Rocket Lab says eight of the 18 military communications satellites it is building for the Space Development Agency are now in production at its Long Beach headquarters. The spacecraft are part of a $515 million deal, and the company’s stock jumped more than 8% on Tuesday.
“Eight of 18 spacecraft are on the floor right now, in build,” Rocket Lab said, as reported by Benzinga. The same account notes that members of the SDA’s Tranche 2 leadership team recently visited the company’s California headquarters to inspect spacecraft assembly. BigGo Finance likewise framed the milestone as the order hitting the factory floor.
The satellites are being built at Rocket Lab’s spacecraft development and manufacturing complex within its Long Beach headquarters, according to Rocket Lab’s own mission page. The company was selected to design and build 18 Tranche 2 Transport Layer-Beta data transport satellites, and the work will be carried out by its wholly owned subsidiary, Rocket Lab National Security. The company is also making key components in-house, including solar panels, star trackers, radios and flight software.
What the $515 Million Contract Covers
Rocket Lab is the prime contractor on a firm-fixed-price agreement valued at $515 million, per the same mission page. That figure breaks down into a $489 million base amount plus $26 million in incentives and options. The deal covers design, development, production, testing and operations of the spacecraft.
The SDA is procuring satellites in two-year tranches to build out a proliferated constellation in low-Earth orbit, Rocket Lab notes. Once flying, the Tranche 2 satellites are meant to provide assured, resilient, low-latency military data and connectivity worldwide. Benzinga adds that they will support the SDA’s Proliferated Warfighter Space Architecture, a network designed for resilient military communications.
On timing, a page from the Space Development Agency indicates the constellation is to launch no later than July 2027. The available reporting does not say how far along each of the eight spacecraft in build actually is.
A Second Award and a Rising Stock
This is not Rocket Lab’s only SDA win. In December 2025, the company announced a separate Tranche 3 Tracking Layer prime contract for another 18 satellites carrying missile-warning and tracking sensors, which Rocket Lab’s release priced at $816 million. Combined with the Tranche 2 order, the company says it now has more than $1.3 billion in contract value awarded by the agency.
Reports differ on the size of that second award. Satellite Today puts Rocket Lab’s Tranche 3 figure at $805 million, and the discrepancy has not been reconciled. That outlet also reports that Rocket Lab, Lockheed Martin, Northrop Grumman and L3Harris are each building 18 of the 72 Tranche 3 satellites.
On Wall Street, Benzinga reports that Rocket Lab shares jumped 8.34% on Tuesday to close at $58.31, then edged up another 0.41% after hours. The company is scheduled to report third-quarter 2026 results on Nov. 9, after posting quarterly revenue of $234.07 million last quarter, 1.3% above the analyst estimate of $231.07 million.
