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1. Company Snapshot

1.a. Company Description

Rocket Lab USA, Inc., a space company, provides launch services and space systems solutions for the space and defense industries.The company provides launch services, spacecraft engineering and design services, spacecraft components, spacecraft manufacturing, and other spacecraft and on-orbit management solutions; and constellation management services, as well as designs and manufactures small and medium-class rockets.It also designs, manufactures, and sells Electron small orbital launch vehicles and the Photon satellite platforms, as well as developing the Neutron 8-ton payload class launch vehicle; conducts remote launch activities; and designs and manufactures a range of components and subsystems for the Photon family of spacecraft and broader merchant spacecraft components.


The company serves commercial, aerospace prime contractors, and government customers.The company was founded in 2006 and is headquartered in Long Beach, California.

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1.b. Last Insights on RKLB

Breaking News: Rocket Lab USA Inc has reported a record revenue of $155 million in Q3 with 48% year-over-year growth. The company has added 17 new Electron launch contracts to its backlog. With reliable Electron launches and rising global demand, Rocket Lab is well-positioned for growth. The company's expanding defense programs, including back-to-back HASTE missions and the Geost acquisition, are expected to broaden its national security market exposure. Some analysts predict a surge in the stock in 2026. A buy recommendation is given by some analysts.

1.c. Company Highlights

2. Rocket Lab's Q3 Earnings: Strong Revenue Growth and Improving Margins

Rocket Lab USA, Inc. reported a record-breaking third quarter with revenue reaching $155 million, representing a 48% year-over-year growth. The revenue increase was driven by significant contributions from both the Space Systems and Launch Services segments. GAAP gross margin for the quarter was 37%, at the high end of the prior guidance range, while non-GAAP gross margin was 41.9%, above the prior guidance range. The company's EPS came in at $0.01, beating estimates of -$0.05. Analysts estimate next year's revenue growth at 51.4%.

Publication Date: Nov -13

📋 Highlights
  • Revenue Surge & Margin Growth:: Q3 revenue hit $155M (+48% YoY), with full-year guidance at $600M (1600% increase since 2020), and GAAP gross margin improved to 37% (vs. -34% in 2020).
  • Electron Launch Momentum:: 17 launches in 2025 (surpassing 2024’s record), 49 launches on contract, and 17 dedicated launches booked in 3 months (94% international).
  • Neutron Development Progress:: Launch Complex 3 opened in August, aiming for Q1 2026 first launch, with $360M spent by 2025 and $23–29M Q4 adjusted EBITDA loss expected.
  • Backlog Strength:: Total backlog $1.1B (57% to convert in 12 months), split 47% launch services and 53% space systems (up 16.7% sequentially).
  • Strategic Financial Position:: $1B liquidity for M&A, $122–128M Q4 GAAP operating expenses, and $3.5M net income driven by $192M convertible note conversion.

Segment Performance

The Space Systems segment delivered $114.2 million in revenue, reflecting a sequential increase of 16.7%, while the Launch Services segment generated $40.9 million in revenue, representing a 12.3% quarter-over-quarter decline. The growth in Space Systems was a significant contributor to the overall revenue increase.

Margin Expansion

The sequential improvement in gross margins was primarily driven by a one-time benefit from the transition to overtime revenue recognition for certain divisions. According to Adam Spice, the gross margin trend is driven by a mix where scale in the Electron business leads to better overhead absorption. The company expects further improvement in both GAAP and non-GAAP gross margins in the fourth quarter.

Valuation Metrics

With a P/S Ratio of 46.23 and an EV/EBITDA of -125.08, the market is pricing in significant growth expectations for Rocket Lab. The company's ROE is -40.21%, and ROIC is -14.91%, indicating that the company is still in a growth phase and not yet profitable on a GAAP basis. However, the revenue growth and improving margins suggest that the company is on the right track.

Outlook

The company expects revenue in the fourth quarter to range between $171 and $180 million, representing 12.8% quarter-over-quarter revenue growth at the midpoint. The guidance suggests that the company will continue to grow its revenue and improve its margins. With a strong backlog of $1.1 billion, the company is well-positioned for future growth.

