MDA SPACE REPORTS THIRD QUARTER 2026 RESULTS
Higher work volumes lifted earnings, but program mix and overhead investment reduced adjusted EBITDA margins.
Sentiment and the balance of points
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Rhea-AI Summary
MDA Space (MDA) reported third-quarter 2026 revenue of C$498.1 million, with growth led by Satellite Systems and Geointelligence. Revenue increased 21.5% year over year. Adjusted EBITDA, a non-IFRS earnings measure, rose 15.9% to C$96.0 million, while its margin fell to 19.3% from 20.2%. Adjusted net income rose 26.1% to C$60.4 million; rounded adjusted diluted earnings per share remained C$0.37.
Operating cash flow reached C$106.2 million, and free cash flow was C$61.6 million. Backlog ended September at C$3,949.1 million, down C$443.7 million year over year. MDA Space raised its 2026 revenue outlook to C$1.90–C$1.95 billion and adjusted EBITDA outlook to C$355–C$375 million, while retaining neutral-to-negative free cash flow guidance. Quarter-end net cash was C$1,328.0 million; the company intends to use cash to fund its pending CLS and Blue Canyon Technologies acquisitions.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
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Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.2026 revenue guidance raised to C$1.90–C$1.95 billion from C$1.8–C$1.9 billion, approximately 18% midpoint growth.
- Moderate pointQ3 revenue increased 21.5% year over year to C$498.1 million.
- Moderate pointQ3 adjusted EBITDA increased 15.9% year over year to C$96.0 million.
- Moderate pointQ3 adjusted net income increased 26.1% year over year to C$60.4 million.
- Moderate pointQ3 operating cash flow increased to C$106.2 million from C$32.8 million a year earlier.
- Moderate pointQ3 free cash flow improved to C$61.6 million from negative C$36.7 million a year earlier.
- Moderate pointQuarter-end net cash reached C$1,328.0 million, versus C$120.0 million net debt at December 31, 2025.
- Moderate pointQ3 gross profit increased 16.6% year over year to C$125.9 million.
- Moderate pointQ3 order bookings reached C$444.2 million, compared with C$174.2 million a year earlier.
20 minor points
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 adjusted EBITDA guidance raised to C$355–C$375 million from C$330–C$370 million, approximately 13% midpoint growth.
- Minor pointQuarter-end total liquidity was C$2.9 billion.
- Minor pointQ3 Satellite Systems revenue rose 26.4% to C$358.3 million year over year, primarily on Telesat Lightspeed work.
- Minor pointQ3 Robotics & Space Operations revenue rose 2.0% to C$79.9 million year over year.
- Minor pointQ3 Geointelligence revenue rose 24.8% to C$59.9 million year over year on new-program work.
- Minor pointNine-month revenue increased 28.8% year over year to C$1,460.8 million.
- Minor pointNine-month Satellite Systems revenue increased 36.5% year over year to C$1,007.5 million.
- Minor pointNine-month Robotics & Space Operations revenue increased 11.2% year over year to C$271.0 million.
- Minor pointNine-month Geointelligence revenue increased 19.6% year over year to C$182.3 million.
- Minor pointNine-month gross profit rose 30.0% to C$367.0 million; gross margin reached 25.1% versus 24.9%.
- Minor pointNine-month adjusted EBITDA increased 24.2% year over year to C$282.9 million.
- Minor pointNine-month adjusted net income increased 20.1% year over year to C$162.9 million.
- Minor pointNine-month adjusted diluted earnings per share increased to C$1.11 from C$1.05 a year earlier.
- Minor pointNine-month order bookings reached C$1,397.0 million, versus C$1,080.9 million a year earlier.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 adjusted EBITDA margin guidance remains 18%–20%.
- Minor point. Forward-looking: it has not happened yet and may not happen.Planned production expansion and chip development investment retain a C$225–C$275 million 2026 capital expenditure outlook.
