Rocket Lab Corp. (NASDAQ:RKLB) CEO Peter Beck called the company a "self-licking ice cream" while explaining how its planned acquisition of Iridium Communications Inc. (NASDAQ:IRDM) could reshape its space business.
The comment came during Rocket Lab’s second-quarter earnings call Monday, when KeyBanc Capital Markets analyst Michael Leshock asked whether the company expects to remain active in mergers and acquisitions after the Iridium deal and whether Space Systems would remain its main target area.
What Beck Means By ‘Self-Licking Ice Cream’
Leshock asked, "Do you still expect to be pretty active there going forward post Iridium? If so, are there any specific parts of the business you’re targeting? Is that still Space Systems primarily or any updated thoughts on the M&A pipeline?"
Beck replied that Rocket Lab will likely continue making smaller acquisitions, or "tuck-ins," when the right opportunities emerge. He also said investors should not view Iridium as the end of the company’s expansion into space applications.
"I would encourage everybody to think of Iridium as not the endpoint from an applications play. I think it’s really the starting point," Beck said. He later described the longer-term vision: "we can build our own satellites and launch them and be a self-licking ice cream."
Iridium Is the Starting Point
Rocket Lab announced in June that it agreed to acquire Iridium in a cash-and-stock deal valued at about $8 billion in enterprise value. The transaction is expected to close in mid-2027, subject to shareholder and regulatory approvals. The deal would combine Rocket Lab’s launch and satellite manufacturing capabilities with Iridium’s satellite communications network and spectrum.
Beck said the acquisition would give Rocket Lab access to Iridium’s existing constellation of 66 satellites, more than 2.5 million subscribers and more than $870 million in annual revenue, rather than requiring the company to spend a decade or more building a new constellation from scratch.
The strategy builds on Rocket Lab’s recent acquisition activity. During the quarter, the company closed its acquisitions of Mynaric and Motiv, while Beck also pointed to GEOST as part of its broader vertical-integration strategy.
Rocket Lab’s latest results show the scale of the business it is trying to expand. The company reported record second-quarter revenue of $234.07 million, up 62% year-over-year, and ended the quarter with a record $2.36 billion backlog. It also guided for third-quarter revenue of $250 million to $265 million.
The quarter was not perfect, however. Rocket Lab reported a loss of 8 cents per share, missing the 7-cent estimate cited in its earnings report.
Price Action: Rocket Lab shares were down 3.37% at $80.04 at the close of Monday’s regular session. The stock was trading at $73.42 in pre-market trading, down 8.27%.
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Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.
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