MDA Space increased its full-year financial outlook today (Aug. 7) on the strength of its second-quarter results, as well as due to a recent major deal with EchoStar.
Yearly revenues are expected at $1.57 billion to $1.63 billion (up from $1.50 billion to $1.65 billion). EBITDA will also increase to $305 million to $320 million (up from $290 million to $320 million). Tariffs are not included in this forecast, but MDA emphasized that as necessary they would continue to work with customers.
Backlog now stands at $6 billion, including a $1.8 billion LEO constellation award from EchoStar that was announced days before quarter-end. MDA announced Aug. 1 it would be the prime contractor for EchoStar’s non-terrestrial network (NTN) satellite constellation, which will operate direct-to-device in low-Earth orbit as soon as 2029.
The deal, which uses MDA’s Aurora line of software-defined satellites, is “cementing our market leadership position, and accelerating our strategy, as we shift to high volume standards-based satellite product manufacturing,” CEO Mike Greenley said to analysts in a Q2 earnings call before market open today (Aug. 7).
The satellites will be manufactured at a facility in Montreal currently undergoing an 185,000-square-foot expansion, with delivery on the first tranche expected in 2028. The initial EchoStar contract, incidentally, could grow: it is based on design, manufacturing and testing of more than 100 Aurora satellites, but this could double to more than 200 if contract options are exercised – bringing the contract value to about $3.5 billion.
For the second quarter of 2025, which ended on June 30, MDA continued to report a lot of growth. Revenues were at $373.3 million, up 54% year-over-year, on the strength of the satellite systems business. Adjusted EBIDTA grew similarly, up 57% year-over-year to $76.3 million. Adjusted net income increased to $48.1 million, up 106% year-over-year.
Other major quarterly activities included the acquisition of SatixFy Communications, and a deal with the Canadian Space Agency (CSA) to take over management of the David Florida Laboratory in Ottawa that deals with satellite integration and testing.
“We’re proud to play a leadership role as a national space champion for our industry,” Greenley said. “Our teams have continued to execute on our existing programs, including major programs like the Telesat Lightspeed, as well as both low-Earth orbit constellations for Globalstar.
“We continue to execute on the development of our Canadarm robotic program,” he continued, referring to the ongoing work in manufacturing Canadarm3 for CSA, “and MDA Chorus, our next-generation Earth observation constellation. As always, our strong performance in the quarter would not have been possible without the extremely hard work and dedication of the entire MDA Space team, who I’d like to thank and acknowledge.”
During the last quarterly call in May, there was uncertainty regarding the status of Gateway – the NASA lunar space station to which Canadarm3 was attached, under the Artemis program. An early White House budget draft for 2026 zeroed out the contributions to Gateway. Greenley emphasized back then the tentative nature of the budget, which had to undergo examination in Congress, as well as the fact that its agreement for Canadarm3 was with CSA – not NASA.
By early July, funding for Gateway was restored, which is important for the Artemis Accords of which Canada is an early partner. The accords allow for nations to participate in lunar exploration alongside NASA, and/or to work with the United States more generally in space exploration. Those nations that contribute hardware to Artemis, such as Canada, receive astronaut seats and science in exchange. CSA astronaut Jeremy Hansen’s seat on Artemis 2, slated for launch around the moon next year, was paid for in large part using Canadarm3.
“There has been no change to any MDA Space contract as a result of these U.S budget developments,” Greenley emphasized of Gateway.
“Additionally, NASA has signaled its commitment to work with its Artemis partners, which include the CSA, on expanding opportunities for meaningful collaboration to the moon and Mars,” Greenley continued. He cited several examples, including lunar mobility programs and on-orbit operations. An MDA-led team was selected by CSA for an early-phase study on a proposed lunar utility vehicle for Canada, for example.
Looking forward, Greenley cited opportunities not only on the civilian side, but also the defence side as Canada looks to beef up opportunities alongside other NATO partners. Satellites generally play a key part in that strategy, he said, opening possibilities for MDA to participate on the fronts that are identified as priorities. He also said the 5G market will be rich ground for MDA as it continues to ramp up its Aurora satellite program.
