Rocket Lab’s stock (NASDAQ:RKLB) moved sharply higher after completing its 70th Electron launch over the weekend, making it the most frequently flown small orbital rocket in history. The mission, titled “Live, Laugh, Launch,” lifted off from Launch Complex 1 in New Zealand on August 23 and came less than three weeks after the company’s previous success from the same pad. The rapid cadence reinforced confidence in Rocket Lab’s ability to execute, a quality that remains rare in the small launch market.
This is a follow-up to my July 1, 2025 Substack article entitled “Rocket Lab: The Musk–Trump Feud Could Steer More Government Contracts Its Way.”
Shares have now risen 74% this year, a performance supported by second-quarter results showing 36 percent revenue growth, improving margins, and stronger cash flow. The near-term catalyst for the stock is operational execution, but investors are also rewarding Rocket Lab’s progress in larger strategic areas—particularly its growth in European space markets, continued development of Neutron, and advancements in its satellite manufacturing business tied to national security.
Expanding Presence in European Launch
Rocket Lab recently announced its selection to fly its first mission for the European Space Agency, supporting deployment of an experimental low Earth orbit navigation system. The company expects to deliver the first two satellites of this constellation late in 2025. Beyond ESA, Rocket Lab also disclosed that another international space agency has contracted Electron for launch services during the quarter.
This expansion into European institutional launch is significant. Europe is investing heavily to reduce dependence on U.S. and Russian launch systems, and Rocket Lab’s track record gives it a clear advantage in securing missions. Its acquisition of Mynaric adds another dimension, as the company can now offer optical communication technologies that strengthen its positioning in Europe’s defense and communications markets.
Neutron’s Progress Toward Debut
The company continues to plan for the first launch of Neutron, its reusable medium-lift rocket, in late 2025. That timeline carries risk given the complexity of engine qualification and the integration of flight hardware, but the opening of Launch Complex 3 this summer and the transport of initial Neutron components to the site mark important progress. The Archimedes engine, which must demonstrate relight and reentry capability, is undergoing multiple hot fire tests each day, including a full-duration firing that cleared a major hurdle.
Investors should recognize that the precise date of Neutron’s debut is less important than the quality of the first flight. Demonstrating orbital insertion combined with controlled reentry would validate the vehicle’s design and establish Rocket Lab as a credible alternative to incumbents in medium-lift launch. That positioning is especially valuable in the U.S. national security market, where demand for launch diversity is growing.
Space Systems Milestones and Defense Opportunities
Rocket Lab also advanced its satellite manufacturing business by completing the design review stage for the Space Development Agency’s Tranche 2 Transport Layer. This milestone moves 18 satellites into full production, creating visibility for near-term revenue recognition. More importantly, success at this stage strengthens Rocket Lab’s ability to win follow-on awards for Tranche 3, which will be decided in the second half of 2025.
These programs form part of the Pentagon’s broader effort to build a proliferated space architecture capable of resilient communication and missile-tracking. As the Golden Dome missile defense concept moves forward, companies with established SDA contracts are positioned to benefit. Rocket Lab is now in the conversation as not only a launch provider but also a systems integrator with recurring defense revenue.
Tables and Analysis
According to Table 1, Rocket Lab’s revenue trajectory reflects a transition from a pure launch provider to a more diversified space contractor.