Rocket Lab Shares Surge as It Pushes For Neutron Launch Next Year -- WSJ

Dow Jones
13 Nov 2024

By Micah Maidenberg

Rocket Lab plans to launch its Neutron rocket for the first time next year and investors are showing excitement about the vehicle's future prospects.

Shares in Rocket Lab rose 21% in extended trading after announcing it inked a deal with

an undisclosed customer for two Neutron launches that would start in 2026. The company also posted better-than-expected revenue for its latest quarter.

Rocket Lab, which currently conducts launches with a smaller vehicle and operates a spacecraft-systems business, has been developing a bigger rocket with a reusable booster called Neutron.

Chief Executive Peter Beck said in a recent interview that the company was in good shape when it came to the engines it is creating for Neutron.

Engines are often the toughest part of any rocket-development program, and can prompt yearslong delays as engineers troubleshoot issues and work to scale up production. "Right now, we're just in engine mode," Beck said in the interview, building the devices and sending them for tests.

Launching Neutron next year would also set Rocket Lab up to potentially compete for more than $5 billion in national-security launches under a closely watched contract overseen by the Space Force.

In October, SpaceX won the first wave of flights under that deal, with the military hiring the Elon Musk-led company to conduct nine missions worth $734 million in the years ahead.

On Tuesday, Rocket Lab reported $105 million in revenue for its quarter that ended in September, better than expectations from analysts and up from $68 million for the comparable period last year. Its loss increased to $52 million from $41 million.

Rocket Lab went public more than three years ago by merging with a so-called blank check company.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

November 12, 2024 18:09 ET (23:09 GMT)

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