Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F:
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Exhibit 99.1
NEWS RELEASE
MDA SPACE REPORTS SECOND QUARTER 2026 RESULTS
| • |
Backlog of $4.0 billion
at quarter-end increased $310 million compared to Q1 2026 |
| • |
Revenues of $499 million,
up 34% YoY |
| • |
Adjusted EBITDA1 of $96
million, up 26% YoY; Adjusted EBITDA margin1 of 19.3% |
| • |
Adjusted net income1 of
$52 million, up 13% YoY |
| • |
Operating cash flow of $(93)
million; Free cash flow1 of $(150) million |
| • |
Net cash1 position of $153
million at quarter-end; Total liquidity of $1.1 billion |
| • |
Increased midpoint of 2026
Revenue and Adjusted EBITDA guidance |
Toronto, Ontario (August 7, 2026) - MDA
Space Ltd. (TSX: MDA) (NYSE:MDA), a trusted mission partner to the rapidly expanding global space industry, today announced its financial
results for the second quarter ended June 30, 2026.
“With our continued focus on disciplined
execution, the MDA Space team delivered another quarter of strong, profitable year-over-year growth in Q2 as we continue to advance our
long-term growth strategy.
Robust order momentum drove backlog higher than
the preceding quarter. Contract wins supporting programs with the Canadian Space Agency and Japan Ministry of Defense, as well as more
recently the Canadian Armed Forces and European Space Agency, demonstrate how MDA Space is positioned to benefit from the growing demand
for sovereign and defence space-based capabilities around the world.
We announced nine early customer contracts for
MDA CHORUSTM, along with 32 letters of interest from customers across five regions and we inaugurated our new high-volume satellite manufacturing
facility in Montreal, one of the largest in its satellite class.
The agreements to acquire Blue Canyon Technologies
and CLS further expand our global reach and significantly increase our total addressable market. These two established businesses meet
our strategic and financial criteria as profitable, cash-generating businesses that are highly complementary to MDA Space, and further
position us to expand our existing $40 billion pipeline.
With these additions, we are building a stronger,
more diversified and global MDA Space to maximize our market opportunities. We remain confident in our ability to execute on our growth
plans and continue to deliver value for shareholders."
Mike Greenley, CEO of MDA Space
Q2 2026 HIGHLIGHTS
| • |
Backlog
of $4.0 billion at quarter-end provides revenue visibility for 2026 and beyond and compares to $4.6 billion as of Q2 2025. This is
an increase of $310 million compared to Q1 2026 driven by strong bookings in the quarter that exceeded conversion of backlog into
revenue. |
| • |
Revenues
of $498.6 million in Q2 2026 were up 33.6% year-over-year driven by higher volumes across all business areas in the quarter. |
| • |
Adjusted
EBITDA of $96.3 million in Q2 2026 increased 26.2% year-over-year driven by higher volumes of work. Adjusted EBITDA margin of 19.3%
in Q2 2026 is consistent with the Company’s full year margin guidance of 18%-20%. |
| • |
Net income
of $27.9 million in Q2 2026 was up 2.6% year-over-year. Diluted earnings per share was $0.20 in Q2 2026, a decrease of 9.5% year-over-year
driven primarily by the increase in the average number of common shares outstanding following the Company’s initial public
offering on the New York Stock Exchange in March 2026. |
1As defined in the “Non-IFRS
Financial Measures” section
| • |
Adjusted
net income in Q2 2026 was $51.8 million increasing 12.9% year-over-year driven by the higher gross profit, partially offset by investments
in SG&A and R&D. Adjusted diluted earnings per share of $0.36 in Q2 2026 decreased 1.5% year-over-year as the higher
adjusted net income was offset by higher average shares outstanding largely due to the abovementioned IPO in the US. |
| • |
Operating
cash flow of $(93.4) million in Q2 2026 compared with $52.8 million in Q2 2025. The year- over-year decrease in operating cash flow
was primarily due to normal program working capital fluctuations on major contracts. |
| • |
Free
cash flow of $(150.2) million in Q2 2026 compared to $16.2 million in Q2 2025. The year-over- year decrease was driven by reduced
operating cash flow as a result of the aforementioned lower working capital contributions as well as higher capital expenditures. |
| • |
Net cash
position of $152.8 million at the end of Q2 2026 compares to a net debt position of $120.0 million as of December 31, 2025.
