An order book boosted by mega-deals

Fueled by an exceptional commercial trajectory, the backlog reached a record $2.36bn, a spectacular 137% jump year over year. Including contracts signed since June 30, the group has already secured more than $1bn in new business already booked in the third quarter, split between launch and space systems.

Separate from this earnings release, the U.S. rocket maker completed the acquisitions of Mynaric and Motiv. It also announced its landmark agreement to acquire Iridium Communications Inc. The deal aims to create a fully vertically integrated space giant. This entity will be able to design, build, launch, and operate its own satellite constellations

These transactions will allow the group to accelerate its future in space applications by becoming a globally recognized, independent space power, capable of delivering high-impact communications services to millions of users.

A wave of major contracts

On the commercial front, wins keep coming. Rocket Lab was awarded a major $397m contract by the U.S. Space Force under the SB-AMTI program (Space-Based Airborne Moving Target Indicator). Under the award, the company will provide multiple Flatellite spacecraft to be launched aboard its Neutron rocket to detect, track, and monitor airborne threats from space, a mission central to U.S. national security. The fact that Rocket Lab is among only two providers selected to deliver the complete service (launcher and spacecraft) underscores the effectiveness and value of its vertical integration strategy.

In addition, the space company won more than $160m through two other contracts to build three geostationary satellites. One of them, signed directly with the Space Systems Command of the Space Force, calls for the manufacture and operation of two satellites dedicated to monitoring the space environment (space domain awareness). For Rocket Lab, this marks its very first move into producing and operating geostationary satellites for the U.S. government.

Rocket Lab also secured more than $437m in new launch contracts for its Electron, HASTE, and Neutron vehicles during the second quarter and through post-quarter signings. Its launch backlog stands at the highest level in its history, with more than 90 launches.

To support these global ambitions, the group also officially announced the creation of Rocket Lab Germany GmbH. This entity is intended to support the future scaling of Rocket Lab's satellite and component manufacturing in Germany, and to provide commercial and sovereign space capabilities to European customers.

Sales growth, but margin pressure

On guidance, Rocket Lab management expects third-quarter revenue to rise to between $250m and $265m.

However, near-term profitability will feel the impact of the massive investments underway in development programs (notably the Neutron launcher) and the integration of the new acquisitions. For the coming quarter, GAAP gross margin is expected to be between 29% and 31%, versus 36.1% on $84.6m in the second quarter.

GAAP operating expenses are expected to increase to between $143m and $149m, versus $142.1m in the second quarter.

The EBITDA loss is expected to widen to between $17m and $23m, after a loss of $8.8m in the second quarter.