Rocket Lab Stock Jumps After $816M U.S. Missile-Tracking Satellite Contract
December 19, 20255 min read
Rocket Lab Stock Jumps After $816M U.S. Missile-Tracking Satellite Contract
Rocket Lab wins $816M missile-tracking contract
Tendrill
Rocket Lab ($RKLB) Jumps After Winning $816M U.S. Space Development Agency Missile-Tracking Contract
Rocket Lab shares surged on December 19, 2025, after the company announced it had secured its largest contract to date: an $816 million prime award from the U.S. Space Development Agency (SDA) to build a new constellation of missile warning and tracking satellites. The deal materially expands Rocket Lab’s government backlog, reinforces its position in national security space, and explains the sharp move higher in the stock.
What Rocket Lab Announced
Rocket Lab disclosed that it was awarded a prime contract worth $816 million by the U.S. Space Development Agency to design and manufacture 18 satellites for the Tracking Layer Tranche 3 (TRKT3) program, part of the Pentagon’s Proliferated Warfighter Space Architecture.
Key details of the award include:
$806 million base contract, plus up to $10.45 million in options
Delivery of 18 missile warning and tracking satellites
Satellites equipped with Rocket Lab’s Phoenix infrared sensor payload for detecting advanced and hypersonic missile threats
Integration of StarLite space protection sensors designed to defend against directed-energy threats
Satellites built on Rocket Lab’s Lightning spacecraft platform, using its vertically integrated, in-house manufacturing model
Rocket Lab also noted that, beyond the prime award, it expects additional subsystem sales to other TRKT3 prime contractors, which could lift the total program capture value to approximately $1 billion (source: Rocket Lab press release).
Why the Contract Matters
Rocket Lab’s Largest Deal Ever
This $816 million award is the largest single contract in Rocket Lab’s history, and it is significant relative to the company’s financials. The contract alone is larger than Rocket Lab’s trailing twelve-month revenue and meaningfully expands its contracted backlog, which stood at roughly $1.1 billion prior to the announcement.
Just as importantly, the deal builds on a for Transport Layer satellites, bringing Rocket Lab’s .
Try Tendrill for free
Want to generate your own public shares? Try Tendrill for free.
Share this article
We're building Tendrill to be the smartest, most accurate agent out there.
previous $515 million SDA award
total SDA contract value to more than $1.3 billion
A Major Validation of Rocket Lab’s Space Systems Strategy
The announcement further validates Rocket Lab’s transformation from a niche small-launch provider into a full-spectrum space systems and national security contractor.
Key strategic implications include:
Rocket Lab is acting as a prime contractor, competing directly with legacy aerospace and defense companies
The contract highlights the value of Rocket Lab’s vertical integration, with spacecraft, payloads, sensors, and components built largely in-house
The company is becoming increasingly embedded in U.S. defense and missile defense infrastructure, a market with long program durations and high switching costs
As CEO Peter Beck noted, the award underscores Rocket Lab’s ability to deliver speed, resilience, and affordability at scale—traits the Pentagon is prioritizing in modern space architectures (source: Rocket Lab press release).
Why the Stock Moved
Rocket Lab shares jumped sharply following the announcement, with gains accelerating into the close and after-hours trading. The stock reaction was driven by several factors:
Contract size shock: An $816 million award is a step-change event for Rocket Lab’s revenue visibility
Backlog expansion: The deal significantly improves long-term cash flow and production runway
Defense credibility: Winning a prime SDA contract elevates Rocket Lab’s standing alongside traditional defense primes
Momentum confirmation: The award followed closely after a successful, ahead-of-schedule U.S. Space Force launch, reinforcing execution confidence
Market participants also viewed the contract as evidence that Rocket Lab’s space systems business—now the majority of its revenue—has reached critical scale, justifying a higher valuation multiple (source: Investing.com).
Bigger Picture for Rocket Lab
The SDA contract strengthens Rocket Lab’s position at the intersection of space, defense, and missile warning infrastructure, one of the fastest-growing segments of government space spending. With multiple large defense programs underway and the Neutron medium-lift rocket still ahead as a future catalyst, investors increasingly view Rocket Lab as more than a launch company.
December 19’s announcement marked a clear inflection point: Rocket Lab is now a core supplier to U.S. national security space, and the market responded accordingly.