The improved net cash position was largely driven by net proceeds received through the initial public offering in the United States,
which was completed in March 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 Canada’s national defence and space champion and a trusted supplier to partners and allies globally. We
continue to make good progress against our long-term strategic plan.
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:
| • | Narrowing Revenue
to $1.8 - $1.9 billion, compared to $1.7 - $1.9 billion previously, representing year-over-year
growth of approximately 13% at the mid-point of guidance and reflecting a solid H1 for MDA
Space |
| • |
Narrowing
Adjusted EBITDA to $330 - $370 million, compared to $320 - $370 million previously, representing year-over-year growth of approximately
8% at the mid-point of guidance |
| • |
Adjusted
EBITDA margin is reaffirmed at 18% - 20% |
| • |
Capital
expenditures are reaffirmed at $225 - $275 million to support another year of investments related to the production expansion at
our 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
| | |
Second
Quarters Ended | |
Six Months
Ended | |
| (in millions of Canadian dollars, except
per share data) | |
June 30,
2026 | | |
June 30,
2025 | | |
June 30,
2026 | | |
June 30,
2025 | |
| Revenues | |
$ | 498.6 | | |
$ | 373.3 | | |
$ | 962.7 | | |
$ | 724.3 | |
| Gross profit | |
| 125.9 | | |
| 94.8 | | |
| 241.1 | | |
| 174.5 | |
| Gross margin | |
| 25.3 | % | |
| 25.4 | % | |
| 25.0 | % | |
| 24.1 | % |
| Adjusted EBITDA | |
| 96.3 | | |
| 76.3 | | |
| 186.9 | | |
| 144.9 | |
| Adjusted EBITDA Margin | |
| 19.3 | % | |
| 20.4 | % | |
| 19.4 | % | |
| 20.0 | % |
| Adjusted Net Income | |
| 51.8 | | |
| 45.9 | | |
| 102.5 | | |
| 84.4 | |
| Adjusted Diluted EPS | |
$ | 0.36 | | |
$ | 0.36 | | |
$ | 0.74 | | |
$ | 0.66 | |
Note: Adjusted EBITDA, Adjusted EBITDA margin,
adjusted Net Income and Adjusted Diluted EPS are non-IFRS measures (discussed in the Non-IFRS Measures section)
| |
|
|
|
|
|
|
As at |
|
| (in
millions of Canadian dollars, except for ratios) |
|
|
June
30, 2026 |
|
|
|
December
31, 2025 |
|
| Backlog |
|
$ |
4,003.0 |
|
|
$ |
4,012.9 |
|
| Net debt2 to TTM3 Adjusted EBITDA
ratio |
|
|
(0.4)x |
|
|
|
0.4x |
|
2As defined in the ‘Non-IFRS
Financial Measures’ section
3TTM:
trailing twelve months
REVENUES BY BUSINESS AREA
| | |
Second Quarters Ended | | |
Six Months Ended | |
(in
millions of Canadian dollars) | |
June 30,
2026 | | |
June 30,
2025 | | |
June 30,
2026 | | |
June 30,
2025 | |
| Satellite systems | |
$ | 336.1 | | |
$ | 232.6 | | |
$ | 649.20 | | |
$ | 454.60 | |
| Robotics and space operations | |
| 99.5 | | |
| 88 | | |
| 191.1 | | |
| 165.3 | |
| Geointelligence | |
| 63.0 | | |
| 52.7 | | |
$ | 122.4 | | |
| 104.4 | |
| Consolidated revenues | |
$ | 498.6 | | |
$ | 373.3 | | |
$ | 962.70 | | |
$ | 724.30 | |
Revenues
Consolidated revenues for the second quarter
of 2026 were $498.6 million, representing an increase of $125.3 million (or 33.6%) from the second quarter of 2025. The year-over-year
increase in revenues was driven by higher volumes of work performed across all business areas in the quarter.
