Rocket Lab (RKLB) has firmly established itself as the second-most successful space company after SpaceX. With 79 successful Electron rocket launches, a vertically integrated approach to spacecraft manufacturing, and a rapidly expanding presence in national security missions, Rocket Lab continues to outpace many legacy players in the industry.

Its stock has rocketed 67% in just the past month, driven largely by SpaceX preparing for a 2026 IPO and a landmark $816 million contract awarded by the U.S. Space Force. This deal focuses on developing responsive launch and satellite capabilities critical for modern warfare.

Now, Rocket Lab received another powerful boost: War Secretary Pete Hegseth personally toured Rocket Lab’s advanced engine factory in Long Beach, Calif., last week. This high-visibility event not only validates the company’s growing importance to U.S. defense but also positions RKLB stock squarely on the launchpad for sustained upward trajectory as the Trump administration reshapes defense priorities.

Hegseth’s Tour Highlights Agile Innovation
As part of his nationwide “Arsenal of Freedom” tour, Hegseth visited Rocket Lab’s Engine Development Complex to spotlight American manufacturing and rapid production scaling. He walked the production floors where Rutherford and Archimedes engines are built, observed the high-precision assembly processes, and delivered remarks to approximately 200 enthusiastic employees.

In his speech, Hegseth dubbed Rocket Lab “the engine of the new arsenal of freedom,” underscoring how the company’s ability to deliver rockets and spacecraft at unprecedented speed and scale directly supports U.S. space superiority. He explicitly connected Rocket Lab’s work to operational success, citing the role of space-based intelligence and signals in enabling decisive U.S. actions during a recent mission in Venezuela.

The visit reinforced the administration’s commitment to lean, innovative companies that prioritize execution over bureaucracy.

A Shift Toward Nimble Commercial Players
The Hegseth tour is more than ceremonial – it represents a deliberate strategic pivot by the Trump administration. Traditional defense contracts such as RTX (RTX) have faced sharp criticism from President Trump. He signed an executive order prohibiting contractors from issuing dividends or repurchasing shares until they prioritize investments in new facilities and machinery to boost production speed and quality.

Rocket Lab perfectly embodies the new model: a nimble, commercially driven operator that has already secured substantial defense contracts, including for advanced satellite systems and responsive launch services. Unlike legacy contractors bogged down by layers of oversight, Rocket Lab operates with startup agility while scaling to meet military demands.

Investors and space-sector observers view the secretary’s endorsement as strong validation of its trajectory, signaling that Rocket Lab is transitioning from promising contender to core infrastructure for America’s space dominance. The increased visibility from this event has amplified discussions about the company’s potential to capture even larger slices of the growing national security space budget.

Bottom Line
While Rocket Lab’s reliable Electron small-lift rocket has built its reputation, the long-awaited Neutron medium-lift vehicle – designed for larger payloads, constellation deployments, and interplanetary missions – represents the company’s next major growth phase. Delays have tested patience, but the platform’s eventual arrival will dramatically expand Rocket Lab’s addressable market, including high-value military applications.

Hegseth’s factory tour sends a clear message: Rocket Lab is poised to become an increasingly vital pillar of the U.S. military’s advanced space capabilities. With strong government backing, a massive new contract already in hand, and alignment with the administration’s defense vision, RKLB appears well-positioned for significant future gains.

— Rich Duprey

Out of 23,281 Stocks... Only ONE is This Profitable and Undervalued. [sponsor]
$3 billion+ in operating income. Market cap under $8 billion. 15% revenue growth. 20% dividend growth. No other American stock but ONE can meet these criteria... here's why Donald Trump publicly backed it on Truth Social. See His Breakdown of the Seven Stocks You Should Own Here.

Source: Money Morning