- Minor pointNew high-volume satellite manufacturing facility started operations.
- Minor pointInitial satellites for Globalstar's existing low Earth orbit constellation were successfully deployed.
- Minor pointMDA Space was selected to participate in Europe's IRIS2 satellites.
- Minor point. Forward-looking: it has not happened yet and may not happen.MDA Space says the MDA CHORUS launch remains on schedule for 2026.
Negative
- Moderate pointBacklog declined C$443.7 million year over year to C$3,949.1 million as revenue conversion exceeded replenishment.
- Moderate point. Forward-looking: it has not happened yet and may not happen.2026 free cash flow remains expected to be neutral to negative, reflecting program working capital fluctuations.
- Moderate pointMarch and July 2026 share offerings increased average shares outstanding; Q3 rounded adjusted diluted EPS remained C$0.37.
- Moderate pointAugust 2026 financing included a senior unsecured notes offering, adding debt funding.
- Minor pointQ3 gross margin fell to 25.3% from 26.4% a year earlier because of program mix.
3 minor points
- Minor pointQ3 adjusted EBITDA margin fell to 19.3% from 20.2% on program mix and higher overhead investment.
- Minor pointNine-month adjusted EBITDA margin fell to 19.4% from 20.1% on mix, overhead and research investment.
- Minor pointCLS and Blue Canyon Technologies acquisitions remain pending.
News Explained
MDA reports adjusted diluted EPS rose
Key Figures
- Q3 revenue
- $498.1 million; up 21.5% year-over-year
- Q3 2026
- Adjusted EBITDA
- $96.0 million; up 15.9% year-over-year
- Q3 2026
- Adjusted net income
- $60.4 million; up 26.1% year-over-year
- Q3 2026
- Adjusted diluted EPS
- $0.37; up 0.7% year-over-year
- Q3 2026
- Free cash flow
- $61.6 million compared with $(36.7) million
- Q3 2026 versus Q3 2025
- Backlog
- $3,949.1 million; decreased $443.7 million
- September 30, 2026 versus September 30, 2025
- 2026 revenue guidance
- $1.90–$1.95 billion, compared with $1.8–$1.9 billion previously
- Fiscal 2026 outlook
- 2026 adjusted EBITDA guidance
- $355–$375 million, compared with $330–$370 million previously
- Fiscal 2026 outlook
Previous Earnings Reports
-
Reported year-over-year revenue and adjusted EBITDA growth and increased the midpoint of 2026 guidance.
-
Reported year-over-year revenue, adjusted EBITDA, and adjusted net income growth.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
ebitda financial
non-ifrs measures financial
working capital financial
senior unsecured notes financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Backlog of
$3.9 - Revenues of
$498 22% YoY - Adjusted EBITDA1 of
$96 16% YoY; Adjusted EBITDA margin1 of19.3% - Adjusted net income1 of
$60 26% YoY - Operating cash flow of
$106 $62 - Net cash1 position of
$1.3 $2.9 - Increased 2026 Revenue and Adjusted EBITDA guidance
"The MDA Space team delivered another quarter of strong revenue and profitability growth. Quarter after quarter, we consistently demonstrate a track record of execution, converting opportunities into contracted backlog, delivering revenue growth, operational excellence and solid financial performance.
In the first three quarters of the year, our team's ability to convert opportunity to successful execution was visibly demonstrated with the successful deployment of our inaugural satellites for Globalstar's existing low Earth orbit constellation and the start of operations at our new high-volume satellite manufacturing facility. Our commitment to investing in next generation space technologies was further demonstrated with two new product introductions, MDA MIDNIGHT™ and MDA AURORA™ BLACK, addressing the complex, contested environments faced by defence customers worldwide. We are also on schedule to round out 2026 with the launch of MDA CHORUS™, our next generation Earth observation constellation delivering best-in-class data, analytics and intelligence to customers worldwide.
