MDA SPACE AWARDED $474 MILLION TO EXPAND THE TELESAT LIGHTSPEED LEO CONSTELLATION

Rhea-AI Summary

MDA Space (TSX/NYSE: MDA) will supply Telesat LEO ULC, part of Telesat (Nasdaq/TSX: TSAT), with additional MDA AURORA™ broadband satellites as Telesat expands its Lightspeed low Earth orbit constellation. Telesat is increasing its fully funded LEO satellites by 69, from 156 to 225.

For MDA Space, this adds 27 satellites to its previously announced 198 Lightspeed satellites and raises the total contract value by $474 million, including 500 MHz of military Ka-band upgrades and long-lead items. Most of this increase is expected to enter MDA Space’s backlog in Q3 2026.

The Government of Canada also selected MDA Space as prime contractor for the ESCP-P UHF and X-band MEO constellation, with Telesat as subcontractor and contract details to follow.

Positive

• Contract value +$474 million for Telesat Lightspeed satellites and upgrades
• 27 additional satellites added to MDA Space’s Lightspeed manufacturing order
• Majority of the $474 million increase expected in Q3 2026 backlog
• Named prime contractor for Canada’s ESCP-P UHF and X-band MEO constellation

Negative

• None.

News Explained

MDA’s awarded 474-million-dollar expansion changes spectrum across its Lightspeed satellite program, while the separate MEO contract remains under negotiation.

MDA Space has been awarded a $474 million expansion of its Telesat Lightspeed work, with 500 MHz of military Ka-band replacing the same amount of commercial spectrum on the satellites being built.

For the separate ESCP-P UHF and X-band MEO component, MDA will be the prime contractor responsible for end-to-end mission delivery and Telesat will be a subcontractor, but negotiations are still underway and its contract details are not finalized.

Market Context

MDA's July 21 lunar landing sensors announcement provides a recent contract-news comparator, while l...

Analysis

MDA's July 21 lunar landing sensors announcement provides a recent contract-news comparator, while low short positioning is a separate risk context. The scheduled Aug. 7 earnings release remained the next disclosed information point for evaluating execution.

Key Figures

Contract value increase: $474 million Constellation expansion: 69 satellites Fully funded satellites: 225 satellites +4 more

7 metrics

Contract value increase $474 million Telesat Lightspeed constellation expansion

Constellation expansion 69 satellites Telesat LEO constellation increase

Fully funded satellites 225 satellites increasing from 156 satellites

Prior MDA satellite order 198 satellites previously announced Lightspeed manufacturing order

MDA satellite increase 27 satellites increase to the previously announced order

Military Ka-band allocation 500 MHz added to Lightspeed satellites under construction

Backlog timing Q3 2026 majority of contract value to be added to backlog

Historical Context

5 past events · Latest: Jul 21 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jul 21	Lunar sensor contract	Positive	+5.2%	OHB selected MDA Space to supply lunar landing sensors for ESA's Argonaut mission.
Jul 16	Earnings call notice	Neutral	-5.4%	Company scheduled its second-quarter 2026 earnings release and conference call.
Jul 14	Bought-deal closing	Negative	+7.7%	MDA Space closed an upsized common-share offering to fund acquisitions.
Jul 09	Offering increase	Negative	-8.5%	Company increased its bought-deal offering and retained an over-allotment option.
Jul 08	Bought-deal offering	Negative	-8.5%	MDA Space announced a common-share offering to support its CLS acquisition.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Historical responses were mixed: the prior contract announcement aligned with a gain, while financing announcements included both gains and declines.

Key Terms

low earth orbit, ka-band, ultra-high frequency, x-band, +1 more

5 terms

low earth orbit technical

"expanding the Telesat Lightspeed low Earth orbit constellation"

Low Earth orbit (LEO) is the region of space close to Earth, roughly from about 160 to 2,000 kilometers above the surface, where satellites and spacecraft circle the planet quickly—think of it as a busy highway just overhead. It matters to investors because many communications, imaging and data services rely on satellites in LEO; their shorter lifespans, lower launch costs, crowded lanes and debris risks directly affect the cost, revenue potential and operational risks of companies that build, launch or use these satellites.

