If you are a student of space history or tracked the space industry before billionaires and venture capital changed it forever, you probably know the name Rocketdyne.
A half-century ago, Rocketdyne manufactured almost all of the large liquid-fueled rocket engines in the United States. The Saturn V rocket that boosted astronauts toward the Moon relied on powerful engines developed by Rocketdyne, as did the Space Shuttle, the Atlas, Thor, and Delta rockets, and the US military’s earliest ballistic missiles.
Rocketdyne’s dominance began to erode after the end of the Cold War. The company started in 1955 as a division of North American Aviation, then became part of Rockwell International until Boeing acquired Rockwell’s aerospace division in 1996. Rocketdyne continually designed and tested large new rocket engines from the 1950s through the 1980s. Since then, Rocketdyne has developed and qualified just one large engine design from scratch—the RS-68—and it retired from service in 2024.
The rise of the commercial space industry precipitated a steeper decline at Rocketdyne. Boeing sold the Rocketdyne division to Pratt & Whitney in 2005 for $700 million, or approximately $1.2 billion adjusted for inflation. This was the year before SpaceX launched its first rocket, and a few years before NASA wound down the Space Shuttle program.
Always be closing
While Rocketdyne’s ownership merry-go-round kept spinning, the company’s competitors pushed forward. SpaceX and Blue Origin, backed by wealthy owners, took a fresh approach to designing rockets. Apart from the technical innovations that led to reusable rockets, these newer companies emphasized vertical integration to cut costs and minimize reliance on outside supply chains. They wanted to design and build their own rocket engines and were not interested in outsourcing propulsion. Rocketdyne’s business was—and still is—entirely focused on selling ready-made engines to customers.