We are building momentum through strong order activity, demonstrating our ability to convert opportunities within our
Mike Greenley, CEO of MDA Space
|
1As defined in the "Non-IFRS Financial Measures" section |
Q3 2026 HIGHLIGHTS
- Backlog of
$3.9 billion $4.4 billion - Revenues of
$498.1 million 21.5% year-over-year driven by higher volumes within Satellite Systems and Geointelligence. - Adjusted EBITDA of
$96.0 million 15.9% year-over-year driven by higher volumes of work. Adjusted EBITDA margin of19.3% in Q3 2026 is consistent with the Company's full year margin guidance of18% -20% . - Adjusted net income in Q3 2026 was
$60.4 million 26.1% year-over-year driven by the higher gross profit, partially offset by investments in SG&A. Adjusted diluted earnings per share of$0.37 0.7% year-over-year driven by higher adjusted net income partially offset by higher average shares outstanding following the Company's initial public offering on the New York Stock Exchange in March 2026 and subsequent bought deal public offering in July 2026. - Operating cash flow was
$106.2 million $32.8 million - Free cash flow was
$61.6 million in Q3 2026 compared to$(36.7) million in Q3 2025. The year-over- year increase was driven by higher operating cash flow as a result of the aforementioned working capital contribution in addition to lower capital expenditures. - Net cash position was
$1,328.0 million $120.0 million
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 has been updated and now consists of the following:
- Increasing Revenue to
$1.90 $1.95 billion $1.8 $1.9 billion 18% at the mid-point of guidance - Increasing Adjusted EBITDA to
$355 $375 million $330 $370 million 13% at the mid-point of guidance - Adjusted EBITDA margin is reaffirmed at
18% -20% - Capital expenditures are reaffirmed at
$225 $275 million Montreal facility and investments in chip development - Free cash flow is reaffirmed to be neutral to negative driven by normal program working capital fluctuations
FINANCIAL OVERVIEW
KEY INDICATORS SUMMARY
|
|
Three months ended |
Nine months ended |
||
|
(in millions of Canadian dollars, except per share data) |
September 30, |
September 30, |
September 30, |
September 30, |
|
Revenues |
$ 498.1 |
$ 409.8 |
$ 1,460.8 |
$ 1,134.1 |
|
Gross profit (1) |
125.9 |
108.0 |
367.0 |
282.3 |
|
Gross margin |
25.3 % |
26.4 % |
25.1 % |
24.9 % |
|
Adjusted EBITDA |
96.0 |
82.8 |
282.9 |
227.7 |
|
Adjusted EBITDA Margin |
19.3 % |
20.2 % |
19.4 % |
20.1 % |
|
Adjusted Net Income (1) |
60.4 |
47.9 |
162.9 |
135.6 |
|
Adjusted Diluted EPS (1) |
$ 0.37 |
$ 0.37 |
$ 1.11 |
$ 1.05 |
|
Note: Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income and Adjusted Diluted EPS are non-IFRS measures (discussed in the Non-IFRS Measures section) |
|
(1) 2025 figures have been adjusted. See note 2(e) to the Interim Condensed Consolidated financial statements. |
|
|
|
As at |
|||
|
(in millions of Canadian dollars, except for ratios) |
September 30, 2026 |
December 31, 2025 |
|||
|
Backlog |
$ 3,949.1 |
$ 4,012.9 |
|||
|
Net debt (cash)2 to TTM3 Adjusted EBITDA ratio |
(3.5)x |
0.4x |
|||
|
