Rocket Lab Awarded $816M Prime Contract to Build Missile- Defense Satellite Constellation for U.S. Space Force

Rhea-AI Summary

Rocket Lab (Nasdaq: RKLB) was awarded an $816 million prime contract by the U.S. Space Development Agency on Dec 19, 2025 to design and build 18 Tracking Layer Tranche 3 (TRKT3) satellites for missile detection, including hypersonic threats.

The award is $806 million base plus up to $10.45 million in options and includes Rocket Lab’s Phoenix infrared payloads and StarLite space protection sensors. As a supplier to other TRKT3 primes, total capture value could reach approximately $1 billion. Combined with a prior $515 million SDA award, Rocket Lab now holds over $1.3 billion in SDA contract value.

Positive

• $816M prime contract awarded for TRKT3 satellites
• Contract structure: $806M base plus $10.45M options
• 18 satellites to deliver missile warning and tracking sensors
• Potential capture ~ $1B including subsystem supply to other primes
• $1.3B+ total SDA awards to Rocket Lab after prior $515M Transport Layer-Beta deal
• Vertical integration using Lightning platform and in-house components

Negative

• None.

Key Figures

TRKT3 contract value $816 million Prime contract to design and manufacture 18 Tracking Layer Tranche 3 satellites

Base contract $806 million Base portion of the $816 million TRKT3 award

Contract options $10.45 million Additional options on top of the base TRKT3 contract

Potential capture value $1 billion Approximate total value including subsystem sales to other TRKT3 primes

TRKT3 satellites 18 satellites Missile warning, tracking, and defense constellation for SDA Tracking Layer Tranche 3

Prior SDA contract $515 million Existing award for 18 Transport Layer-Beta Tranche 2 satellites

Total SDA contracts $1.3 billion Aggregate contract value now awarded by SDA to Rocket Lab

Transport Layer satellites 18 satellites SDA Transport Layer-Beta Tranche 2 constellation

Market Reality Check

$70.53 Last Close

Volume Volume 27,556,581 vs 20-day average 21,244,488, showing elevated trading activity before this news. normal

Technical Price at 59.92, trading above 200-day MA of 39.21, indicating a pre-existing uptrend.

Peers on Argus

RKLB gained 11.05% while key peers like ESLT (-2.03%) and BWXT (-1.17%) were down or flat, suggesting a company-specific move rather than a broad Aerospace & Defense rally.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 18	US defense launch	Positive	+11.1%	Successful STP-S30 mission launch to 550 km low Earth orbit for U.S. Dept. of War.
Dec 16	Launch schedule shift	Positive	+0.1%	Pulled forward U.S. Space Force STP-S30 launch, highlighting schedule agility.
Dec 13	JAXA dedicated launch	Positive	-9.9%	First dedicated JAXA mission successfully launched with multiple tech demos.
Dec 09	KAIST launch timing	Positive	+3.6%	Expedited KAIST Earth observation launch, showcasing responsiveness and flexibility.
Dec 09	CSA R&D funding	Positive	+3.6%	Canadian Space Agency funding to develop new reaction wheel for medium satellites.

Pattern Detected

Operational and contract wins have generally aligned with positive price reactions, with one notable selloff after a successful JAXA launch.

Recent Company History

Over the past months, Rocket Lab has reported multiple successful launches and contract wins, including U.S. Space Force STP-S30 missions, JAXA and KAIST launches, and Canadian Space Agency funding. Price reactions were positive after most events, such as the STP-S30 launch on Dec 18, 2025 and CSA reaction-wheel funding on Dec 9, 2025, but the dedicated JAXA launch on Dec 14, 2025 coincided with a -9.89% move, showing occasional divergence despite strong operational execution. Today’s large SDA contract extends this defense-focused trajectory.

