Investing in Space: Why military contracts are crucial for space companies

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Rocket Lab USA Inc,Elon Musk,Boeing Co

Military contracts often represent 'we made it' moments for space companies.

CNBC's Investing in Space newsletter offers a view into the business of space exploration and privatization, delivered straight to your inbox. CNBC's Michael Sheetz reports and curates the latest news, investor updates and exclusive interviews on the most important companies reaching new heights.

My impression is that – outside of the industry – when most people hear "space," or think about "investing in space" for that matter, it comes with connotations of science, exploration, astronauts, and maybe some even though the latter is old enough to be the Space Force's grandfather and holds a coveted position as one of the most beloved federal agencies.

Historically, the biggest defense contractors have long been the winners of the largest space contracts – and that's still true today.The top pure-play space companies get a significant, if not majority, amount of revenue from military work under contracts from the U.S. and its allies.

 

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