Rocket Lab reveals some big plans, but its stock is dropping on mixed earnings

By William Gavin

The company is looking to expand its reach in Europe and building up its backlog

Rocket Lab is expanding to try and carve out a spot in Europe's rocket-launch and space-services market.

Rocket Lab posted a "record" backlog and detailed new expansion plans, but shares of the rocket-launch company fell in Monday's after-hours trading.

One of Rocket Lab's (RKLB) expansion efforts involves a newly established German subsidiary that aims to "provide sovereign space capabilities" to Europe, which has been trying to rely less on SpaceX (SPCX). Germany has been a leader on that front, pledging to invest billions of dollars in space companies.

Rocket Lab said in conjunction with its second-quarter earnings report on Monday that the subsidiary builds on its recent acquisition of laser optical-communications provider Mynaric, which is based in Munich. Rocket Lab also plans to buy Iridium Communications (IRDM) to bolster its space-systems business, in a deal that was announced in June.

"The demand for sovereign space capability has never been more urgent," Rocket Lab CEO Peter Beck said in a statement. "Europe faces glaring gaps across both launch and spacecraft manufacturing."

Rocket Lab said it now has a deal to operate a mission for Kepler Communications, using its Neutron rocket, which is on schedule to be rolled out to the launch pad next quarter. The deal also adds to what Rocket Lab called its "record" backlog.

It had $2.36 billion in contracts at the end of June, and Beck said Rocket Lab had added more than $1 billion in new deals since then. The $1 billion figure assumes the options on some contracts are fully executed.

Still, the company is not yet profitable and its second-quarter earnings came in mixed. Rocket Lab shares slid more than 7% in after-hours trading, after falling 3% during Monday's regular session.

The aerospace company posted sales of $234 million, a 62% jump relative to a year earlier, and slightly above expectations.

Rocket Lab posted a per-share loss of 8 cents, a steeper loss than the 6 cents analysts had expected. And while the company guided to year-over-year revenue growth of as much as 83% for the current quarter, the company's forecast for adjusted earnings didn't match up to expectations.

Management projected an adjusted loss before interest, taxes, depreciation and amortization of between $17 million and $23 million, while Wall Street had expected a $10 million loss.

Rocket Lab also gave an update on Neutron, its long-awaited and delayed rocket, which it said was on target to be delivered to the launch pad in the fourth quarter of 2026. During a call with investors, Beck noted that the window for a launch before the year ends is "narrowing" and emphasized Rocket Lab's focus on caution over rushing the rocket's maiden test.

-William Gavin

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08-10-26 2103ET