Backlog, tax treatment and break-even margins in three industrial results
Rocket Lab, Embraer and Plug Power each reported second-quarter operating figures in which backlog, tax and tariff treatment, or gross margin recovery carried different weight, without any investment recommendation.
Economics & Markets··Morning
Rocket Lab's backlog and near-term intake
Rocket Lab reported second-quarter revenue of 234 million dollars, 62 per cent above a year earlier, with a backlog of 2.36 billion dollars that rose 137 per cent year on year. The launch and space systems company guided third-quarter revenue of 250 million to 265 million dollars and an adjusted loss before interest, tax, depreciation and amortisation of 17 million to 23 million dollars. Founder and chief executive Peter Beck said third-quarter contracts already exceed 1 billion dollars across launch and space systems after deals signed since the quarter closed. During the quarter and afterwards it secured more than 437 million dollars of new launch contracts, lifting launch backlog above 90 launches, and won a 397 million dollars Flatellite supply contract for a United States Space Force programme. It closed the Mynaric and Motiv acquisitions, announced an agreement to buy Iridium Communications, and said first Neutron stage one tank production is aligned with pad delivery in the fourth quarter of 2026.[1]
Embraer's margin lift and policy support
Embraer posted second-quarter revenue of 2,235 million dollars, an all-time high for a second quarter and 23 per cent above a year earlier, with adjusted earnings before interest and taxes of 296.9 million dollars at a 13.3 per cent margin. The Brazilian aircraft maker raised full-year adjusted margin guidance to 10.0–10.6 per cent from 8.7–9.3 per cent and lifted its adjusted free cash flow target excluding Eve to at least 400 million dollars from at least 200 million dollars. It attributed roughly 110 million dollars of the mid-point rise in implied 2026 adjusted operating profit guidance to 68 million dollars from an extraordinary tax credit, 38 million dollars from a second-half exemption on direct United States import tariffs, and 4 million dollars from a better business outlook. Without the tariffs and the tax credit the second-quarter adjusted margin would have been 10.6 per cent. Deliveries reached 65 aircraft, 7 per cent above the 61 a year earlier, and the firm order backlog stood at 34.5 billion dollars, an all-time high and more than 16 per cent higher year on year, while delivery guidance was unchanged.[2]
Plug Power's margin recovery beside the other two
Plug Power reported second-quarter net revenue of about 178 million dollars, up about 9 per cent from the first quarter, and a consolidated gross margin near break-even against about minus 31 per cent a year earlier and minus 13 per cent in the first quarter. The hydrogen equipment maker raised full-year 2026 revenue growth guidance to 15–16 per cent and repeated its target of positive earnings before interest, taxes, depreciation, amortisation and share-based compensation in the fourth quarter. Operating expenses fell about 50 per cent year on year to roughly 62 million dollars, net cash usage improved to about 61 million dollars, and loss per share narrowed to 0.14 dollars from 0.20 dollars. It also flagged asset monetisation and financing steps aimed at 275 million dollars of proceeds, and chief executive Jose Luis Crespo tied the guidance increase to the second-half-weighted cadence of the business and commercial backlog strength. Across the three releases, Rocket Lab leans on backlog and contract intake while still guiding an adjusted loss, Embraer shows tax and tariff treatment lifting published margin and profit guidance even when the adjusted margin without those items is lower, and Plug Power presents break-even gross margin and cost cuts as support for higher growth guidance.[3], [1], [2]