2As defined in the 'Non-IFRS Financial Measures' section 3TTM: trailing twelve months |
|
||||
REVENUES BY BUSINESS AREA
|
|
Three months ended |
Nine months ended |
||
|
(in millions of Canadian dollars) |
September 30, 2026
|
September 30, 2025
|
September 30, 2026
|
September 30, 2025
|
|
Satellite systems |
$ 358.3 |
$ 283.5 |
$ 1,007.5 |
$ 738.1 |
|
Robotics and space operations |
79.9 |
78.3 |
271.0 |
243.6 |
|
Geointelligence |
59.9 |
48.0 |
$ 182.3 |
152.4 |
|
Consolidated revenues |
$ 498.1 |
$ 409.8 |
$ 1,460.8 |
$ 1,134.1 |
Revenues
Consolidated revenues for the third quarter of 2026 were
By business area, revenues in Satellite Systems for the third quarter of 2026 were
Consolidated revenues for the nine months ended September 30, 2026 were
By business area, revenues in Satellite Systems for the nine months ended September 30, 2026 were
Gross Profit and Gross Margin
Gross profit reflects our revenues less cost of revenues. Q3 2026 gross profit of
For the nine months ended September 30, 2026, gross profit of
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA for the third quarter of 2026 was
Adjusted EBITDA for the nine months ended September 30, 2026 was
Adjusted Net Income
Adjusted net income for the third quarter of 2026 was
Adjusted net income for the nine months ended September 30, 2026 was
|
_________________________________________________ |
|
1 As adjusted. See note 2(e) to the Interim Condensed Consolidated financial statements. |
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 September 30, 2026 was
|
|
Three months ended |
Nine months ended |
||
|
(in millions of Canadian dollars) |
September 30, 2026
|
September 30, 2025
|
September 30, 2026
|
September 30, 2025
|
|
Opening Backlog |
$ 4,003.0 |
$ 4,567.9 |
$ 4,012.9 |
$ 4,385.5 |
|
Less: Revenue recognized |
(498.1) |
(409.8) |
(1,460.8) |
(1,134.1) |
|
Add: Order Bookings |
444.2 |
174.2 |
1,397.0 |
1,080.9 |
|
Add: Adjustments (1) |
— |
60.5 |
— |
60.5 |
|
Ending Backlog |
$ 3,949.1 |
$ 4,392.8 |
$ 3,949.1 |
$ 4,392.8 |
|
(1) |
Backlog adjustment arising from the inclusion of the opening backlog of acquired SatixFy Communications Ltd. (acquisition completed on July 2, 2025) |
CONFERENCE CALL AND WEBCAST
MDA Space will host a conference call and webcast to discuss these financial results on Thursday, November 5, 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 an audio recording of the call, which will be available until November 12, 2026, by dialing 1-888-660-6345 and entering the passcode 41115 #.
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 (income). 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) gain or loss on financial instruments, iii) share-based compensation expenses, iv) share of profit or loss of equity-accounted investees, v) acquisition, integration and reorganization costs, and vi) 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) gain or loss on financial instruments, iv) share-based compensation expenses, v) share of profit or loss of equity-accounted investees, vi) acquisition, integration and reorganization costs, and vii) 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 Q3 