Shares of end-to-end space company Rocket Lab USA Inc (NASDAQ:RKLB) are moving higher Tuesday after the company announced its inclusion in two separate multi-billion dollar defense contracts.
What To Know: Rocket Lab was selected to support hypersonic test launches using its Hypersonic Accelerator Suborbital Test Electron (HASTE) vehicle as part of two major government defense initiatives in the United States and the United Kingdom.
The U.S. Air Force selected Rocket Lab to participate in its $46 billion Enterprise-Wide Agile Acquisition contract, focused on the rapid procurement of innovative technologies, engineering services and technical solutions. The contract period runs through 2031.
Additionally, the U.K.’s Ministry of Defence selected Rocket Lab under a $1.3 billion framework aimed at accelerating the development of advanced hypersonic capabilities.
Now that Rocket Lab has been onramped to the defense contracts, the company said it intends to bid for contracts and task orders served by its HASTE launch vehicle, as well as other engineering, design and launch services.
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“The ability to contribute toward the collective security of the United States and the United Kingdom across both of these important programs is a proud moment for the HASTE team, and a demonstration of Rocket Lab’s commitment to lead from the front when it comes to innovative and unique solutions for hypersonic technology development,” said Peter Beck, founder and CEO of Rocket Lab.
Rocket Lab is scheduled to report first-quarter financial results after the market close on May 8. The company is expected to report a loss of 12 cents per share and revenue of $121.49 million, according to Benzinga Pro estimates.
RKLB Price Action: Rocket Lab shares are down about 21% year-to-date. The stock was up 13.4% at $21.69 at the time of publication Tuesday, according to Benzinga Pro.
Photo: courtesy of Rocket Lab.
