MDA Space (TSE:MDA) Posts Quarterly Earnings Results

MDA Space (TSE:MDA) released its earnings results on Thursday. The company reported C$0.37 EPS for the quarter, FiscalAI reports. The business had revenue of C$498.10 million during the quarter. MDA Space had a return on equity of 6.60% and a net margin of 5.66%.

Here are the key takeaways from MDA Space’s conference call:

• MDA Space reported Q3 revenue of CAD 498 million, up 22% year over year, and adjusted EBITDA of CAD 96 million. It raised 2026 revenue guidance to CAD 1.9–1.95 billion and adjusted EBITDA guidance to CAD 355–375 million.
• Bookings reached approximately CAD 1.6 billion for the first nine months, while backlog remained just under CAD 4 billion. Management cited a CAD 40 billion opportunity pipeline, including CAD 10 billion in down-selected or follow-on opportunities, though pipeline opportunities are not yet contracted.
• The first eight Globalstar replenishment satellites were successfully deployed, and the remaining nine are progressing toward delivery later this year. MDA CHORUS is nearing launch, with early customer contracts and letters of interest already providing a commercial base.
• Q3 gross margin declined to 25.3% from 26.4% a year earlier, and adjusted EBITDA margin fell to 19.3% from 20.2%, reflecting program mix and higher planned spending. Year-to-date free cash flow was negative CAD 116 million, and full-year free cash flow guidance remains neutral to negative.
• The planned Blue Canyon Technologies and CLS acquisitions remain on track for late-2026 or early-2027 completion, subject to approvals and other closing conditions; together, they would have added nearly CAD 700 million of 2026 pro forma revenue. Management said Telesat Lightspeed execution and its financial forecasts are unchanged despite schedule discussions, and cited about CAD 1.4 billion of remaining backlog on the program.

MDA Space Stock Performance

Shares of MDA opened at C$37.48 on Friday. MDA Space has a one year low of C$20.85 and a one year high of C$67.90. The company has a market cap of C$6.08 billion, a PE ratio of 47.44 and a beta of -0.22. The stock has a 50-day moving average of C$40.67 and a 200-day moving average of C$44.40. The company has a debt-to-equity ratio of 20.01, a current ratio of 0.75 and a quick ratio of 1.00.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the company. Canaccord Genuity Group dropped their price target on MDA Space from C$65.00 to C$64.00 and set a “buy” rating on the stock in a research note on Monday, August 10th. National Bank Financial set a C$55.00 price objective on shares of MDA Space and gave the stock an “outperform” rating in a research report on Tuesday, September 15th. ATB Cormark Capital Markets lowered their price objective on shares of MDA Space from C$51.00 to C$48.00 and set a “sector perform” rating for the company in a research note on Monday, August 10th. Canadian Imperial Bank of Commerce dropped their target price on shares of MDA Space from C$67.00 to C$59.00 in a research report on Wednesday, July 15th. Finally, Royal Bank Of Canada dropped their target price on shares of MDA Space from C$60.00 to C$55.00 and set an “outperform” rating on the stock in a research report on Monday, October 19th. Three equities research analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and an average target price of C$63.18.

About MDA Space

Building the space between proven and possible, MDA Space (TSX:MDA; NYSE:MDA) is a trusted mission partner to the global defence and space industry. A robotics, satellite systems and geointelligence pioneer with a 55-year+ story of world firsts and more than 450 missions, MDA Space is a global leader in communications satellites, Earth and space observation, and space exploration and infrastructure. The global MDA Space team of more than 4,000 space experts has the knowledge and know-how to turn an audacious customer vision into an achievable mission – bringing to bear a one-of-a-kind mix of experience, engineering excellence and wide-eyed wonder that’s been in our DNA since day one.