MDA SPACE REPORTS SECOND QUARTER 2025 RESULTS

Executive Summary

• MDA Space reported strong second-quarter 2025 financial results, with revenues increasing 54.3% year-over-year to $373.3 million and adjusted net income more than doubling to $48.1 million.
• The company updated its full-year 2025 financial outlook, raising the expected revenue range to $1.57–$1.63 billion and adjusted EBITDA to $305–$320 million, driven by strong execution in Satellite Systems and Robotics.
• Subsequent to the quarter-end, MDA Space announced a significant $1.8 billion contract award from EchoStar for a new LEO constellation, bringing the total pro-forma backlog to over $6 billion.

Key Details

• Q2 2025 Financial Performance:
  • Revenues: $373.3 million (up 54.3% YoY).
  • Adjusted EBITDA: $76.3 million (up 56.7% YoY) with a margin of 20.4%.
  • Adjusted Net Income: $48.1 million (up 105.6% YoY).
  • Adjusted Diluted EPS: $0.38 (up 100% YoY).
  • Operating Cash Flow: $52.8 million.
  • Net Cash Position: $416.8 million at quarter-end.
• Six Months Ended June 30, 2025:
  • Revenues: $724.3 million (up 60.6% YoY).
  • Adjusted EBITDA: $144.9 million (up 59.8% YoY).
  • Adjusted Net Income: $85.3 million (up 103.6% YoY).
• Backlog and Order Bookings:
  • Ending Backlog (Q2 2025): $4.57 billion.
  • Order Bookings (Q2 2025): $102.8 million.
  • Pro-forma Backlog (post-EchoStar award): Over $6 billion.
• 2025 Full-Year Outlook Update:
  • Expected Revenues: $1.57–$1.63 billion (previously $1.50–$1.65 billion).
  • Expected Adjusted EBITDA: $305–$320 million (previously $290–$320 million).
  • Expected Capital Expenditures: $210–$240 million.
  • Expected Free Cash Flow: Neutral to positive.
• Q3 2025 Guidance:
  • Expected Revenues: $385–$415 million.
• Segment Performance (Q2 2025):
  • Satellite Systems: $232.6 million (up 113.8% YoY), driven by Telesat Lightspeed and Globalstar programs.
  • Robotics & Space Operations: $88.0 million (up 12.4% YoY), driven by Canadarm3 Phase C ramp-up.
  • Geointelligence: $52.7 million (down 4.0% YoY), due to program timing.
• Strategic Activities:
  • Completed acquisition of SatixFy Communications in early July 2025.
  • Finalized agreement with the Canadian Space Agency to reopen the David Florida Laboratory under MDA Space management.
  • Announced selection as prime contractor for EchoStar’s $1.8 billion direct-to-device LEO constellation (world's first 3GPP 5G compliant NTN).

Notable Quotes

• "At the half year mark, the MDA Space team continues to execute well, delivering solid second quarter financial results with strong growth in our revenue and profitability as we convert our backlog and meet our customer commitments." — Mike Greenley, CEO
• "We also continue to convert pipeline opportunities into contract awards, and were pleased to announce last week our selection by EchoStar to be the prime contractor on EchoStar's new direct-to-device LEO constellation... With this contract, EchoStar becomes the anchor customer for the 3GPP 5G NTN compliant MDA AURORA™ direct-to-device satellite product, further solidifying MDA Space's leadership in the non-terrestrial network market." — Mike Greenley, CEO