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; successful completion of the proposed acquisitions of Blue Canyon Technologies and CLS on the terms and timelines currently anticipated; the availability and successful execution of launch services and the launch of the MDA CHORUS™ constellation on the timeline currently anticipated 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; the failure to successfully complete the proposed acquisitions of Blue Canyon Technologies and CLS; delays in obtaining required regulatory approvals or satisfying other closing conditions; the inability to successfully integrate acquired businesses; the failure to realize anticipated benefits, synergies or growth opportunities from acquisitions; risks associated with delays or disruptions to satellite launch schedules and launch services; 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 three and nine months ended September 30, 2026 and 2025
(In millions of Canadian dollars except per share figures)
|
|
Three months ended September |
Three months ended September |
Nine months ended September |
Nine months ended September |
|
30, 2026 |
30, 2025 |
30, 2026 |
30, 2025 |
|
|
|
Adjusted1 |
|
Adjusted1 |
|
|
Revenue |
$ 498.1 |
$ 409.8 |
$ 1,460.8 |
$ 1,134.1 |
|
Cost of revenue |
|
|
|
|
|
Materials, labour and subcontractors |
(354.4) |
(288.5) |
(1,044.0) |
(810.7) |
|
Depreciation and amortization of assets |
(17.8) |
(13.3) |
(49.8) |
(41.1) |
|
Gross profit |
125.9 |
108.0 |
367.0 |
282.3 |
|
Operating expenses |
|
|
|
|
|
Selling, general and administration |
(39.1) |
(27.8) |
(114.4) |
(81.0) |
|
Research and development, net |
(11.4) |
(11.9) |
(33.0) |
(23.4) |
|
Amortization of intangible assets |
(30.9) |
(30.0) |
(92.0) |
(53.3) |
|
Share-based compensation |
(9.4) |
(5.3) |
(21.8) |
(12.9) |
|
Operating income |
35.1 |
33.0 |
105.8 |
111.7 |
|
Other income (expenses) |
|
|
|
|
|
Gain (loss) on financial instruments |
0.4 |
(4.7) |
3.3 |
(2.0) |
|
Foreign exchange (loss) gain and other |
(0.6) |
13.1 |
17.2 |
15.2 |
|
Finance income |
10.7 |
1.9 |
14.7 |
7.1 |
|
Finance costs |
(4.5) |
(1.9) |
(15.5) |
(4.9) |
|
Share of profit (loss) of equity-accounted investee |
0.2 |
— |
(1.4) |
— |
|
Other income |
1.7 |
1.0 |
1.7 |
1.0 |
|
Income before taxes |
43.0 |
42.4 |
125.8 |
128.1 |
|
Income tax expense |
(12.1) |
(15.4) |
(37.4) |
(37.6) |
|
Net income |
30.9 |
27.0 |
88.4 |
90.5 |
|
Other comprehensive income |
|
|
|
|
|
Gain (loss) on translation of foreign operations |
(0.8) |
4.6 |
7.4 |
5.3 |
|
Remeasurement gain on defined benefit plans |
7.8 |
— |
7.7 |
6.4 |
|
Total comprehensive income |
37.9 |
31.6 |
103.5 |
102.2 |
|
Earnings per share: |
|
|
|
|
|
Basic |
$ 0.19 |
$ 0.22 |
$ 0.62 |
$ 0.73 |
|
Diluted |
0.19 |
0.21 |
0.60 |
0.70 |
|
Weighted-average common shares outstanding: |
|
|
|
|
|
Basic |
158,809,439 |
125,443,486 |
142,094,578 |
123,552,623 |
|
Diluted |
163,061,246 |
130,081,115 |
146,340,037 |
128,845,691 |
|
__________________________________________________ |
|
|
1 |
2025 figures have been adjusted. See note 2(e) to the Interim Condensed Consolidated financial statements. |
MDA Space Ltd.
