Rocket Lab USA Inc (NASDAQ:RKLB) shares rose about 3% on Wednesday after the company secured a $266 million contract from the US Air Force and US Space Force to provide suborbital launch services.
The firm-fixed-price contract covers the launch of 12 suborbital vehicles, with options for six additional launches.
Operations will be conducted from the Pacific Spaceport Complex in Alaska and are expected to be completed by December 31, 2028.
The award supports the Department of Defense's responsive space capabilities program and is being managed by the Space Systems Command at Kirtland Air Force Base in Albuquerque, New Mexico.
According to the Department of Defense, the contract was awarded through a competitive acquisition process that received three offers.
The Pentagon said $112 million in fiscal 2025 research, development, test and evaluation funding is being obligated at the time of the award.