Rocket Lab is once again signaling to investors that it is evolving beyond being “just” a rocket company. The company’s second-quarter results, released Thursday, show that its revenues continue to be primarily driven by its space systems business rather than launches.
In the second quarter, Rocket Lab’s space systems generated $97.9 million of the total $144.5 million in revenue, marking the highest quarterly revenue in company history and a 36% increase year-over-year. Despite the revenue growth, the company’s net loss widened to $66.4 million.
Founder and CEO Peter Beck highlighted a “busy quarter of M&A activity” as Rocket Lab nears completion of its acquisition of Geost, a company specializing in optical payloads. This deal, valued at $275 million in cash and equity, will enable Rocket Lab to launch a new business unit called Optical Systems focused on scaling production of electro-optical and infrared sensors.
These sensors have critical applications in missile warning, tracking, and space domain awareness. The acquisition is part of Rocket Lab’s broader strategy, clearly outlined in its earnings presentation, to compete for multibillion-dollar Department of Defense (DOD) initiatives such as the Golden Dome program.
Rocket Lab has already secured major defense contracts, including a $515 million deal to build 18 satellites for the Space Development Agency’s missile-tracking constellation. The company is now manufacturing these satellites after confirming they meet DOD mission requirements.
On the launch front, Rocket Lab is making solid progress toward the debut flight of its larger Neutron rocket. The launch facility in Virginia is expected to be completed in the third quarter, with hardware deliveries underway and intensive daily testing of the new Archimedes rocket engine ongoing.
Source: Alamalhodaei, A. Rocket Lab eyes big defense opportunities with new acquisition. TechCrunch.
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