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MDA Space Ltd (TSE:MDA)
TSX:MDA
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MDA Space Ltd (MDA) AI Stock Analysis

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TSE:MDA

MDA Space Ltd

(TSX:MDA)

Rating:79Outperform
Price Target:
C$51.00
▲(15.36% Upside)
MDA Ltd's strong financial performance and positive earnings call are the most significant factors driving the score. The technical analysis supports a bullish outlook, although the high P/E ratio suggests potential overvaluation. The absence of a dividend yield further impacts the valuation.
Positive Factors
Contract Wins
The strength in Satellite Systems is benefiting from the ramp of Telesat Lightspeed and the recent Globalstar contract award.
Guidance
FY2025 guidance for revenue and EBITDA is well above consensus, indicating strong expected growth.
Valuation
The stock's valuation is considered attractive given MDA's strong backlog and pipeline.
Negative Factors
Tariffs Impact
The potential impact of U.S. tariffs on Canadian imports remains uncertain, but is considered manageable due to MDA's non-U.S. backlog and other mitigating factors.

MDA Space Ltd (MDA) vs. iShares MSCI Canada ETF (EWC)

MDA Space Ltd Business Overview & Revenue Model

Company DescriptionMDA Ltd. designs, manufactures, and services space robotics, satellite systems and components, and intelligence systems in Canada, the United States, Europe, Asia, the Middle East, and internationally. It offers geointelligence solutions that provide satellite-generated imagery and analytic services to deliver critical and value-added insights in the areas of national security, climate change monitoring, and maritime surveillance. The company also provides robotics and space operations that enable humanity's exploration by providing autonomous robotics and vision sensors that operate in space and on the surfaces of the moon and mars. In addition, it offers satellite systems and spacecraft to enable space-based services, including space-based broadband internet connectivity from low earth orbit satellite constellations. Further, the company provides products and services of defense intelligence systems. It serves government agencies, prime contractors, and space companies. The company was formerly known as Neptune Acquisition Holdings Inc. and changed its name to MDA Ltd. in March 2021. MDA Ltd. was founded in 1969 and is headquartered in Brampton, Canada.
How the Company Makes MoneyMDA Ltd generates revenue through a diverse range of channels, primarily from the sale of its advanced technology solutions and services. Key revenue streams include contracts with government agencies for space exploration and defense projects, commercial sales of satellite systems and geospatial data services, and partnerships with international organizations. The company benefits from long-term contracts and strategic alliances that provide a steady income flow, while continued innovation and investment in R&D help maintain its competitive edge and expand its market reach.

MDA Space Ltd Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 07, 2025
Earnings Call Sentiment Positive
The earnings call was predominantly positive, highlighted by strong revenue growth, significant contract wins, and a robust backlog. Despite some challenges in the Geointelligence segment and potential risks related to the EchoStar contract, the overall outlook remains optimistic with a strong emphasis on technological advancements and strategic acquisitions.
Q2-2025 Updates
Positive Updates
Record Revenue Growth
MDA Space reported Q2 revenues of $373 million, up 54% year-over-year. Adjusted EBITDA was $76 million, up 57% year-over-year, with an adjusted EBITDA margin of 20.4%.
Significant Contract Awards
The company secured a $1.8 billion contract with EchoStar for the world's first 3GPP 5G compliant nonterrestrial network using LEO satellites, with options to increase the contract value to $3.5 billion.
Strong Backlog and Financial Outlook
Backlog increased to over $6 billion, providing good revenue visibility. The company updated its full year revenue guidance to $1.57 billion to $1.63 billion, representing 48% growth at the midpoint.
Acquisition and Integration
MDA completed the acquisition of SatixFy Communications in early July, enhancing its satellite systems offerings.
Technological Milestones
MDA achieved an industry first by demonstrating digital beam forming and steering multiple beams with Ka-band direct radiating array using direct sampling.
Negative Updates
Revenue Decline in Geointelligence Business
Revenues in the Geointelligence business were $53 million, down 4% year-over-year due to the timing of programs.
Working Capital Fluctuations
Cash from operations in Q2 was $53 million, down from $145 million in Q2 2024, primarily due to working capital fluctuations.
Potential Risks with EchoStar Contract
Concerns were raised about EchoStar's ongoing issues with the FCC, although the company is optimistic about resolution.
Company Guidance
During the second quarter of 2025, MDA Space Limited reported significant financial growth, with revenues totaling $373 million, marking a 54% increase year-over-year. The company achieved an adjusted EBITDA of $76 million, a 57% rise from the previous year, resulting in an adjusted EBITDA margin of 20.4%. Operating cash flow was robust at $53 million, and the firm held a net cash position of $417 million at quarter-end. The company's backlog reached $4.6 billion, providing solid revenue visibility for the future, and further increased to over $6 billion with the inclusion of a new $1.8 billion contract with EchoStar. This contract involves the design, manufacture, and testing of over 100 satellites, with options to expand. MDA Space updated its 2025 financial outlook, now expecting full-year revenues between $1.57 billion and $1.63 billion, and adjusted EBITDA between $305 million and $320 million. Capital expenditures are projected to be $210 million to $240 million, with free cash flow expected to be neutral to positive for the year.

