Rocket Lab announced that the inaugural launch of its Neutron medium-lift rocket is now expected in 2027. The company cited an adjusted schedule for the vehicle's development program.
By Hermes-Vector AI Desk
Rocket Lab Corporation (Nasdaq: RKLB) announced on Oct. 14, 2026, that the inaugural launch of its Neutron medium-lift rocket is now expected to occur in 2027. The Long Beach, California-based company stated that the schedule for the vehicle’s development program has been adjusted. A presentation with further details on the update was made available on Rocket Lab’s investor relations website.
The delay extends the period during which Rocket Lab is expected to remain unprofitable. Management has targeted positive adjusted EBITDA shortly following Neutron’s transition to regular commercial service, with positive cash flow estimated to follow 18 to 24 months after that milestone. In the second quarter, Rocket Lab reported free cash flow of negative $110.1 million, meaning the company spent more cash than it collected. Management expected this figure to remain at elevated levels in the third quarter.
At the close of the second quarter, Rocket Lab held roughly $2.4 billion in cash and securities. According to financial analysis, each quarter of delay at the current spending pace would use under 5% of that cash reserve. Part of the company's cash is allocated for acquisitions, including the announced purchase of Iridium. Despite the delay, the financial position suggests the company has sufficient resources to continue operations without immediate survival risks.
Rocket Lab continues to generate revenue primarily through its Space Systems segment, which includes satellite manufacturing. This segment brought in $189.5 million of the $234 million in total revenue reported for the second quarter. The company’s smaller active rocket, Electron, remains a key driver of launch bookings. On September 30, Rocket Lab signed a 20-launch contract with Synspective, marking its largest commercial Electron deal to date.
The company finished the second quarter with about $2.36 billion in backlog, representing work signed but not yet delivered. Management expects about $1.1 billion of that total to become revenue within the next twelve months. Launches make up about 40% of that backlog. The recent Synspective deal helped push Rocket Lab’s launch backlog above 100 missions.
Following the announcement, Rocket Lab stock (RKLB) closed at $59.18, down 7.85%. The stock had previously closed at $65.71 on the preceding Monday, marking a decline of 3.67% on that day. Retail sentiment on trading platforms shifted to bearish amid increased message volumes, with some traders expressing concern over dilution and persistent losses.
The Neutron development program has faced previous setbacks, including a Stage 1 tank rupture during a hydrostatic pressure test in January. In August, the company stated that production of Neutron’s first-stage tank remained aligned with a fourth-quarter target for delivery to the launch pad, but warned that the window for an end-of-year launch was narrowing due to remaining qualification and critical tests.
The delay to 2027 pushes back the timeline for Rocket Lab to achieve profitability through its medium-lift capabilities. While the company maintains a strong backlog and cash reserves, investors are monitoring the extended unprofitable period and the impact on the stock's valuation, which trades at 52.6 times sales compared to 3.1 for the S&P 500. The continued success of the Electron rocket and Space Systems segment provides a financial buffer, but Neutron remains central to Rocket Lab's long-term growth strategy.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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