Rocket Lab eyes big defense opportunities with new acquisition

Rocket Lab signals investors, however again, that it is more than a “only” rocket.

Rocket Lab’s second-quarter results, which were posted on Thursday, show revenue are still being pushed forward by its trading system business instead of launch. The results also emphasized the company’s acquisition strategy and how its purchase of a new optical load company will make it more competitive for lucrative government contracts.

The company’s space systems brought $ 97.9 million from the $ 144.5 million in total revenue for the second quarter. The total income of Rocket Labs, its highest quarterly income in the company’s history, jumped 36% from a year ago. The company’s net loss widened to $ 66.4 million.

Peter Beck, founder and general manager of Rocket Lab, highlighted the “busy quarter of M&A action”, as the company is approaching closing its deal to buy Geost, a company that builds optical loads. With that acquisition, which will close at $ 275 million in money and equality, Rocket Lab opens a new business unit called optical systems to scale electro-optical and infrared sensor.

These sensors are used in missile warning, tracking and space domain consciousness. The acquisition is also one part of a larger play by Rocket Lab-spoken quite explicit Dod initiatives like a gold dome.

Rocket Lab has already won some major defense contracts, including $ 515 million, a 18-satellite building contract to support the constellation of the Space Development Agency for Missile Track Satellites. The company relocated into production on these satellites, after confirmation that they meet Dod’s mission requirements, Rocket Lab said.

Below on the ground, Rocket Lab says it progresses well to the first launch of its larger neutron rocket. The rocket’s launch complex in Virginia is expected to be complete in this year’s third quarter, with HArdware and Route and the new rocket engine, called Archimedes, experiencing multiple tests daily.

The company remains vague about the right launch date, saying only in the presentation that it pushes a “all-out effort for a neutron to the launch pad by the end of 2025.”

Rocket Lab finished the quarter with $ 564 million in cash and cash and estimates revenue will hit between $ 145 to $ 155 million the next quarter.