MDA Space Ltd Financial Statement Overview

Summary
MDA Ltd shows strong financial health with robust revenue growth and stable profitability. The balance sheet reflects balanced leverage and effective equity utilization. Despite challenges in free cash flow growth, the company maintains solid cash generation capability.
Income Statement
85
Very Positive
MDA Ltd has demonstrated strong revenue growth with a 10.75% increase in the TTM period, indicating robust demand and market presence. The gross profit margin of 24.54% and net profit margin of 8.48% reflect solid profitability, although slightly lower than previous periods. The EBIT and EBITDA margins are healthy at 13.29% and 20.43% respectively, showcasing efficient operational management. Overall, the income statement reflects a positive growth trajectory and stable profitability.
Balance Sheet
78
Positive
The balance sheet shows a moderate debt-to-equity ratio of 0.30, indicating a balanced approach to leveraging. The return on equity (ROE) of 9.53% is commendable, reflecting effective use of equity to generate profits. The equity ratio stands at 40.62%, suggesting a solid equity base. While the company maintains a stable financial position, the increase in total debt over previous periods warrants monitoring.
Cash Flow
70
Positive
The cash flow statement reveals a decline in free cash flow growth by 15.21%, which could indicate potential cash management challenges. However, the operating cash flow to net income ratio of 0.75 and free cash flow to net income ratio of 0.74 suggest that the company is generating sufficient cash relative to its net income. Despite the recent decline in free cash flow, the overall cash flow position remains relatively strong.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.35B1.08B807.60M641.20M476.90M295.60M
Gross Profit332.10M281.70M244.00M228.40M167.80M33.80M
EBITDA276.50M230.00M154.00M150.80M124.00M43.60M
Net Income114.70M79.40M48.80M26.30M2.90M-17.30M
Balance Sheet
Total Assets3.16B2.60B2.16B1.75B1.53B1.46B
Cash, Cash Equivalents and Short-Term Investments665.90M166.70M22.50M39.30M83.60M78.60M
Total Debt391.10M136.80M525.00M251.90M160.40M580.20M
Total Liabilities1.87B1.42B1.10B750.20M572.90M997.80M
Stockholders Equity1.28B1.18B1.06B1.00B961.70M457.40M
Cash Flow
Free Cash Flow708.50M614.80M-179.70M-123.10M-22.50M43.10M
Operating Cash Flow961.70M815.60M13.50M57.00M72.10M56.40M
Investing Cash Flow-226.60M-229.90M-217.60M-180.10M-98.80M-1.01B
Financing Cash Flow-110.70M-436.10M187.40M78.80M30.60M1.03B

MDA Space Ltd Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price44.21
Price Trends
50DMA
41.51
Positive
100DMA
34.39
Positive
200DMA
30.49
Positive
Market Momentum
MACD
0.84
Positive
RSI
53.61
Neutral
STOCH
27.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MDA, the sentiment is Neutral. The current price of 44.21 is above the 20-day moving average (MA) of 44.14, above the 50-day MA of 41.51, and above the 200-day MA of 30.49, indicating a neutral trend. The MACD of 0.84 indicates Positive momentum. The RSI at 53.61 is Neutral, neither overbought nor oversold. The STOCH value of 27.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:MDA.

