Rocket Lab Eyes Lower Q3 Gross Margin

Rocket Lab has projected a third-quarter gross margin falling below Wall Street's expectations. This outlook stems from an anticipated increase in the proportion of lower-margin satellite platforms within its sales mix.

The company expects its gross margin to range from 29% to 31%, a figure that falls short of the 37.6% average estimate from analysts. Despite this projection, Rocket Lab anticipates third-quarter revenue between $250 million and $265 million, exceeding the estimated $238.5 million.

Rocket Lab continues to advance its reusable medium-lift rocket, Neutron, with the initial flight scheduled for the fourth quarter of 2026. Significant investments are being made in its development, launch infrastructure, and production capabilities.

The company's space-systems division, a major revenue driver, saw a 62% increase in second-quarter revenue, reaching a record $234 million. A backlog of $2.36 billion at the end of June provides a strong foundation for growth in both launch and space systems.