Growing geopolitical tensions are fueling a global arms race. According to SIPRI, global military spending hit a record $2.9 trillion in 2025, an increase of 2.9% from the previous year. Meanwhile, the ******* e Foundation reported that the global ******* e economy reached $613 billion in 2024. Separately, the World Economic Forum and McKinsey projects that the ******* e economy is on track to surpass $1.8 trillion by 2035.
These trends cast the spotlight on the expanding business opportunities for defense and ******* e technology companies. Rocket Lab Corporation (NASDAQ:RKLB), with its broadening portfolio and programs, looks well-positioned to capture those opportunities. Its contract with the U.S. ******* e Force highlights its expanding role in national security ******* e missions.
Rocket Lab has secured a $266 million contract from the U.S. ******* e Force to provide around a dozen suborbital launches, with an option for more. This is the company's largest launch contract award ever. The first launch is expected to take place by the end of 2026.
The award also confirms Rocket Lab's growing relationship with U.S. defense customers. Earlier this year, the Pentagon awarded the company a $190 million contract to support hypersonic flight testing. Rocket Lab is also working with Rtx Corp (NYSE:RTX) on the proposed Golden Dome missile defense initiative.
Starting off as a launch service provider, Rocket Lab has steadily transformed its business to become a broader ******* e systems provider. Aside from offering launch services, the company supplies ******* ecraft, payloads, and satellite components. It also supports mission operations. The expanded scope allows Rocket Lab to capture a greater share of each customer program.

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