Rocket Lab USA, Inc. announced that the U.S. Department of Defense will pay $190 million for 20 suborbital launch missions under a hypersonic testing initiative. The missions will be conducted through the company's HASTE program, utilizing its Electron rocket for tasks related to the Multi-Service Advanced Capability Hypersonic Test Bed 2.0 project. Kratos Defense & Security Solutions serves as the primary contractor for this testing program.

Rocket Lab described the agreement as its most valuable contract in terms of both total value and number of launches. The company has previously completed seven HASTE missions, maintaining a 100% success rate. Each of the 20 launches is projected to cost approximately $9.5 million, exceeding the Electron rocket's average launch price of about $8.4 million from the previous year. The higher pricing could potentially improve profit margins, which have already shown enhancement alongside growing launch demand.

Following this announcement, Rocket Lab's stock declined by approximately 8% as investors continue to evaluate the company's profitability trajectory.