Rocket Lab launched 21 times in 2025. Every mission succeeded. The stock rose from four dollars to ninety-nine. Market cap hit $43 billion. They're now the second most active launch provider on Earth, behind only SpaceX. But they didn't get there by out-launching the competition. They got there by owning every piece of the puzzle. Five acquisitions in five years. Each one filling a gap. While others outsourced critical components, Rocket Lab built the entire supply chain.
The Execution Edge: Why Cadence Beats Capital
The small launch market attracted billions in funding. Most of that money never reached orbit. Rockets are unforgiving. One failed mission can end a company. Success requires relentless execution, not just capital. Rocket Lab chose a different path. They launched twenty-one times in 2025. Every mission succeeded. No other small launch provider came close. While others chased headlines, the company built cadence. That consistency became the moat.
The Hidden Business: Why 74% of Revenue Isn't From Rockets
The market calls Rocket Lab a rocket company. The numbers tell a different story. In 2025, 74% of revenue came from spacecraft components, not launches. Solar panels. Reaction wheels. Star trackers. Flight software. Radio systems. They acquired five companies in five years, each filling a gap in the supply chain. When the Pentagon awarded an $816 million contract for missile-tracking satellites, Rocket Lab didn't outsource a single component. Every solar panel, every sensor, every line of flight code came from their own factories.
The Strategic Premium: Why the Pentagon Needs a Backup
SpaceX controls 95% of U.S. launches. That concentration creates risk. The government can't put all critical missions on one provider. U.S. law mandates at least two independent launch capabilities for national security. Rocket Lab became the only alternative with proven cadence. The CEO said it plainly: there's nobody else demonstrating launch reliability other than SpaceX and us. That scarcity commands a premium. The backlog reached $1.1 billion.
The Next Catalyst: What Neutron Changes
Electron carries small payloads. Neutron changes the math. The new rocket targets a mid-2026 debut, designed to carry 13,000 kilograms to orbit. That's forty times more than Electron. Two fully priced missions are already in the backlog. If Neutron flies successfully, Rocket Lab competes directly in the medium-lift market. Revenue approached $600 million in 2025. Gross margins hit 37%.
Twenty-one launches. Zero failures. One company building everything themselves. Solar panels in New Mexico. Reaction wheels in Toronto. Star trackers in Colorado. Rockets in New Zealand. The lesson wasn't about rockets. It was about resilience. They couldn't outspend the competition. So they outbuilt them. Escape velocity isn't just about speed. It's about having enough momentum that gravity can't pull you back.