Rocket Lab USA Inc. (RKLB) secured a $266 million U.S. Air Force contract for suborbital launch services, sending shares up 9% in after-hours trading Tuesday after the stock had already closed the regular session more than 5% higher. The firm-fixed-price contract covers 12 suborbital launches with options for six additional missions through December 31, 2028. The award follows the company's recent selection for the U.S. Space Force National Security Space Launch Phase 3 Lane 1 program announced days earlier, which has a $17 billion ceiling for future launch services across seven awarded companies including SpaceX.
U.S. Air Force Awards Rocket Lab $266M Suborbital Launch Contract
The U.S. Air Force awarded Rocket Lab a $266 million firm-fixed-price completion contract for suborbital launch services. The contract covers the launch of 12 suborbital launch vehicles, with options for six additional launches. Work will be performed at the Pacific Spaceport Complex in Alaska and is expected to be completed by December 31, 2028.
The award was made through a competitive acquisition, with three offers received. The U.S. Air Force is obligating $112 million in fiscal 2025 research, development, test and evaluation funds at the time of the award. The Space Systems Command is the contracting activity for the program.
The contract win comes just days after the U.S. Space Force announced that Rocket Lab and SpaceX were among seven companies awarded positions on the National Security Space Launch (NSSL) Phase 3 Lane 1 program, which has a $17 billion ceiling for future launch services.
Retail Traders Call Contract A Space Sector Catalyst
Retail sentiment on Stocktwits for RKLB remained 'bullish,' unchanged in the past 24 hours, while message volume was 'high.' Rocket Lab became a focus of discussion on Stocktwits after Tuesday's contract win, with retail traders highlighting the significance of the award.
One retail trader described the award as a "big catalyst for the space sector," adding that "this kind of contract could bring renewed attention not only to $RKLB, but potentially the broader space group." The trader said they were adding to AST SpaceMobile, expecting the positive momentum to spread across the industry.
Another trader highlighted Rocket Lab's growing portfolio of U.S. government and defense contracts, calling the company a "monster," and saying the latest Air Force award adds to an already strong pipeline ahead of the company's upcoming earnings report.
Some retail traders turned their attention to Wednesday's session, expecting continued momentum in the stock following the contract announcement.
RKLB Stock Performance Year-To-Date And 12-Month
RKLB shares have fallen 0.55% year-to-date, but gained over 38% in the past 12 months.
FAQ
What did Rocket Lab announce on Tuesday?
Rocket Lab announced a $266 million U.S. Air Force contract for suborbital launch services covering 12 launches with options for six additional missions through December 31, 2028.
How did RKLB stock react to the Air Force contract announcement?
RKLB stock jumped 9% in after-hours trading Tuesday after closing the regular session more than 5% higher.
Where will Rocket Lab perform the Air Force contract work?
Work will be performed at the Pacific Spaceport Complex in Alaska, with completion expected by December 31, 2028.