By business area, revenues in Satellite Systems
for the second quarter of 2026 were $336.1 million, which represents an increase of $103.5 million (or 44.5%) from the same period in
2025 driven primarily by the increase in volume of work on the Telesat Lightspeed program. Revenues in Robotics & Space Operations
for the second quarter of 2026 were $99.5 million, which represents an increase of $11.5 million (or 13.1%) from the same period in 2025
driven by the increase in volume of work on the Canadarm3 program. Revenues in Geointelligence for the second quarter of 2026 were $63.0
million, which represents an increase of $10.3 million (or 19.5%) from the same period in 2025 driven by higher volume of work on new
programs.
Consolidated revenues for the six months ended
June 30, 2026 were $962.7 million, representing an increase of $238.4 million (or 32.9%) from the same period in 2025. The year-over-year
increase in revenues was driven by higher volumes of work performed across all business areas in the quarter.
By business area, revenues in Satellite Systems
for the six months ended June 30, 2026 were $649.2 million, which represents an increase of $194.6 million (or 42.8%) from the same period
in 2025 driven primarily by the increase in volume of work on the Telesat Lightspeed program. Revenues in Robotics & Space Operations
for the six months ended June 30, 2026 were 191.1 million, which represents an increase of 25.8 million (or 15.6%) from the same period
in 2025 driven by the increase in volume of work on the Canadarm3 program. Revenues in Geointelligence for the six months ended June
30, 2026 were 122.4 million, which represents an increase of 18.0 million (or 17.2%) from the same period in 2025 driven by higher volume
of work on new programs.
Gross Profit and Gross Margin
Gross profit reflects our revenues less cost
of revenues. Q2 2026 gross profit of $125.9 million represents a 31.1 million (or 32.8%) increase over Q2 2025 driven by higher volumes
of work performed across all business areas. Gross margin in Q2 2026 is 25.3% consistent with gross margin of 25.4% in Q2 2025.
For the six months ended June 30, 2026, gross
profit of $241.1 million represents a $66.6 million (or 38.2%) increase over 2025 levels driven by higher volumes of work across all
business areas. Gross margin for the six months ended June 30, 2026 was 25.0% and compares to a gross margin of 24.1% for the six months
ended June 30, 2025.
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA for the second quarter of 2026
was $96.3 million compared with $76.3 million for the second quarter of 2025, representing an increase of $20.0 million (or 26.2%) year-over-year
driven by higher work volumes as we continue to convert our backlog. Adjusted EBITDA margin was 19.3% in the second quarter of 2026 compared
to 20.4% adjusted EBITDA margin reported in the second quarter of 2025 and is in line with the Company’s full year margin guidance.
Adjusted EBITDA for the six months ended June
30, 2026 was $186.9 million compared with $144.9 million for the same period in 2025, representing an increase of $42.0 million (or 29.0%)
year-over-year driven by higher work volumes as we continue to convert our backlog. Adjusted EBITDA margin was 19.4% for the six months
ended June 30, 2026 compared to 20.0% in 2025 and is in line with the Company’s full year margin guidance .
Adjusted Net Income
Adjusted net income for the second quarter of
2026 was $51.8 million compared with $45.9 million for the second quarter of 2025, representing an increase of $5.9 million (or 12.9%)
year-over-year primarily driven by higher gross profit partially offset by investments in SG&A and R&D.
Adjusted net income for the six months ended
June 30, 2026 was $102.5 million compared with $84.4 million for the same period in 2025, representing a increase of $18.1 million (or
21.4%) year-over-year largely due to higher gross profit partially offset by investments in SG&A and R&D.
