Boeing-Backed ULA Vulcan Grounded, Space Force Switches to SpaceX Falcon 9
United Launch Alliance’s Vulcan rocket was grounded after a February engine anomaly, prompting the U.S. Space Force to switch to SpaceX’s Falcon 9, potentially diverting billions in defense launch revenue from Boeing’s ULA venture. SpaceX gears up for a summer 2026 IPO while Blue Origin’s New Glenn faces mission failures.
1. Vulcan Rocket Engine Anomaly
In February, an engine anomaly grounded ULA’s new Vulcan rocket during prelaunch checks, halting its first scheduled missions. The investigation into the propulsion issue remains ongoing as ULA works to restore confidence in its launch reliability.
2. Space Force Contract Shift
Faced with delays, the U.S. Space Force reallocated upcoming national security launches to SpaceX’s Falcon 9, ensuring mission timelines remain intact. This decision underscores growing Pentagon reliance on proven Falcon 9 capabilities.
3. Implications for Boeing
As a co-owner of ULA, Boeing stands to lose a significant share of launch service revenue tied to defense contracts. Continued Vulcan setbacks could pressure Boeing’s defense segment forecasts and drive further market share gains by SpaceX.
4. Launch Market Competitors
SpaceX is advancing toward a high-profile summer 2026 IPO, buoyed by Falcon 9’s operational pedigree. Meanwhile, Blue Origin’s New Glenn remains unproven after recent mission failures, leaving ULA as the only other major alternative for government payloads.