$RKLB Deep Dive
Rocket Lab Corporation | Aerospace and Defense Sector
Market Cap: $37.74B
CEO: Peter Beck
Rocket Lab Corporation is a space company that provides launch services and space systems solutions for the space and defense industries. The company provides launch services, spacecraft engineering and design services, spacecraft components, spacecraft manufacturing, and other spacecraft and on-orbit management solutions; and constellation management services, as well as designs and manufactures small and medium-class rockets.
Financials:
Revenue: $769.15M
Cash: $2.3B
Total Revenue: $769M
Q2 Revenue: $234M
Gross Profit: $262M
+62% YoY Revenue Growth
90+ contracted launches
Forecasts:
Min Case: $80 (+26%)
Base Case: $113 (+80%)
Bull Case: $150 (+137%)
Electron ( orbital launch vehicle) continues executing. Rocket Lab successfully completed its 94th Electron mission on Sept. 2, delivering an Earth-imaging satellite for Synspective.
The Space Force business is becoming enormous. Rocket Lab won a $266M, 12-launch missile-defense contract, with up to six additional launches.
The big catalyst for Rocket Lab is Neutron. Neutron is Rocket Lab’s reusable medium-lift rocket tailored for deploying satellite constellations, delivering national security missions, and enabling planetary exploration of the Moon, Mars, and beyond. Neutron has been scheduled to launch late 2026 with analysts anticipating a delay to 2027
Just this week they put IMM Apex into production. It's a solar cell doing 31.5% efficiency at 40% lower mass, and it's built without germanium. This is important because germanium is a supply-constrained critical mineral that the entire space power industry has depended on for three decades. IMM is proven technology, it has been qualified for over a decade, it's on 1,100+ satellites, on JWST, on Artemis, and it powered Ingenuity on Mars.
In Q2, Space Systems did $189M of the $234M in revenue, while launch did $44M and grew 1.8%. Rocket Lab isn't just a launch company that happens to sell components. It's a vertically integrated space company that happens to launch, and each new capability widens what they can go after. Neutron is still very important and a headline to this company but, the market is not seeing what else Rocket Lab is doing
The overall space sector is being tanked due to SpaceX's IPO. $RKLB is down over 55% from its all time highs. While price is down, fundamentals are growing significantly and money in the space sector is growing more than ever. Rocket lab is a high-quality business with a clear path to scale and profitability
My Thesis: I've wanted to diversify into the space theme for a while now and with space stocks lagging behind, this is the perfect time to. I want to start accumulating here in the low
$60s. Lots of upside potential in this emerging theme
