MDA Space (TSE:MDA) reported a robust 34% increase in second-quarter revenue on June 30, driven by surging demand across its robotics, satellite systems, and geointelligence sectors, leading the company to raise its 2026 financial outlook.
Financial Performance and Growth Targets
Revenue for the quarter reached CAD 499 million, while adjusted EBITDA climbed 26% to CAD 96 million, maintaining an adjusted EBITDA margin of 19.3%. Adjusted net income rose 13% to CAD 52 million. Despite this growth, adjusted diluted earnings per share remained steady at CAD 0.36, impacted by a higher share count following a March equity issuance.
For the first half of 2026, the company posted CAD 963 million in revenue—a 33% year-over-year increase—and CAD 187 million in adjusted EBITDA. CEO Mike Greenley highlighted that this performance across all business units justifies a more optimistic full-year forecast. MDA Space now projects 2026 revenue between CAD 1.8 billion and CAD 1.9 billion, with a new midpoint of CAD 1.85 billion, representing roughly 13% annual growth.
Operational Outlook and Backlog Expansion
The company also tightened its adjusted EBITDA guidance, now targeting CAD 330 million to CAD 370 million. CFO Guillaume Lavoie noted that second-half revenue pacing aligns with standard program execution, particularly as the Globalstar next-generation LEO constellation transitions from component delivery to assembly and testing.
The company’s backlog reached a record CAD 4 billion, bolstered by over CAD 800 million in new bookings and a book-to-bill ratio of 1.6x. This figure is set to grow further: Telesat recently expanded its scope for the Lightspeed LEO constellation by 27 satellites, adding approximately CAD 400 million to the backlog and pushing the pro forma total to CAD 4.4 billion.
Strategic Acquisitions and Future Pipeline
MDA Space is aggressively pursuing geographic and service expansion through two major acquisitions. The company has entered agreements to acquire Colorado-based Blue Canyon Technologies, a defense-focused satellite manufacturer, and a majority interest in CLS, a global geointelligence and Earth-observation analytics provider.
These acquisitions, expected to cost roughly CAD 2 billion, are designed to scale recurring revenue and provide a direct channel for the MDA CHORUS constellation. Once integrated, the company estimates its pro forma 2026 revenue could reach CAD 2.5 billion. To fund these moves, MDA Space utilized an upsized bought-deal equity offering and senior unsecured notes, a structure Lavoie expects will keep net debt within the targeted 1.5x to 2.5x adjusted EBITDA range.
Looking ahead, MDA Space maintains a massive opportunity pipeline of CAD 40 billion, with major ongoing contracts including a CAD 600 million project with the Canadian Space Agency and collaborations with Mitsubishi Electric, BAE Systems, and the European Space Agency.