Latest news with #U.S.SpaceForce
Newsweek
a day ago
- Entertainment
- Newsweek
Mom Worried About Son After Dad Dies, Internet in Tears at How He Copes
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. A young boy grieving the loss of his father has moved internet viewers to tears after his mother shared a touching moment he shared with another dad at a friend's wedding. Hope Miller (@ a 22-year-old mom of two, posted the emotional footage on TikTok, showing her son instinctively drawn to a man on the dance floor. The moment resonated deeply with viewers garnering more than 1.6 million views and over 363,000 likes on TikTok. Miller said that her husband died when their son was almost 2 and their daughter was just 7 weeks old. The loss left what she describes as a "gaping hole" in their family, and since then, her son has often gravitated toward father figures in social settings. A split image showing a male wedding guest spinning around Hope Miller's son on the dance floor. A split image showing a male wedding guest spinning around Hope Miller's son on the dance floor. @ "My son was a bit upset before the ceremony. He always gets confused when other kids get to play with their dad. He sometimes calls other parents 'dad' and is confused why he doesn't have a dad," Miller told Newsweek. "He's asked for a dad before, and he knows who his dad is. "This always brings me to tears and makes me wish I could fill that role for him, but I know it's a role that his dad only could've filled. It always upsets me to see my son having a hard time." Miller said: "After he ate, he went to the dance floor with some of the other little girls. Suddenly, I turned around, and he was taking turns with another little girl and her dad, swinging around. I immediately felt my heart break and heal a little at the same time." Miller shared that the family had traveled out of state to attend the wedding. When her son kept asking a man to swing him around on the dance floor, she approached to make sure it was fine or to offer to take her son away. The man warmly reassured her, saying: "Oh, it's totally fine. I'm a dad. I got him." His wife was there, too, and Miller said her son had an amazing time with them. Reflecting on her late husband, Miller described him as "the light of every room"—a happy, caring man who served in the U.S. Space Force and worked on rocket launches with United Launch Alliance (ULA). "He was a Bible study leader, a husband, a dad, a brother, a son, a dog dad, an engineer, and a good friend to all," Miller said. "Everyone who knows him will tell you he would've given the shirt off his back to anyone." Coming to terms with his death, she added, has been "near impossible." Miller has found comfort by pouring herself into her hobbies, her business, and the vision her husband had for their family—raising their children, building their future, and living for the Lord. "They don't remember a ton about him, but my son does tell me that he sees him at night sometimes. I think that he comes to visit them and comfort them," Miller said. The loss, she added, uprooted every part of her life. She had to move, sell her business, leave her church and community, and rebuild from scratch. "Suddenly living without the dad of your kids at 7 weeks postpartum was unimaginable," Miller said. "Every day when my eyes opened, all I could think about was the longing for him," she said. "I think I've come to terms, almost a year and a half later, that I will forever long for what we had, but know I'll never get it back and something new could come and be good, but it will never replace what I had, because it's not meant to." Her husband had been a devoted father from day one, and was playful and loving. "My son was in his arms, constantly loving on him and playing with him. My son loved doing anything with his dad, always looking to just tag along with dad," she added. Miller now runs her own dog-grooming business in New Hampshire while raising her two children on her own, carrying forward the love and memory of the man who helped shape their family. TikTok users flooded the comments with stories of their own experiences with loss—and the kindness of others who stepped in. "My mom died when I was two and a half … every single one of my friends' parents treated me like their own child. One took me to buy my first bra, another taught me to cook, one taught me how to braid my hair," one woman wrote. Another commenter, Stephanie, shared: "My dad passed away when I was 11. I had a lot of friends' dads step up to the plate for me. One lectured me once, another taught me how to drive, another changed my tire, and so on. It's hard without my dad, but I made it and your son will too." Others suggested there may be something more spiritual at play: "Does he always find a dad or did dad send them? Could be a bit of both," one person posted. Kate chimed in with her husband's experience: "My husband's dad passed when he was 12. He's 24 now and just got back from a fishing trip with his dad's friends." Another user shared a moment of compassion: "There was a little boy at the park whose mommy had passed. The father tried to apologize because the little boy only wanted to play with me instead of kids. I didn't mind one bit." Newsweek's "What Should I Do?" offers expert advice to readers. If you have a personal dilemma, let us know via life@ We can ask experts for advice on relationships, family, friends, money and work, and your story could be featured on WSID at Newsweek.
