MDA SPACE REPORTS FIRST QUARTER 2026 RESULTS
Rhea-AI Summary
MDA (TSX/NYSE: MDA) reported Q1 2026 results: revenues CA$464.1M (+32% YoY), adjusted EBITDA CA$90.6M (+32%) and adjusted net income CA$50.7M (+32%). Backlog was CA$3.7B at March 31, 2026. Net cash was CA$299.3M and total liquidity CA$1.2B. Company reaffirmed 2026 guidance: revenues CA$1.7–1.9B, adjusted EBITDA CA$320–370M, and capex CA$225–275M.
Positive
- Revenues CA$464.1M, +32.2% YoY
- Adjusted EBITDA CA$90.6M, +32.1% YoY
- Adjusted net income CA$50.7M, +32.0% YoY
- Backlog CA$3.7B provides multi-year visibility
- Net cash position CA$299.3M; total liquidity CA$1.2B
Negative
- Net income CA$29.6M, down 10.0% YoY
- Free cash flow CA$(27.6)M in Q1 2026
- Operating cash flow down to CA$60.9M from CA$267.0M
- Backlog down from CA$4.8B to CA$3.7B YoY
Key Figures
Market Reality Check
Peers on Argus
No Aerospace & Defense peers from the provided list appeared in the momentum scanner, indicating the 5.47% move in MDA likely reflects company-specific earnings rather than a sector-wide rotation.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| May 05 | Constellation contracts | Positive | -1.2% | Early customer contracts and letters of interest for MDA CHORUS data. |
| Apr 20 | Constellation hardware order | Positive | -2.3% | Airbus repeat order for hundreds of Ka- and Ku-band antennas. |
| Apr 14 | Earnings call advisory | Neutral | +3.3% | Scheduling of Q1 2026 results release and related conference call. |
| Apr 13 | Product launch | Positive | +2.4% | Unveiling of MDA MIDNIGHT space control platform for defense customers. |
| Mar 24 | Program update | Neutral | -10.4% | Update that Canadarm3 contract remains unchanged amid Artemis mission shifts. |
Recent positive contract and product announcements sometimes saw negative or muted price reactions, while today’s strong earnings coincided with a clear upside move.
Over the last few months, MDA has reported multiple commercial wins and product launches, including MDA CHORUS™ early customer commitments on May 5, 2026 and a repeat Airbus antenna order on April 20, 2026. Earlier, it unveiled the MDA MIDNIGHT™ platform and provided a market update stressing stability of the Canadarm3 contract. Despite some past positive news seeing negative price reactions, today’s Q1 2026 earnings strength aligns with a notable share price gain.
Market Pulse Summary
This announcement highlights robust Q1 2026 performance, with revenue rising to $464.1M, adjusted EBITDA at $90.6M, and backlog of $3,692.7M supporting visibility into 2026 and beyond. At the same time, net income declined to $29.6M and free cash flow turned negative at $(27.6)M, reflecting higher amortization and investment. Investors may focus on execution against the reaffirmed $1.7–$1.9B revenue outlook and the evolution of cash generation and capital expenditures over coming quarters.
Key Terms
adjusted ebitda financial
adjusted net income financial
free cash flow financial
ebitda financial
order bookings financial
net debt financial
non-ifrs financial
trailing twelve months financial
AI-generated analysis. Not financial advice.
- Backlog of
$3.7 - Revenues of
$464 32% YoY - Adjusted EBITDA1 of
$91 32% YoY; Adjusted EBITDA margin1 of19.5% - Adjusted net income1 of
$51 32% YoY - Operating cash flow of
$61 $(28) - Net cash1 position of
$299 $1.2 - Reaffirmed 2026 full-year financial outlook
"Q1 execution drove a solid start to the year, with the MDA Space team once again delivering on our track record of quarterly year-over-year revenue growth. Our consistent performance reinforces our ability to deliver profitable growth while maintaining balance sheet strength to invest and expand, all of which contributed to a highly successful initial public offering and listing on the New York Stock Exchange.
We continue to see the speed at which defence spending and demand for new space capability is shaping the market. In March, we announced a contract with
Equally evident was focused execution across the business with our first set of Globalstar satellites signed off and delivered to
With a
Mike Greenley, CEO of MDA Space
Q1 2026 HIGHLIGHTS
- Backlog of
$3.7 billion $4.8 billion - Revenues of
$464.1 million 32.2% year-over-year driven by higher volumes across all business areas in the quarter. - Adjusted EBITDA of
$90.6 million 32.1% year-over-year driven by higher volumes of work. Adjusted EBITDA margin of19.5% in Q1 2026 is consistent with the Company's full year margin guidance of18% -20% . - Net income of
$29.6 million 10.0% year-over-year and diluted earnings per share were$0.22 11.5% year-over-year driven primarily by the increase in amortization of intangible expenses related to the SatixFy Communications Ltd. acquisition in Q3 2025.
