MDA SpaceMDA

Key highlights

• Revenue and profit outlook raised: Management raised the midpoint of its 2026 targets, now expecting revenue between $1.8 billion and $1.9 billion and adjusted EBITDA, which is a measure of profit before certain non-cash items, between $330 million and $370 million. This shows the company is confident in its ability to deliver on its large space contracts despite a busy production schedule.
• Satellite systems growth accelerating: Revenue from the satellite systems division jumped 44.5% to $336.1 million, mostly because of increased work on the Telesat Lightspeed program. This division is now the primary engine of the business, making up 67% of total company sales.
• Backlog hits four billion dollars: The company’s backlog, representing the total value of signed contracts yet to be completed, reached $4.0 billion at the end of the quarter. While this is lower than the $4.6 billion reported a year ago, it rose by $310 million since last quarter because new orders are coming in faster than current work is being finished.
• Cash flow turns negative: Free cash flow was negative $150.2 million compared to a positive $16.2 million last year, as the company spent heavily on its Montreal manufacturing facility and working capital. Spending on big satellite projects often requires the company to pay for materials and labor before it receives milestone payments from customers.
• Share count diluting earnings: Net income rose 2.6% to $27.9 million, but earnings per share fell 9.5% to $0.20 because there are more shares outstanding following a stock offering in March 2026. This means the profit is being spread across a larger pool of owners, which can make individual shares less valuable even when the business is growing.

Our take: A strong quarter that proves MDA can scale its manufacturing without losing its grip on profit margins. The sharp rise in satellite revenue and a growing backlog of $4.0 billion show deep demand for sovereign space tech. This performance reinforces the long term case that MDA is successfully shifting from a niche player to a high volume global supplier.