Rocket Lab (Rocket Lab (RKLB)) shares are jumping in extended trading Tuesday after the company landed a $266 million defense contract for suborbital launch services.

The contract, awarded by the U.S. Space Force's Space Systems Command, is a firm-fixed-price completion contract covering the launch of 12 suborbital launch vehicles. There's also an option for six additional launches. Work will be done at the Pacific Spaceport Complex in Alaska, and the contract runs through Dec. 31, 2028.

This wasn't a walk in the park — the award came through a competitive acquisition with three offers submitted. Fiscal 2025 funds totaling $112 million are being obligated at the time of the award, covering research, development, test and evaluation.

The Space Systems Command at Kirtland Air Force Base in Albuquerque, New Mexico, is the contracting activity.

Investors liked what they saw. RKLB shares were up 5.89% in after-hours trading, sitting at $73.19 at the time of publication Tuesday.