Rocket Lab achieves 'significant milestone' toward Neutron launch
Back in September, Rocket Lab's (RKLB) stock sunk nearly 12% in one day when a short report from February resurfaced for some unknown reason and started making the rounds on social media.
The report, written by Bleeker Street Research, accused Rocket Lab of overpromising on its Neutron rocket, suggesting that the California-based company had "materially misled investors" with its launch timeline.
Citing conversations it had with "rocket experts," Bleeker Street estimated Rocket Lab wouldn't launch Neutron until mid-2026 or 2027.
"Without Neutron, RKLB’s revenue goals for space don’t add up," the firm wrote. "SpaceX took a huge bite out of the market for RKLB’s small Electron rocket by offering cheaper satellite rideshare aboard Falcon 9."
While Rocket Lab did not in fact launch its Neutron rocket in the middle of this year, the company attributed the delay to safety concerns, rather than an attempt to "materially" mislead investors.
"We continue to push extremely hard for an end-of-year launch," CEO Peter Beck said during the company’s earnings call in August.
Beck noted that the takeoff would only happen by the end of the year if it reached every milestone needed to launch the mission.
"We’re not going to rush and take stupid risks," he added.
Rocket lab scores two big wins
But now Rocket Lab said this week that it has cleared a "significant milestone" that puts Neutron on target for a launch in 2026.
According to the company, its reusable payload fairing, dubbed the "Hungry Hippo," has successfully completed qualification testing and is being sent to Rocket Lab’s Launch Complex 3 at the Mid-Atlantic Regional Spaceport in Virginia.
The Hungry Hippo fairing halves remain attached to the rocket's first stage throughout launch and landing back to Earth. The company notes that fairing halves typically fall away from a rocket during launch and are either disposable or collected at sea for reuse.
But Neutron is the first rocket to have the fairing halves stay attached by opening to release the rocket's second stage and then closing again to return Neutron back to Earth as a single reusable rocket.
(The opening and closing of the fairing halves would likely resemble the chomping done by the animals in the Hungry Hippos children's game, hence the nickname).
Rocket Lab said in a press release that the design, structure and operations for its fairing halves are all now qualified for flight.
“A rocket like Neutron has never been built before, and we’re doing it at a pace and price point that’s going to bring the innovation and competition needed in today’s industry,” Shaun D’Mello, Rocket Lab’s vice president for Neutron, said in a statement.
“Building, qualifying, and shipping Hungry Hippo is a fantastic marker of progress toward Neutron’s first launch, and I’m proud of the team for their attention to detail and pulling off this significant milestone.”
Rocket Lab's stock gained 3.6% on Tuesday and has surged 109.8% for the year.
Meanwhile, Rocket Lab also announced on Tuesday that it was one of 18 companies to be awarded funding for research and development by the Canadian Space Agency, as part of a $14.2 million CAD investment in Canadian space innovation.
Rocket Lab was awarded $999,951 CAD (USD $722,012.62) toward the development of a new reaction wheel that will be developed and qualified at the company's Toronto facility.
“The space industry is rapidly evolving and so is the demand for reliable, flight-proven components for satellites of all sizes,” Brad Clevenger, president of Rocket Lab USA, said in a statement.
“We’re proud to support the CSA’s initiative by delivering a Canadian-designed, Canadian-built, cost-effective reaction wheel that builds on more than 20 years of flight heritage.”