A Member of Pat McKeough’s Inner Circle recently asked for his advice on Rocket Lab, an end-to-end space company providing reliable small satellite launch services alongside an integrated space systems division that designs, manufactures, and operates advanced spacecraft components and satellite constellations for civil, defense, and commercial markets.
Pat likes the overall investment opportunity, but notes the firm faces rising competition from rockets by its rivals.
ROCKET LAB CORP. (Symbol RKLB in New York) is an integrated aerospace business headquartered in Long Beach, California.
Founded in 2006 in New Zealand by Peter Beck, the company has grown into a prominent player in the small satellite launch market. Beck is the current CEO and holds about 10% of Rocket shares.
The company designs and manufactures small and medium-class rockets, spacecraft, and spacecraft components, as well as related software and services, to support the space economy.
Rocket Lab went public in August 2021, when it combined with Vector Acquisition Corp., a SPAC (special purpose acquisition company).
The company’s key segments are:
Launch services:
Rocket Lab’s flagship vehicle, the Electron rocket, is the second most frequently launched small orbital rocket and has delivered more than 200 satellites to orbit. It specializes in deploying small payloads (150–300 kg) to low Earth orbit, serving customers from the commercial, government and defence sectors.
The company is currently developing Neutron, a medium-lift reusable rocket aimed at constellation deployment and national security missions. Neutron’s debut is expected in 2026, positioning Rocket Lab to compete directly with SpaceX’s Falcon 9 in the medium-lift segment.
Space systems:
Beyond launch, Rocket Lab manufactures spacecraft platforms and satellite components such as solar arrays, star trackers, radios, and reaction wheels. These systems have supported over 1,700 missions globally, including NASA’s missions to the Moon and to Mars.
On May 7, 2026, the company announced it would acquire California-based Motiv Space Systems. The purchase price is $40 million in cash, plus up to $20 million in potential additional post-closing earnout payments in common stock. Motiv specializes in robotics, motion control systems, and precision mechanisms for spacecraft.
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The acquisition achieves two important goals. First, it acquires technology that’s already been used for NASA’s past Mars Exploration Rover (MER) missions. Secondly, it brings the manufacturing of solar-array drive assemblies and motion-control systems in-house. That gives Rocket Lab an advantage when selling its launch products and services to potential customers.
Once the deal closes, Motiv will be branded Rocket Lab Robotics.
Rocket Lab offers rewards, but risk as well
For the three months ended March 31, 2026, Rocket Lab reported record quarterly revenue of $200.3 million, up by 63.5% from $122.6 million a year earlier. Revenue rose due to higher product and service sales, including increased contributions from the space systems satellite platform business.
For the quarter, the company lost $45.0 million, or $0.07 a share. That’s compared to a loss of $60.6 million, or $0.12. The loss fell mostly due to the higher revenue. Rocket Lab’s outlook is positive. It’s the leader in the small launch marketplace, alongside SpaceX.
Still, the company faces rising competition from rockets by rivals Astra and Virgin Orbit, and its Neutron line must compete with the rockets by SpaceX, United Launch Alliance, Firefly Aerospace, ABL Space, and Relativity Space.
Recommendation in Pat’s Inner Circle: Rocket Lab is okay to hold, but only for aggressive investors.
