Rocket Lab (RKLB) Stock Soars After Landing $816M Defense Contract and Completing 21st Launch of 2025

Rocket Lab just secured a government check that makes most startup funding rounds look like pocket change.

The $816 million defense contract lands as the company completes its 21st launch this year—a cadence that's starting to look more like a routine bus service than a cutting-edge space program. Wall Street analysts are scrambling to update their models, though some quietly wonder if the real 'moonshot' here is the valuation.

For a sector built on explosive growth, the defense sector provides a different kind of fuel: long-term, taxpayer-backed certainty. It's the kind of deal that turns speculative tech plays into entrenched government contractors almost overnight.

The launch milestone itself is becoming less of a headline and more of a quarterly report line item. Twenty-one missions in a single year signals a shift from experimental to operational—a critical inflection point for any company promising access to space as a service.

Investors chasing the next big space disruptor might find themselves owning a classic defense stock with better branding. The real trajectory now depends less on rocket science and more on contract renewals—a pivot so many tech darlings make once the venture capital runs dry and the government's deep pockets open up.

TLDR

• Rocket Lab secured an $816 million contract from the U.S. Space Development Agency to build 18 satellites for missile defense tracking
• The company successfully launched its 21st Electron rocket of 2025, deploying a satellite for Japan-based Earth-imaging company iQPS
• Total SDA contract value now exceeds $1.3 billion when combined with a previous $515 million award
• Stifel analyst raised price target to $85 from $75 following the contract announcement
• RKLB stock jumped 5% in pre-market trading and is up 177% year-to-date

Rocket Lab scored its largest contract win to date on December 22, securing $816 million from the U.S. Space Development Agency. The deal sent shares climbing 5% in pre-market trading.

Rocket Lab USA, Inc., RKLB

The contract calls for Rocket Lab to design and manufacture 18 satellites. These satellites will carry advanced missile warning, tracking, and defense sensors for the agency’s Tracking LAYER Tranche 3 program.

The satellites will be part of the Proliferated Warfighter Space Architecture. They’ll detect and track emerging missile threats for national security purposes.

Rocket Lab won the largest contract in the history of the U.S. Space Development Agency of $816 million to design and manufacture 18 satellites for the third batch of the Golden Dome Tracking Layer (TRKT3), equipped with advanced sensors to detect hypersonic and other spacecraft.… pic.twitter.com/CQIGXNN3BT

— The FinanceX (@thefinancexnews) December 19, 2025

The contract includes a $806 million base agreement. An additional $10.45 million in options could push the total higher.

This deal comes on top of an existing $515 million award from SDA. That earlier contract covers 18 satellites for the Transport Layer-Beta Tranche 2 program, which provides secure communications across the defense architecture.

Combined, Rocket Lab’s total SDA contract value now tops $1.3 billion. The company emphasized this demonstrates its ability to handle large-scale national security projects.

Launch Activity Continues at Rapid Pace

One day before the contract announcement, Rocket Lab completed its 21st Electron launch of 2025. The mission deployed another satellite for Q-shu Pioneers of Space, Inc., a Japanese Earth-imaging company.

Rocket Lab first worked with iQPS in 2023. The company has now delivered seven satellites to the iQPS constellation.

Electron has become the primary launch vehicle for the Earth-imaging firm. Five more launches for iQPS are scheduled starting in 2026.

Analyst Response and Stock Performance

Stifel analyst Erik Rasmussen bumped his price target for RKLB from $75 to $85. He maintained a Buy rating on the shares.

Rasmussen called it “another meaningful win” for the company. He noted this represents Rocket Lab’s largest single contract.

The stock has rallied 177% year-to-date before the latest surge. Shares gained momentum throughout 2025 as the company secured contracts and executed launches.

The average analyst price target sits at $66. That figure suggests potential downside from current levels following the stock’s strong run this year.

Next Milestone on the Horizon

Investors are watching for the debut of Rocket Lab’s Neutron rocket. The reusable launch vehicle is expected to make its first flight in early 2026.

The company’s market cap reached $37.67 billion. Average daily trading volume stands at 22.7 million shares.

Rocket Lab makes satellites and rockets while providing launch services. The dual business model positions the company across multiple segments of the space industry.

The December 21 Electron launch marked the company’s 21st mission of the year. That launch cadence demonstrates operational capacity and reliability for customers.