Rocket Lab (RKLB) Stock: Company Lands $816M Defense Contract and Completes 21st Launch of 2025

TLDR

• Rocket Lab secured an $816 million contract from the U.S. Space Development Agency to build 18 satellites for missile defense tracking
• The company successfully launched its 21st Electron rocket of 2025, deploying a satellite for Japan-based Earth-imaging company iQPS
• Total SDA contract value now exceeds $1.3 billion when combined with a previous $515 million award
• Stifel analyst raised price target to $85 from $75 following the contract announcement
• RKLB stock jumped 5% in pre-market trading and is up 177% year-to-date

Rocket Lab scored its largest contract win to date on December 22, securing $816 million from the U.S. Space Development Agency. The deal sent shares climbing 5% in pre-market trading.

Rocket Lab USA, Inc., RKLB

The contract calls for Rocket Lab to design and manufacture 18 satellites. These satellites will carry advanced missile warning, tracking, and defense sensors for the agency’s Tracking Layer Tranche 3 program.

The satellites will be part of the Proliferated Warfighter Space Architecture. They’ll detect and track emerging missile threats for national security purposes.

The contract includes a $806 million base agreement. An additional $10.45 million in options could push the total higher.

This deal comes on top of an existing $515 million award from SDA. That earlier contract covers 18 satellites for the Transport Layer-Beta Tranche 2 program, which provides secure communications across the defense architecture.

Combined, Rocket Lab’s total SDA contract value now tops $1.3 billion. The company emphasized this demonstrates its ability to handle large-scale national security projects.

Launch Activity Continues at Rapid Pace

One day before the contract announcement, Rocket Lab completed its 21st Electron launch of 2025. The mission deployed another satellite for Q-shu Pioneers of Space, Inc., a Japanese Earth-imaging company.

Rocket Lab first worked with iQPS in 2023. The company has now delivered seven satellites to the iQPS constellation.

Electron has become the primary launch vehicle for the Earth-imaging firm. Five more launches for iQPS are scheduled starting in 2026.

Analyst Response and Stock Performance

Stifel analyst Erik Rasmussen bumped his price target for RKLB from $75 to $85. He maintained a Buy rating on the shares.

Rasmussen called it “another meaningful win” for the company. He noted this represents Rocket Lab’s largest single contract.

The stock has rallied 177% year-to-date before the latest surge. Shares gained momentum throughout 2025 as the company secured contracts and executed launches.

Wall Street analysts maintain a Moderate Buy consensus on Rocket Lab. The rating combines nine Buy recommendations with four Hold ratings.

The average analyst price target sits at $66. That figure suggests potential downside from current levels following the stock’s strong run this year.

Next Milestone on the Horizon

Investors are watching for the debut of Rocket Lab’s Neutron rocket. The reusable launch vehicle is expected to make its first flight in early 2026.

The company’s market cap reached $37.67 billion. Average daily trading volume stands at 22.7 million shares.

Rocket Lab makes satellites and rockets while providing launch services. The dual business model positions the company across multiple segments of the space industry.

The December 21 Electron launch marked the company’s 21st mission of the year. That launch cadence demonstrates operational capacity and reliability for customers.

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