Market Pulse Summary

This announcement highlights a major expansion of Rocket Lab’s defense business via an $816 million SDA contract for 18 missile-defense satellites, lifting total SDA awards to over $1.3 billion. It builds on a series of recent successful launches and government partnerships, reinforcing the company’s vertically integrated model in national security space. Investors may focus on execution across this growing backlog, integration of advanced payloads like Phoenix infrared sensors and StarLite protection, and how future awards compare to today’s scale and scope.

Key Terms

low Earth orbit technical

"DiskSat spacecraft to a 550 km low Earth orbit, completed five months ahead"

Low Earth orbit (LEO) is the region of space close to Earth, roughly from about 160 to 2,000 kilometers above the surface, where satellites and spacecraft circle the planet quickly—think of it as a busy highway just overhead. It matters to investors because many communications, imaging and data services rely on satellites in LEO; their shorter lifespans, lower launch costs, crowded lanes and debris risks directly affect the cost, revenue potential and operational risks of companies that build, launch or use these satellites.

hypersonic systems technical

"tracking of emerging missile threats, including hypersonic systems."

Hypersonic systems are weapons or vehicles designed to travel at speeds above five times the speed of sound, using advanced materials, propulsion and guidance to reach targets much faster and along unpredictable paths. Investors watch them because they drive large government contracts, require long development timelines and specialized suppliers, and can reshape defense budgets, export rules and competitive advantage in aerospace — similar to how a breakthrough engine can change an entire car industry.

launch vehicle technical

"its Neutron launch vehicle in development will unlock medium launch"

A launch vehicle is a rocket or large spacecraft used to carry cargo, satellites or crew from Earth into space; think of it as a heavy-duty delivery truck that lifts goods to orbit. Investors care because a vehicle's reliability, production cost and launch schedule directly affect a company’s revenue, profit margins and risk profile—successful, repeatable launches can unlock steady contracts while failures or delays can cut income, raise insurance costs and damage market value.

AI-generated analysis. Not financial advice.

Rocket Lab’s largest contract to date solidifies its position as a disruptive force in national security space, redefining the speed and efficiency of satellite production and challenging legacy aerospace primes

LONG BEACH, Calif., Dec. 19, 2025 (GLOBE NEWSWIRE) -- Rocket Lab USA, Inc., a wholly owned subsidiary of Rocket Lab Corporation (Nasdaq: RKLB) (“Rocket Lab” or “the Company”), a leading launch and space systems company, today announced it has been awarded a landmark prime contract by the U.S. Space Development Agency (SDA) to design and manufacture 18 satellites for the Tracking Layer Tranche 3 (TRKT3) program under the Proliferated Warfighter Space Architecture (PWSA). The award is Rocket Lab’s largest single contract to date and underscores its growing reputation as a trusted prime in national security space.

Under the $816 million contract, Rocket Lab will deliver satellites equipped with advanced missile warning, tracking, and defense sensors to provide global, persistent detection and tracking of emerging missile threats, including hypersonic systems. The award includes a $806 million base contract plus up to $10.45 million in options. Each satellite will feature Rocket Lab’s next-generation Phoenix infrared sensor payload, a wide field-of-view (WFOV) solution designed to meet the evolving missile defense needs of national security space. To ensure mission resilience, the satellites will be equipped with Rocket Lab’s advanced StarLite space protection sensors, designed to safeguard the constellation against directed energy threats. Notably, StarLite sensors have also been adopted by other prime contractors developing TRKT3 satellites, further expanding Rocket Lab’s role in the program and unlocking additional contract value beyond its own satellite production. In addition to the $816M prime contract award value, as a leading merchant supplier into the other TRKT3 prime contractors, there are additional subsystem opportunities that could take the total capture value to approximately $1 billion for supplying items such as payloads, solar solutions, attitude determination and control components, software, and other solutions from our broad portfolio of capabilities.