MDA Space Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
C$5.52B46.929.64%57.21%136.79%
64
Neutral
$10.73B15.747.64%2.01%2.76%-15.10%
$8.56B28.858.73%
$11.28B24.69
77
Outperform
C$301.45M21.0618.05%17.52%54.86%
64
Neutral
C$919.93M24.264.85%0.78%6.58%121.23%
63
Neutral
C$15.58B24.62-23.10%6.69%64.89%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:MDA
MDA Space Ltd
44.01
28.69
187.27%
CAE
CAE
26.62
8.60
47.72%
BDRBF
Bombardier
111.77
50.14
81.36%
TSE:BBD.A
Bombardier Cl A MV
156.16
72.70
87.11%
TSE:FTG
Firan Tech
12.21
6.33
107.65%
TSE:MAL
Magellan Aerospace
16.37
7.41
82.70%

MDA Space Ltd Corporate Events

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
MDA Space Ltd Reports Robust Q2 2025 Results and Strategic Expansions
Positive
Aug 7, 2025

MDA Space Ltd reported strong financial results for Q2 2025, with a 54% increase in revenue and a 57% rise in adjusted EBITDA compared to the previous year. The company secured a significant $1.8 billion contract with EchoStar for a LEO satellite constellation, enhancing its leadership in the non-terrestrial network market. Additionally, MDA announced the acquisition of SatixFy Communications and an agreement with the Canadian Space Agency to manage the David Florida Laboratory, further solidifying its position in the space industry.

The most recent analyst rating on (TSE:MDA) stock is a Buy with a C$18.00 price target. To see the full list of analyst forecasts on MDA Ltd stock, see the TSE:MDA Stock Forecast page.

Business Operations and Strategy
MDA Space Secures Major Contract for EchoStar’s Pioneering LEO Satellite Constellation
Positive
Aug 1, 2025

EchoStar Corporation has selected MDA Space Ltd. as the prime contractor for its groundbreaking low Earth orbit (LEO) direct-to-device (D2D) satellite constellation, marking a significant advancement in non-terrestrial network technology. The contract, initially valued at approximately US$1.3 billion, involves the production of over 100 software-defined satellites, with potential expansion to over 200 satellites, ultimately enhancing global connectivity for 5G devices. This collaboration positions MDA Space as a leader in the NTN market, with the project expected to extend connectivity to underserved areas and integrate seamlessly with terrestrial networks, reinforcing EchoStar’s market presence and service capabilities in the U.S., Europe, and beyond.

The most recent analyst rating on (TSE:MDA) stock is a Buy with a C$34.00 price target. To see the full list of analyst forecasts on MDA Ltd stock, see the TSE:MDA Stock Forecast page.

Business Operations and Strategy
MDA Space to Lead Study for Canada’s Lunar Utility Vehicle
Positive
Jul 29, 2025

MDA Space Ltd. has been selected by the Canadian Space Agency to lead an early-phase study for Canada’s proposed Lunar Utility Vehicle (LUV). This collaboration involves Canadian expertise from the Centre de Technologies Avancées BRP and the University of Toronto Institute for Aerospace Studies, focusing on mission architecture and technology development for future lunar logistics. The study aims to ensure technologies are mission-ready, building on a successful autonomous lunar demonstration. This initiative positions MDA Space as a key player in shaping Canada’s role in lunar exploration, potentially impacting long-term human presence on the Moon.

The most recent analyst rating on (TSE:MDA) stock is a Buy with a C$18.00 price target. To see the full list of analyst forecasts on MDA Ltd stock, see the TSE:MDA Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
MDA Space Appoints Rob Singh as VP of Strategic Solutions
Positive
Jul 21, 2025

MDA Space has appointed Rabindra (Rob) Singh as Vice President of Strategic Solutions, a new role aimed at driving strategic customer solutions and growth opportunities. With over 30 years of experience in the space industry, Singh’s appointment is expected to enhance MDA’s ability to meet customer demand and expand its presence in the global space economy.

The most recent analyst rating on (TSE:MDA) stock is a Buy with a C$18.00 price target. To see the full list of analyst forecasts on MDA Ltd stock, see the TSE:MDA Stock Forecast page.

Financial Disclosures
MDA Space to Announce Q2 2025 Financial Results on August 7
Neutral
Jul 16, 2025

MDA Space announced it will release its second quarter 2025 financial results on August 7, 2025, before the market opens. The company will hold a conference call and webcast to discuss these results, providing stakeholders with insights into its financial performance and strategic direction. The webcast will be available on the MDA Space Investor Relations website for a year, allowing stakeholders to access the information at their convenience.

