MDA SPACE PROVIDES UPDATE ON ECHOSTAR CONTRACT

Rhea-AI Summary

EchoStar (NASDAQ: SATS) has terminated its constellation contract with MDA Space (TSX: MDA) due to a strategic shift following spectrum allocation discussions with the FCC. EchoStar has agreed to sell its AWS-4 and H-block spectrum licenses to SpaceX.

MDA Space emphasizes that the termination is unrelated to their performance and confirms they will receive compensation for all termination costs and fees. The company maintains its $4.6 billion backlog (excluding the EchoStar contract) and reiterates its fiscal 2025 financial outlook. MDA Space continues to pursue opportunities in digital satellite constellations for broadband data and direct-to-device communication satellites.

Positive

• Company will be compensated for all termination costs and fees
• Strong $4.6 billion backlog provides revenue visibility through 2025
• 2025 financial guidance remains unchanged despite contract termination

Negative

• Loss of recently announced EchoStar constellation contract
• Sudden strategic change by major customer affecting business relationship

News Market Reaction

+19.91%

15 alerts

+19.91% News Effect

+50.1% Peak in 9 min

+$3.85B Valuation Impact

$23.20B Market Cap

30K Volume

On the day this news was published, SATS gained 19.91%, reflecting a significant positive market reaction. Argus tracked a peak move of +50.1% during that session. Our momentum scanner triggered 15 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $3.85B to the company's valuation, bringing the market cap to $23.20B at that time.

Data tracked by StockTitan Argus on the day of publication.

BRAMPTON, ON, Sept. 8, 2025 /PRNewswire/ - MDA Space Ltd. (TSX: MDA), a trusted mission partner to the rapidly expanding global space industry, has received a termination for convenience notification from EchoStar Corporation (NASDAQ: SATS) related to the constellation contract announced on August 1, 2025.

The contract termination is the result of a sudden change to EchoStar's business strategy and plan in the wake of spectrum allocation discussions with the Federal Communications Commission (FCC) in the United States. EchoStar has agreed to sell its AWS-4 and H-block spectrum licenses to SpaceX.

This arbitrary development is completely unrelated to MDA Space performance and our products and services. The company will be compensated for all related termination costs and fees as per the EchoStar contract.   

MDA Space has established a world leading digital satellite offering for communication constellations and continues to focus on the execution of its $4.6 billion backlog, excluding the EchoStar contract, providing revenue visibility for growth through 2025 and the next several years. The company reiterates its fiscal 2025 financial outlook and guidance announced on August 7, 2025 while continuing to pursue a strong digital satellite constellation pipeline for both broadband data and direct-to-device communication satellites with commercial and government customers worldwide.

Conference Call

MDA Space will host a call and webcast to discuss this contract development on Monday, September 8, 2025 at 9:00 a.m. ET. Interested parties can join the call by dialing 416-945-7677 (Toronto area) or 1-888-699-1199 (toll-free North America) or +44-800-279-7040 (toll-free United Kingdom) and entering the conference ID 18416. A live webcast of the conference call  will be available at https://mda-en.investorroom.com/events-presentations.

A replay of the conference will be archived on the MDA Space website following the call. Parties may also access a recording of the call which will be available until September 15, 2025, by dialing 1-888-660-6345 and entering the passcode 18416 #.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking information within the meaning of applicable securities legislation, which reflects the company's current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the company's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risk Factors" in the company's Annual Information Form available on SEDAR+ at www.sedarplus.com. MDA Space does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

ABOUT MDA SPACE

Building the space between proven and possible, MDA Space (TSX:MDA) is a trusted mission partner to the global 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 MDA Space team of more than 3,800 space experts in Canada, the US and the UK 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.

SOCIAL MEDIA

LinkedIn:     linkedin.com/company/mdaspace
X:                twitter.com/MDA_space
Facebook:   facebook.com/MDAspace
YouTube:    youtube.com/c/mdaspace
Instagram:  instagram.com/MDA_space

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SOURCE MDA Space

FAQ

Why did EchoStar (NASDAQ: SATS) terminate its contract with MDA Space?

EchoStar terminated the contract due to a strategic change following spectrum allocation discussions with the FCC and their agreement to sell AWS-4 and H-block spectrum licenses to SpaceX.

How will the EchoStar contract termination affect MDA Space's 2025 outlook?

MDA Space has confirmed that its fiscal 2025 financial outlook and guidance remains unchanged, with a strong $4.6 billion backlog excluding the EchoStar contract.

What compensation will MDA Space receive for the EchoStar contract termination?

MDA Space will receive compensation for all related termination costs and fees as specified in the EchoStar contract terms.

What is MDA Space's current backlog value after the EchoStar contract termination?

MDA Space maintains a $4.6 billion backlog, which excludes the terminated EchoStar contract, providing revenue visibility through 2025 and beyond.

When will MDA Space discuss the EchoStar contract termination with investors?

MDA Space will host a conference call on September 8, 2025 at 9:00 a.m. ET to discuss the contract development.