Disrupting Traditional Defense Primes with Vertical Integration
Rocket Lab’s satellites will be built on its proven Lightning platform, leveraging the Company’s vertically integrated manufacturing capabilities to deliver an unmatched combination of speed, cost efficiency, and quality. All major components – from solar arrays, reaction wheels and star trackers to propulsion systems, avionics, payloads, and launch dispensers – are designed and produced in-house. This end-to-end approach enables Rocket Lab to rapidly scale production while maintaining control over cost and schedule, a critical advantage in meeting the urgent demands of national security missions.

“The Tranche 3 Tracking Layer constellation is part of the U.S. Space Force’s strategy to counter rapidly evolving global threats, ensuring the nation’s defense capabilities remain ahead of adversaries. Rocket Lab is honored to play a role in enabling this,” said Rocket Lab founder and CEO, Peter Beck. “Demand for resilient, scalable, and affordable space systems continues to grow, and this award demonstrates that Rocket Lab is uniquely positioned to lead the charge in delivering solutions that meet the needs of national security. As the only commercial provider producing both spacecraft and payloads in-house for the SDA Tracking Layer, Rocket Lab is delivering a truly disruptive solution that combines speed, resilience, and affordability. This contract underscores that Rocket Lab’s vertically integrated approach isn’t just a competitive advantage – we’re enabling a fundamental shift in how national security space programs are executed.”

Building on Momentum: $1.3 Billion in SDA Contracts Awarded
This contract builds on Rocket Lab’s existing $515 million award to deliver 18 satellites for SDA’s Transport Layer-Beta Tranche 2 program, which provides secure, low-latency communications across the PWSA. The more than $1.3 billion in contract value now awarded to Rocket Lab by SDA demonstrates strong confidence in Rocket Lab’s ability to execute on large-scale, high-stakes national security programs.

Rocket Lab’s growing role as a prime contractor for the U.S. Space Force highlights its emergence as a formidable competitor to legacy aerospace primes. By combining technology, vertical integration, and a proven track record of delivering results, Rocket Lab is redefining what’s possible in national security space.

+ Rocket Lab Media Contact
media@rocketlabusa.com

+ About Rocket Lab
Rocket Lab is a leading space company that provides launch services, spacecraft, payloads, and satellite components serving commercial, government, and national security markets. Rocket Lab’s Electron rocket is the world’s most frequently launched orbital small rocket; its HASTE rocket provides hypersonic test launch capability for the U.S. government and allied nations; and its Neutron launch vehicle in development will unlock medium launch for constellation deployment, national security and exploration missions. Rocket Lab’s spacecraft and satellite components have enabled more than 1,700 missions spanning commercial, defense and national security missions including GPS, constellations, and exploration missions to the Moon, Mars, and Venus. Rocket Lab is a publicly listed company on the Nasdaq stock exchange (RKLB). Learn more at www.rocketlabcorp.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, 2024, 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.rocketlabcorp.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. 

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e286a68c-9f46-4d4c-8dd5-2f7d305b67ff

FAQ

What did Rocket Lab (RKLB) announce on Dec 19, 2025?

Rocket Lab announced an $816 million SDA prime contract to build 18 TRKT3 missile‑defense satellites.

How is the $816M contract structured for RKLB’s TRKT3 award?

The award includes a $806 million base contract plus up to $10.45 million in options.

What payloads and protection systems will RKLB satellites carry for TRKT3?

Satellites will carry Rocket Lab’s Phoenix infrared WFOV sensors and StarLite space protection sensors.

How many satellites will Rocket Lab deliver under the TRKT3 prime contract?

Rocket Lab will design and manufacture 18 TRKT3 satellites under the contract.

Could Rocket Lab (RKLB) receive more than $816M from the TRKT3 program?

Yes; as a merchant supplier to other TRKT3 primes, total capture value could reach approximately $1 billion.

What is Rocket Lab’s cumulative SDA contract value after the TRKT3 award?

Combined with a prior $515 million Transport Layer-Beta award, Rocket Lab now has over $1.3 billion in SDA contract value.