Rocket Lab eyes big defense opportunities with new acquisition

Rocket Lab’s second-quarter results reveal a strategic shift emphasizing its space systems business over its traditional rocket launch services. The company reported record quarterly revenues of $144.5 million, a 36% increase year-over-year, with $97.9 million coming from space systems. Despite this growth, Rocket Lab’s net loss widened to $66.4 million. A key highlight is the company’s acquisition of Geost, an optical payload manufacturer, for $275 million in cash and equity. This deal will establish a new Optical Systems division focused on producing electro-optical and infrared sensors used in missile warning, tracking, and space domain awareness, positioning Rocket Lab to compete for lucrative multi-billion-dollar government defense contracts. Rocket Lab has already secured significant defense contracts, including an $515 million deal to build 18 satellites for the Space Development Agency’s missile tracking constellation, with production underway after meeting Department of Defense requirements. Additionally, the company is progressing toward the first launch of its larger Neutron rocket, with