Unaudited Interim Condensed Consolidated Statement of Financial Position September 30, 2026 and 2025
(In millions of Canadian dollars)
|
As at |
|
September 30, 2026 |
|
December 31, 2025 |
|
|
|
|
|
Adjusted1 |
|
Assets Current assets: Cash |
$ |
2,153.8 |
$ |
152.0 |
|
Trade and other receivables |
|
183.5 |
|
142.8 |
|
Unbilled receivables |
|
184.2 |
|
187.5 |
|
Inventories |
|
36.5 |
|
23.5 |
|
Income taxes receivable |
|
52.4 |
|
52.9 |
|
Other current assets |
|
48.2 |
|
53.3 |
|
|
|
2,658.6 |
|
612.0 |
|
Non-current assets: Property, plant and equipment |
|
745.2 |
|
668.5 |
|
Right-of-use assets |
|
107.1 |
|
114.5 |
|
Intangible assets |
|
865.0 |
|
881.1 |
|
Goodwill |
|
816.2 |
|
804.2 |
|
Equity-accounted investees |
|
9.9 |
|
11.3 |
|
Deferred income tax assets |
|
37.0 |
|
10.0 |
|
Other non-current assets |
|
304.4 |
|
279.2 |
|
|
|
2,884.8 |
|
2,768.8 |
|
Total assets |
|
5,543.4 |
|
3,380.8 |
|
Liabilities and shareholders' equity Current liabilities: Accounts payable and accrued liabilities |
|
523.0 |
|
391.4 |
|
Income taxes payable |
|
3.9 |
|
11.0 |
|
Contract liabilities |
|
601.7 |
|
798.9 |
|
Current portion of net employee benefit payable |
|
70.7 |
|
77.1 |
|
Current portion of lease liabilities |
|
18.8 |
|
20.2 |
|
Other current liabilities |
|
45.7 |
|
20.5 |
|
Non-current liabilities: |
|
1,263.8 |
|
1,319.1 |
|
Net employee defined benefit payable |
|
12.1 |
|
23.4 |
|
Lease liabilities |
|
114.8 |
|
118.9 |
|
Long-term debt |
|
825.8 |
|
272.0 |
|
Deferred income tax liabilities |
|
254.7 |
|
251.9 |
|
Other non-current liabilities |
|
22.2 |
|
23.4 |
|
|
|
1,229.6 |
|
689.6 |
|
Total liabilities |
|
2,493.4 |
|
2,008.7 |
|
Shareholders' equity Common shares |
|
2,629.7 |
|
1,042.7 |
|
Contributed surplus |
|
23.4 |
|
36.0 |
|
Accumulated other comprehensive income |
|
44.2 |
|
29.1 |
|
Retained earnings |
|
352.7 |
|
264.3 |
|
Total equity |
|
3,050.0 |
|
1,372.1 |
|
Total liabilities and equity |
$ |
5,543.4 |
$ |
3,380.8 |
|
________________________________________________ |
|
|
1 |
2025 figures have been adjusted. See note 2(e) to the Interim Condensed Consolidated financial statements. |
MDA Space Ltd.
Unaudited Interim Condensed Consolidated Statement of Cash Flows
For the three months and nine months ended September 30, 2026 and 2025 (In millions of Canadian dollars)
|
|
Three months ended September |
Three months ended September |
Nine months ended September |
Nine months ended September |
|
30, 2026 |
30, 2025 |
30, 2026 |
30, 2025 |
|
|
|
Adjusted1 |
|
Adjusted1 |
|
|
Cash flows from operating activities |
|
|
|
|
|
Net income |
$ 30.9 |
$ 27.0 |
$ 88.4 |
$ 90.5 |
|
Items not affecting cash: |
|
|
|
|
|
Income tax expense |
12.1 |
15.4 |
37.4 |
37.6 |
|
Depreciation of property, plant, and equipment |
11.4 |
7.1 |
30.9 |
21.3 |
|
Depreciation of right-of-use assets |
3.7 |
2.9 |
10.9 |
9.4 |
|
Amortization of intangible assets |
34.3 |
33.5 |
102.3 |
63.9 |
|
Share-based compensation |
7.6 |
4.0 |
17.4 |
9.3 |
|
Investment tax credits accrued |
(8.7) |
(17.5) |
(27.3) |
(30.8) |
|
Finance costs and foreign exchange differences |
(13.0) |
— |
(22.3) |
(2.2) |
|
(Gain) loss on financial instruments |
(0.4) |
