Rocket Lab USA, Inc. announced a new $816 million prime contract with the U.S. Space Development Agency (SDA) to design and manufacture 18 missile‑warning, tracking, and defense satellites for the Tracking Layer Tranche 3 program. The award is the company’s largest single contract to date and, when combined with its existing $515 million SDA contract for the Transport Layer‑Beta Tranche 2 program, brings total SDA commitments to more than $1.3 billion.
The contract will integrate Rocket Lab’s Phoenix infrared sensor payload and StarLite space‑protection sensors into the satellites, leveraging the company’s vertically integrated manufacturing capabilities. By producing key subsystems in‑house, Rocket Lab can control cost, schedule, and quality, giving it a competitive edge in the tightly‑controlled defense procurement environment.
Strategically, the win marks a decisive step in Rocket Lab’s transition from a launch‑service provider to a full‑stack space platform. The Tracking Layer constellation is a core component of the U.S. Space Force’s Proliferated Warfighter Space Architecture, and the contract expands Rocket Lab’s footprint in the national‑security market, a segment that now accounts for a growing share of the company’s backlog and revenue. The $816 million award is expected to add significant recurring revenue and to accelerate the company’s path toward higher‑margin, high‑volume satellite production.
Peter Beck, Rocket Lab’s founder and CEO, said the company is “honored to play a role in enabling this” and added that the Tranche 3 constellation “is part of the U.S. Space Force’s strategy to counter rapidly evolving global threats.” He emphasized that demand for resilient, scalable, and affordable space systems continues to grow, positioning Rocket Lab to lead the charge in delivering solutions that meet national‑security needs.
Following the announcement, investors reacted strongly, with the company’s stock rising 16‑17.7 % in after‑hours trading and on the following day. The market response reflected confidence that the contract will materially strengthen Rocket Lab’s backlog, boost future earnings, and validate its strategy of becoming a prime contractor in the defense space sector.
The contract places Rocket Lab alongside established defense giants such as Lockheed Martin, Northrop Grumman, and L3Harris in the Tracking Layer program, underscoring its growing influence. Combined with ongoing development of its Neutron launch vehicle, the win positions Rocket Lab for continued growth in both launch services and space‑systems markets, reinforcing its ambition to become an end‑to‑end space company.
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