New industries are emerging as space becomes more open for business. Rocket Lab’s CEO reveals what opportunities it’s chasing in the space economy as it competes with Elon Musk’s SpaceX.
Video / NZ Herald / Cameron Pitney / Getty Images
Rocket launching and space systems company Rocket Lab has pushed back the launch of its largest rocket yet to mid-2025 at the earliest, from previous guidance of later this year.
But chief executive and founder Peter Beck says it’s no big deal in an industry where progress can take yearsand failure is common.
“A Neutron push by a couple of quarters is just irrelevant when you look at the scale of opportunity that [rocket] opens up,” he told the Herald.
“In this game, having multiple years of delay is standard no matter who you are.
He used an iceberg analogy to explain how most of the infrastructure required to build and launch the 43-metre-high, seven-metre-wide, medium-lift Neutron rocket, was progressed “below the waterline”.
Once it was completed, he wanted the company to be in a position to produce and launch Neutron rockets at pace, however, he would not commit to an immediate cadence.
Using Elon Musk’s SpaceX as an example, he said: “Falcon 9s are launching so frequently now, it’s taken years if not decades to get there.”
SpaceX launched 98 rockets in the last calendar year and was targeting 144 this year.
Rocket Lab had launched five of its smaller Electron rockets so far this calendar year and was targeting 22 in total, more than doubling its record 10 launches last year.
The Nasdaq-listed space company’s latest update was given with its first-quarter earnings result - a net loss in line with last year of $US44.2 million ($73m).
Revenue for the three-month period increased 69 per cent on last year to US$92.7m - at the lower end of guidance - but the company said it had US$1 billion in its backlog after signing another two contracts with the US military worth US$47m collectively.
“Both missions are a further demonstration of Rocket Lab as a trusted partner to the Department of Defence for assured access to space, coming off the back of our fifth overall national security launch for the National Reconnaissance Office which we flew before quarter-end in March,” Beck said with the result announcement.
Rocket Lab has launched five Electron rockets so far this year, putting it on track to top its record 10 launches last calendar year. Photo / Trevor Mahlmann
“Rocket Lab has had a strong start to the year, with our four Electron missions in Q1 marking an accelerated cadence of launches this year and maintaining our status as operators of the United States’ second most frequently launched rocket,” Beck said.
The company was forced to take a three-month launch hiatus in 2023 after one of its Electron rockets failed in September due to a complex power supply system issue.
Operating expenses for the quarter just ended were less than expected, at US$67m. Of that, US$38.5m was spent on research and development, including progressing development of its medium-lift Neutron rocket.
Milestones on the Neutron project were reached, including assembling an Archimedes engine to be tested soon at Nasa in Mississippi.
“The results of which will be the driver of Neutron’s expected date for first launch,” Beck said.
It had also installed some of Neutron’s launch infrastructure at its third launchpad in Virginia, including pouring concrete into the new launch mount and completing a 278-foot water tower.
An artist's impression of Rocket Lab's Neutron assembly and launch facility in Virginia which is under construction.
The company said it was “forever changing the Wallops Island skyline and marking an exciting new era in Neutron’s path to first launch”.
The company was set to launch its 48th Electron rocket in a launch window beginning this month, from its site on the Mahia Peninsula near Gisborne. It was a climate change mission for Nasa to measure heat in Arctic areas using infrared wavelengths.
It was also producing two Rocket Lab spacecraft for Nasa’s Escapade mission to Mars.
Rocket Lab collected one of its rocket's first stages from the ocean after a launch this year, furthering its efforts to create the world’s first reusable small orbital rocket.
It was working on its ability to reuse its Electron rockets, completing its first rocket recovery from the Pacific Ocean in January and putting the equipment back on its production line.
Last financial year Rocket Lab had a 16 per cent increase in revenue to US$244.6m - the majority of which came from its space systems business - but deepened its net loss to US$182.5m due to increased capital expenditure to develop Neutron.
As part of the Neutron preparations, it took over Lockheed Martin’s manufacturing facility in Baltimore.
It raised US$355m of capital in a convertible note offer in February, which it had used to repay some debt.
Last year, Rocket Lab secured its largest contract to date to build 18 satellites for the US Space Development Agency.
The Nasdaq-listed company with operations in New Zealand had a market capitalisation of US$1.96b, down 24 per cent year to date, ahead of its quarterly result.
It was targeting a smaller net loss next quarter of between $US23m and US$25m, from revenue between US$105 and US$110m.
Madison Reidy is the host of the NZ Herald’s investment show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.
