Rocket Lab Shares Surge 34% on Record Q1 Revenue

Rocket Lab USA Inc.'s shares surged 34 percent Friday, closing at $105.55 after the company reported record first-quarter revenue that exceeded analyst expectations and issued upbeat guidance for the second quarter.

The aerospace firm, which provides launch services and space systems, announced after markets closed Thursday that its fiscal first-quarter revenue reached $200.3 million, a 64 percent increase from $122.6 million a year earlier. The figure topped Wall Street estimates of about $190 million. Adjusted earnings per share came in at a loss of 7 cents, better than the anticipated 8-cent loss. Gross margins expanded to 38 percent from the low 30s percent in the prior year, reflecting improved efficiency.

Company backlog swelled to a record $2.2 billion, up 20 percent from the previous quarter and double the level from a year ago. This growth stemmed from 31 new contracts for Electron and HASTE launch vehicles, plus five dedicated missions for the upcoming Neutron rocket. Rocket Lab also secured its largest launch services agreement to date with a confidential customer, covering five Neutron launches and three Electron missions scheduled from 2026 to 2029. Additional wins...