MDA Space Raises 2026 Revenue Forecast to C$1.95 Billion After 21.5% Quarterly Growth
Key Facts
MDA Space raised its fiscal 2026 revenue forecast to a range of C$1.90 billion to C$1.95 billion, from its previous range of C$1.8 billion to C$1.9 billion, according to a company statement published on November 5. That implies annual growth of about 18% at the midpoint of the new guidance range. The company also raised its forecast for adjusted earnings before interest, taxes, depreciation and amortization to C$355–375 million, from C$330–370 million previously. It said the new range reflects its year-to-date execution, while third-quarter revenue grew on higher activity in satellite systems and geointelligence. MDA maintained its targets for adjusted EBITDA margin, capital spending and free cash flow for the year, putting the higher forecasts alongside those unchanged targets.
Consolidated revenue was C$498.1 million in the third quarter of 2026, up 21.5% year over year, the company said. The increase came as activity rose in its satellite systems and geointelligence segments. Satellite systems revenue was C$358.3 million, up 26.4% year over year. The company attributed most of that growth to higher activity on the Telesat Lightspeed program. Geointelligence revenue rose 24.8% to C$59.9 million, as activity increased on new programs.
Higher gross profit fed through to adjusted net income, which reached C$60.4 million in the third quarter, up 26.1% from the same period in 2025. The company said gross profit growth supported the result, while investment in general and administrative expenses offset part of the impact. For its full-year outlook, MDA kept its adjusted EBITDA margin range at 18% to 20%. It also confirmed that capital spending would remain between C$225 million and C$275 million. Its free cash flow outlook remained neutral to negative, due to the usual program-related working capital fluctuations.
The company reported net cash of C$1.328 billion at the end of the third quarter, compared with net debt of C$120 million on December 31, 2025. It said the improvement came largely from equity issuances and an August 2026 offering of unsecured debentures. MDA plans to use the liquidity to fund its pending acquisitions of Blue Canyon Technologies and CLS. The company said the two deals would strengthen its market access and global position. The available funding makes the acquisitions part of the financial picture the company presented, while they remain pending transactions, according to the statement.
Chief Executive Mike Greenley said the company continued to convert opportunities into contracted orders, citing a C$40 billion opportunity pipeline. The statement described revenue and profitability growth as part of the company's track record of execution and converting opportunities into contracted work. He said: "We are building momentum through strong order activity and demonstrating our ability to convert opportunities within our C$40 billion pipeline." On the next step, Greenley said the company was on schedule to launch the MDA CHORUS constellation at the end of 2026. The target date is part of the company's expectation to close the year with the constellation launch, while the Blue Canyon and CLS acquisitions remain pending.