Rocket Lab Secures Landmark $816 Million SDA Contract for 18 Missile-Tracking Satellites, Driving Stock Surge

Rocket Lab Wins Largest Contract to Date from U.S. Space Development Agency

Rocket Lab USA, Inc. (RKLB) announced a landmark prime contract award from the U.S. Space Development Agency (SDA) valued at up to $816 million. The contract mandates the design and manufacture of 18 satellites for the Tracking Layer Tranche 3 (TRKT3) program, a critical component of the Proliferated Warfighter Space Architecture (PWSA). This award, which is Rocket Lab’s largest single contract to date, immediately drove the company's stock price higher, with shares surging 17.69% on Friday to close at $70.52 apiece, setting a new 52-week high.

The contract solidifies Rocket Lab's growing reputation as a trusted prime contractor in the national security space sector, challenging established legacy aerospace primes. The total value includes an $806 million base contract, $10.45 million in options, and opportunities for the supply of other items.

Details of the TRKT3 Satellite Constellation

The 18 satellites Rocket Lab will produce are equipped with advanced missile warning, tracking, and defense sensors. Their primary mission is to provide global, persistent detection and tracking of emerging missile threats, specifically targeting advanced systems like hypersonic missiles. The TRKT3 program is essential for maintaining U.S. space superiority and enhancing the nation's defense capabilities.

“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,” said Rocket Lab CEO Peter Beck.

The contract highlights the SDA’s strategy of leveraging commercial innovation to rapidly deploy resilient and affordable space systems. Rocket Lab, a leading space company providing launch services, spacecraft, payloads, and satellite components, is now positioned as a disruptive force in satellite production, emphasizing speed and efficiency.

Market Reaction and Competitive Landscape

The news triggered significant positive momentum for RKLB shares, which had already gained 9.5% the previous day following the successful, ahead-of-schedule launch of a mission for the U.S. Space Force. The stock's cumulative gains reflect strong investor confidence in the company's ability to execute large-scale government contracts and its expanding role beyond launch services into high-value space systems manufacturing.

Rocket Lab is one of several companies selected by the SDA for the TRKT3 program, indicating a multi-source procurement strategy designed to accelerate deployment and foster competition. Other major defense contractors also secured significant awards:

• Lockheed Martin Corporation (LMT) secured a contract worth over $1 billion for 18 tracking satellites.
• L3Harris Technologies was awarded an $843 million contract for its share of the Tracking Layer satellites.

This competitive environment underscores the massive investment flowing into the PWSA, which aims to create a robust, interconnected network of satellites for military communication and missile defense. Rocket Lab's success in securing a prime contract of this magnitude—competing directly with industry giants—validates its strategy of vertically integrating launch and space systems capabilities.

Forward Outlook and Strategic Positioning

The $816 million contract provides substantial revenue visibility for Rocket Lab and reinforces its strategic pivot toward becoming a comprehensive space systems provider. The company's ability to deliver complex, national security-grade satellites at scale is redefining its market position. The contract is expected to drive further growth in the company's Space Systems segment, which includes satellite manufacturing and components.

The ongoing demand for resilient, scalable, and affordable space systems, particularly from government agencies like the SDA, suggests a sustained growth trajectory for companies like Rocket Lab that can rapidly iterate and deploy advanced technology. The company's stock is up 182% since the beginning of the year, demonstrating the market's positive reassessment of its long-term potential in the burgeoning national security space sector.