MDA Space receives termination notice from EchoStar

Executive Summary

• MDA Space Ltd. received a termination for convenience notice from EchoStar Corp. regarding their constellation contract originally announced on August 1, 2025.
• The termination stems from EchoStar's strategic shift following spectrum allocation discussions with the FCC, specifically the agreement to sell AWS-4 and H-block spectrum licenses to SpaceX.
• MDA Space states the termination is unrelated to its performance, asserts it will be compensated for all termination costs and fees per the contract, and reiterates its fiscal 2025 financial outlook and guidance.

Key Details

• Contract Termination: EchoStar Corp. (Nasdaq: SATS) issued a termination for convenience for the constellation contract with MDA Space.
• Reason for Termination: A sudden change in EchoStar's business strategy due to spectrum allocation discussions with the US Federal Communications Commission (FCC).
• Counterparty Action: EchoStar agreed to sell its AWS-4 and H-block spectrum licenses to SpaceX.
• Compensation: MDA Space will be compensated for all related termination costs and fees as stipulated in the EchoStar contract.
• Impact on Backlog: MDA Space continues to focus on executing its $4.6-billion backlog, excluding the EchoStar contract.
• Financial Outlook: The company reiterates its fiscal 2025 financial outlook and guidance previously announced on August 7, 2025.
• Future Pipeline: MDA Space continues to pursue a digital satellite constellation pipeline for broadband data and direct-to-device communication satellites with commercial and government customers.
• Conference Call: A call and webcast to discuss the development is scheduled for Monday, Sept. 8, 2025, at 9 a.m. ET.
  • Dial-in (Toronto): 416-945-7677
  • Dial-in (North America Toll-Free): 1-888-699-1199
  • Dial-in (UK Toll-Free): 44-800-279-7040
  • Conference ID: 18416
  • Replay Access: Available until Sept. 15, 2025, by dialing 1-888-660-6345, entering pass code 18416, and then the pound key.

Notable Quotes

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