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 June 30, 2026 was $4,003.0 million, a decrease
of $564.9 million from the backlog at June 30, 2025. The decrease was driven by continued conversion of our backlog into revenue, partially
offset by net bookings. Our net bookings in Q2 2026 includes the impact from a reduction in scope of work related to the River-class
Destroyer (CSC) program. The following table shows the build up of backlog for the three and six months ended June 30, 2026 as compared
with the same period in 2025.
| | |
Second Quarters Ended | | |
Six Months Ended | |
| (in millions of Canadian dollars) | |
June 30,
2026 | | |
June 30,
2025 | | |
June 30,
2026 | | |
June 30,
2025 | |
| Opening Backlog | |
$ | 3,692.7 | | |
$ | 4,838.4 | | |
$ | 4,012.9 | | |
$ | 4,385.5 | |
| Less: Revenue recognized | |
| (498.6 | ) | |
| (373.3 | ) | |
| (962.7 | ) | |
| (724.3 | ) |
| Add: Order Bookings | |
| 808.9 | | |
| 102.8 | | |
| 952.8 | | |
| 906.7 | |
| Ending Backlog | |
$ | 4,003.0 | | |
$ | 4,567.9 | | |
$ | 4,003.0 | | |
$ | 4,567.9 | |
CONFERENCE CALL AND WEBCAST
MDA Space will host a conference call and webcast
to discuss these financial results on Friday, August 7, 2026 at 8:30 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 88767. A live webcast of the conference call and an accompanying slide presentation will be available at https://mda-en.investorroom.com/events-presentations.
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 August 14, 2026,
by dialing 1-888-660-6345 and entering the passcode 88767 #.
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.
INVESTOR CONTACT
Jim Floros
Vice President, Investor Relations 289-914-0209
jim.floros@mda.space
MEDIA CONTACT
Amy MacLeod
Vice President, Corporate Communications 613-796-6937
amy.macleod@mda.space
MDA Space Ltd.
Unaudited Interim Condensed Consolidated Statement of Comprehensive
Income
For the three and six months ended June 30, 2026 and 2025
(In millions of Canadian dollars except per share figures)
| | |
Three
months ended
June | | |
Three
months ended
June | | |
Six
months ended
June | | |
Six
months ended
June | |
| | |
30, 2026 | | |
30, 2025 | | |
30, 2026 | | |
30, 2025 | |
| Revenue | |
$ | 498.6 | | |
$ | 373.3 | | |
$ | 962.7 | | |
$ | 724.3 | |
| | |
| | | |
| | | |
| | | |
| | |
| Cost of revenue | |
| | | |
| | | |
| | | |
| | |
| Materials,
labour and subcontractors | |
| (355.7 | ) | |
| (264.6 | ) | |
| (689.6 | ) | |
| (522.2 | ) |
| Depreciation and amortization of assets | |
| (17.0 | ) | |
| (13.9 | ) | |
| (32.0 | ) | |
| (27.6 | ) |
| Gross profit | |
| 125.9 | | |
| 94.8 | | |
| 241.1 | | |
| 174.5 | |
| | |
| | | |
| | | |
| | | |
| | |
Operating
expenses Selling,
general and administration | |
| (45.1 | ) | |
| (29.8 | ) | |
| (75.3 | ) | |
| (53.2 | ) |
| Research and development, net | |
| (13.0 | ) | |
| (6.0 | ) | |
