Rocket Lab acquires Iridium in $8 billion deal
The aerospace company reported record quarterly revenue of $200.3 million.
Rocket Lab (RKLB), the aerospace manufacturer, entered into a definitive agreement to acquire Iridium Communications Inc. for $54 per share in a cash and stock transaction. The deal represents an enterprise value of approximately $8.0 billion.
The acquisition shifts the company's financial profile toward recurring revenue. Iridium reported 2025 revenue of $871.7 million and OEBITDA of $495 million, representing a 57% margin. To fund the cash portion of the transaction, Rocket Lab secured commitments for a $3.6 billion 364-day senior secured bridge term loan facility from Deutsche Bank and Wells Fargo.
Quarterly revenue reached a record $200.3 million in the first quarter of 2026, a 63.5% increase from the $122.6 million reported in the first quarter of 2025. Profitability metrics also improved, as the adjusted EBITDA loss narrowed to $(11.8) million from $(17.4) million in the previous quarter.
Margins expanded as the company scaled its operations. GAAP gross margin reached a record 38.2% in the first quarter, up from the 34.0% non-GAAP gross margin reported in the fourth quarter of 2025. The company's backlog grew to a record $2.2 billion, a 20.2% sequential increase from the $1.85 billion reported at the end of 2025.
Rocket Lab continued an aggressive acquisition strategy to verticalize its supply chain and expand its geography. The company completed the acquisition of Mynaric AG in April 2026 for $155.3 million in cash and shares, establishing its first European footprint. It also entered into a definitive agreement to acquire Motiv Space Systems to insource spacecraft components, including solar array drive assemblies.
Technical setbacks affected the timeline for the company's next-generation launch vehicle. The first launch target for Neutron was updated to the fourth quarter of 2026 following a stage 1 tank test failure.