3. NewsRoom

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Space Stock Tracker: Rocket Lab, AST Fly Again

Dec -04

Source: benzinga.com

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Prediction: Rocket Lab Stock Could Surge in 2026

Dec -04

Source: fool.com

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The Rocket Lab Paradox

Dec -04

Source: seekingalpha.com

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First Look: Insurers, Auto Rules, AI and Fed Jitters

Dec -04

Source: gurufocus.com

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Rocket Lab: This Could Be One Of The Biggest Moats In A Decade

Dec -03

Source: seekingalpha.com

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First Look: Airbus trims targets, AWS AI, AEO hikes outlook

Dec -03

Source: gurufocus.com

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RKLB vs. LUNR: Which Space Player Shows Bigger Potential in 2025?

Nov -27

Source: zacks.com

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Rocket Lab Stock Continues Its Ascent After Hours: Here's Why

Nov -24

Source: feeds.benzinga.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.58%)

6. Segments

Space Systems

Expected Growth: 11.4%

Rocket Lab's 11.4% growth in Space Systems is driven by increasing demand for satellite constellations, expansion in commercial launch services, and growing government contracts. Additionally, the company's vertically integrated business model, innovative Electron rocket, and cost-effective launch solutions contribute to its rapid growth.

Launch Services

Expected Growth: 12.02%

Rocket Lab's 12.02% growth in Launch Services is driven by increasing demand for small satellite launches, expansion into new markets, and strategic partnerships. The company's Electron rocket's reliability and cost-effectiveness have attracted a diverse customer base, including government agencies and commercial operators. Additionally, Rocket Lab's vertical integration and production efficiencies have enabled it to scale rapidly and capitalize on the growing smallsat market.

7. Detailed Products

Electron Launch Vehicle

A lightweight, cost-effective launch vehicle designed to carry small payloads to low Earth orbit.

Photon Satellite Bus

A versatile, high-performance satellite platform designed for a wide range of mission requirements.

Curie Engine

A high-performance, liquid-fueled rocket engine designed for the Electron launch vehicle.

Rutherford Engine

A high-performance, electric pump-fed rocket engine designed for the Electron launch vehicle.

Launch Services

A comprehensive launch service offering, including launch vehicle design, manufacturing, and launch operations.

Space Systems

A range of space-based systems and components, including satellite buses, payloads, and subsystems.

8. Rocket Lab USA, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Rocket Lab USA, Inc. faces moderate threat from substitutes due to the presence of established players in the launch services market. However, the company's focus on small satellite launches and its innovative Electron rocket provide a competitive edge.

Bargaining Power Of Customers

Rocket Lab USA, Inc. has a diverse customer base, including government agencies, commercial companies, and startups. The company's customers have limited bargaining power due to the specialized nature of launch services.

Bargaining Power Of Suppliers

Rocket Lab USA, Inc. relies on a network of suppliers for components and materials. While the company has some bargaining power due to its growing scale, suppliers still have some leverage due to the specialized nature of the components.

Threat Of New Entrants

The launch services market is highly competitive, and new entrants are emerging with innovative technologies. Rocket Lab USA, Inc. faces a high threat from new entrants, which could potentially disrupt the market.

Intensity Of Rivalry

The launch services market is highly competitive, with established players like SpaceX, Arianespace, and Blue Origin. Rocket Lab USA, Inc. faces intense rivalry from these players, which could impact its market share and pricing power.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 15.96%
Debt Cost 3.95%
Equity Weight 84.04%
Equity Cost 9.86%
WACC 8.91%
Leverage 19.00%

11. Quality Control: Rocket Lab USA, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Spirit AeroSystems

A-Score: 5.1/10

Value: 9.6

Growth: 1.1

Quality: 5.2

Yield: 0.0

Momentum: 7.5

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Leonardo DRS

A-Score: 4.6/10

Value: 2.0

Growth: 3.7

Quality: 6.2

Yield: 1.0

Momentum: 9.5

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
AeroVironment

A-Score: 4.5/10

Value: 4.4

Growth: 6.2

Quality: 4.7

Yield: 0.0

Momentum: 9.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Rocket Lab USA

A-Score: 4.3/10

Value: 6.0

Growth: 4.6

Quality: 3.8

Yield: 0.0

Momentum: 10.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Kratos Defense

A-Score: 4.2/10

Value: 2.2

Growth: 5.2

Quality: 4.3

Yield: 0.0

Momentum: 10.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Hexcel

A-Score: 4.1/10

Value: 1.5

Growth: 4.3

Quality: 4.3

Yield: 1.0

Momentum: 6.0

Volatility: 7.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

49.05$

Current Price

49.05$

Potential

-0.00%

Expected Cash-Flows