| (21.6 | ) | |
| (11.5 | ) |
| Amortization of intangible assets | |
| (30.6 | ) | |
| (11.7 | ) | |
| (61.1 | ) | |
| (23.3 | ) |
| Share-based compensation | |
| (6.6 | ) | |
| (3.7 | ) | |
| (12.4 | ) | |
| (7.6 | ) |
| Operating income | |
| 30.6 | | |
| 43.6 | | |
| 70.7 | | |
| 78.9 | |
| | |
| | | |
| | | |
| | | |
| | |
| Other income (expenses) | |
| | | |
| | | |
| | | |
| | |
| Gain
on financial instruments | |
| 3.3 | | |
| 2.6 | | |
| 2.9 | | |
| 2.7 | |
| Foreign exchange gain (loss) and other | |
| 9.4 | | |
| (11.0 | ) | |
| 17.8 | | |
| 2.1 | |
| Finance income | |
| 3.0 | | |
| 3.5 | | |
| 4.0 | | |
| 5.2 | |
| Finance costs | |
| (4.6 | ) | |
| (2.9 | ) | |
| (11.0 | ) | |
| (7.8 | ) |
| Share of loss of equity-accounted investee | |
| (0.1 | ) | |
| — | | |
| (1.6 | ) | |
| — | |
| Income before taxes | |
| 41.6 | | |
| 35.8 | | |
| 82.8 | | |
| 81.1 | |
| | |
| | | |
| | | |
| | | |
| | |
| Income tax expense | |
| (13.7 | ) | |
| (8.6 | ) | |
| (25.3 | ) | |
| (21.0 | ) |
| Net income | |
| 27.9 | | |
| 27.2 | | |
| 57.5 | | |
| 60.1 | |
| | |
| | | |
| | | |
| | | |
| | |
| Other comprehensive income | |
| | | |
| | | |
| | | |
| | |
| Gain on translation of foreign operations | |
| 5.0 | | |
| 1.5 | | |
| 8.2 | | |
| 0.7 | |
| | |
| | | |
| | | |
| | | |
| | |
| Remeasurement gain (loss) on defined
benefit plans | |
| 2.1 | | |
| 8.4 | | |
| (0.1 | ) | |
| 6.4 | |
| Total comprehensive income | |
| 35 | | |
| 37.1 | | |
| 65.6 | | |
| 67.2 | |
| | |
| | | |
| | | |
| | | |
| | |
| Earnings per share: | |
| | | |
| | | |
| | | |
| | |
Basic | |
$ | 0.20 | | |
$ | 0.22 | | |
$ | 0.43 | | |
$ | 0.49 | |
| Diluted | |
| 0.20 | | |
| 0.21 | | |
| 0.42 | | |
| 0.47 | |
| | |
| | | |
| | | |
| | | |
| | |
| Weighted-average common shares outstanding: | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 138,845,290 | | |
| 123,118,335 | | |
| 133,661,126 | | |
| 122,681,264 | |
| Diluted | |
| 142,521,230 | | |
| 128,062,208 | | |
| 137,957,874 | | |
| 127,728,558 | |
MDA Space Ltd.
Unaudited Interim Condensed Consolidated Statement of Financial Position
June 30, 2026 and 2025
(In millions of Canadian dollars)
| As at | |
June 30,
2026 | | |
December
31, 2025 | |
| Assets | |
| | | |
| | |
| Current assets: | |
| | | |
| | |
| Cash | |
$ | 397.8 | | |
$ | 152.0 | |
| Trade and other receivables | |
| 189.3 | | |
| 142.6 | |
| Unbilled receivables | |
| 203.4 | | |
| 187.5 | |
| Inventories | |
| 32.0 | | |
| 23.5 | |
| Income taxes receivable | |
| 59.5 | | |
| 52.9 | |
| Other current assets | |
| 44.9 | | |
| 53.3 | |
| | |
| 926.9 | | |
| 611.8 | |
| Non-current assets: | |
| | | |
| | |
| Property, plant and equipment | |
| 711.4 | | |
| 649.6 | |
| Right-of-use assets | |
| 107.1 | | |
| 114.5 | |
| Intangible assets | |
| 868.0 | | |
| 876.7 | |
| Goodwill | |
| 817.4 | | |
| 804.4 | |
| Equity-accounted investees | |