Yahoo
10-06-2025
- Politics
- Yahoo
Trans troops leaving military following Trump administration ban
Bree Fram, a colonel in the U.S. Space Force and a transgender woman who was tapped to be the grand marshal at the Annapolis Parade last month before bad weather postponed it, said Monday she will retire after a Trump administration directive led to her being placed her on leave. Fram is among a wave of trans people voluntarily leaving military service following an ultimatum from Secretary of Defense Pete Hegseth, who directed transgender servicemembers to elect by last weekend whether they would go on their own, or face 'involuntary separation.' In a May memo, the Trump administration had argued that 'service by individuals with a current diagnosis or history of, or exhibiting symptoms consistent with, gender dysphoria is not in the best interest of the military services and is not clearly consistent with the interests of national security.' Support for transgender troops serving in the military has declined from 71% in 2019 to 58% in 2025, according to a February Gallup poll, but the majority of Americans still believe the military should be open to transgender and gender-nonconforming servicemembers. Fram, who lives in Virginia, joined the military not long after the attacks of Sept. 11. While she said she is proud of her accomplishments, Fram also said the first 13 years of her career taxed her mentally, as she had to conceal her identity as a trans woman. That changed in 2016, when then-Secretary of Defense Ashton Carter said transgender people could serve openly. Since then, Fram has been open about being transgender. 'I am proud of being a trans person who has served and who has upheld her oath to the Constitution and done everything this nation has asked of me,' Fram said. 'I know the writing that is on the wall and that my service is no longer required or requested by this nation, so I have applied for retirement.' As of Monday, Fram was on administrative leave pending retirement approval. She spoke with The Sun about her retirement and the circumstances around it but added that her views do not necessarily reflect those of the Department of Defense. Nationwide, around 1,000 service members have begun the process of voluntary separation, according to a statement issued by Chief Pentagon Spokesman Sean Parnell on May 8. Maryland has over 6,500 service members across the National Guard, Air Guard, Defense Force and Military Department, a 2023 study showed. Another 27,863 federal servicemembers were born in Maryland, but only 2.5% of them reside in Maryland. Some Maryland officials have voiced their disapproval of the policy, which they say is discriminatory and harmful to national security. In a statement, Gov. Wes Moore, an Army veteran, said: 'We as a nation must respect these patriots by putting a halt to attempts to minimize the military by trying to divide the military.' On May 30, Maryland Attorney General Anthony Brown, who was supposed to walk alongside Fram during Annapolis' Pride Parade, signed onto an amicus curiae brief, filed in the U.S. Court of Appeals for the Ninth Circuit, arguing against the ban. Brown called the ban 'discriminatory' and a 'direct attack on our Constitution and the core American values of fairness and equal treatment,' in a statement Friday. 'This policy is not only unjust; it undermines our military readiness and betrays the courage and sacrifice of those who have stepped up to serve. It must be reversed immediately,' Brown said. The weekend deadline set by Hegseth, which coincided with the first week of Pride Month, follows a Supreme Court decision permitting the reinstatement of orders from the Department of Defense that called for the removal of transgender troops. The department says it does not maintain a state-by-state breakdown of how many transgender soldiers will be affected. Maryland's Military Department, which oversees the Maryland National Guard, declined to comment. June 6 was the deadline for active duty members to self-identify in order to be eligible for the voluntary separation process, which offers monetary compensation. The deadline for National Guard members is July 7. Remaining transgender and gender-nonconforming soldiers will be removed through an involuntary process, Hegseth's May memo said. 'We are all being forced out,' Fram said. 'I want to make it clear that there is no 'voluntary' or 'involuntary' separation. Neither of those things would be the choice that any of us would be making.' In a statement Friday, Annpolis Pride, which organizes the parade, said 'our nation is less safe because thousands of brave Americans have been forced to leave the armed forces — not because of any failure in duty, but because of hatred codified at the highest levels of government,' It is unclear if Fram will return for the rescheduled parade in the fall. The U.S Space Force declined to comment. According to Cathy Marcello, the Interim Executive Director of Modern Military Association of America, which works with LGBTQ+ veterans, nearly three-quarters of transgender service members have served for over 12 years. 'People are losing their homes, their livelihoods, their community, their identity — and their families are being uprooted suddenly with no backup plan or safety net,' Marcello said. Maryland's VA department is working with the University of Baltimore's Bob Parsons Veterans Advocacy Clinic to 'connect transgender veterans with legal support services, especially for discharge upgrades or discrimination cases,' Ross Cohen, the acting secretary of the Maryland Department of Veterans & Military Families, said. Fram said that leaving her career has been a 'grieving process' because she is 'stepping away from something that [she] love[s], something that [she] care[s] about, something that [she] intended to do far into the future.' ---------------
