Rocket Lab's stock blasts to a new high. Here's what's driving the surge.

By William Gavin

The rocket-launch company just completed a government contract months ahead of schedule - and won a new one

Rocket Lab has carried out 78 successful rocket launches, more than any other U.S.-based company besides SpaceX.

Rocket Lab's stock closed at a record high Friday, its first since October, after the rocket-launch provider won its largest contract ever.

The U.S. Space Development Agency on Friday awarded Rocket Lab (RKLB) an agreement worth up to $805 million to provide 18 missile warning, tracking and defense satellites. It adds to the Long Beach, Calif.-based company's contracted backlog, worth roughly $1.1 billion as of its third quarter.

"We are very encouraged by this contract decision," Cantor Fitzgerald analyst Andres Sheppard wrote in a Friday note, adding that the move was expected to be delayed to early 2026 because of the government shutdown.

Don't Miss: These space stocks could benefit from Elon Musk's latest AI obsession

The announcement sent Rocket Lab shares up 17.7% Friday to a fresh record close at $70.52 a share, according to Dow Jones Market Data. Over the past two days, the stock has gained more than 30%. It's rallied nearly 177% so far this year.

On Thursday, Rocket Lab said it had launched its STP-S30 mission for the U.S. Space Force's Space Systems Command five months ahead of schedule.

"Rocket Lab's speed, streamlined operations and reliability were on full display with this flawless Electron launch for STP-S30, and we're proud to be strengthening the nation's space capabilities," CEO Peter Beck said in a statement.

Read: These two space stocks could rise 70% as government work heats up, analyst says

The next major catalyst for Rocket Lab's stock is likely the maiden flight of the Neutron reusable rocket, which is set for the first half of next year. Rocket Lab had planned to launch the medium-lift rocket by the end of 2025, but pushed it back to ensure success.

"At the end of the day, Neutron will fly when we're very confident that's ready," Beck said in November.

Cantor Fitzgerald's Sheppard has noted that Neutron will be the "only viable alternative" to SpaceX's industry-leading Falcon 9 rocket once it's operational. It's also expected to "dramatically improve" Rocket Lab's unit economics, he said.

The analyst has an overweight rating on Rocket Lab's stock and a $72 price target.

As of Friday, Rocket Lab has carried out 20 successful launches this year and 78 overall, more than any other U.S. company besides the Elon Musk-led SpaceX. Currently, it only uses the Electron, a two-stage vehicle that serves the small-satellite launch market.

See More: Elon Musk suggests this underrated AI business could be a big driver of SpaceX's valuation

-William Gavin

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

12-19-25 1909ET