Rocket Lab (RKLB) The Stifel 2024 Cross Sector Insight Conference summary

Business performance and segment highlights

• Achieved strong year-over-year growth in Q1, with steady gross margins and diversified revenue streams.

• Launch segment represents about one-third of revenue, with space systems making up the remaining two-thirds.

• Electron rocket has completed 48 launches, with a third launch in the quarter and a fourth scheduled.

• Neutron rocket development is on track for a first test launch in mid-next year, with first paying customer expected within six months after.

• Neutron program cost remains under $300 million, as previously guided.

Demand environment and backlog

• Electron launch business has a $200 million backlog, with total company backlog near $1 billion.

• Space systems backlog is about $800 million, with $650 million tied to large programs.

• Strong demand for both launch and space systems, with launch business being lumpy and space systems more predictable.

• Largest contract is a $515 million Pentagon SDA award, where the company is the prime contractor.

• Backlog has more than doubled year-over-year for several years, with a goal to continue this trend.

Major programs and revenue timing

• MDA Globalstar program expected to contribute about $100 million in revenue this year, peaking in Q3 or Q4.

• Majority of Globalstar hardware to be delivered by early 2025.

• SDA program revenue will grow through 2024, becoming significant in 2025-2026, with satellite deliveries by end of 2026 or early 2027.

• Launch for SDA satellites not yet awarded; Neutron may compete for this.