Rocket Lab Secures Another Defense Contract Ahead of Earnings

As Rocket Lab USA prepares to release its quarterly financial results, the company has announced its fourth hypersonic test mission in just six months. This continued pace of defense-related activity highlights a strategic pivot that could provide stability amidst broader sector volatility.

The company's growing role in national security is becoming a cornerstone of its business. This latest mission, dubbed "That's Not A Knife" for the Defense Innovation Unit (DIU), follows the largest contract in Rocket Lab's history: an agreement to design and build 18 missile-tracking satellites for the U.S. Space Development Agency, with work extending through 2029.

The upcoming test, part of the "Cassowary Vex" project, is scheduled for late February at the Wallops Island launch facility in Virginia. It will carry a DART AE Scramjet, produced by the Australian firm Hypersonix, into space.

Technical Execution and Market Reaction

For the mission, Rocket Lab will utilize its dedicated HASTE platform (Hypersonic Accelerator Suborbital Test Electron). This vehicle is designed for precise flight profile control at speeds reaching up to Mach 20. The frequency of these launches—four within a half-year period—signals robust government demand for reliable testing capabilities.

Should investors sell immediately? Or is it worth buying Rocket Lab USA?

The announcement provided modest support for the share price in a challenging market. On February 13, the stock advanced 2.2 percent, reaching an intraday high of $69.60. However, the overall environment remains difficult, with capital-raising activities by competitors like AST SpaceMobile weighing on sentiment across the space sector.

Further investor caution was triggered by a recent research note from Zacks, which downgraded Rocket Lab's rating from "Strong-Buy" to "Hold," contributing to recent trading session volatility.

Critical Financial Update on the Horizon

All eyes are now on the next major catalyst: the scheduled earnings release after market close on February 26, 2026. The report will cover both the fourth quarter and the full fiscal year 2025. Beyond revenue and profit figures, investors are keenly awaiting concrete progress updates on the development timeline for the company's larger Neutron rocket, a key element of its long-term growth strategy.

The central question for the market is whether this accelerating defense business can offset recent concerns plaguing the broader aerospace and satellite industry.