Yahoo
06-06-2025
- Politics
- Yahoo
Trump should fulfill his promise to create the Space National Guard
As America faces growing competition in the space domain, it's time to strengthen — not dismantle — one of its most proven space war-fighting tools. The creation of the U.S. Space Force in 2019 was a historic shift in national defense. But it remains incomplete without an essential piece: a Space National Guard. Today, more than 1,000 Air National Guard members across several states are executing critical space missions — missile warning, satellite command and control, space domain awareness, defensive cyber operations and expeditionary space electromagnetic warfare. These units represent nearly one-third of the Space Force's operational squadrons and are already integrated into global combatant command operations. Despite that, the Department of the Air Force is pursuing a plan to transfer these forces into the active duty Space Force — effectively dismantling seasoned units and starting over. Internal projections show only 8% of these Guardsmen are willing to leave their current status. The rest would walk, taking decades of hard-won experience with them. This approach isn't just shortsighted — it's expensive. The National Guard Bureau estimates that standing up a Space National Guard using existing personnel and infrastructure would cost just $250,000. By contrast, transferring and rebuilding units under active duty structures is projected to cost upwards of $700 million. That's a staggering figure, particularly as the proposed fiscal 2026 defense budget would force the Space Force to cut elsewhere. Trump promises to launch Space National Guard if elected More importantly, this move would eliminate a unique military advantage: surge capacity. National Guard space operators provide a combat-ready reserve force that can be activated quickly and cost effectively. Their hybrid civilian-military status brings deep technical expertise in aerospace, cybersecurity and telecommunications — skills the active duty force can't easily replicate. Their part-time model also allows for operational scale-up in times of conflict or crisis, giving U.S. commanders strategic flexibility without permanently growing the full-time force. In an era when near-peer competitors like China and Russia are accelerating their space capabilities, dismantling a surge-ready reserve component is not just inefficient — it's dangerous. The U.S. must preserve and enhance every ounce of operational capacity it already has. Support for a Space National Guard spans party lines. Multiple bills to establish the component have been introduced in Congress. Governors have expressed concern over losing control of their state-based units. And in 2024, then-candidate Donald Trump pledged before the National Guard Association that, if reelected, he would create the Space National Guard as the 'primary combat reserve of the U.S. Space Force.' That promise has not yet been fulfilled. The infrastructure exists. The mission sets are clearly defined. The personnel are trained and ready. What's missing is leadership at the national level to codify what's already working — and avoid the costly mistake of breaking it apart. This isn't a debate about force structure on a whiteboard. It's a matter of readiness, war-fighting continuity and strategic risk. The Space Force was designed to be lean, agile and focused. A Space National Guard complements that mission, providing surge-to-war capacity without burdening the active duty end strength or duplicating systems already in place. The U.S. needs a space reserve that's trained, trusted and ready to mobilize. We already have one. We should keep it. It's time for the administration and Congress to act. Create the Space National Guard — before operational capability is lost, taxpayer dollars are wasted and national readiness suffers. U.S. Air Force Gen. Joseph L. Lengyel (ret.) served as the 28th chief of the National Guard Bureau from 2016 to 2020.
Yahoo
06-06-2025
- Business
- Yahoo
Big Dreams, Bigger Risks: Rocket Lab's Neutron Bet Faces Market Gravity
Shares of Rocket Lab (NASDAQ:RKLB) rallied immensely after the first-half decline in 2024, supported by both the business surrounding the neutron mission and contracts with governments. The stock is now 544% up over past 52-weeks. Earlier in the month, the space company reported strong Q1 findings, highlighted main achievement points and confirmed the company's key strategies. However, the company's share price dropped about 12% after it issued soft guidance and the earnings release. I think many ignore how strong Neutron will be in 2025, so I see this as knee-jerk selling. Neutron, a cheaper and reusable rocket, gives Rocket Lab an edge over SpaceX and has already helped the firm begin supplying services to government agencies. For instance, the U.S. Space Force picked Northrop Grumman to participate in the $5.6 billion third phase of its National Security Space Launch program, having selected only five companies. It also won contracts for its HASTE hypersonic vehicle in the U.S. and U.K. programs worth tens of billions. Besides moving into other segments, the company revealed it will buy Mynaric (a laser-communication provider) and develop more advanced satellites, showing their focus on growing in space infrastructure. In addition, Rocket