| 9.7 | | |
| 11.3 | |
| Deferred income tax assets | |
| 19.7 | | |
| 10.0 | |
| Other non-current assets | |
| 306.7 | | |
| 279.2 | |
| | |
| 2,840.0 | | |
| 2,745.7 | |
| Total assets | |
| 3,766.9 | | |
| 3,357.5 | |
| | |
| | | |
| | |
| Liabilities and shareholders' equity | |
| | | |
| | |
| Current liabilities: | |
| | | |
| | |
| Accounts payable and accrued liabilities | |
| 546.2 | | |
| 391.4 | |
| Income taxes payable | |
| 6.6 | | |
| 11.0 | |
| Contract liabilities | |
| 578.8 | | |
| 798.9 | |
| Current portion of net employee benefit payable | |
| 69.0 | | |
| 77.1 | |
| Current portion of lease liabilities | |
| 19.1 | | |
| 20.2 | |
| Other current liabilities | |
| 15.2 | | |
| 20.5 | |
| | |
| 1,234.9 | | |
| 1,319.1 | |
| Non-current liabilities: | |
| | | |
| | |
| Net employee defined benefit payable | |
| 24.1 | | |
| 23.4 | |
| Lease liabilities | |
| 114.2 | | |
| 118.9 | |
| Long-term debt | |
| 245.0 | | |
| 272.0 | |
| Deferred income tax liabilities | |
| 234.6 | | |
| 245.7 | |
| Other non-current liabilities | |
| 23.5 | | |
| 23.4 | |
| | |
| 641.4 | | |
| 683.4 | |
| Total liabilities | |
| 1,876.3 | | |
| 2,002.5 | |
| | |
| | | |
| | |
| Shareholders' equity | |
| | | |
| | |
| Common shares | |
| 1,508.3 | | |
| 1,042.7 | |
| Contributed surplus | |
| 40.4 | | |
| 36.0 | |
| Accumulated other comprehensive income | |
| 37.2 | | |
| 29.1 | |
| Retained earnings | |
| 304.7 | | |
| 247.2 | |
| Total equity | |
| 1,890.6 | | |
| 1,355.0 | |
| Total liabilities and equity | |
$ | 3,766.9 | | |
$ | 3,357.5 | |
MDA Space Ltd.
Unaudited Interim Condensed Consolidated Statement of Cash Flows
For the three months and six months ended June 30, 2026 and 2025
(In millions of Canadian dollars)
| | |
Three
months ended
June 30, | | |
Three
months ended
June 30, | | |
Six
months ended
June | | |
Six
months ended
June | |
| | |
2026 | | |
2025 | | |
30, 2026 | | |
30, 2025 | |
| Cash flows from operating activities | |
| | | |
| | | |
| | | |
| | |
| Net income | |
$ | 27.9 | | |
$ | 27.2 | | |
$ | 57.5 | | |
$ | 60.1 | |
| Items not affecting cash: | |
| | | |
| | | |
| | | |
| | |
| Income tax expense | |
| 13.7 | | |
| 8.6 | | |
| 25.3 | | |
| 21.0 | |
| Depreciation of property, plant, and
equipment | |
| 10.8 | | |
| 7.2 | | |
| 19.5 | | |
| 14.2 | |
| Depreciation of right-of-use assets | |
| 3.5 | | |
| 3.2 | | |
| 7.2 | | |
| 6.5 | |
| Amortization of intangible assets | |
| 34.2 | | |
| 15.2 | | |
| 68.0 | | |
| 30.2 | |
| Share-based compensation | |
| 5.5 | | |
| 2.5 | | |
| 9.8 | | |
| 5.3 | |
| Investment tax credits accrued | |
| (8.0 | ) | |
| (5.3 | ) | |
| (18.6 | ) | |
| (13.3 | ) |
| Finance costs and foreign exchange
differences | |
| (14.7 | ) | |
| (0.6 | ) | |
| (9.3 | ) | |
| 2.6 | |
| Gain on financial instruments | |
| (3.3 | ) | |
| (2.6 | ) | |
| (2.9 | ) | |
| (2.7 | ) |