1As defined in the "Non-IFRS Financial Measures" section |
- Adjusted net income in Q1 2026 was
$50.7 million 32.0% year-over-year driven by the higher gross margin, partially offset by investments in SG&A and R&D. Adjusted diluted earnings per share of$0.38 26.9% year-over-year as a result of the higher adjusted net income, partially offset by higher average diluted shares outstanding due to a recent equity issuance related to the US IPO. - Operating cash flow of
$60.9 million $267.0 million - Free cash flow of
$(27.6) million $205.3 million - Net cash position of
$299.3 million $120.0 million the United States , which was completed in Q1 2026.
2026 FINANCIAL OUTLOOK
As a trusted mission partner and leading global space technology provider, we are leveraging our capabilities and expertise to execute on targeted growth strategies across our end markets and business areas. Our strategic initiatives, which span across our three businesses, include investing in next generation space technology and services, expanding our presence in attractive markets and geographies, scaling and expanding operations, skills, and talent to meet current and future market demand, leveraging strategic mergers, acquisitions and partnerships to complement organic growth, and continuing to position ourselves as
MDA Space is well positioned to capitalize on strong customer demand and robust market activity given our diverse and proven technology offerings. Our growth pipeline is significant and underpinned by existing and new programs and our book of business is healthy.
Our fiscal 2026 outlook consists of the following:
- Revenues of
$1.7 $1.9 billion 10% at the mid-point of guidance - Adjusted EBITDA of
$320 $370 million 7% at the mid-point of guidance - Adjusted EBITDA margin of
18% -20% - Capital expenditures of
$225 $275 million Montreal facility and investments in chip development - Free cash flow to be neutral to negative driven by normal program working capital fluctuations
FINANCIAL OVERVIEW
KEY INDICATORS SUMMARY
First Quarters Ended | |||
(in millions of Canadian dollars, except per share data) | March 31, 2026 | March 31, 2025 | |
Revenues | $ 464.1 | $ 351.0 | |
Gross profit | 115.2 | 79.7 | |
Gross margin | 24.8 % | 22.7 % | |
Adjusted EBITDA | 90.6 | 68.6 | |
Adjusted EBITDA Margin | 19.5 % | 19.5 % | |
Adjusted Net Income | 50.7 | 38.4 | |
Adjusted Diluted EPS | $ 0.38 | $ 0.30 | |
As at | |||
(in millions of Canadian dollars, except for ratios) | March 31, 2026 | December 31, 2025 | |
Backlog Net debt2 to Adjusted TTM3 EBITDA ratio | $ 3,692.7 $ (0.9)x | 4,012.9 0.4x | |
2As defined in the 'Non-IFRS Financial Measures' section | |||
3TTM: trailing twelve months | |||
REVENUES BY BUSINESS AREA
First Quarters Ended | ||
(in millions of Canadian dollars) | March 31, 2026 | March 31, 2025 |
Satellite systems | $ 313.1 | $ 222.0 |
Robotics and space operations | 91.6 | 77.3 |
Geointelligence | 59.4 | 51.7 |
Consolidated revenues | $ 464.1 | $ 351.0 |
Revenues
Consolidated revenues for the first quarter of 2026 were
By business area, revenues in Satellite Systems for the first quarter of 2026 were
Gross Profit and Gross Margin
Gross profit reflects our revenues less cost of revenues. Q1 2026 gross profit of
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA for the first quarter of 2026 was
Adjusted Net Income
Adjusted net income for the first quarter of 2026 was
Backlog
Backlog is comprised of our remaining performance obligations which represents the transaction price of firm orders less inception to date revenue recognized and excludes unexercised contract options and indefinite delivery or indefinite quantity contracts. Backlog as at March 31, 2026 was
First Quarters Ended
First Quarters Ended | ||
(in millions of Canadian dollars) | March 31, 2026 | March 31, 2025 |
Opening Backlog | $ 4,012.9 $ | 4,385.5 |
Less: Revenue recognized | (464.1) | (351.0) |
Add: Order Bookings | 143.9 | 803.9 |
Ending Backlog | $ 3,692.7 $ | 4,838.4 |
CONFERENCE CALL AND WEBCAST
MDA Space will host a conference call and webcast to discuss these financial results on Thursday, May 7, 2026 at 8:30 a.m. ET. Interested parties can join the call by dialing 416-945-7677 (
A replay of the webcast will be archived on the MDA Space Investor Relations website. Parties may also access a recording of the call, which will be available until May 14, 2026, by dialing 1-888-660-6345 and entering the passcode 38570 #.