ka-band technical

"addition of 500 MHz of military Ka-band to Lightspeed satellites"

Ka-band is a slice of the microwave radio spectrum (roughly 26.5–40 GHz) commonly used for satellite links and high-capacity wireless backhaul. Because it carries more data per second and lets antennas be smaller, it can enable faster internet and more channels, but its higher frequency is also more prone to signal loss in heavy rain or obstacles. Investors track Ka-band deployment and equipment costs because it affects a company’s ability to deliver high-speed services, coverage economics, and revenue potential.

ultra-high frequency technical

"a secure Ultra-High Frequency (UHF) and X-band constellation"

Trading or market activity conducted at extremely short time scales—typically microseconds to nanoseconds—using automated algorithms, co-located servers and direct electronic links to send, cancel and modify orders far faster than a human can act. It matters to investors because these ultra-fast actions influence how quickly prices change, how easily trades are filled, and the occurrence of very brief price swings; think of it like a high-speed courier altering deliveries in a crowded marketplace where tiny delays change who gets what and when.

x-band technical

"a secure Ultra-High Frequency (UHF) and X-band constellation"

X-band is a slice of the microwave radio spectrum (roughly 8–12 gigahertz) used for radar, satellite communications and certain military and weather systems. Think of it like a particular station on a radio dial chosen because its wavelength works well for high-resolution radar and relatively compact satellite links; that makes it important for companies that build radars, satellite terminals, antennas and related chips. Investors watch X-band activity because demand, regulatory access to the spectrum and new product wins can drive revenue and competitive advantage in defense, aerospace and telecom supply chains.

medium earth orbit technical

"constellation in Medium Earth Orbit (MEO)"

Medium Earth orbit (MEO) is the band of space between low Earth orbit and geostationary orbit, roughly from about 2,000 km up to 35,786 km above Earth. It’s where many navigation and communications satellites operate because it balances coverage area, signal delay and satellite lifetime—think of it as the middle floor of a multi-story building where you trade proximity for broader reach. Investors care because a satellite’s orbit affects service quality, launch and replacement costs, regulatory needs and competitive positioning of space-related businesses.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Follow-on order of MDA AURORA^™ satellites will enable Telesat to meet the needs of both commercial and defence customers

TORONTO, Aug. 4, 2026 /PRNewswire/ -- MDA Space Ltd. (TSX: MDA) (NYSE: MDA), a trusted mission partner to the rapidly expanding global space industry, will be supplying Telesat LEO ULC, a division of Telesat Corporation (Nasdaq: TSAT) (TSX: TSAT) with additional MDA AURORA™ next-generation broadband satellites, coinciding with the operator's announcement today that it is expanding the Telesat Lightspeed low Earth orbit constellation.

Telesat announced that it is expanding its LEO constellation by 69 satellites, bringing the total number of fully funded satellites from 156 to 225. For MDA Space, this represents an increase of 27 satellites to the previously announced 198 satellites being manufactured for the Telesat Lightspeed LEO constellation. As a result, MDA Space has increased the total value of the contract by $474 million, which includes the new satellites, the addition of 500 MHz of military Ka-band to Lightspeed satellites currently being built, replacing the same amount of commercial Ka-band spectrum, and other long-lead items.

This constellation expansion follows the Strategic Partnership Agreement announced last year between MDA Space, the Department of National Defence and Telesat to provide connectivity across the Canadian Arctic as part of the Enhanced Satellite Communications Project-Polar (ESCP-P) program, enabling the Canadian Armed Forces to operate effectively in the region.

"Reliable military communication in the Arctic is a necessity for protecting Canadian sovereignty, maintaining situational awareness, coordinating joint operations with allies, and responding quickly to emergencies in a region where every minute counts," said Mike Greenley, CEO of MDA Space. "As a Canadian-based global leader in space and satellite systems, MDA Space is proud to partner with Telesat and the Government of Canada to help equip the Canadian Armed Forces with some of the most advanced capabilities on the market to keep Canadians safe."

The ESCP-P program will also include a secure Ultra-High Frequency (UHF) and X-band constellation in Medium Earth Orbit (MEO). The Government of Canada announced today that MDA Space will serve as the prime contractor responsible for end-to-end mission delivery and that negotiations to advance the definition and development of the UHF and X-band services are underway. Contract details will be disclosed once finalized. Telesat will serve as a subcontractor to MDA Space on this component of the program.

