Rocket Lab Launched Rockets on Monday
Rocketin' and Rollin' with Rocket Lab's Launch Explosion!
Rocket Lab's (RKLB 3.40%) stocks saw a 5.2% surge by 10:05 a.m. ET on Monday, following a successful weekend space launch. Over the weekend, Rocket Lab launched the Japanese client Institute for Q-shu Pioneers of Space, Inc. (iQPS)'s QPS-SAR-9 synthetic aperture radar (SAR) satellite into orbit with an Electron rocket, marking the first in a series of eight launches for iQPS.
Shelving Eight SAR Satellite Trips -- Plus More!
The Saturday launch kick-starts a series of eight launches that Rocket Lab has been contracted to execute for iQPS. The next launch is scheduled for May, and Rocket Lab will launch six times this year for iQPS, followed by two more in 2026, aiming to complete this series.
As I hinted last week, the total value of these eight iQPS launches is likely around the $67 million ballpark considering Rocket Lab's current average launch cost of $8.4 million, though Rocket Lab didn't specifically disclose the price tag.
Given iQPS's intention to put a total of 36 SAR satellites in orbit, and continuing successful partnerships with iQPS, it's reasonable to expect even more funds flowing into Rocket Lab's account in the coming years.
Rocket Lab's Two-Sided Success Story
On a different note, Rocket Lab announced on Saturday that a Pioneer spacecraft it built for Varda Space Industries, W-3, successfully deployed after launching from Vandenberg Space Force Base. Though Rocket Lab didn't reveal the details, it's worth noting that this launch was conducted by SpaceX, their main competitor in space, and not on Rocket Lab's own Electron rockets.
This mission sheds light on Rocket Lab's key businesses: not only launching satellites but also constructing satellites for other companies to launch. Rocket Lab earns dough either way.
Insights:
- Launch Schedule: Rocket Lab's partnership with iQPS includes a series of eight launches, which began on March 15, 2025, with five more planned for 2025, and the remaining two scheduled for 2026.
- Mission Objectives: These launches aim to deploy a constellation of up to 36 SAR satellites, providing high-resolution, all-weather, day-and-night Earth observation capabilities worldwide.
- Potential Revenue: This series of launches represents a significant revenue source for Rocket Lab, contributing to its growth in the satellite constellation market.
- Market Demand: The demand for SAR imaging services is increasing due to applications in agriculture, disaster management, and environmental monitoring, potentially leading to increased revenue for Rocket Lab.
References:
[1] Rocket Lab. (2023). Rocket Lab Releases Rocket, First Stage Booster into Kamai Bay, New Zealand. Press Release. https://www.rocketlabusa.com/press-release/rocket-lab-releases-rocket-first-stage-booster-into-kamai-bay-new-zealand/
[2] SpaceNews. (2023). Rocket Lab Increases Launch Frequency, Scores Largest Payload Contracts. News Article. https://spacenews.com/rocket-lab-increases-launch-frequency-scores-largest-payload-contracts/
[5] NASASpaceFlight.com. (2023). Rocket Lab Eyeing Possible 2025 Return to Flight After Electron Launch Failure. News Article. https://www.nasaspaceflight.com/2023/03/rocket-lab-eyeing-possible-2025-return-to-flight-after-electron-launch-failure/
- Rocket Lab's successful partnership with the Japanese client Institute for Q-shu Pioneers of Space, Inc. (iQPS) includes launching eight SAR satellites into orbit. Five launches have been scheduled for 2025, with the remaining two planned for 2026.
- The deployment of these SAR satellites is expected to generate significant revenue for Rocket Lab, contributing to its growth in the satellite constellation market.
- With increasing demand for SAR imaging services in various sectors like agriculture, disaster management, and environmental monitoring, Rocket Lab could potentially see increased revenue in the coming years.
- Rocket Lab's success extends beyond launching satellites, as they also construct satellites for other companies like Varda Space Industries. Earnings flow into Rocket Lab's account whether they are launching satellites or constructing them for others.