Lab is growing much more quickly than SpaceX, launching nearly 60% more in 2024 than in 2023, which gives it an edge in the space market. Rocket Lab is teaming up with the U.S. Air Force to build its new Neutron rocket, which could transform Rocket Lab and the whole space industry. Neutron is 43 meters high, its diameter is 7 meters, and it is capable of transporting 13,000 kg to low-Earth orbit. The Archimedes engines allow it to lift off by creating 480,000 kg of thrust. I am especially amazed by how much the spacecraft is expected to cost when it launches, at $5055 million. In comparison, SpaceX's Falcon 9 costs around $67 million for every launch and it can accommodate 22,800 kg, set at about $3,000 per kilogram. Neutron is cheaper for each launch, but it costs about $4,000$4,300 per kilogram, so it is less cost-effective. Even so, Neutron has some additional strengths. It is suitable for frequent medium-lift missions such as those needed for the Kuiper satellite constellation operated by Amazon (AMZN). Having a reusable rocket and built-in fairings means the process can be performed faster, saving money. Although Falcon 9 is built for many missions, Neutron concentrates on getting to orbit as quickly as possible and reliably. Being able to make most of their own parts at Rocket Lab helps control their budget and maintain a high standard of quality. Because it has launch sites in the U.S. and New Zealand, the company is able to provide more options for when customers can book a launch. Usually, the cost plays a big role in deciding when to launch, and Neutron's more affordable price might appeal to many users. I also like that it can be used again, which should boost Rocket Lab's earnings as it improves how to collect them. Being picked for the NSSL list on a $5.6 billion indefinite delivery, indefinite quantity (IDIQ) contract until 2029 from the U.S. Space Force is a strong vote of confidence in Neutron's abilities. When the launch starts next year, I expect investor interest to rise. If Rocket Lab successfully scales Neutron launches, it could generate about $787.5 million in annual revenue by flying 15 rockets a year at an average $52.5 million per launch (15 $52.5 million = $787.5 million). Assuming a conservative 5 % net margin, roughly in line with established aerospace peers like Northrop Grumman, each launch would contribute about $2.625 million in profit (5 % $52.5 million). At that pace, total owner earnings could reach approximately $39.4 million annually (15 launches $2.625 million). While Neutron's reusable design and in-house manufacturing could improve margins over time, this 5 % baseline provides a realistic near-term projection grounded in industry comparables. Moreover, the global commercial launch services market is expected to be worth around $12 billion to $15 billion by 2027, with the mid-lift segment (515 t payload) alone accounting for roughly $4 billion. Neutron targets that mid-lift bracket, giving Rocket Lab access to potentially $400 million$800 million per year from mega-constellation projects (e.g., Amazon Kuiper) plus U.S. government and other mid-satellite contracts. While the Neutron rocket promises a lot of growth for the company, it still ties with some major risks which can't be easily ignored. First of all, the Archimedes engine is not yet meeting its goals. It produces 0.8 MN of thrust instead of the 1 MN target. It burns for 112 seconds but needs to reach 180 seconds. Also, it can only be reused twice so far, while the goal is to reuse it 10 times. Secondly, building this rocket needs a lot of R&D funding, which is why Rocket Lab is burning through cash, making it tougher for the company to maintain financial health. Lastly, SpaceX's Falcon 9 already dominates the mid-lift market with proven reliability, and it will not be easy to bring their customers to divert to Neutron until it's fully ready to prove its strength on the real ground. So, Rocket Lab has to resolve technical issues in order to launch in 2026 as scheduled. While turning to financials, I have to admit that Rocket Lab's revenue growth has been really impressive. Annual sales climbed from $62 million in 2021 to $436 million in 2024, representing 78 % year-over-year (YoY) growth in 2024. This was driven by more launches, 16 Electron missions in 2024 versus 10 in 2023, and expanded deliveries of space systems. The space company's Gross profit turned positive in 2024 at $116 million versus $51 million in 2023 as production scaled. Operating results remain deeply negative with a 2024 GAAP operating loss of $189.8 million, roughly 43 % of revenue, up from a $177.9 million loss in 2023, reflecting rising R&D and SG&A. Rocket Lab is investing heavily in new technology such as Neutron and vertical integration, so operating margins are under pressure. Free cash flow has been negative each year, around $116 million in 2024, an improvement from $154 million in 2023. High capital spending of $28.7 million in Q1 2025 and lumpiness from contract timing kept GAAP operating cash flow deeply negative at $54.2 million in Q1 2025. However, The balance sheet has grown aggressively. Total liabilities rose to $823.7 million by Q1 2025 from $386.7 million in 2023 as the company funded its expansion. This includes a $345.9 million convertible note issuance and borrowings for new facilities. Equity financing offset this as Rocket Lab issued convertible preferred stock of 51 million shares in early 2025, boosting additional paid-in capital by $109 million. Moreover, the company held $517 million in cash, equivalents and marketable securities, up from $378 million at end-2024, providing a cash runway for scaling. Inventory and contract assets grew as production ramped, but contract liabilities and deferred revenue rose too, reflecting strong future bookings. Overall, the balance sheet shows healthy liquidity and significant R&D investment a trade-off for near-term losses but supporting the ability to scale new launch and space infrastructure offerings. Over the last four quarters, Rocket Lab has consistently beaten analysts' estimates on both the top and bottom lines. In Q1 2025, revenue was $122.6 million, up 32 % from Q1 2024. Space Systems accounted for $85 million of Q1 sales, with the remainder coming from launch services. Operating loss widened to $59.2 million versus $43.1 million a year earlier, and GAAP net loss was $60.6 million or $0.12 per share, reflecting ramped-up R&D and near-term investment. The firm reported a backlog of $1.067 billion at quarter-end, with 56 % expected to convert to revenue in 12 months, giving visibility into future bookings. Rocket Lab's $1.067 billion backlog at Q1 2025 isn't just a tally of orders; it's a testament to growing trust from commercial players and national security clients. Launch-related work has nearly doubled year-over-year, now making up 40 % of the total, signalling a structural shift. With Neutron locked into the Pentagon's $5.6 billion NSSL program and Electron demand soaring past 20 launches this year, Rocket Lab is evolving into a strategic supplier for recurring US government missions. About 56 % of the backlog converts to revenue within 12 months, offering real visibility and genuine excitement for what's ahead. For Q2 2025, management guided revenue of $130140 million and gross margins of 3032 %, suggesting another high-revenue quarter. Near-term profitability remains challenged by heavy spending on Neutron development and new facilities. As we look ahead, Analysts anticipate that Rocket Lab will achieve profitability by 2027. This projection aligns with the company's plans to scale up its Neutron rocket launches and reduce capital expenditures, potentially generating approximately $80 million in net income on $1.25 billion in revenue that year. In the interim, Rocket Lab is expected to remain unprofitable, with estimated losses of $0.38 per share in 2025 and $0.30 per share in 2026. However, the company anticipates becoming cash flow positive by 2026, driven by increased launch cadence and revenue growth. Rocket Lab's stock has been a hot topic among Wall Street's biggest names, and their recent guru trades tell an interesting story. On March 31, 2025, Cathie Wood's Ark Invest trimmed its RKLB holding by 30%, selling roughly 1.07 million shares, which now leaves her with 2.47 million shares. I believe she's taking profits after a strong run, but still keeping a sizable stake. That same day, Renaissance Technologies (Trades, Portfolio) quietly reduced by 16.5%, offloading around 300,000 shares (leaving 1.52 million). I think this modest trim hints at cautious optimism, they like the long-term growth story but are wary of near-term execution risk. Value guru Joel Greenblatt (Trades, Portfolio) also dialed back 24%, selling about 67,500 shares to land at roughly 214,000 shares. I believe he's locking in gains here, even value investors need to book some profit when a high-beta name spikes. Most dramatically, Paul Tudor Jones slashed 92.8% of his position, offloading roughly 286,000 shares and retaining only 22,000. That's a major vote of no confidence, and I think it signals he's moved on to other bigger splash opportunities. By contrast, Steven Cohen (Trades, Portfolio) made a splashy new buy on March 31, picking up 1.04 million shares. I believe his Millennium fund sees Neutron's upcoming launch (and the $5055 M price point) as a real catalyst. Overall, it's a mix of profit-taking, cautious trimming, and a couple of optimistic buys, telling me that Rocket Lab's runway still excites me, even if some big players are managing risk along the way. Those who have been closest to Rocket Lab have been selling off their stakes lately, and those who follow the market say their actions indicate a lack of confidence in the company's immediate prospects. Any time after March 17, 2025 and prior to July 23, 2025, anyone who follows the plan can sell shares just as Klein or Kampani did. I think the simultaneous selling by both executives suggests they are taking measures together to reduce risk ahead of Neutron being launched later than expected. On March 14, Adam C. Spice, the CFO, shifted 62,843 shares at $18.18, in total raising about $1.14 million. I personally believe the sale means he's confident in making gains after Electron's performance and still managing his own risk until the Neutron news comes. By late 2024, a big surge of director-level sales took place. On December 11, Director Nina Armagno offloaded 10,000 shares at a price of $23.63. On December 3, Director Alexander R. Slusky offloaded 100,000 shares for $23.64. In my opinion, these deals, especially Slusky's substantial one, suggest that board members acted fast during the upturn after the IDIQ contract ended to collect profits. In earlier deals, both Adam Spice and Frank Klein sold shares, parting with 62,511 and 35,988 shares, respectively, near $24.15 on November 25. I think, insiders prefer to secure their earnings from Rocket Lab's small missions, wait out expectations around Neutron and enter the market again when there are valued gains to pursue. Rocket Lab currently trades at 27.7 sales, compared with the aerospace & defense sector average of 2.7. This implies