Rocket Lab's Neutron rocket program faces delays, but the company sees significant opportunities in space defense. Analysts describe the delays as manageable, with sales growth and a substantial backlog supporting future prospects. The firm is positioning itself as a vertically integrated player in the defense space sector.
Rocket Lab, traded as RKLB on Nasdaq, has experienced delays in its Neutron rocket development, which analysts view as real but manageable. Manufacturing fixes are in place, and research and development costs are expected to peak in the first quarter of 2026. Despite these setbacks, the company reported 16% sequential sales growth in the fourth quarter of 2025, accompanied by margin expansion. Its backlog stands at $1.85 billion, with 65% derived from government customers.
The stock has risen 1.2% since a recent analyst report that upgraded it to a buy rating. This assessment labels Rocket Lab as a speculative buy, with fair valuation and upside potential linked to long-term growth beyond 2030. The company is evolving into a vertically integrated defense space entity, where increasing launch cadence and defense contracts are anticipated to drive future expansion.
Analysts emphasize that while Neutron challenges persist, the broader space defense landscape presents substantial opportunities for Rocket Lab. The focus on government-related revenue underscores its strategic direction in this sector.
