MDA SPACE REPORTS FOURTH QUARTER AND FISCAL 2025 RESULTS

Executive Summary

• MDA Space reported record Q4 2025 revenue of C$499.1 M (↑44% YoY) and record adjusted EBITDA of C$96.2 M (↑36% YoY).
• Full‑year 2025 revenue reached a new high of C$1,633.2 M (↑51% YoY) with adjusted EBITDA of C$323.9 M (↑49% YoY); adjusted net income rose 71% to C$189.9 M.
• The company provided FY‑2026 guidance: revenue C$1.7–1.9 B, adjusted EBITDA C$320–370 M, capex C$225–275 M, and indicated a strong backlog of C$4.0 B supporting visibility into 2026.

Key Details

• Backlog: $4.012 B at year‑end 2025 (down $372.6 M from 2024 due to conversion).
• Revenue by Segment (Q4 2025):
• Satellite Systems – C$371.4 M (↑58.4% YoY)
• Geointelligence – C$62.0 M (↑30.8%)
• Robotics & Space Operations – C$65.7 M (↑1.5%)
• Revenue by Segment (FY 2025):
• Satellite Systems – C$1,109.5 M (↑85.5%)
• Geointelligence – C$214.4 M (↑6.1%)
• Robotics & Space Operations – C$309.3 M (↑10.5%)
• Gross Profit / Margin: Q4 2025 gross profit C$127.1 M; margin 25.5% (vs. 23.6% YoY). FY 2025 gross profit C$409.7 M; margin 25.1%.
• Adjusted EBITDA Margin: Q4 2025 19.3%; FY 2025 19.8% (within guidance range 19‑20%).
• Net Income / Adjusted Net Income:
• Q4 2025 net income C$24.0 M (down 4.4% YoY) vs. adjusted net income C$58.5 M (↑66.7%).
• FY 2025 net income C$108.5 M; adjusted net income C$189.9 M (↑71%).
• Operating Cash Flow: Q4 2025 C$50.6 M (down YoY); FY 2025 C$407.5 M.
• Free Cash Flow: FY 2025 C$165.3 M (down from 2024).
• Net Debt / Leverage: Net debt/adjusted EBITDA = 0.4× at year‑end (improved from –0.8× in 2024 after SatixFy acquisition).
• Capital Expenditures FY 2025: $225–275 M planned for 2026, supporting Montreal facility expansion and chip development.
• Acquisitions / Integration: Completed acquisition of SatixFy Communications Ltd. (July 2 2025); reflected in backlog adjustments and goodwill increase to C$800.4 M.
• Strategic Highlights:
• $40 B pipeline, including $10 B with government customers or follow‑on opportunities.
• New strategic partnership for Canadian Arctic military satellite communications; indefinite‑delivery contract with U.S. Missile Defense Agency (SHIELD program).
• Launch of “49North” defence‑tech organization focused on national defence outside space.
• FY‑2026 Outlook:
• Revenue $1.7–$1.9 B (≈10% YoY at midpoint)
• Adjusted EBITDA $320–$370 M (≈7% YoY)
• Adjusted EBITDA margin 18%–20%
• Capex $225–$275 M
• Free cash flow expected neutral to negative.

Notable Quotes

• “FY2025 was another banner year of profitable growth… Our $4 billion backlog provides us with revenue visibility into 2026 and beyond.” – Mike Greenley, CEO

Materiality: Material – Positive (significant earnings beat, record revenues/EBITDA, strong guidance, and strategic acquisitions).