NON-IFRS FINANCIAL MEASURES
This press release refers to certain non-IFRS measures. These measures are not recognized measures under IFRS Accounting Standards as issued by the International Accounting Standards Board (IFRS), do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, the measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. We use non- IFRS measures, including EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Earnings per Share, Order Bookings, Net Debt (Cash) and Free Cash Flow to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures.
We define EBITDA as net income (loss) before: i) depreciation and amortization expenses, ii) provision for (recovery of) income taxes, and iii) finance costs. Adjusted EBITDA is calculated by adding to and deducting from EBITDA, as applicable, certain expenses, costs, charges or benefits incurred which in management's view are either not indicative of underlying business performance or impact the ability to assess the operating performance of our business, including i) unrealized foreign exchange gain or loss, ii) unrealized gain or loss on financial instruments, iii) share-based compensation expenses, iv) share of profit or loss of equity-accounted investees, and v) other items that may arise from time to time. Adjusted EBITDA margin represents Adjusted EBITDA divided by revenue. Adjusted Net Income is calculated by adding to and deducting from net income, as applicable, certain expenses, costs, charges or benefits incurred which in management's view are either not indicative of underlying business performance or impact the ability to assess the operating performance of our business, including i) amortization of intangible assets related to business combinations, ii) unrealized foreign exchange gain or loss, iii) unrealized gain or loss on financial instruments, iv) share-based compensation expenses, v) share of profit or loss of equity-accounted investees, and vi) other items that may arise from time to time. Adjusted Earnings per Share represents Adjusted Net Income divided by the weighted average number of shares outstanding. Order Bookings is the dollar sum of contract values of firm customer contracts. Order Bookings is indicative of firm future revenues; however, it does not provide a guarantee of future net income and provides no information about the timing of future revenue. Net Debt (Cash) is the total carrying amount of long-term debt including current portions, as presented in the Q1 2026 Financial Statements, less cash and excluding any lease liabilities. Net Debt (Cash) is a liquidity metric used to determine how well the Company can pay its debt obligations if they were due immediately. Free Cash Flow is a supplemental measure used by Management and other users of the financial statements to monitor the availability of discretionary cash generated, and available to the Company to repay debt, make strategic investments, and meet other payment obligations. We define Free Cash Flow as operating cash flows less net capital expenditures.
FORWARD-LOOKING STATEMENTS
This news release contains certain statements that may constitute "forward-looking information" within the meaning of applicable securities laws ("forward-looking statements"), including but not limited to statements relating to our financial position, business and growth strategies and our revenue pipeline. When used in this news release, forward-looking statements often but not always, can be identified by the use of forward-looking words such as, including but not limited to, "may", "will", "would", "should", "expect", "believe", "intend", "future" and other similar terminology or the negative or inverse of such words or terminology. Forward-looking statements are based on certain assumptions and analyses made by the Company in light of management's experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate, including but not limited to: pipeline opportunities resulting in awarded contracts and realized revenue; retention of material customers; successful execution of our business strategies; consistent and stable economic conditions or conditions in financial markets; government priorities and the growth in the global space industry being consistent with expectations; consistent and stable legislation in the various countries in which we operate; and continued availability of qualified personnel.
Forward-looking statements are also subject to risks and uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from those anticipated in such forward-looking statements for a variety of reasons, including without limitation: economic, political and geopolitical conditions; catastrophic space events, natural disasters and other significant disruptions; policies, priorities, mandates and funding levels of governmental entities; the termination of customer contracts; our revenue pipeline not resulting in firm contracts or realized revenue; the ability to execute large, complex and fixed-price contracts within expected cost, schedule and performance parameters; variability in the timing and realization of revenues from backlog; cybersecurity risks; tariffs or other international trade disputes; the loss, failure or performance degradation of RADARSAT-2; revenue concentration in a small number of contracts; the failure to successfully implement our growth strategy; supplier risks; our ability to develop new technology; risks associated with artificial intelligence and the adoption of emerging technologies; our ability to attract, train and retain employees; regulatory and export control requirements and approvals; financing, liquidity and covenant compliance risks; and the other risks and uncertainties detailed under the "Risk Factors" section of the Company's annual information form dated March 4, 2026. Although the Company 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. 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.
