Rocket Lab Could Outpace Viasat as Defense Space Spending Grows
On August 17, Rocket Lab was selected by Viasat to build spacecraft buses for the U.S. Space Force's PTS-G program under a $218.8 million contract awarded in May. This partnership highlights growing defense spending on space infrastructure and positions Rocket Lab as a key player with potential follow-on contracts. Financially, Viasat reported Q1 FY2027 revenue of $1.2 billion but saw a 4% decline in its Defense segment. It improved cash flow metrics and reduced leverage to 3.2x. In contrast, Rocket Lab posted record Q2 2026 revenue growth of 62%, driven by expansion in Space Systems, with a growing backlog and strong gross profit despite ongoing losses. Analysts remain optimistic about Rocket Lab's long-term potential as it transitions from launch services to end-to-end space solutions. Viasat benefits from stable cash flow but faces challenges due to slowing revenue growth.
Topics: PTS-G program Rocket Lab satellite communications U.S. Space Force Viasat