General Atomics Awarded U.S. Space Force Contract for Phase 2 of the Enterprise Space Terminal Program
SAN DIEGO, CALIFORNIA / / May 8, 2025 / General Atomics Electromagnetic Systems (GA-EMS) announced today that it has been awarded a contract by the U.S. Space Force (USSF) Space Systems Command (SSC) for Phase 2 of the Enterprise Space Terminal (EST) program. This Phase 2 contract award was issued through the Space Enterprise Consortium (SpEC) via an Other Transaction Agreement (OTA). The EST program is an enterprise optical communications solution to enhance mission effectiveness by providing resilient, high-capacity communication solutions for Department of Defense (DoD) space platforms operating primarily in beyond Low Earth Orbit (bLEO) regimes at crosslink ranges from 10,000 to 80,000 kilometers while maintaining the ability to operate in the LEO regime.
"GA-EMS, under a Phase 1 contract award, leveraged its extensive Optical Communication Terminal (OCT) expertise to develop a design that can be efficiently scaled to deploy a mesh network enterprise of OCTs with capabilities to transfer large volumes of data between spacecraft and ground stations distributed across a wide spectrum of operational domains," said Scott Forney, president of GA-EMS. "We are excited to enter Phase 2 to advance our system design and begin the build and test of the OCT subsystems."
Phase 2 will include lab demonstrations of OCT subsystems within a government provided test bed. GA-EMS will continue design and analyses activities to optimize the system designs. Testing results and analyses will then be presented during a Critical Design Review (CDR) at the end of Phase 2 period of performance.
"The Phase 2 CDR will help inform the decision gate toward entering Phase 3 of the program, which will call for the assembly, test, and delivery of an integrated prototype OCT system for demonstration on a government provided test bed," said Gregg Burgess, vice president of GA-EMS Space Systems. "We look forward to delivering a robust, producible Optical Communication Terminal for the Space Force to ensure resilient space network connectivity for future National Security Space Architectures."
GA-EMS completed the preliminary design of the payload support system, electrical hardware, laser terminal design, optical design and subsystem, thermal control, and command and data handling under the EST Phase 1 contract awarded in 2024. As prime contractor, GA-EMS has teamed with L3Harris for the modem subsystem and Advanced Space to provide performance modelling.
Contact Information
General Atomics Electromagnetic Systems Media Relations ems-mediarelations@ga.com8589646989
SOURCE: General Atomics Electromagnetic Systems
View the original press release on ACCESS Newswire
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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. 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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). 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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. 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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. 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