Certain information in this news release, including the section entitled "2026 Financial Outlook", may be considered as "financial outlook" or "future-oriented financial information" within the meaning of applicable securities laws. The purpose of this financial outlook or future-oriented financial information is to provide readers with disclosure regarding MDA Space's reasonable expectations as to the anticipated results of its proposed business activities for the period indicated. Readers are cautioned that the financial outlook or future-oriented financial information may not be appropriate for other purposes.
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 www.mda.space.
MDA Space Ltd.
Unaudited Interim Condensed Consolidated Statement of Comprehensive Income
For the years ended March 31, 2026 and 2025
(In millions of Canadian dollars except per share figures)
Three months ended March | Three months ended March | |
31, 2026 | 31, 2025 | |
Revenue | $ 464.1 | $ 351.0 |
Cost of revenue Materials, labour and subcontractors | (333.9) | (257.6) |
Depreciation and amortization of assets | (15.0) | (13.7) |
Gross profit | 115.2 | 79.7 |
Operating expenses Selling, general and administration | (30.2) | (23.4) |
Research and development, net | (8.6) | (5.5) |
Amortization of intangible assets | (30.5) | (11.6) |
Share-based compensation | (5.8) | (3.9) |
Operating income | 40.1 | 35.3 |
Other income (expenses) Gain (loss) on financial instruments | (0.4) | 0.1 |
Foreign exchange gain and other | 8.4 | 13.1 |
Finance income | 1.0 | 1.7 |
Finance costs | (6.4) | (4.9) |
Share of loss of equity-accounted investee | (1.5) | — |
Income before taxes | 41.2 | 45.3 |
Income tax expense | (11.6) | (12.4) |
Net income | 29.6 | 32.9 |
Other comprehensive income Gain (loss) on translation of foreign operations | 3.2 | (0.8) |
Remeasurement loss on defined benefit plans | (2.2) | (2.0) |
Total comprehensive income | $ 30.6 | $ 30.1 |
Earnings per share: Basic | $ 0.23 | $ 0.27 |
Diluted | 0.22 | 0.26 |
Weighted-average common shares outstanding: Basic | 128,362,554 | 122,239,378 |
Diluted | 132,699,391 | 127,589,192 |
MDA Space Ltd.
Unaudited Interim Condensed Consolidated Statement of Financial Position
March 31, 2026 and 2025
(In millions of Canadian dollars)
As at | March 31, 2026 | December 31, 2025 |
Assets Current assets: Cash | $ 544.0 | $ 152.0 |
Trade and other receivables | 149.0 | 145.3 |
Unbilled receivables | 207.4 | 187.5 |
Inventories | 37.0 | 23.5 |
Income taxes receivable | 56.4 | 52.9 |
Other current assets | 46.7 | 53.3 |
1,040.5 | 614.5 | |
Non-current assets: Property, plant and equipment | 666.0 | 649.6 |
Right-of-use assets | 111.1 | 114.5 |
Intangible assets | 872.7 | 876.7 |
Goodwill | 804.9 | 800.4 |
Equity-accounted investees | 9.8 | 11.3 |
Deferred income tax assets | 15.4 | 10.0 |
Other non-current assets | 275.9 | 279.2 |
2,755.8 | 2,741.7 | |
Total assets | 3,796.3 | 3,356.2 |
Liabilities and shareholders' equity Current liabilities: Accounts payable and accrued liabilities | 458.6 | 391.4 |
Income taxes payable | 12.8 | 11.0 |
Contract liabilities | 710.7 | 798.9 |
Current portion of net employee benefit payable | 86.8 | 77.1 |
Current portion of lease liabilities | 19.8 | 20.2 |
Other current liabilities | 19.8 | 19.2 |
Non-current liabilities: | 1,308.5 | 1,317.8 |
Net employee defined benefit payable | 23.2 | 23.4 |
Lease liabilities | 116.2 | 118.9 |
Long-term debt | 244.7 | 272.0 |
Deferred income tax liabilities | 233.7 | 245.7 |
Other non-current liabilities | 23.3 | 23.4 |
641.1 | 683.4 | |
Total liabilities | 1,949.6 | 2,001.2 |
Shareholders' equity Common shares | 1,501.9 | 1,042.7 |
Contributed surplus | 37.9 | 36.0 |
Accumulated other comprehensive income | 30.1 | 29.1 |
Retained earnings | 276.8 | 247.2 |
Total equity | 1,846.7 | 1,355.0 |
Total liabilities and equity | $ 3,796.3 | $ 3,356.2 |
MDA Space Ltd.
