The strategic narrative around space just shifted again.
During a February 23, 2026 stop in Denver as part of the Department of War’s “Arsenal of Freedom” tour, Secretary of War Pete Hegseth declared space “the ultimate high ground — the single most decisive battlefield of this century.”
That message comes as Congress has already approved $839 billion in defense spending for fiscal 2026, including billions earmarked for missile warning, tracking satellites, and integrated space and missile defense systems.
Public companies operating at the intersection of commercial launch and national security — including Starfighters Space (NYSE-A: FJET), Rocket Lab (NASDAQ: RKLB), L3Harris Technologies (NYSE: LHX), Intuitive Machines (NASDAQ: LUNR), and Northrop Grumman (NYSE: NOC) — are increasingly positioned at the center of that shift.
The War Department’s remarks in Colorado underscored an urgency to broaden the defense industrial base beyond traditional primes. Speaking to workers at commercial space companies, Hegseth emphasized the need to “open the aperture” and accelerate innovation, stating, “Whoever controls space, controls the future fight; it’s that simple.” For investors, that messaging reinforces a structural theme: national security is driving sustained demand for launch capacity, resilient satellite constellations, hypersonic testing, and missile tracking infrastructure.
Starfighters Space (NYSE-A: FJET) is one of the smaller, newly public entrants aligned with this trend.
Based at NASA’s Kennedy Space Center, the company operates modified supersonic aircraft designed to serve as first-stage air-launch platforms under its STARLAUNCH system. Recently, the company completed subsonic and supersonic wind tunnel testing for STARLAUNCH 1 at Mach 0.85 and Mach 1.3, validating clean separation behavior across flight regimes and correlating results with its computational models.
The company also initiated procurement of an instrumented demonstrator vehicle for underwing flight testing and is preparing for a Critical Design Review supported by GE Aerospace. “As we move into the commercialization era of our business, we are grateful for the strong foundation, both operationally and financially, [founder Rick Svetkoff] has left us,” said CEO Tim Franta, following his appointment after the company’s NYSE listing.
The milestone testing and leadership transition signal a shift from concept validation toward execution and commercialization.
Rocket Lab (NASDAQ: RKLB) continues to expand its role in national security space.
The company is preparing to launch its Cassowary Vex mission using its HASTE rocket platform for the Department of War’s Defense Innovation Unit.
The mission will deploy a scramjet-powered test vehicle developed by Hypersonix, marking the company’s fourth hypersonic test launch in under six months.
Rocket Lab also holds more than $1.3 billion in contracts from the Space Development Agency (SDA), including an $816 million award to build 18 missile defense satellites equipped with next-generation infrared sensors for the Tracking Layer Tranche 3 program.
The company has stated that its vertically integrated model enables faster delivery and lower costs — a structure that aligns with the War Department’s call for speed and execution in strengthening the industrial base.
L3Harris Technologies (NYSE: LHX) recently reorganized its business from four segments to three, creating a dedicated Space & Mission Systems unit following an $843 million SDA contract to build 18 infrared satellites for Tracking Layer Tranche 3.
The restructuring consolidates missile warning, missile defense, and space payload capabilities under a unified structure. “This change thoughtfully organizes common business models, technical capabilities and investment priorities,” said Chairman and CEO Christopher Kubasik. The company currently has four missile tracking satellites on orbit for Tranche 0 and dozens more in development, reinforcing its role in proliferated space architecture.
Intuitive Machines (NASDAQ: LUNR) completed its $800 million acquisition of Lanteris Space Systems (formerly Maxar Space Systems), combining $450 million in cash and $350 million in stock.
The deal expands the company into vertically integrated spacecraft manufacturing and strengthens its ability to compete for SDA and NASA programs. “This acquisition marks a defining moment in the evolution of Intuitive Machines,” said CEO Steve Altemus. “We previously proved our ability to operate on the Moon. With Lanteris, we add flight-proven manufacturing at scale.”
