mid-2026, positioning RKLB to compete in both commercial and government markets.

The contract's potential to expand into deploying the entire constellation represents substantial future revenue opportunities. With Neutron's 13,000 kg payload capacity to LEO and the projected $10 billion satellite launch market by 2030, RKLB is well-positioned to capture market share from established players.

The potential inclusion in the NSSL Lane 1 program valued at $5.6 billion could provide steady government revenue streams. This dual commercial-government strategy, combined with reusability features, positions RKLB to compete effectively on both cost and reliability in the medium-lift market segment.

Government Contracts Specialist

The timing of Neutron's development aligns perfectly with the NSSL Lane 1 program's Spring 2025 on-ramping schedule. Being potentially the fourth provider in this $5.6 billion IDIQ contract would give RKLB significant competitive advantage in the government launch sector.

Additional qualification for the $986 million OSP-4 program creates multiple revenue pathways in the government sector. This diversification of government contract opportunities, combined with commercial launches, establishes a robust foundation for sustainable revenue growth and reduced market risk.

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 signed a multi-launch agreement with a confidential commercial satellite constellation operator for its new medium-lift rocket Neutron.

Under the contract, Rocket Lab will launch two dedicated missions on Neutron starting from mid-2026. The missions will launch from Rocket Lab Launch Complex 3 on Wallops Island, Virginia. The launch service agreement for these missions signifies the beginning of a productive collaboration that could see Neutron deploy the entire constellation.

Rocket Lab’s Neutron medium-lift reusable launch vehicle will provide both commercial and government customers with an alternative reliable launch service capable of deploying 13,000 kg to low Earth orbit. Neutron is tailored to deploy constellations and national security missions as well as science and exploration payloads. In addition to serving customers, Neutron is key to Rocket Lab’s strategy as an end-to-end space company preparing to deploy its own constellations and deliver services from space in the future.

Rocket Lab founder and CEO, Sir Peter Beck, says: “Constellation companies and government satellite operators are desperate for a break in the launch monopoly. They need a reliable rocket from a trusted provider, and one that’s reusable to keep launch costs down and make space more frequently accessible – and Neutron is strongly positioned to be that rocket that provides choice and value to the industry. We’ve changed the game before with Electron for dedicated small launch and HASTE for hypersonic technology tests, and we’re looking forward to Neutron doing the same for constellation operators and national security.”

Neutron is strongly positioned to capitalize on the medium-lift launch requirements for future commercial and government missions, with more than 10,000 satellites projected to need launch services by 2030 in a total addressable market valued at approximately ~$10 billion*. Neutron’s expected debut launch in 2025 also puts the launch vehicle in a strong position to on-ramp onto the U.S. Government’s National Security Space Launch (NSSL) Lane 1 program, an indefinite delivery indefinite quantity (IDIQ) contract valued at $5.6 billion over a five-year period. RFPs for the program opened on October 30^th 2024 with approved new launch vehicles to be on-ramped to the program in Spring 2025. The NSSL Lane 1 program is designed by the U.S. Space Force to build up a reliable domestic industrial base of commercial launch vehicles to serve national security missions. If on-ramped in 2025, Rocket Lab would be only the fourth launch provider accepted into the program. Neutron is also eligible to compete for missions under the United States Space Force’s OSP-4 program, a separate $986m IDIQ contract.

*Quilty Space “Satellite Demand Outlook 2023.” Excludes Starlink and Chinese and Russian satellite constellations.

+ 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 190+ 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/20241112146940/en/

+ Rocket Lab Media Contact

Murielle Baker

media@rocketlabusa.com

Source: Rocket Lab USA, Inc.

FAQ

When will Rocket Lab (RKLB) begin Neutron rocket launches for the new constellation contract?

Rocket Lab will begin launches for the new constellation contract in mid-2026 from Wallops Island, Virginia.

What is the payload capacity of Rocket Lab's (RKLB) Neutron rocket?

The Neutron rocket can deploy 13,000 kg to low Earth orbit.

When is Rocket Lab's (RKLB) Neutron rocket expected to make its debut launch?

The Neutron rocket is expected to make its debut launch in 2025.

What is the market size for Rocket Lab's (RKLB) Neutron rocket services by 2030?

The total addressable market is valued at approximately $10 billion, with over 10,000 satellites projected to need launch services by 2030.