All MDA AURORA™ satellites being designed, built and tested by MDA Space for the Telesat Lightspeed constellation will feature 500 MHz of military Ka-band spectrum alongside Ka-band commercial spectrum, fulfilling a critical national defence commitment of facilitating military communications across the high‑latitude region in support of Canada's continental‑security objectives and its obligations to allied partners. The satellites will be built at the company's state-of-the-art, high-volume manufacturing facility in Montréal. 

The majority of the increase in contract value of $474 million will be added to the company's backlog in the third quarter of 2026 as some long-lead-time items were previously added.

FORWARD-LOOKING STATEMENTS

This news release may contain forward-looking information within the meaning of applicable securities legislation, which reflects the company's current expectations regarding future events. Such forward-looking information includes, but is not limited to, the ultimate number of satellites to be delivered to Telesat by MDA Space, the technical specifications and functionality of the satellites that are delivered, the ability of the delivered satellites to fulfill the purpose for which they were intended and the ultimate conversion by MDA Space of any of its backlog into revenue. Forward-looking statements are based on certain assumptions and analyses made by MDA Space in light of management's experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate, and are subject to risks and uncertainties and other factors which may cause the actual results, performance or achievements of MDA Space to differ materially from those anticipated in such forward-looking statements for a variety of reasons, including without limitation the risks and uncertainties detailed under the "Risk Factors" section of MDA Space's annual information form dated March 4, 2026.

Although MDA Space believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect and there can be no assurance that actual results will be consistent with the forward-looking statements. There are a number of additional risks and uncertainties affecting or that could affect MDA Space, which could cause actual results and developments to differ materially from those described in, expressed or implied by these forward-looking statements. Accordingly, readers should not place undue reliance on any forward-looking statements or information included within this press release. These forward-looking statements speak only as of the date of this news release. Except as required by law, MDA Space is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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. For those who dream big and push boundaries on the ground and in the stars to change the world for the better, we'll take you there. For more information, visit mda.space.

SOCIAL MEDIA
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Facebook: Facebook.com/MDAspace
YouTube: YouTube.com/c/MDAspace
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SOURCE MDA Space

FAQ

What does the $474 million award mean for MDA Space (TSX: MDA, NYSE: MDA)?

The award increases MDA Space’s Telesat Lightspeed contract value by $474 million. According to MDA Space, this covers new satellites, 500 MHz of military Ka-band upgrades, and other long-lead items, with most of the value expected to enter backlog in Q3 2026.

How many satellites will the Telesat Lightspeed LEO constellation have after the August 4, 2026 expansion?

After the expansion, the Telesat Lightspeed LEO constellation will have 225 fully funded satellites. According to MDA Space, Telesat is adding 69 satellites to the previously funded 156, while MDA’s manufacturing order grows by 27 units to support this build-out.

How does the Telesat Lightspeed order expansion impact MDA Space’s backlog in 2026?

The order expansion is expected to boost MDA Space’s backlog in Q3 2026. According to MDA Space, the majority of the $474 million contract increase will be added then, as some long-lead items had already been included in prior backlog figures.

What is MDA Space’s role in Canada’s ESCP-P satellite communications program?

MDA Space has been named prime contractor for ESCP-P’s UHF and X-band MEO constellation. According to MDA Space, it will be responsible for end-to-end mission delivery, while Telesat will act as a subcontractor; negotiations and contract definition are currently underway.

How are MDA AURORA satellites being upgraded for military use in the Arctic?

Each MDA AURORA satellite for Telesat Lightspeed will include 500 MHz of military Ka-band alongside commercial Ka-band. According to MDA Space, this configuration supports Canadian national defence commitments and military communications across high-latitude Arctic regions as part of continental security objectives.

What is the relationship between MDA (MDA) and Telesat (TSAT) in the Lightspeed program?

MDA Space supplies MDA AURORA satellites to Telesat LEO ULC for the Lightspeed LEO constellation. According to MDA Space, Telesat is expanding its fully funded constellation to 225 satellites, while MDA increases its manufacturing order and contract value to support this expansion.