4.7 |
(3.3) |
2.0 |
|
Share of loss of equity-accounted investee |
(0.2) |
— |
1.4 |
— |
|
Loss on buy-out of pension liability |
— |
— |
0.3 |
— |
|
Changes in operating assets and liabilities |
23.0 |
(45.8) |
(133.7) |
153.3 |
|
|
100.7 |
31.3 |
102.4 |
354.3 |
|
Interest received |
10.7 |
0.4 |
14.7 |
0.4 |
|
Interest paid |
(2.4) |
(5.4) |
(17.0) |
(10.0) |
|
Income tax (paid) received, net |
(2.8) |
6.5 |
(26.4) |
7.9 |
|
Net cash generated in operating activities |
106.2 |
32.8 |
73.7 |
352.6 |
|
Cash flows from investing activities |
|
|
|
|
|
Purchases of property and equipment |
(41.2) |
(49.8) |
(160.5) |
(136.5) |
|
Purchases/development of intangible assets |
(5.8) |
(19.7) |
(38.3) |
(64.5) |
|
Government grants on capital expenditure |
2.4 |
— |
8.9 |
33.2 |
|
Proceeds from disposal of assets |
— |
— |
— |
0.2 |
|
Acquisition of subsidiaries, net of cash |
— |
(359.8) |
— |
(362.6) |
|
Proceeds from disposal of equity securities |
— |
— |
9.4 |
— |
|
Net cash used in investing activities |
(44.6) |
(429.3) |
(180.5) |
(530.2) |
|
Cash flows from financing activities |
|
|
|
|
|
Proceeds from senior credit facility |
— |
80.0 |
95.0 |
330.0 |
|
Proceeds from issuance of senior unsecured notes |
600.0 |
— |
600.0 |
— |
|
Repayments of senior credit facility |
— |
(143.2) |
(125.0) |
(143.2) |
|
Transaction costs related to loans and borrowings |
(14.1) |
— |
(16.0) |
— |
|
Payment of lease liability (principal portion) |
(3.2) |
(2.4) |
(9.3) |
(7.1) |
|
Payments on SatixFy warrants |
— |
(12.0) |
— |
(12.0) |
|
Proceeds from share issuance, net of transaction costs |
1,104.2 |
— |
1,545.7 |
— |
|
Proceeds from stock options exercised |
— |
13.1 |
4.0 |
49.5 |
|
Net cash generated in financing activities |
1,686.9 |
(64.5) |
2,094.4 |
217.2 |
|
Net increase in cash |
1,748.5 |
(461.0) |
1,987.6 |
39.6 |
|
Net foreign exchange difference on cash |
7.5 |
(9.2) |
11.5 |
(10.6) |
|
Cash, beginning of period prior to restatement for |
|
|
|
|
|
IFRS 9 amendments |
397.8 |
665.9 |
152.0 |
166.7 |
|
Adjustment on adoption of IFRS 9 amendments on |
|
|
|
|
|
January 1, 2026 |
$ — |
$ — |
2.7 |
— |
|
Cash, end of period |
$ 2,153.8 |
$ 195.7 |
$ 2,153.8 |
$ 195.7 |
|
_______________________________________________ |
|
|
1 |
2025 figures have been adjusted. See note 2(e) to the Interim Condensed Consolidated financial statements. |
RECONCILIATION OF NON-IFRS MEASURES
The following table provides a reconciliation of net income to EBITDA, adjusted EBITDA, and adjusted net income:
|
|
Three months ended |
Nine months ended |
||
|
(in millions of Canadian dollars) |
September 30, 2026 |
September 30, 2025 |
September 30, 2026 |
September 30, 2025 |
|
Net income (1) |
$ 30.9 |
$ 27.0 |
$ 88.4 |
$ 90.5 |
|
Depreciation and amortization of assets(1) |
18.5 |
13.5 |
52.0 |
41.3 |
|
Amortization of intangible assets |
|
|
|
|
|
related to business combination |
30.9 |
30.0 |
92.0 |
53.3 |
|
Income tax expense (1) |
12.1 |
15.4 |
37.4 |
37.6 |
|
Finance income |
(10.7) |
(1.9) |
(14.7) |
(7.1) |
|
Finance costs (1) |
4.5 |
1.9 |
15.5 |
4.9 |
|
EBITDA |
$ 86.2 $ |
85.9 $ |
270.6 |
$ 220.5 |
|
Unrealized foreign exchange gain |
(3.3) |
(14.2) |
(22.3) |
(17.6) |
