Rocket Lab CEO Sir Peter Beck shares how Neutron’s progress and why some investors are doubting his company’s ability to execute. Video / Corey Fleming
Space company Rocket Lab is expanding its United States defence efforts, setting up a new holding company to reduce national security risks.
The company that developed and launched rockets in New Zealand and the United States, as well as spacecraft and software systems, made US$123 million revenue in thethree months to the end of March.
The revenue result was softer than its record revenue number last quarter of US$132.4m, but was an increase of 32% compared with the same period last year.
The company launched five of its small-lift Electron rockets in the three-month period and continued to progress its bigger Neutron rocket development.
A dedicated launch site for Neutron in Wallops Island, Virginia would open soon, ahead of its debut launch later this year.
“Neutron is a powerful new launch option that will set a new standard for performance, affordability, and reliability for government and commercial space users in medium launch.” Rocket Lab chief executive Sir Peter Beck said in a press release announcing a new Neutron contract with the US Air Force.
The new Air Force contract was for a “return-to-earth mission”, meaning the reusable rocket would launch and later return to land, the company announced on Friday.
“We also remain confident in our ability to execute and deliver on what’s set to be another strong quarter, with our Q2 2025 revenue guidance in the $130m-$140 million range,” Beck said about the company’s financial position.
“Which would reflect the underlying strength of our increasingly diverse business within the current geopolitical climate, showing the resilience of our vertically integrated end-to-end space company business model.
“We’ve also significantly reshaped Rocket Lab these past few years as we’ve completed multiple acquisitions, announced our intention to expand into Europe, and entered new markets.”
Rocket Lab announced its intention to purchase German laser communications company Mynaric in March for US$75m.
If approved by regulators, the acquisition would give Rocket Lab an immediate presence in Europe for the first time.
“It’s actually a pretty exciting TAM [total addressable market] expansion opportunity for us because it’s typically very, very difficult to get involved in these large European programmes,” Beck said on an earnings call.
When asked by an analyst if the company would launch rockets from Europe, he added: “Mostly space systems, that’s the prominent opportunity for us.”
Rocket Lab CEO Peter Beck in its Auckland mission control room. Photo / Dean Purcell
Beck also told investors it would change the name of its holding company listed on the US Nasdaq exchange, from Rocket Lab USA to Rocket Lab Corporation.
“To better align our legal entities with our business objectives and our US Government security requirements for our expanding national security focus.”
There would be no impact to shareholders and Beck would continue his role as chief executive.
Madison Malone (nee Reidy) is host and executive producer of the NZ Herald‘s investment show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.