investors expect significantly higher growth despite today's modest revenues. For context, BWX Technologies (NYSE:BWXT) is valued at 34.3 earnings, roughly in line with the sector average, while ATI (NYSE:ATI) sits at 27.6 earnings, closer to broader industrial valuations. By contrast, Rocket Lab's 27.7-sales multiple appears elevated relative to peers. With roughly 461 million shares outstanding and a share price near $26.79, Rocket Lab's market capitalization is about $12.36 billion. To justify that valuation via a reverse DCF, investors would need to receive $12.36 billion in present-value free cash flow. Assuming each launch yields $52.5 million in revenue with a 5 % free cash flow margin (about $2.625 million per launch), Rocket Lab would have to complete roughly 4,710 successful launches ($12.36 billion $2.625 million) to generate that level of cash flow. Management guides toward approximately 25 Neutron launches annually beginning in 2027. At that cadence, achieving 4,710 launches would take nearly 189 years (4,710 25). Even if Rocket Lab hits its target cadence and 5 % margin, the implied payback period remains extremely long, underscoring today's lofty valuation. GuruFocus GF Model also indicates that GF Value for Rocket Lab USA in one year is $15.73, suggesting a downside of -43.53% from the current price of $27.86. In short, by standard DCF metrics and Gurufocus GF Model, Rocket Lab looks significantly overvalued today. Rocket Lab's stock has had a wild ride, plummeting early in 2025, ripping higher on Neutron hype and big defense wins, then dropping again after softer guidance. Its backlog and government contracts suggest real momentum, and Neutron's cheaper, reusable design could shake up the launch market. Yet the company is still losing money, burning cash on R&D and new facilities, and insiders and big funds have trimmed positions. At today's rich valuation, you're paying for future success, not current profits. If Neutron delivers and margins improve, Rocket Lab could reward investors, but there's plenty of execution risk along the way. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-06-2025
- Business
- Yahoo
Big Dreams, Bigger Risks: Rocket Lab's Neutron Bet Faces Market Gravity
Shares of Rocket Lab (NASDAQ:RKLB) rallied immensely after the first-half decline in 2024, supported by both the business surrounding the neutron mission and contracts with governments. The stock is now 544% up over past 52-weeks. Earlier in the month, the space company reported strong Q1 findings, highlighted main achievement points and confirmed the company's key strategies. However, the company's share price dropped about 12% after it issued soft guidance and the earnings release. I think many ignore how strong Neutron will be in 2025, so I see this as knee-jerk selling. Neutron, a cheaper and reusable rocket, gives Rocket Lab an edge over SpaceX and has already helped the firm begin supplying services to government agencies. For instance, the U.S. Space Force picked Northrop Grumman to participate in the $5.6 billion third phase of its National Security Space Launch program, having selected only five companies. It also won contracts for its HASTE hypersonic vehicle in the U.S. and U.K. programs worth tens of billions. Besides moving into other segments, the company revealed it will buy Mynaric (a laser-communication provider) and develop more advanced satellites, showing their focus on growing in space infrastructure. In addition, Rocket Lab is growing much more quickly than SpaceX, launching nearly 60% more in 2024 than in 2023, which gives it an edge in the space market. Rocket Lab is teaming up with the U.S. Air Force to build its new Neutron rocket, which could transform Rocket Lab and the whole space industry. Neutron is 43 meters high, its diameter is 7 meters, and it is capable of transporting 13,000 kg to low-Earth orbit. The Archimedes engines allow it to lift off by creating 480,000 kg of thrust. I am especially amazed by how much the spacecraft is expected to cost when it launches, at $5055 million. In comparison, SpaceX's Falcon 9 costs around $67 million for every launch and it can accommodate 22,800 kg, set at about $3,000 per kilogram. Neutron is cheaper for each launch, but it costs about $4,000$4,300 per kilogram, so it is less cost-effective. Even so, Neutron has some additional strengths. It is suitable for frequent medium-lift missions such as those needed for the Kuiper satellite constellation operated by Amazon (AMZN). Having a reusable rocket and built-in fairings means the process can be performed faster, saving money. Although Falcon 9 is built for many missions, Neutron concentrates on getting to orbit as quickly as possible and reliably. Being able to make most of their own parts at Rocket Lab helps control their budget and maintain a high standard of quality. Because it has launch sites in the U.S. and New Zealand, the company is able to provide more options for when customers can book a launch. Usually, the cost plays a big role in deciding when to launch, and Neutron's more affordable price might appeal to many users. I also like that it can be used again, which should boost Rocket Lab's earnings as it improves how to collect them. Being picked for the NSSL list on a $5.6 billion indefinite delivery, indefinite quantity (IDIQ) contract until 2029 from the U.S. Space Force is a strong vote of confidence in Neutron's abilities. When the launch starts next year, I expect investor interest to rise. If Rocket Lab successfully scales Neutron launches, it could generate about $787.5 million in annual revenue by