MDA Space (TSE:MDA) Issues Earnings Results

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

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

MDA stock traded up C$2.68 on Friday, hitting C$40.16. The company’s stock had a trading volume of 3,548,079 shares, compared to its average volume of 1,292,862. The company has a current ratio of 0.75, a quick ratio of 1.00 and a debt-to-equity ratio of 20.01. MDA Space has a 1 year low of C$20.85 and a 1 year high of C$67.90. The firm has a 50 day moving average of C$40.63 and a two-hundred day moving average of C$44.41. The stock has a market cap of C$6.51 billion, a price-to-earnings ratio of 50.84 and a beta of -0.22.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on the stock. National Bank Financial set a C$55.00 price target on shares of MDA Space and gave the stock an “outperform” rating in a research report on Tuesday, September 15th. Desjardins increased their price objective on MDA Space from C$70.00 to C$72.00 and gave the company a “buy” rating in a research note on Wednesday, July 15th. ATB Cormark Capital Markets lowered their target price on shares of MDA Space from C$51.00 to C$48.00 and set a “sector perform” rating on the stock in a research note on Monday, August 10th. Canaccord Genuity Group dropped their target price on shares of MDA Space from C$65.00 to C$64.00 and set a “buy” rating for the company in a report on Monday, August 10th. Finally, Royal Bank Of Canada dropped their price target on MDA Space from C$60.00 to C$55.00 and set an “outperform” rating for the company in a research report on Monday, October 19th. Three research analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Buy” and a consensus 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.