Space firm MDA's Q2 revenue beats expectations

MDA Space

07/08/2025 10:54

Overview

MDA Q2 rev rises 54% yr/yr, beating analyst expectations, per LSEG data

Adjusted net income for Q2 up 106% yr/yr, reflecting improved profitability

Co announces C$1.8 bln LEO constellation contract, backlog grows to over C$6 bln

Outlook

MDA expects 2025 revenue of C$1.57 bln to C$1.63 bln

Company projects 2025 adjusted EBITDA of C$305 mln to C$320 mln

MDA forecasts Q3 2025 revenue of C$385 mln to C$415 mln

Company notes potential impact of U.S. tariffs not included in guidance

Result Drivers

REVENUE GROWTH - 54% YoY increase in Q2 2025 revenues driven by higher work volumes, particularly in Satellite Systems business

BACKLOG SUPPORT - C$4.6 bln backlog at qtr-end provides revenue visibility for 2025, with new C$1.8 bln LEO constellation award from EchoStar

ACQUISITION - Completion of SatixFy Communications acquisition to enhance satellite systems offering amid rising demand for digital satellite communications

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
C$373.30 mln
C$370.50 mln (5 Analysts)
Q2 Adjusted EBITDA
C$76.30 mln
Q2 Gross Margin
25.4%
Q2 Adjusted EBITDA Margin
20.4%
Q2 Gross Profit
C$94.80 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the aerospace & defense peer group is "buy"

Wall Street's median 12-month price target for MDA Space Ltd is C$53.00, about 12.9% above its August 6 closing price of C$46.18

The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release: ID:nCNWpY3cla

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)