MDA SPACE REPORTS FIRST QUARTER 2026 RESULTS

• Q1 2026 Financial Performance: Reported revenue of $464.1 million (up 32.2% YoY) and Adjusted EBITDA of $90.6 million (up 32.1% YoY).
• Profitability Metrics: Gross margin improved to 24.8% from 22.7% in Q1 2025; Adjusted EBITDA margin held at 19.5%. Net Income declined 10% YoY due to amortization from the SatixFy acquisition, but Adjusted EPS rose 26.9% to $0.38.
• Backlog Dynamics: Ending backlog reduced to $3.7 billion from $4.8 billion in Q1 2025, driven by strong conversion of backlog into revenue rather than loss of orders. Order bookings for the quarter were $143.9 million.
• Liquidity Position: Net cash position stands at $299.3 million with total liquidity of $1.2 billion following the recent U.S. IPO and over-allotment exercise.
• Guidance Reaffirmation: Full-year 2026 outlook maintained: Revenue $1.7–$1.9 billion, Adjusted EBITDA $320–$370 million, CapEx $225–$275 million.

• Validation of Strategy: The Q1 results confirm the company is successfully executing on its $4 billion backlog visibility strategy established in FY 2025. The reduction in backlog is a positive indicator of revenue recognition rather than order attrition.
• Margin Stability: Maintaining an Adjusted EBITDA margin of 19.5% within the guided range (18%-20%) demonstrates operational discipline despite growth investments and amortization costs from acquisitions.
• Capital Structure Strength: The U.S. IPO closing in March ($341 million gross proceeds) has significantly bolstered liquidity to $1.2 billion, removing near-term refinancing risk and funding the CHORUS launch and facility expansion without immediate dilution concerns.
• Earnings Quality: While Net Income was down due to non-cash amortization (SatixFy), Adjusted EBITDA growth of 32% aligns with revenue growth, indicating core operational profitability is robust.
• Market Expectation: The results are largely in line with the FY 2025 guidance provided in March and the IPO prospectus expectations; therefore, while positive, it lacks the surprise element required for a "Material - Game Changer" rating.

• Core Business: MDA Space is a global leader in space systems, robotics, and geointelligence, serving government and commercial clients.
• Flagship Projects:
  • Satellite Systems: Dominant player in LEO constellations (Telesat Lightspeed, Globalstar).
  • MDA CHORUS™: Next-generation Earth observation data constellation launching late 2026 with multi-sensor imaging capabilities.
  • 49North: New defense subsidiary launched Feb 2026 focusing on non-space C4ISR and mission-critical capabilities.
  • OneWeb Antennas: Continued supply of Ka/Ku-band antennas for the OneWeb constellation extension (Airbus contract).