Rocket Lab USA Inc RKLB shares are trading higher in Thursday's after-hours session after the company announced a new $515 million contract with a U.S. government customer.

What Happened: In a new regulatory filing, Rocket Lab said it entered into an agreement with a U.S. government customer on Thursday to design, manufacture, deliver and operate 18 space vehicles.

The contract had a total value of $515 million, including a base payment of $489 million and incentives and options worth an additional $26 million.

Rocket Lab said work under the agreement would begin immediately. Delivery of the space vehicles for launch is slated for 2027 and operation of the satellites is set to be active through 2030 with an option to operate through 2033.

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RKLB Price Action: Rocket Lab shares closed Thursday up 0.45%. The stock was up another 16.70% after hours at $5.17 at the time of publication Thursday, according to Benzinga Pro.

Photo: Courtesy of Rocket Lab.