The combined entity reports over $850 million in revenue and approximately $920 million in backlog, positioning it for broader participation in national security and lunar initiatives.
Northrop Grumman (NYSE: NOC) was selected as one of four prime contractors under the SDA’s $3.5 billion Tranche 3 Tracking Layer program.
The company is responsible for a significant portion of the 150 satellites planned across the first three tranches of the Proliferated Warfighter Space Architecture. “Northrop Grumman’s contributions to both high and low altitude layers of our nation’s missile warning and tracking architecture help protect our nation from a wide range of threats,” said Brandon White, Vice President of Space-Enabled Multi-Domain Operations.
The company projects its Space Systems segment to reach approximately $11 billion in fiscal 2026, reflecting increasing demand for missile warning and space-based sensing.
While larger primes and established launch providers command substantial contracts, Starfighters Space (NYSE-A: FJET) represents an earlier-stage entrant that directly aligns with the War Department’s message about expanding the competitive field.
As Hegseth emphasized in Denver, “We can’t just rely on the big [defense contractors]… We have to open the aperture and ensure that scrappy companies that have great ideas… are able to compete on a level playing field.”
For smaller, specialized launch companies, that policy tone could translate into increased testing, prototyping, and niche mission opportunities.
Starfighters’ differentiator centers on its air-launch model.
The company states it is the only commercial operator capable of sustained Mach 2 flight for payload carriage, enabling rockets to be deployed from approximately 45,000 feet. This approach can offer flexibility in launch azimuth, weather avoidance, and rapid mission scheduling compared to fixed-pad systems.
Recent wind tunnel validation at both subsonic and supersonic speeds reduces aerodynamic risk ahead of fabrication and integration. The upcoming Critical Design Review supported by GE Aerospace represents a formal engineering milestone before advancing to hardware production.
In terms of operational traction, Starfighters has increased visibility following its public listing and rang the Opening Bell at the New York Stock Exchange.
Leadership continuity also appears to be a focus. Former Congressman Bill Posey, who represented Florida’s Space Coast for over a decade, endorsed the CEO transition, stating, “It is very fitting that [Franta] now leads a company that aims to continue that development.” Franta himself brings more than two decades of experience in space commercialization, including roles tied to FAA licensing and infrastructure funding in Florida.
From a competitive standpoint, air-launch systems face high technical and regulatory barriers. Integration with supersonic aircraft, FAA launch licensing, propulsion validation, and aerodynamic separation testing all represent specialized engineering domains.
Starfighters’ proximity to Kennedy Space Center and its experience operating modified supersonic aircraft provide a foundation that may be difficult for new entrants to replicate quickly.
As missile defense architectures increasingly require responsive launch and testing capabilities, flexibility and speed could become strategic advantages.
Looking ahead, near-term catalysts for Starfighters include completion of its Critical Design Review, progression into fabrication and integration of STARLAUNCH 1, and further underwing flight testing of its instrumented demonstrator vehicle.
Broader sector catalysts include continued Space Development Agency tranche awards, hypersonic test demand, and execution of recently funded defense budgets emphasizing space dominance.
The macro thesis remains clear: national security priorities are accelerating investment in launch, tracking, and resilient space infrastructure. Rocket Lab, L3Harris, Intuitive Machines, and Northrop Grumman each represent scaled platforms benefiting from defined contract backlogs.
Starfighters Space, while earlier in its commercialization arc, is positioning itself within that same structural shift — one increasingly reinforced by explicit policy messaging from the highest levels of defense leadership.
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SOURCES:
1.) Company press releases and filings from Starfighters Space, Rocket Lab, L3Harris Technologies, Intuitive Machines, and Northrop Grumman (2025–2026).
2.) Department of War, “Hegseth, Arsenal of Freedom Tour Look to Space From ‘Mile High City’,” Feb. 23, 2026.
3.) Air & Space Forces Magazine, “Congress Passes $839 Billion Budget for Defense.”