Rocket Lab USA, Inc. (RKLB) shares dropped more than 9% in premarket trading on Tuesday after CEO Peter Beck told investors that the window for launching its Neutron rocket this year is narrowing.

The company had previously indicated it was on track to debut Neutron before the end of 2025. However, the first flight could now slip into 2027. Rocket Lab said it still plans to deliver Neutron to a launch pad in Q4 2026 but stopped short of committing to an actual launch within the year.

"The window for an end-of-year launch is narrowing," Beck said during the earnings call. "The work we're doing now is about risk trading, balancing the timing of our first launch against how quickly and seamlessly we can scale."

Neutron is a reusable medium-lift rocket under development to compete with SpaceX's Falcon 9. It is designed for satellite constellation deployment, national security missions, and planetary exploration. A reusable booster is central to its competitive proposition. For Rocket Lab, which currently operates only the small-lift Electron vehicle, Neutron represents a step-change in payload capacity and a potential entry into the medium-lift market that SpaceX currently dominates. The U.S. Space Force and other government customers have publicly emphasized the need for multiple domestic launch providers, and Neutron's delay extends the period in which that demand has limited alternatives.

Record Quarter Overshadowed by Delay

Despite the Neutron delay, Rocket Lab delivered a strong earnings report for the second quarter.

Q2 revenue rose 62% year-over-year to a record $234.06 million, exceeding analyst estimates by $3.12 million. The GAAP net loss narrowed to $0.08 per share, compared with $0.13 a year earlier.

The company's backlog reached a record $2.36 billion in Q2, up 137% year-over-year. Beck noted that new deals signed since the quarter ended bring new contracts to more than $1 billion in Q3 alone. The backlog growth reflects not only launch demand but also Rocket Lab's expanding space systems business, which includes satellite and spacecraft component manufacturing.

Rocket Lab secured more than $437 million in new launch contracts across its Electron, HASTE, and Neutron vehicles during Q2 and the subsequent period. This lifted the total launch backlog to more than 90 missions, another record.

Outlook and Neutron Uncertainty

Looking ahead, Rocket Lab guided Q3 revenue of $250 million to $265 million, above the analyst consensus of approximately $236 million.

The strong guidance and backlog figures underscore growth in the core business, but investor attention remains centered on Neutron. The rocket represents Rocket Lab's entry into a larger, more competitive market segment, and a delay to 2027 would extend that timeline and introduce additional uncertainty.

Beck did not provide a firm date for Neutron's first flight. The company said production is tracking toward a Q4 pad delivery, but actual launch timing remains open. Key milestones investors and industry watchers are monitoring include Archimedes engine testing progress, structural testing of the Neutron vehicle, and completion of launch pad infrastructure at Wallops Island, Virginia.

Rocket Lab's total launch backlog stands at more than 90 missions, supported by a record $2.36 billion backlog across launch and space systems.