Key facts
- United Launch Alliance (ULA) is preparing to resume launching its Vulcan rocket in the coming weeks.
- Most US rocket companies have embraced reusability and diversification, unlike ULA.
- SpaceX generated $12.5 billion in revenue in the first half of the year, with only 8% from launch services.
- Rocket Lab reported $434 million in revenue for the first half of 2026, with a quarter from launch services.
- ULA's Vulcan rocket development was co-funded by the Pentagon and faced delays and an engine explosion.
- ULA was awarded 27 military launch contracts worth $4.5 billion in 2020, while SpaceX received 22 for $4 billion.
United Launch Alliance (ULA), a joint venture between aerospace giants Boeing and Lockheed Martin, is reportedly facing financial difficulties that could prompt its owners to consider a sale. Unlike many of its competitors in the US space sector, ULA has not significantly diversified its business beyond its core rocket launch services, a market characterized by low margins.
Companies like SpaceX and Rocket Lab have successfully expanded into areas such as satellite manufacturing, broadband internet services, and spacecraft components, deriving a substantial portion of their revenue from these ventures. SpaceX, for instance, reported $12.5 billion in revenue for the first half of the year, with only 8% attributed to launch services, while the rest came from Starlink and AI. Rocket Lab also reported significant revenue from non-launch activities.
ULA, founded in 2006 to ensure US government access to space for national security payloads, has historically benefited from a sole-source paradigm. However, the entry of SpaceX into the military launch market in 2016 marked a turning point, leading to a decline in ULA's dominance. The development of ULA's new Vulcan rocket, intended to replace its legacy Atlas V and Delta IV rockets, has been plagued by delays, cost overruns, and a lack of prioritization on reusability. Despite these challenges, ULA secured a significant portion of military launch contracts in 2020, but SpaceX has since gained the larger share.