Canada's MDA Space Q4 revenue rises on Satellite Systems business

Overview

• Canada space tech firm's Q4 revenue rose 44% yr/yr, driven by Satellite Systems

• Adjusted EBITDA for Q4 beat analyst expectations

• Company's C$4 bln backlog at qtr-end, provides revenue visibility into 2026 and beyond

Outlook

• MDA expects 2026 revenue between C$1.7 bln and C$1.9 bln

• Company projects 2026 adjusted EBITDA of C$320 mln to C$370 mln

• MDA anticipates 2026 capital expenditures of C$225 mln to C$275 mln

Result Drivers

• SATELLITE SYSTEMS - Revenue growth in Q4 2025 was largely driven by the Satellite Systems business, including work on the Telesat Lightspeed and Globalstar LEO constellation programs

• DEFENSE CONTRACTS - Strategic partnerships and contracts, such as the military satellite communications for Canadian forces, are driving new opportunities

• TECHNOLOGY INVESTMENTS - Investments in MDA AURORA™, MDA SKYMAKER™, and MDA CHORUS™ are building next-gen space capabilities

Company press release: ID:nCNWmlrWLa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for MDA Space Ltd is C$47.00, about 16% above its March 3 closing price of C$40.53

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 16 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.