Space company challenging SpaceX signs mega deal
Rocket Lab has signed the largest commercial launch contract in its history with Japanese Synspective, including 20 new launches. The order backlog has crossed the 100-mission mark, and the company's stock rose about 6%. However, a market cap of about $50 billion and a price-to-sales ratio of 50 raise questions about the extent to which expectations embedded in the price are being realized.
Rocket Lab, a competitor in the commercial space sector, has signed the largest commercial launch contract in its history with Japanese radar satellite operator Synspective. The deal includes 20 new launches of the Electron rocket, to be carried out between 2028 and 2031. The company's order backlog has crossed the 100-mission mark, compared to about 70 in May last year. The company's stock rose about 6% to a price of about $74, amid investor concerns over competition with SpaceX. Economic data shows improvement: average revenue per launch rose to $9.2 million in the first half of 2026, compared to $7.5 million in the same period, and average launch cost fell to $4.9 million. However, revenue from launches themselves accounts for less than a fifth of the company's total revenue, which stood at $234 million in the second quarter. The new deal is expected to generate about $180 million over four years. Rocket Lab's market cap stands at about $50 billion, with a price-to-sales ratio of nearly 50, and the company still posted losses of $49 million in the second quarter. The article raises a question about the extent to which the expectations embedded in the current stock price are being realized.