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Can Rocket Lab's SDN Contracts Boost Growth Opportunities?
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Key Takeaways
RKLB secures two SDN-B orders to support secure optical communications for military operations.
RKLB will demonstrate satellite-to-ground interoperability using its Photon spacecraft in orbit.
RKLB's SDN-B work spans satellite development, communications technologies and mission operations.
Rocket Lab Corporation (RKLB - Free Report) is expanding its role in military space communications after being selected for the U.S. Space Force’s Space Data Network (“SDN”) Consortium. In August 2026, the company announced two delivery orders worth a combined $12 million to support the Space Data Network Backbone (“SDN-B”), which is being developed as a secure, high-speed satellite communication network for military operations.
The contracts will support the design, testing and demonstration of secure optical communications in space, including interoperability between satellites and ground systems. Rocket Lab will use a company-built Photon spacecraft equipped with optical and network capabilities for an in-orbit demonstration, with an operational demonstration expected in 2027.
The SDN-B work gives Rocket Lab an opportunity to participate in a broader defense communications architecture rather than focusing solely on individual spacecraft or launch missions. The company’s involvement spans satellite development, communications technologies and mission operations, providing a foundation for supporting the different elements required for space-based connectivity.
The initial $12 million award is relatively small, but the strategic opportunity could be more important if Rocket Lab successfully demonstrates the required technology and interoperability. Successful execution could help the company pursue additional work tied to military satellite communications as the U.S. Space Force continues developing resilient and secure networks for global operations.
Companies Advancing Satellite Communications
The growing need for secure and resilient satellite communications is creating opportunities for companies developing connectivity infrastructure for government and commercial users. Viasat Inc. (VSAT - Free Report) and Iridium Communications Inc. (IRDM - Free Report) are also active in the satellite communication market.
Viasat provides satellite communications and connectivity solutions for government and commercial customers, with capabilities spanning satellite networks and secure communications.
Iridium Communications operates a global satellite communication network, providing voice and data services to government, commercial and other specialized users.
Earnings Estimates for RKLB Stock
The Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 81.48% and 240%, respectively.
Image Source: Zacks Investment Research
RKLB Stock Is Trading at a Premium
Rocket Lab is trading at a premium relative to the industry, with a forward 12-month price-to-sales of 32.05X compared with the industry average of 7.55X.
Image Source: Zacks Investment Research
RKLB Stock Price Performance
Over the past year, RKLB shares have rallied 34.6% against the industry’s 0.1% decline.
View the Zacks #1 Rank List
Image: Bigstock
Can Rocket Lab's SDN Contracts Boost Growth Opportunities?
Key Takeaways
Rocket Lab Corporation (RKLB - Free Report) is expanding its role in military space communications after being selected for the U.S. Space Force’s Space Data Network (“SDN”) Consortium. In August 2026, the company announced two delivery orders worth a combined $12 million to support the Space Data Network Backbone (“SDN-B”), which is being developed as a secure, high-speed satellite communication network for military operations.
The contracts will support the design, testing and demonstration of secure optical communications in space, including interoperability between satellites and ground systems. Rocket Lab will use a company-built Photon spacecraft equipped with optical and network capabilities for an in-orbit demonstration, with an operational demonstration expected in 2027.
The SDN-B work gives Rocket Lab an opportunity to participate in a broader defense communications architecture rather than focusing solely on individual spacecraft or launch missions. The company’s involvement spans satellite development, communications technologies and mission operations, providing a foundation for supporting the different elements required for space-based connectivity.
The initial $12 million award is relatively small, but the strategic opportunity could be more important if Rocket Lab successfully demonstrates the required technology and interoperability. Successful execution could help the company pursue additional work tied to military satellite communications as the U.S. Space Force continues developing resilient and secure networks for global operations.
Companies Advancing Satellite Communications
The growing need for secure and resilient satellite communications is creating opportunities for companies developing connectivity infrastructure for government and commercial users. Viasat Inc. (VSAT - Free Report) and Iridium Communications Inc. (IRDM - Free Report) are also active in the satellite communication market.
Viasat provides satellite communications and connectivity solutions for government and commercial customers, with capabilities spanning satellite networks and secure communications.
Iridium Communications operates a global satellite communication network, providing voice and data services to government, commercial and other specialized users.
Earnings Estimates for RKLB Stock
The Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 81.48% and 240%, respectively.
Image Source: Zacks Investment Research
RKLB Stock Is Trading at a Premium
Rocket Lab is trading at a premium relative to the industry, with a forward 12-month price-to-sales of 32.05X compared with the industry average of 7.55X.
Image Source: Zacks Investment Research
RKLB Stock Price Performance
Over the past year, RKLB shares have rallied 34.6% against the industry’s 0.1% decline.
Image Source: Zacks Investment Research
RKLB’s Zacks Rank
Rocket Lab currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.