Rocket Lab (RKLB.US) received a contract of nearly US$400 million from the US Space Force, further transforming the “end-to-end contractor” strategy

The Zhitong Finance App learned that the US Space Force is speeding up the construction of its space-based target tracking capability, and Rocket Lab (RKLB.US) has become a key participant in this process. The space company, known for its vertical integration capabilities, announced on Tuesday that it has obtained a contract worth 397 million US dollars from the US Space Force to develop, launch and operate a number of advanced “flatellites” (flatellites) for the “space-based airborne moving target indicator” (SB-AMTI) program.

This is one of the largest fixed-price contracts Rocket Lab has received to date, marking another step in the company's transformation from a “small launch service provider” to an “end-to-end space systems contractor.”

Contract details: Full chain service from design to operation

According to the contract, Rocket Lab will undertake the entire chain of tasks from satellite manufacturing and launch to in-orbit operation under the SB-AMTI program. The core content includes:

Satellite manufacturing: Develop and build multiple “flat satellites” — a next-generation flat satellite design optimized for large constellations, equipped with space-based sensors and low-latency, high-bandwidth communication links.

Launch service: Launch missions using the Neutron (Neutron) rocket currently being developed by the company.

In-orbit operation: Run the satellite from a secure facility to provide real-time tracking data to the Space Force.

Optional extensions: The option to add additional “flatbed satellites” is included in the total contract value.

The SB-AMTI program, led by the Space Force's Space-based Sensing and Target Positioning (SBST) Project Executive Office, aims to deploy an elastic space-based system to detect and track airborne threats in real time. The system will integrate cutting-edge sensors, secure communications, and powerful ground handling systems to provide the US military with continuous, real-time battlefield situation awareness in a confrontational environment.

This $397 million contract is the latest in Rocket Lab's recent series of defense contracts. In May of this year, the company received a $90 million contract from the US Space Force to build two geostationary satellites. Soon after, Rocket Lab also won contracts worth $266 million to carry out 12 to 18 suborbital hypersonic missile test launches.

Strategic context: From “space-based radar” to “diversified suppliers”

SB-AMTI is one of the key initiatives of the US military to transfer sensing missions traditionally performed by aircraft to space. The US military has long relied on land-based and airborne sensors to track moving targets in the air, but in the face of advanced anti-intervention/regional denial (A2/AD) systems, the viability of traditional sensing aircraft is facing unprecedented challenges. A space-based satellite constellation can provide wider coverage without putting aircraft and crew in a threatened area.

Prior to that, the Space Force had awarded SpaceX a contract worth nearly $4.2 billion in May to build SB-AMTI's initial satellite constellation. The core goal of the new contract obtained by Rocket Lab and other companies this time is to “diversify capabilities” to ensure that the military does not rely on a single technical solution. Colonel Ryan Frazier, acting procurement executive for space-based sensing and target positioning for the Space Force, said: “Through these new partnerships, we are exploring unique innovations and technologies, as well as fundamentally different ways to complete airborne mobile target pointing missions.”

SpaceNews reports that the Space Force has now awarded a total of 615 million US dollars in contracts to Rocket Lab, Systems & Technology Research (STR), and a third unidentified contractor. Rocket Lab's share of $397 million was the largest share.

Rocket Lab's strategic transformation: from a “rocket company” to a “space systems integrator”

This contract is one of the most significant approvals Rocket Lab has received in the defense field to date. CEO Sir Peter Baker said in a statement: “Our vertical integration, constellation-level satellite capabilities, mission operations and launch services place us in a unique position to provide innovative solutions to meet the urgent needs of the Space Force.”

For Rocket Lab, the strategic significance of this contract is reflected on three levels:

First, the commercialization verification of the Neutron rocket. This is one of the largest government launch orders received by the Neutron rocket. As a medium reusable rocket being developed by Rocket Lab, the successful deployment of the Neutron will be a critical step for the company to move from the “small launch” to the “medium launch” market.

Second, market recognition of end-to-end capabilities. The contract covers the entire chain of design, manufacturing, launch and operation, and is a strong endorsement of Rocket Lab's vertically integrated business model. Rocket Lab also recently received a sub-orbital launch contract worth US$266 million, and the backlog of orders has exceeded US$2.2 billion.

Third, the transformation from a “one-time task” to a “continuous service.” Unlike traditional single-launch contracts, the SB-AMTI contract requires Rocket Lab to assume long-term in-orbit operation responsibilities, providing the company with a stable source of recurring revenue. This also means that the investor's evaluation framework for Rocket Lab needs to shift from a “launch service provider” to a “space system integrator.”

Financial and market background: The backlog of orders continues to grow, and the Q2 earnings report will be released soon

Rocket Lab will release financial results for the second quarter of 2026 after the US stock market on August 10. The company previously expected Q2 revenue to be between $225 million and $240 million, up 16% month-on-month. By the end of Q1, the company's backlog of orders had reached US$2.2 billion, an increase of 108% over the previous year. Of the 21 analysts currently covering Rocket Lab, 86% gave it a “buy” rating, with an average target price of about $111.31. The company's market value is approximately $42 billion.