Rocket Lab flags weaker quarterly margins as lower-profit satellite sales increase

Rocket Lab's space-systems division, which makes satellite components, spacecraft, separation systems, solar cells and other mission hardware, is its largest revenue contributor.

The unit helped drive a 62% jump in second-quarter revenue to a record $234 million, topping the estimate of $231.4 million.

The company forecast third-quarter revenue of $250 million to $265 million, above Wall Street estimate of $238.5 million. It said it expects strong growth in both its launch and space-systems businesses, supported by a record $2.36 billion backlog at the end of June.

Rocket Lab is pushing ahead with Neutron, its reusable medium-lift rocket designed to compete for commercial satellite-constellation missions, civil-space programs and U.S. national-security launches. The company is targeting Neutron's first flight in the fourth quarter of 2026.

It has continued spending heavily to develop the rocket, build launch infrastructure and prepare for production, while integrating recent acquisitions, including laser-communications company Mynaric.

In June, Rocket Lab also announced plans to acquire satellite communications company Iridium in an $8 billion deal that would give it a recurring-services business.