Rocket Lab wins $190M hypersonic contract, backlog exceeds $2B
Deal for 20 HASTE launches is largest in company history, validates defense sector strategy
Rocket Lab has secured its largest single launch agreement in company history, a $190 million contract to provide 20 hypersonic test flights under the U.S. Department of War's Multi-Service Advanced Capability Hypersonic Test Bed (MACH-TB) 2.0 program. The deal, announced March 18, pushes the aerospace company's combined backlog across launch and space systems beyond $2 billion.
The four-year contract calls for 20 HASTE (Hypersonic Accelerator Suborbital Test Electron) launches, with the first mission expected within months. Rocket Lab has maintained a 100% mission success rate with its HASTE vehicle, which operates at speeds exceeding Mach 5, since beginning hypersonic test flights for the MACH-TB program in 2023.
"This partnership will strengthen America's national security and accelerate hypersonic testing," Rocket Lab CEO Sir Peter Beck said in a statement. The contract is executed in partnership with the Naval Surface Warfare Center Crane Division.
The contract win comes as Rocket Lab shares dropped 11.6% on elevated volume Wednesday, closing at $69.48. However, the stock gained 10.21% on March 18 when the contract was first announced, reflecting investor enthusiasm for the company's expanding defense sector presence. The aerospace manufacturer has surged 21.9% over the past three months despite recent volatility.
Rocket Lab's momentum in early 2026 is evident in its booking activity. The company has already sold 28 new launches in the first quarter of 2026, nearly matching the total number of launches sold throughout all of 2025. The MACH-TB 2.0 contract alone adds more than 70 missions to Rocket Lab's launch backlog.
The hypersonic deal builds on Rocket Lab's strong performance in 2025, when the company reported record annual revenue of $602 million. Its backlog surged 73% year-over-year to $1.85 billion by the end of 2025, and this latest contract pushes that figure significantly higher. The company's Space Systems segment, a primary revenue driver, previously secured an $816 million contract from the U.S. Space Development Agency for 18 missile-warning and defense satellites.
Analysts maintain a positive outlook on Rocket Lab's prospects. The stock carries a "Buy" to "Moderate Buy" consensus rating, with average 12-month price targets ranging from $66.77 to $89.88. Clear Street initiated coverage with a "Buy" rating and $88 price target on March 18, citing Rocket Lab's vertically integrated model and multiple growth drivers.
Not all developments have been positive. Rocket Lab delayed the maiden flight of its larger Neutron rocket to the fourth quarter of 2026 from the first quarter, citing a manufacturing issue. The Neutron represents Rocket Lab's entry into the medium-lift market and is critical to competing with SpaceX's Falcon 9 and other larger launch vehicles.
Rocket Lab's success in the hypersonic testing market highlights the company's strategic pivot beyond commercial small satellite launches toward government and defense contracts. The company's Electron rocket, designed for cost-effective small satellite delivery, has established Rocket Lab as a leader in the rapidly evolving space industry since its founding in 2006.
The $190 million MACH-TB 2.0 contract validates Rocket Lab's hypersonic technology platform and provides substantial revenue visibility for the company, which generated approximately $600 million in annual revenue. With total backlog now exceeding $2 billion, Rocket Lab has secured contracted work representing more than three years of current revenue levels.
Defense sector contracts like the MACH-TB agreement offer advantages beyond revenue scale. Government and defense work typically carries longer duration and higher reliability compared to commercial launches, which face more volatility from satellite operators' changing needs and market conditions.