| Share of loss of equity-accounted investee | |
| 0.1 | | |
| — | | |
| 1.6 | | |
| — | |
| Loss on buy-out of pension liability | |
| — | | |
| — | | |
| 0.3 | | |
| — | |
| Changes in operating
assets and liabilities | |
| (135.3 | ) | |
| 3.3 | | |
| (156.7 | ) | |
| 199.1 | |
| | |
| (65.6 | ) | |
| 58.7 | | |
| 1.7 | | |
| 323.0 | |
| Interest paid | |
| (8.3 | ) | |
| (2.3 | ) | |
| (10.6 | ) | |
| (4.6 | ) |
| Income tax (paid)
received, net | |
| (19.5 | ) | |
| (3.6 | ) | |
| (23.6 | ) | |
| 1.4 | |
| Net cash generated
(used) in operating activities | |
| (93.4 | ) | |
| 52.8 | | |
| (32.5 | ) | |
| 319.8 | |
| | |
| | | |
| | | |
| | | |
| | |
| Cash flows from investing activities | |
| | | |
| | | |
| | | |
| | |
| Purchases of property and equipment | |
| (52.1 | ) | |
| (46.9 | ) | |
| (119.3 | ) | |
| (86.7 | ) |
| Purchases/development of intangible assets | |
| (11.2 | ) | |
| (22.9 | ) | |
| (32.5 | ) | |
| (44.8 | ) |
| Government grants on capital expenditure | |
| 6.5 | | |
| 33.2 | | |
| 6.5 | | |
| 33.2 | |
| Proceeds from disposal of assets | |
| — | | |
| — | | |
| — | | |
| 0.2 | |
| Acquisition of subsidiaries, net of cash | |
| — | | |
| (2.8 | ) | |
| — | | |
| (2.8 | ) |
| Proceeds from disposal
of equity securities | |
| — | | |
| — | | |
| 9.4 | | |
| — | |
| Net cash used
in investing activities | |
| (56.8 | ) | |
| (39.4 | ) | |
| (135.9 | ) | |
| (100.9 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Cash flows from financing activities | |
| | | |
| | | |
| | | |
| | |
| Proceeds from senior credit facility | |
| — | | |
| 250.0 | | |
| 95.0 | | |
| 250.0 | |
| Repayments of senior credit facility | |
| — | | |
| — | | |
| (125.0 | ) | |
| — | |
| Transaction costs related to loans and
borrowings | |
| (1.9 | ) | |
| — | | |
| (1.9 | ) | |
| — | |
| Payment of lease liability (principal portion) | |
| (3.1 | ) | |
| (2.3 | ) | |
| (6.1 | ) | |
| (4.7 | ) |
| Proceeds from share issuance, net of transaction
costs | |
| — | | |
| — | | |
| 441.5 | | |
| — | |
| Proceeds from stock
options exercised | |
| 1.1 | | |
| 27.7 | | |
| 4.0 | | |
| 36.4 | |
| Net cash generated
in financing activities | |
| (3.9 | ) | |
| 275.4 | | |
| 407.5 | | |
| 281.7 | |
| | |
| | | |
| | | |
| | | |
| | |
| Net increase in cash | |
| (154.1 | ) | |
| 288.8 | | |
| 239.1 | | |
| 500.6 | |
| Net foreign exchange difference on cash | |
| 7.9 | | |
| 0.8 | | |
| 4.0 | | |
| (1.4 | ) |
| Cash, beginning of period prior to restatement
for IFRS 9 amendments | |
| 544.0 | | |
| 376.3 | | |
| 152.0 | | |
| 166.7 | |
| Adjustment on adoption
of IFRS 9 amendments on January 1, 2026 | |
$ | — | | |
$ | — | | |
| 2.7 | | |
| — | |
| Cash, end of period | |
$ | 397.8 | | |
$ | 665.9 | | |
$ | 397.8 | | |
$ | 665.9 | |
RECONCILIATION OF NON-IFRS MEASURES
The following table provides a reconciliation of net income to EBITDA,
adjusted EBITDA, and adjusted net income:
