Shares of RocketLab USA (RKLB) rocketed 13% higher yesterday after the space stock announced it was acquiring electro-optical and infrared payload manufacturer Geost for $275 million. The deal is expected to close in the back half of 2025.
By acquiring Geost, the launch services and space systems company will now enter into the payload segment, further cementing its position as a leading player in space for the country's national security industry.
RocketLab is the second-most successful space company behind SpaceX. Its small-launch Electron rocket has put 225 satellites into orbit and there are more than 1,700 satellites in orbit that carry RocketLab technology.
Its next-generation Neutron rocket is a medium-launch vehicle with a 13-ton payload capacity. The Neutron is poised for a mid-2025 debut and aims to haul bigger payloads and compete with the likes of SpaceX's Falcon 9 for business. RocketLab has already signed up its first customer, indicating there is good demand that can drive further growth. It is one of only five launch providers for the Defense Dept. The Neutron is designed for Deep Space missions as well.
With the Geost acquisition, the space stock can significantly expand its work with the government through more defense and national security contracts. RocketLab highlighted President Trump's Golden Dome initiative for a national missile defense system, as well as the Space Development Agency’s Tracking Layer. It will provide warning, tracking, and targeting of advanced missile threats, including hypersonic missile systems.
RocketLab founder and CEO Sir Peter Beck said Geost will allow the space company to bring "advanced electro-optical and infrared payloads in-house to support secure, responsive, and cost-effective systems at scale."
First-quarter revenue soared 32% to $122.6 million as product revenue rocketed 59% higher year-over-year. While operating losses widened 39%, that was due to a 43% increase in research and development expenses.
RKLB stock has been on a meteoric ride higher over the past year, shooting up 587%. It remains the best space stock to buy today.
