Rocket Lab Lands $816M Defense Deal, Backlog Rises 56% Despite Neutron Delay
Rocket Lab generated $554M in annual revenue and won an $816M U.S. defense contract, boosting its launch backlog by 56% year-over-year. A Neutron rocket’s Stage 1 tank ruptured during pressure testing, delaying its debut to H1 2026 and causing shares to drop over 4%.
1. Revenue and Contract Award
Rocket Lab reported $554 million in annual revenue and secured an $816 million contract from the U.S. Space Development Agency for 18 satellites, expected to contribute about $200 million in annual revenue over four years.
2. Neutron Tank Rupture Causes Delay
During hydrostatic pressure testing on January 21, a Stage 1 tank on the Neutron medium-lift rocket ruptured, pushing its first flight into the first half of 2026 and triggering a more than 4% share decline.
3. Backlog Expansion
The company’s launch services backlog reached $1 billion, marking a 56% year-over-year increase driven by Electron mission cadence and the new defense award.
4. Financial Performance and Guidance
In Q3 2025, revenue rose 48% year-over-year to $155 million with 37% gross margins, and management guided Q4 revenue between $170 million and $180 million, underscoring sustained operational strength.