flying 15 rockets a year at an average $52.5 million per launch (15 $52.5 million = $787.5 million). Assuming a conservative 5 % net margin, roughly in line with established aerospace peers like Northrop Grumman, each launch would contribute about $2.625 million in profit (5 % $52.5 million). At that pace, total owner earnings could reach approximately $39.4 million annually (15 launches $2.625 million). While Neutron's reusable design and in-house manufacturing could improve margins over time, this 5 % baseline provides a realistic near-term projection grounded in industry comparables. Moreover, the global commercial launch services market is expected to be worth around $12 billion to $15 billion by 2027, with the mid-lift segment (515 t payload) alone accounting for roughly $4 billion. Neutron targets that mid-lift bracket, giving Rocket Lab access to potentially $400 million$800 million per year from mega-constellation projects (e.g., Amazon Kuiper) plus U.S. government and other mid-satellite contracts. While the Neutron rocket promises a lot of growth for the company, it still ties with some major risks which can't be easily ignored. First of all, the Archimedes engine is not yet meeting its goals. It produces 0.8 MN of thrust instead of the 1 MN target. It burns for 112 seconds but needs to reach 180 seconds. Also, it can only be reused twice so far, while the goal is to reuse it 10 times. Secondly, building this rocket needs a lot of R&D funding, which is why Rocket Lab is burning through cash, making it tougher for the company to maintain financial health. Lastly, SpaceX's Falcon 9 already dominates the mid-lift market with proven reliability, and it will not be easy to bring their customers to divert to Neutron until it's fully ready to prove its strength on the real ground. So, Rocket Lab has to resolve technical issues in order to launch in 2026 as scheduled. While turning to financials, I have to admit that Rocket Lab's revenue growth has been really impressive. Annual sales climbed from $62 million in 2021 to $436 million in 2024, representing 78 % year-over-year (YoY) growth in 2024. This was driven by more launches, 16 Electron missions in 2024 versus 10 in 2023, and expanded deliveries of space systems. The space company's Gross profit turned positive in 2024 at $116 million versus $51 million in 2023 as production scaled. Operating results remain deeply negative with a 2024 GAAP operating loss of $189.8 million, roughly 43 % of revenue, up from a $177.9 million loss in 2023, reflecting rising R&D and SG&A. Rocket Lab is investing heavily in new technology such as Neutron and vertical integration, so operating margins are under pressure. Free cash flow has been negative each year, around $116 million in 2024, an improvement from $154 million in 2023. High capital spending of $28.7 million in Q1 2025 and lumpiness from contract timing kept GAAP operating cash flow deeply negative at $54.2 million in Q1 2025. However, The balance sheet has grown aggressively. Total liabilities rose to $823.7 million by Q1 2025 from $386.7 million in 2023 as the company funded its expansion. This includes a $345.9 million convertible note issuance and borrowings for new facilities. Equity financing offset this as Rocket Lab issued convertible preferred stock of 51 million shares in early 2025, boosting additional paid-in capital by $109 million. Moreover, the company held $517 million in cash, equivalents and marketable securities, up from $378 million at end-2024, providing a cash runway for scaling. Inventory and contract assets grew as production ramped, but contract liabilities and deferred revenue rose too, reflecting strong future bookings. Overall, the balance sheet shows healthy liquidity and significant R&D investment a trade-off for near-term losses but supporting the ability to scale new launch and space infrastructure offerings. Over the last four quarters, Rocket Lab has consistently beaten analysts' estimates on both the top and bottom lines. In Q1 2025, revenue was $122.6 million, up 32 % from Q1 2024. Space Systems accounted for $85 million of Q1 sales, with the remainder coming from launch services. Operating loss widened to $59.2 million versus $43.1 million a year earlier, and GAAP net loss was $60.6 million or $0.12 per share, reflecting ramped-up R&D and near-term investment. The firm reported a backlog of $1.067 billion at quarter-end, with 56 % expected to convert to revenue in 12 months, giving visibility into future bookings. Rocket Lab's $1.067 billion backlog at Q1 2025 isn't just a tally of orders; it's a testament to growing trust from commercial players and national security clients. Launch-related work has nearly doubled year-over-year, now making up 40 % of the total, signalling a structural shift. With Neutron locked into the Pentagon's $5.6 billion NSSL program and Electron demand soaring past 20 launches this year, Rocket Lab is evolving into a strategic supplier for recurring US government missions. About 56 % of the backlog converts to revenue within 12 months, offering real visibility and genuine excitement for what's ahead. For Q2 2025, management guided revenue of $130140 million and gross margins of 3032 %, suggesting another high-revenue quarter. Near-term profitability remains challenged by heavy spending on Neutron development and new facilities. As we look ahead, Analysts anticipate that Rocket Lab will achieve profitability by 2027. This projection aligns with the company's plans to scale up its Neutron rocket launches and reduce capital expenditures, potentially generating approximately $80 