June 26 - Rocket Lab (RKLB, Financial) shares jumped more than 7% Thursday morning after the company secured two launch contracts from the European Space Agency to deploy satellites for a test navigation constellation.
The missions will carry a pair of small satellites designed to support the ESA's Low Earth Orbit Positioning, Navigation, and Timing (LEO-PNT) system. The satellites are being developed by two separate manufacturers, GMV and Thales Alenia Space, and are part of a broader 10-satellite initiative.
The first satellite is scheduled for launch no earlier than December 2025. Both launches are required to take place before spring 2026, in order to meet frequency and orbital slot deadlines imposed by the International Telecommunication Union.
Rocket Lab was selected largely due to its ability to meet the ESA's tight timeline. However, future launches for the full constellation, expected to include up to 300 satellites, will likely be awarded to European launch providers.
Shares of Rocket Lab surged following the news, extending the stock's year-to-date rally to over 43% as of Thursday morning.
While this contract may not guarantee long-term work with the ESA, it reinforces Rocket Lab's position as a responsive partner for timely satellite deployment.
