Rocket Lab Joins US Space Force's $5.6 Billion Launch Program; Stock Soars

, Benzinga -  6:40 AM ET 3/28/2025 Company News

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Launch services and space systems provider Rocket Lab USA, Inc. ( RKLB ) shares are trading higher in premarket on Friday.

The company on Thursday disclosed that it had been selected by the U.S. Space Force to compete for the Department of Defense’s highest-priority national security missions for its National Security Space Launch (NSSL) Phase 3 Lane 1 program.

This agreement, set as a firm-fixed price, indefinite delivery/indefinite-quantity (IDIQ) contract, extends over a five-year ordering window until June 2029, with a maximum potential worth of $5.6 billion.

Rocket Lab intends to utilize its Neutron rocket for the program, a 13-ton reusable medium-lift vehicle made from carbon composite, engineered for vital national security operations and satellite deployments.

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Having completed 63 Electron missions so far, the company is one of just two U.S. launch providers to successfully send multiple payloads into orbit in 2025.

Neutron’s inaugural launch, set for the second half of the year, will occur at Launch Complex 3 on Wallops Island, Virginia, making it the first rocket supporting the NSSL program from that location.

“Neutron is a powerful new launch option that will set a new standard for performance, affordability, and reliability in medium launch, and its selection to the program demonstrates a high degree of confidence by the Department of Defense in Neutron’s capabilities ahead of its first launch later this year,” said Rocket Lab Founder and CEO Peter Beck.

Rocket Lab is among five launch providers selected to participate, with at least 30 missions expected to be awarded during the contract’s duration, potentially extending through 2034.

As part of the program’s entry phase, Rocket Lab has been granted a $5 million task order to conduct a capabilities assessment to demonstrate mission assurance.

Price Action: RKLB shares traded higher by 9.34% at $20.14 in premarket at last check Friday.

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