Shares in Rocket Lab Corp were heading for their second day of gains on Monday after the aerospace manufacturer was named as one of four companies that will build tracking satellites for the U.S. Space Development Agency (SDA).
The stock (Nasdaq: RKLB) was up more than 4% in premarket trading on Monday as of this writing. That’s in addition to a jump of 17% on Friday when the news was announced. Share are now trading at record highs.
What did the Space Development Agency announce?
The SDA, a unit of the United States Space Force, said on Friday that it awarded four companies with contracts to build 72 satellites—or 18 apiece—with the aim of expanding missile tracking and defense systems. The total value of the award is $3.5 billion.
In addition to Rocket Lab, the SDA also named Lockheed Martin, Northrop Grumman, and L3Harris Technologies. The constellation of satellites is expected to launch in 2029.
Long Beach California-based Rocket Lab has been gaining more attention recently for its Electron orbital rocket, which is lighter than the heavier vehicles manufactured by rivals SpaceX and Blue Origin.
As Fast Company previously reported, the Electron’s lightweight nature gives it an edge in certain complex missions where precision and speed are prioritized.
A stunning market rebound
After going public during the ill-fated SPAC craze of 2021, Rocket Lab stock struggled to rise above $10 a share. It limped along for well over three years.
But the stock has really broken out this year as excitement has grown around satellite buildouts and Rocket Lab executed successful launches for companies like Kinéis, a French operator of internet-of-things satellites
As of Friday, Rocket Lab’s stock was up more than 182% year to date and was trading at $70.52 a share.