million in net income on $1.25 billion in revenue that year. In the interim, Rocket Lab is expected to remain unprofitable, with estimated losses of $0.38 per share in 2025 and $0.30 per share in 2026. However, the company anticipates becoming cash flow positive by 2026, driven by increased launch cadence and revenue growth. Rocket Lab's stock has been a hot topic among Wall Street's biggest names, and their recent guru trades tell an interesting story. On March 31, 2025, Cathie Wood's Ark Invest trimmed its RKLB holding by 30%, selling roughly 1.07 million shares, which now leaves her with 2.47 million shares. I believe she's taking profits after a strong run, but still keeping a sizable stake. That same day, Renaissance Technologies (Trades, Portfolio) quietly reduced by 16.5%, offloading around 300,000 shares (leaving 1.52 million). I think this modest trim hints at cautious optimism, they like the long-term growth story but are wary of near-term execution risk. Value guru Joel Greenblatt (Trades, Portfolio) also dialed back 24%, selling about 67,500 shares to land at roughly 214,000 shares. I believe he's locking in gains here, even value investors need to book some profit when a high-beta name spikes. Most dramatically, Paul Tudor Jones slashed 92.8% of his position, offloading roughly 286,000 shares and retaining only 22,000. That's a major vote of no confidence, and I think it signals he's moved on to other bigger splash opportunities. By contrast, Steven Cohen (Trades, Portfolio) made a splashy new buy on March 31, picking up 1.04 million shares. I believe his Millennium fund sees Neutron's upcoming launch (and the $5055 M price point) as a real catalyst. Overall, it's a mix of profit-taking, cautious trimming, and a couple of optimistic buys, telling me that Rocket Lab's runway still excites me, even if some big players are managing risk along the way. Those who have been closest to Rocket Lab have been selling off their stakes lately, and those who follow the market say their actions indicate a lack of confidence in the company's immediate prospects. Any time after March 17, 2025 and prior to July 23, 2025, anyone who follows the plan can sell shares just as Klein or Kampani did. I think the simultaneous selling by both executives suggests they are taking measures together to reduce risk ahead of Neutron being launched later than expected. On March 14, Adam C. Spice, the CFO, shifted 62,843 shares at $18.18, in total raising about $1.14 million. I personally believe the sale means he's confident in making gains after Electron's performance and still managing his own risk until the Neutron news comes. By late 2024, a big surge of director-level sales took place. On December 11, Director Nina Armagno offloaded 10,000 shares at a price of $23.63. On December 3, Director Alexander R. Slusky offloaded 100,000 shares for $23.64. In my opinion, these deals, especially Slusky's substantial one, suggest that board members acted fast during the upturn after the IDIQ contract ended to collect profits. In earlier deals, both Adam Spice and Frank Klein sold shares, parting with 62,511 and 35,988 shares, respectively, near $24.15 on November 25. I think, insiders prefer to secure their earnings from Rocket Lab's small missions, wait out expectations around Neutron and enter the market again when there are valued gains to pursue. Rocket Lab currently trades at 27.7 sales, compared with the aerospace & defense sector average of 2.7. This implies investors expect significantly higher growth despite today's modest revenues. For context, BWX Technologies (NYSE:BWXT) is valued at 34.3 earnings, roughly in line with the sector average, while ATI (NYSE:ATI) sits at 27.6 earnings, closer to broader industrial valuations. By contrast, Rocket Lab's 27.7-sales multiple appears elevated relative to peers. With roughly 461 million shares outstanding and a share price near $26.79, Rocket Lab's market capitalization is about $12.36 billion. To justify that valuation via a reverse DCF, investors would need to receive $12.36 billion in present-value free cash flow. Assuming each launch yields $52.5 million in revenue with a 5 % free cash flow margin (about $2.625 million per launch), Rocket Lab would have to complete roughly 4,710 successful launches ($12.36 billion $2.625 million) to generate that level of cash flow. Management guides toward approximately 25 Neutron launches annually beginning in 2027. At that cadence, achieving 4,710 launches would take nearly 189 years (4,710 25). Even if Rocket Lab hits its target cadence and 5 % margin, the implied payback period remains extremely long, underscoring today's lofty valuation. GuruFocus GF Model also indicates that GF Value for Rocket Lab USA in one year is $15.73, suggesting a downside of -43.53% from the current price of $27.86. In short, by standard DCF metrics and Gurufocus GF Model, Rocket Lab looks significantly overvalued today. Rocket Lab's stock has had a wild ride, plummeting early in 2025, ripping higher on Neutron hype and big defense wins, then dropping again after softer guidance. Its backlog and government contracts suggest real momentum, and Neutron's cheaper, reusable design could shake up the launch market. Yet the company is still losing money, burning cash on R&D and new facilities, and insiders and big funds have trimmed positions. At today's rich valuation, you're paying for future success, not current profits. If Neutron delivers and margins improve, Rocket Lab could reward investors, but there's plenty of execution risk along the way. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