|
Loss (gain) on financial instruments |
(0.4) |
4.7 |
(3.3) |
2.0 |
|
Loss on buy-out of pension liability |
— |
— |
0.3 |
— |
|
Acquisition, integration and |
|
|
|
|
|
reorganization costs |
6.1 |
2.4 |
19.4 |
13.5 |
|
Equity-settled share-based |
|
|
|
|
|
compensation |
7.6 |
4.0 |
16.8 |
9.3 |
|
Share of loss of equity-accounted |
|
|
|
|
|
investee |
$ (0.2) $ |
— $ |
1.4 |
$ — |
|
Adjusted EBITDA |
$ 96.0 $ |
82.8 $ |
282.9 |
$ 227.7 |
|
|
|
|
|
|
|
(1) |
2025 figures have been adjusted. See note 2(e) to the Interim Condensed Consolidated financial statements. |
|
|
Three months ended |
Nine months ended |
||
|
(in millions of Canadian dollars except for adjusted earnings per share) |
September 30, 2026 |
September 30, 2025 |
September 30, 2026 |
September 30, 2025 |
|
Net income (2) |
$ 30.9 |
$ 27.0 |
$ 88.4 |
$ 90.5 |
|
Amortization of intangible assets |
30.9 |
30.0 |
92.0 |
53.3 |
|
Acquisition, integration and reorganization costs |
6.1 |
2.4 |
19.4 |
13.5 |
|
Loss on buy-out of pension liability |
— |
— |
0.3 |
— |
|
Loss (gain) on financial instruments |
(0.4) |
4.7 |
(3.3) |
2.0 |
|
Unrealized foreign exchange gain |
(3.3) |
(14.2) |
(22.3) |
(17.6) |
|
Embedded derivative effects |
0.7 |
1.5 |
1.9 |
0.9 |
|
Equity-settled share-based compensation |
7.6 |
4.0 |
16.8 |
9.3 |
|
Share of loss of equity-accounted investee |
(0.2) |
— |
1.4 |
— |
|
Income taxes related to the above items (1) |
(11.9) |
(7.5) |
(31.7) |
(16.3) |
|
Adjusted net income (2) |
$ 60.4 |
$ 47.9 |
$ 162.9 |
$ 135.6 |
|
Weighted average number of shares |
163,061,246 |
130,081,115 |
146,340,037 |
128,845,691 |
|
Adjusted earnings per share - diluted (2) |
$ 0.37 |
$ 0.37 |
$ 1.11 |
$ 1.05 |
|
(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. |
|
(2) |
2025 figures have been adjusted. See note 2(e) to the Interim Condensed Consolidated financial statements. |
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SOURCE MDA Space
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were MDA Space's third-quarter 2026 revenue and adjusted earnings?
MDA Space reported revenue of C$498.1 million and adjusted net income of C$60.4 million, up 21.5% and 26.1% year over year, respectively. Adjusted diluted earnings per share were C$0.37 on the rounded figures presented. Adjusted earnings measures are non-IFRS measures.
What is MDA Space's updated 2026 financial guidance?
MDA Space expects revenue of C$1.90–C$1.95 billion and adjusted EBITDA of C$355–C$375 million. Its adjusted EBITDA margin outlook remains 18%–20%, capital expenditures remain C$225–C$275 million, and free cash flow is expected to be neutral to negative.
What does MDA Space include in its backlog?
MDA Space's backlog represents remaining performance obligations: the transaction price of firm orders less revenue already recognized. It excludes unexercised contract options and indefinite delivery or indefinite quantity contracts.
Why did MDA Space's operating cash flow improve in the third quarter of 2026?
The increase in operating cash flow was primarily driven by a positive working capital contribution. Lower capital expenditures also contributed to the year-over-year improvement in free cash flow.