Mission failure costly exercise for Rocket Lab

A109 Light Utility Helicopter flight with mayor Gisborne City from the air in November 2023.

Rocket Lab’s recent mission failure from Māhia looks to have cost the company millions of dollars.

Nasdaq-listed Rocket Lab yesterday issued an adjustment to its expected third quarter 2023 financial outlook, previously provided on August 8, 2023, resulting from the September 19, 2023 launch anomaly.

The new guidance expects revenue to drop from between (US)$73m and $75m to between $66m and $68m — the fall mostly down to an $8m drop in launch services.

“The adjustments reflect the postponement of a scheduled Electron mission, previously expected to launch before the end of the third quarter 2023, while the company completes an investigation into the in-flight anomaly. The company does not anticipate any material incremental expenses to be recognised in Q3 2023 as a result of the anomaly.”

The September 19 mission was lost when an issue was experienced at around T+2 minutes and 30 seconds into the flight, when the second stage engine failed, causing the rocket to fall back to earth within a pre-defined safety corridor.

Rocket Lab is leading the anomaly investigation at pace with oversight from the Federal Aviation Administration (FAA).

Rocket Lab has previously completed 37 successful Electron missions, deploying 171 satellites to orbit. With multiple Electron launch vehicles in production, and launch sites standing ready, Rocket Lab is in position to return to flight as soon as investigations are complete and corrective measures are in place.”

The statements came seven years to the day since the official opening of Rocket Lab’s launch Complex 1 at Mahia.