In 2025, Rocket Lab more than doubled its orbital launch rate, completing 18 successful missions compared to 8 in 2024, and expanded annual revenue by 62% to approximately $440 million. The increase in launch frequency was driven by the introduction of upgraded Electron vehicles and streamlined integration procedures at the company’s New Zealand and U.S. launch sites. This operational momentum helped reduce per-launch turnaround time from 45 days to under 30 days, contributing to stronger unit economics and improved gross margins, which rose from 27% to 34% year-over-year.

Rocket Lab secured over $1.2 billion in new contracts during 2025, including multi-launch deals with government and commercial customers for national security payloads and satellite constellation deployments. By the end of December, the company’s backlog stood at more than $2.3 billion, representing a 75% increase from the prior year. Notable awards included a $480 million agreement with a major defense agency and a $360 million commercial arrangement to deploy a next-generation Earth-observation constellation, positioning Rocket Lab as a top contender in the small-sat market segment.

In early January 2026, Morgan Stanley upgraded Rocket Lab to Overweight, citing the robust contract pipeline and accelerating launch cadence as key drivers. The firm raised its 12-month target valuation multiple from 10x to 12x projected 2026 revenue, reflecting confidence in continued margin expansion. However, the stock’s forward price-to-sales multiple now exceeds 8x, near the upper quartile of peer valuations, introducing potential downside if execution falters or macroeconomic headwinds intensify. Investors will be watching quarterly revenue growth, margin trends and the timing of new vehicle certifications to gauge whether the rally can sustain its pace through 2026.