| | |
Second Quarters Ended | | |
Six Months Ended | |
| (in millions of Canadian dollars) | |
June 30,
2026 | | |
June 30,
2025 | | |
June 30,
2026 | | |
June 30,
2025 | |
| Net income | |
$ | 27.9 | | |
$ | 27.2 | | |
$ | 57.5 | | |
$ | 60.1 | |
| Depreciation and amortization of assets | |
| 17.8 | | |
| 13.9 | | |
| 33.5 | | |
| 27.6 | |
| Amortization of intangible assets related to business combination | |
| 30.6 | | |
| 11.7 | | |
| 61.1 | | |
| 23.3 | |
| Income tax expense | |
| 13.7 | | |
| 8.6 | | |
| 25.3 | | |
| 21.0 | |
| Finance income | |
| (3.0 | ) | |
| (3.5 | ) | |
| (4.0 | ) | |
| (5.2 | ) |
| Finance costs | |
| 4.6 | | |
| 2.9 | | |
| 11.0 | | |
| 7.8 | |
| EBITDA | |
$ | 91.6 | | |
$ | 60.8 | | |
$ | 184.4 | | |
$ | 134.6 | |
| Unrealized foreign exchange gain (loss) | |
| (9.3 | ) | |
| 8.0 | | |
| (19.0 | ) | |
| (3.4 | ) |
| Gain on financial instruments | |
| (3.3 | ) | |
| (2.6 | ) | |
| (2.9 | ) | |
| (2.7 | ) |
| Loss on buy-out of pension liability | |
| — | | |
| — | | |
| 0.3 | | |
| — | |
| Acquisition, integration and reorganization costs | |
| 12.3 | | |
| 7.6 | | |
| 13.3 | | |
| 11.1 | |
| Equity-settled share-based compensation | |
| 4.9 | | |
| 2.5 | | |
| 9.2 | | |
| 5.3 | |
| Share of loss of equity-accounted investee | |
$ | 0.1 | | |
$ | — | | |
$ | 1.6 | | |
$ | — | |
| Adjusted EBITDA | |
$ | 96.3 | | |
$ | 76.3 | | |
$ | 186.9 | | |
$ | 144.9 | |
| | |
Second Quarters Ended | | |
Six Months Ended | |
| (in millions of Canadian dollars except | |
June 30,
2026 | | |
June 30,
2025 | | |
June 30,
2026 | | |
June 30,
2025 | |
| Net income | |
$ | 27.9 | | |
$ | 27.2 | | |
$ | 57.5 | | |
$ | 60.1 | |
| Amortization of intangible assets | |
| 30.6 | | |
| 11.7 | | |
| 61.1 | | |
| 23.3 | |
| Acquisition, integration and reorganization costs | |
| 12.3 | | |
| 7.6 | | |
| 13.3 | | |
| 11.1 | |
| Loss on buy-out of pension liability | |
| — | | |
| — | | |
| 0.3 | | |
| — | |
| Gain on financial instruments | |
| (3.3 | ) | |
| (2.6 | ) | |
| (2.9 | ) | |
| (2.7 | ) |
| Unrealized foreign exchange gain | |
| (9.3 | ) | |
| 8.0 | | |
| (19.0 | ) | |
| (3.4 | ) |
| Embedded derivative effects | |
| 0.2 | | |
| (1.7 | ) | |
| 1.2 | | |
| (0.6 | ) |
| Equity-settled share-based compensation | |
| 4.9 | | |
| 2.5 | | |
| 9.2 | | |
| 5.3 | |
| Share of loss of equity-accounted investee | |
| 0.1 | | |
| — | | |
| 1.6 | | |
| — | |
| Income taxes related to the above items
(1) | |
| (11.6 | ) | |
| (6.8 | ) | |
| (19.8 | ) | |
| (8.7 | ) |
| Adjusted net income | |
$ | 51.8 | | |
$ | 45.9 | | |
$ | 102.5 | | |
$ | 84.4 | |
| Weighted average number of shares | |
| 142,521,230 | | |
| 128,062,208 | | |
| 137,957,874 | | |
| 127,728,558 | |
| Adjusted earnings per share - diluted | |
$ | 0.36 | | |
$ | 0.36 | | |
$ | 0.74 | | |
$ | 0.66 | |
(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.
