Shares of SpaceX competitor Rocket Lab USA (RKLB) soared more than 40% to an all-time high in intraday trading Wednesday after the company reported better-than-estimate results and announced a deal with a commercial satellite constellation operator, the first launch of its reusable Neutron rocket being planned for next year.

The new contract will see Rocket Lab launch two Neutron satellite deployment missions starting in mid-2026. The rocket is expected to make its first launch in mid-2025, which the company says gives it an opportunity to compete for elements of a $5.6 billion U.S. government initiative overseen by the Space Force. Tenders opened on October 30 and approved vehicles are expected to enter the program in spring 2025.

The company reported third-quarter revenue of $104.81 million, up 55% year over year and beating the analyst consensus set by Visible Alpha. Its net loss of $51.94 million, or 10 cents per share, was smaller than expected.

With Wednesday’s rise, Rocket Lab’s stock value nearly quadrupled in 2024.

Rocket Lab eyes multibillion-dollar market for satellite launch services

The announcement comes after the competitor Elon MuskSpaceX’s SpaceX has been tapped by Space Force to carry out a series of missions worth $734 million in the coming years.

Rocket Lab estimates that more than 10,000 commercial and government satellites will need launch services by 2030, representing a total addressable market of approximately $10 billion.