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Rocket Lab stock steadies after record Q2 revenue and backlog
Rocket Lab reported record Q2 revenue and a backlog above $2.3 billion, while also adding more than $1 billion in new contracts over the quarter.
Rocket Lab shares have been volatile since peaking in May and then losing more than half their value during a broader space-sector rotation, but the sell-off momentum appears to be fading as the company works through its latest earnings and contract pipeline, MarketBeat Ratings said. After the company’s Aug. 10 earnings release, one key overhang shifted. Rocket Lab delivered record quarterly revenue and a record backlog that has surpassed $2.3 billion, along with more than $1 billion in new contracts signed during the quarter.
The initial market response was mixed, including a dip tied to softer Q3 margin guidance linked to heavier Neutron spending, according to the outlet. With that quarter digested, investors are expected to focus more on upcoming catalysts, especially Neutron, rather than near-term results.
Rocket Lab has continued to add defense-related work even as its stock has sold off or traded sideways at times. In the past week, it was onboarded to the U.S. Space Force’s NITE-STAR program, with a participant ceiling of up to $981 million, and it also won a geostationary satellite bus role from Viasat for a protected military communications system, plus an additional Space Force award tied to the Space Data Network.
Despite the flow of contract announcements, MarketBeat Ratings highlighted that investors remain cautious. The outlet said Rocket Lab trades at more than 70 times trailing sales, while the company remains unprofitable, with a trailing net loss near $198 million, and the market wants evidence from Neutron before it re-rates the stock.