Back to top

Image: Bigstock

Rocket Lab's Launch Services Soar as Commercial Demand Rises

Read MoreHide Full Article

Key Takeaways

  • RKLB secured a major contract with iQPS for eight Electron launches through 2026.
  • The June 10 mission marks RKLB's third Electron launch in just 24 days.
  • RKLB is developing the Neutron rocket to target larger payloads and constellation deployments.

Space company, Rocket Lab USA, Inc. (RKLB - Free Report) , recently emerged as a leading player in the launch and space systems market, supplying a wide range of space systems including satellites, spacecraft platforms, as well as critical components like solar panels and radios. In particular, the company has strengthened its position in the space launch market by offering small satellite launch services through its Electron rocket, which is currently the second most frequently launched U.S. rocket.

The soaring demand that Rocket Lab is witnessing lately for its services can be evidenced by multiple facts, like the contract that it secured in February 2025, from Japan-based Earth imaging company iQPS, marking one of its largest Electron launch agreements to date. This deal encompassed eight dedicated Electron launches, with six missions scheduled for 2025 and two in 2026. Moreover, its upcoming mission on June 10, 2025, will be the third Electron launch in just 24 days, further highlighting RKLB’s increasing launch capacity and trusted performance in the commercial space sector.

Apart from Electron, Rocket Lab is currently developing the Neutron rocket, designed for larger payloads and constellation deployments, which should further bolster its position in the market and fetch solid revenues.

Peers Maintain Strong Market Presence

In the modern era of space exploration, factors like rapid technological advancements, the growing demand for satellite deployment, increasing commercial space activities and rising investments in space infrastructure are fueling the growth of the space launch services market.

Therefore, other industry players like Boeing (BA - Free Report) and Lockheed Martin (LMT - Free Report) , which already enjoy an established footprint in the space launch market, stand to gain from its growth prospects. The United Launch Alliance (ULA), a joint venture (JV) between Boeing and Lockheed, has been a major U.S. launch provider. The JV has successfully launched more than 150 Atlas and Delta rockets since 2006.

ULA’s new Vulcan rocket, evolved from Atlas V and Delta IV, aims to deliver more affordable and accessible space launches for a wide range of missions.

RKLB’s Price Performance, Valuation and Estimates

Shares of RKLB have gained 495.8% in the past year compared with the industry’s 20.8% growth.

Zacks Investment Research
Image Source: Zacks Investment Research

The company shares are expensive on a relative basis, with its forward 12-month Price/Sales being 17.19X compared with its industry’s average of 9.45X.

Zacks Investment Research
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for RKLB’s 2025 and 2026 loss has improved over the past 60 days.

Zacks Investment Research
Image Source: Zacks Investment Research

RKLB stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


The Boeing Company (BA) - free report >>

Lockheed Martin Corporation (LMT) - free report >>

Rocket Lab Corporation (RKLB) - free report >>

Published in