"Rocket Lab's operational track record remains flawless. The company launched its 80th and 81st Electron missions in January, demonstrating reliability that wins contracts. That momentum translated into an $816 million contract from the U.S. Space Development Agency for 18 satellites, expected to add $200 million in annual revenue over four years. The company's $1 billion backlog grew 56% year over year in launch services alone."
"The problem? Neutron. On January 21, Rocket Lab revealed that its Neutron rocket's Stage 1 tank ruptured during hydrostatic pressure testing. Neutron represents the company's bid to compete in SpaceX's medium-lift market, and the failure has pushed back the rocket's debut to the first half of 2026. Shares dropped more than 4% in after-hours trading and continued to slide as investors reassessed the timeline."
"On the plus side, Rocket Lab has something AST doesn't: a proven revenue engine. Electron's launch cadence and the defense backlog provide visibility into near-term cash flows. The Neutron setback stings, but it doesn't undermine the core business. Rocket Lab generates $554 million in annual revenue with a 31.7% gross margin. This is very much a foundation that can be built on well into the future."
Both Rocket Lab and AST SpaceMobile shares fell roughly 26–27% over the past month for different reasons. Rocket Lab launched its 80th and 81st Electron missions. Rocket Lab secured an $816 million U.S. Space Development Agency contract for 18 satellites, expected to add about $200 million annually, and its $1 billion launch-services backlog grew 56% year over year. On January 21, Neutron's Stage 1 tank ruptured during hydrostatic pressure testing, delaying the rocket's debut to the first half of 2026 and triggering share declines. Q3 2025 revenue was $155 million, up 48% year over year, with 37% gross margin, and Q4 guidance was $170–$180 million. AST SpaceMobile continues burning cash.
Read at 24/7 Wall St.
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