Rocket Lab Shares Fall as Neutron Launch Delays to 2027 Despite Backlog Growth and New Contract
Rocket Lab Corporation (RKLB) announced that the first flight of its heavy-lift Neutron rocket has been postponed to 2027. The launch delay comes alongside financial results showing that while second-quarter backlog surged 137% year-over-year to $2.36 billion and August revenue reached $234 million, gross margins fell short of expectations and the company remained unprofitable. Third-quarter revenue guidance was set between $250 million and $265 million. In response, shares fell 6.64% to $55.25.
The timeline shift for Neutron offsets significant commercial and defense momentum, including a newly awarded $266 million fixed-price contract from the U.S. Space Force. That agreement covers 12 suborbital missions through December 31, 2028, out of the Pacific Spaceport Complex Alaska, with options for six additional launches. However, pushing back Neutron lowers near-term growth expectations, prompting several Wall Street research firms to trim price targets while keeping buy-equivalent ratings.
Investors will be watching for operational execution on upcoming suborbital launches and milestones leading up to Neutron's debut. Current forecasts anticipate a second-quarter 2027 debut flight for the rocket, followed by its first commercial revenue launch in the fourth quarter of 2027.
Key points
- Rocket Lab postponed the first flight of its Neutron rocket to 2027, pushing back anticipated near-term revenue.
- Second-quarter backlog expanded 137% year-over-year to $2.36 billion, though gross margins missed market expectations.
- The company secured a $266 million U.S. Space Force contract for up to 18 suborbital launches through 2028.
- Several analysts lowered price targets to reflect the delayed launch schedule while keeping positive ratings.
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Why did Rocket Lab stock drop?
Rocket Lab shares fell after the company delayed the initial flight of its Neutron rocket to 2027 and reported gross margins below expectations, despite growing its backlog to $2.36 billion.
What is Rocket Lab's new contract with the U.S. Space Force?
Rocket Lab won a $266 million fixed-price contract from the U.S. Space Force for 12 suborbital launches through late 2028 from Alaska, with options for six additional launches.
When will Rocket Lab launch its Neutron rocket?
Rocket Lab expects Neutron's first flight in 2027, with analysts forecasting a second-quarter debut and the first revenue-generating launch in the fourth quarter of 2027.