TLDR:
- Rocket Lab’s stock surged 40% after Q3 earnings, with revenue reaching $104.8M (55% increase)
- Company completed record 12 Electron launches in Q3
- Backlog grew to $1.05B with $55M in new contracts
- Q4 revenue guidance of $125M-$135M exceeded analyst expectations
- New Neutron rocket contract secured for two launches in 2026
Rocket Lab USA (RKLB) shares jumped 40% on Wednesday after the space launch company reported stronger-than-expected third-quarter results, highlighted by record launch activity and growing revenue.
The company posted revenue of $104.8 million for the quarter, marking a 55% increase from $67.7 million in the same period last year. The results topped Wall Street’s forecast of $102.7 million.
The revenue growth was driven by a record-breaking 12 Electron rocket launches during the quarter. This performance established Electron as the third most frequently launched rocket globally in 2024, behind only SpaceX and China’s space program.
Despite the revenue gains, Rocket Lab recorded a net loss of $51.9 million, or $0.10 per share. While the loss widened from $0.08 per share last year, it was slightly better than analysts’ expectations of an $0.11 per share loss.
The company attributed the increased losses to ongoing research and development costs, particularly related to its Neutron rocket program, as well as expanded satellite manufacturing operations.
The quarter saw Rocket Lab secure $55 million in new contracts, pushing its total backlog to $1.05 billion. This backlog figure came in just under analyst projections of $1.1 billion but demonstrates continued strong demand for the company’s launch services.
Looking ahead to the fourth quarter, Rocket Lab provided guidance for revenue between $125 million and $135 million, exceeding the consensus estimate of $121.9 million.
The company maintains a solid financial position with $292.5 million in cash and equivalents at the end of the quarter, providing runway for its growth initiatives and development programs.
In a separate announcement, Rocket Lab revealed a new launch service agreement with an unnamed commercial satellite constellation operator. The contract includes two missions using the company’s upcoming medium-lift Neutron rocket, scheduled for mid-2026.
The Neutron rocket, currently under development, is expected to make its first launch in 2025. Rocket Lab aims to qualify the vehicle for the U.S. Government’s National Security Space Launch Lane 1 program, which carries a potential value of $5.6 billion over five years.
The company sees substantial market opportunity ahead, projecting that more than 10,000 satellites will require launch services by 2030. Rocket Lab estimates this represents a total addressable market of approximately $10 billion.
The stock’s rise following the earnings report added to an already strong year for Rocket Lab shares, which have gained 240.5% year-to-date.
After initially spiking more than 41% in early trading Wednesday, the stock pared some gains to close up 28% for the session.
The company’s partnerships continue to expand, including work with NASA on upcoming Moon and Mars missions, positioning Rocket Lab as a key player in both commercial and government space launches.
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