Unaudited Interim Condensed Consolidated Statement of Cash Flows
For the three months ended March 31, 2026 and 2025
(In millions of Canadian dollars)
Three months ended March 31, 2026 | Three months 31, 2025 | |
Cash flows from operating activities | ||
Net income | $ 29.6 | $ 32.9 |
Items not affecting cash: | ||
Income tax expense | 11.6 | 12.4 |
Depreciation of property, plant, and equipment | 8.7 | 7.0 |
Depreciation of right-of-use assets | 3.7 | 3.3 |
Amortization of intangible assets | 33.8 | 15.0 |
Equity-settled share-based compensation | 4.3 | 2.8 |
Investment tax credits accrued | (10.6) | (8.0) |
Finance costs, net | 5.4 | 3.2 |
Loss (gain) on financial instruments | 0.4 | (0.1) |
Share of loss of equity-accounted investee | 1.5 | — |
Loss on buy-out of pension liability | 0.3 | — |
Changes in operating assets and liabilities | (21.4) | 195.8 |
67.3 | 264.3 | |
Interest paid | (2.3) | (2.3) |
Income tax (paid) received, net | (4.1) | 5.0 |
Net cash generated in operating activities | 60.9 | 267.0 |
Cash flows from investing activities | ||
Purchases of property and equipment | (67.2) | (39.8) |
Purchases/development of intangible assets | (21.3) | (21.9) |
Proceeds from disposal of assets | — | 0.2 |
Proceeds from disposal of equity securities | 9.4 | — |
Net cash used in investing activities | (79.1) | (61.5) |
Cash flows from financing activities | ||
Proceeds from senior credit facility | 95.0 | — |
Repayments of senior credit facility | (125.0) | — |
Payment of lease liability (principal portion) | (3.0) | (2.4) |
Proceeds from share issuance, net of transaction costs | 441.5 | — |
Proceeds from stock options exercised | 2.9 | 8.7 |
Net cash generated in financing activities | 411.4 | 6.3 |
Net increase in cash | 393.2 | 211.8 |
Net foreign exchange difference on cash | (3.9) | (2.2) |
Cash, beginning of period prior to restatement for IFRS 9 amendments | 152.0 | 166.7 |
Adjustment on adoption of IFRS 9 amendments on January 1, 2026 | 2.7 | — |
Cash, end of period | $ 544.0 | $ 376.3 |
RECONCILIATION OF NON-IFRS MEASURES
The following table provides a reconciliation of net income to EBITDA, adjusted EBITDA, and adjusted net income:
First Quarters Ended March 31, | ||
(in millions of Canadian dollars) | 2026 | 2025 |
Net income | $ 29.6 | $ 32.9 |
Depreciation and amortization of assets | 15.7 | 13.7 |
Amortization of intangible assets related to business combination | 30.5 | 11.6 |
Income tax expense | 11.6 | 12.4 |
Finance income | (1.0) | (1.7) |
Finance costs | 6.4 | 4.9 |
EBITDA | $ 92.8 | $ 73.8 |
Unrealized foreign exchange gain | (9.7) | (11.4) |
Loss (gain) on financial instruments | 0.4 | (0.1) |
Loss on buy-out of pension liability | 0.3 | — |
Acquisition, integration and reorganization costs | 1.0 | 3.5 |
Equity-settled share-based compensation | 4.3 | 2.8 |
Share of loss of equity-accounted investee | $ 1.5 | $ — |
Adjusted EBITDA | $ 90.6 | $ 68.6 |
First Quarters Ended March 31,
First Quarters Ended March 31, | ||
(in millions of Canadian dollars except for adjusted earnings per share) | 2026 | 2025 |
Net income | $ 29.6 | $ 32.9 |
Amortization of intangible assets related to business combination | 30.5 | 11.6 |
Acquisition, integration and reorganization costs | 1.0 | 3.5 |
Loss on buy-out of pension liability | 0.3 | — |
Loss (gain) on financial instruments | 0.4 | (0.1) |
Unrealized foreign exchange gain | (9.7) | (11.4) |
Embedded derivative effects | 1.0 | 1.1 |
Equity-settled share-based compensation | 4.3 | 2.8 |
Share of loss of equity-accounted investee | 1.5 | — |
Income taxes related to the above items (1) | (8.2) | (2.0) |
Adjusted net income | $ 50.7 | $ 38.4 |
Weighted average number of shares outstanding - diluted | 132,699,391 | 127,589,192 |
Adjusted earnings per share - diluted | $ 0.38 | $ 0.30 |
(1) Adjusted effective tax rate applied starting 2026 to reflect the Company's actual tax burden and provide a comprehensive view of underlying profitability, consistent with the tax expense reflected Statement of Comprehensive Income, versus the statutory income tax rate applied previously. |
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SOURCE MDA Space