The most recent analyst rating on (TSE:MDA) stock is a Buy with a C$18.00 price target. To see the full list of analyst forecasts on MDA Ltd stock, see the TSE:MDA Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
MDA Space Ltd. Leads SkyPhi Mission for 5G Satellite Communications
Positive
Jul 16, 2025

MDA Space Ltd. announced its leadership role in the SkyPhi mission, funded by the European Space Agency and the UK Space Agency, to develop regenerative 5G direct-to-device satellite communications from low Earth orbit. This initiative, part of the ARTES program, highlights the UK’s leadership in satellite innovation and involves collaboration with UK-based partners CGI and Open Cosmos. The project aims to enhance the UK’s competitive edge in the space sector by advancing satellite-enabled 5G services and strengthening the industrial base of the UK space industry.

The most recent analyst rating on (TSE:MDA) stock is a Buy with a C$18.00 price target. To see the full list of analyst forecasts on MDA Ltd stock, see the TSE:MDA Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
MDA Space Completes Acquisition of SatixFy Communications
Positive
Jul 2, 2025

MDA Space Ltd. has completed its acquisition of SatixFy Communications Ltd., a company specializing in next-generation satellite communication solutions. This acquisition enhances MDA Space’s satellite systems strategy and strengthens its competitive edge as the demand for digital satellite solutions grows. The integration of SatixFy’s operations and technology into MDA’s Satellite Systems business is expected to bolster the company’s offerings in the rapidly expanding global space market.

The most recent analyst rating on (TSE:MDA) stock is a Buy with a C$18.00 price target. To see the full list of analyst forecasts on MDA Ltd stock, see the TSE:MDA Stock Forecast page.

Business Operations and Strategy
MDA Space Extends Maritime Surveillance Contract with Canadian Government
Positive
Jun 30, 2025

MDA Space Ltd. has announced an extension of its contract with Fisheries and Oceans Canada to provide satellite surveillance data and analytics for maritime security. This extension supports Canada’s leadership in maritime safety and aligns with international commitments to combat illegal fishing. The contract includes future use of MDA’s upcoming Earth observation constellation, CHORUS, enhancing Canada’s capabilities in monitoring and intercepting illegal maritime activities, thereby strengthening its Indo-Pacific Strategy.

The most recent analyst rating on (TSE:MDA) stock is a Buy with a C$18.00 price target. To see the full list of analyst forecasts on MDA Ltd stock, see the TSE:MDA Stock Forecast page.

Business Operations and Strategy
MDA Space Secures $60 Million Contract for River-class Destroyer Program
Positive
Jun 24, 2025

MDA Space Ltd has secured a $60 million contract for the next phase of the River-class Destroyer program, focusing on the delivery and integration of sensor systems for the first three ships. These systems are designed to enhance situational awareness and protect against laser and optical guided threats, supporting the Royal Canadian Navy’s missions. The project is part of Canada’s National Shipbuilding Strategy, with Irving Shipbuilding Inc. constructing the ships and Lockheed Martin Canada leading the combat management system design.

The most recent analyst rating on (TSE:MDA) stock is a Buy with a C$18.00 price target. To see the full list of analyst forecasts on MDA Ltd stock, see the TSE:MDA Stock Forecast page.

M&A TransactionsShareholder Meetings
MDA Space and SatixFy Amend Merger Agreement with Increased Offer
Positive
May 20, 2025

MDA Space Ltd. and SatixFy Communications Ltd. have amended their merger agreement, increasing the all-cash transaction offer to US$3.00 per ordinary share, valuing SatixFy at approximately US$280 million. This decision followed a competitive ‘go-shop’ process where SatixFy received a higher offer from a third party, leading to negotiations with MDA. The increased offer was deemed the best value for shareholders, with 57% of SatixFy shareholders already committed to supporting the revised merger agreement. The shareholder meeting to approve the merger has been postponed to allow for proper disclosure.

The most recent analyst rating on (TSE:MDA) stock is a Buy with a C$17.00 price target. To see the full list of analyst forecasts on MDA Ltd stock, see the TSE:MDA Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2025