#Canada #Fiscal 2025 #MDA Space #Brampton #Q4 Results

MDA Space Releases Fourth Quarter and Fiscal 2025 Results

MDA Space Ltd., a prominent player in the global space industry, has just announced its financial results for the fourth quarter and the entire fiscal year of 2025. This announcement marks a period of remarkable growth and solidifies MDA's position as a leader in the sector.

Key Highlights of Q4 and Full Year 2025

In the fourth quarter of 2025, MDA recorded a backlog of $4 billion, providing robust revenue visibility into 2026 and beyond. Revenues reached an all-time high of $499 million, reflecting a remarkable 44% year-on-year increase. The adjusted EBITDA also set a record, reaching $96 million, up by 36% annually, indicating a strong performance trajectory for the company.

For the entire fiscal year of 2025, MDA achieved record revenues of $1.63 billion, translating to a 51% increase from the previous year. The adjusted EBITDA for the year stood at $324 million, representing a 49% annual increase, with an adjusted EBITDA margin of 19.8%. Furthermore, the company reported an adjusted net income of $190 million, which is an impressive 71% increase compared to 2024.

Financial Outlook for 2026

Looking ahead, MDA Space anticipates revenues to range between $1.7 billion and $1.9 billion in 2026, with an adjusted EBITDA forecast of $320 million to $370 million. The company expects to invest heavily, with capital expenditures projected between $225 million and $275 million to enhance its production capabilities and technology development.

CEO Mike Greenley emphasized the company’s commitment to growth and innovation, stating, "FY2025 was another banner year of profitable growth for MDA Space. Our $4 billion backlog provides us with revenue visibility into 2026 and beyond. Additionally, our pipeline has now increased to $40 billion."

Factors Driving Growth

MDA's remarkable growth can be attributed to several key factors:

• - Robust Demand in Defence and Space: The increasing demand for defence and space technologies has created numerous opportunities for MDA, including strategic partnerships, such as those with the Canadian armed forces and the U.S. Missile Defense Agency.
• - Innovative Projects: Investments in next-gen technologies such as MDA AURORA™, MDA SKYMAKER™, and MDA CHORUS™ are building capabilities for the future, allowing MDA to maintain its status as a top innovator in the space sector.
• - Strategic Acquisitions: The recent acquisition of SatixFy Communications has integrated leading-edge technology into MDA's offerings, enhancing its product portfolio.

Financial Performance Review

MDA's financial performance over the past year has shown a strong correlation between revenue growth and increased operational efficiency. The fourth-quarter gross profit reached $127 million, a 55% increase from the previous year, driven largely by high volumes of work within the Satellite Systems business.

Operating cash flow for the year amounted to $407 million, a decrease from $813 million in 2024 due to lower working capital contributions. Despite this, free cash flow of $165 million further reinforces the company’s healthy financial standing.

The company also acknowledged fluctuations in foreign exchange that impacted net income, reported at $24 million for Q4. However, adjusted net income showed significant improvement, reaching $58 million, up 67% on an annual basis.

Conclusion

MDA Space is well-positioned to capitalize on ongoing market demand in 2026, supported by its diverse technology offerings and strategic initiatives. As it continues to drive profitable growth, MDA remains committed to playing a pivotal role in the advancement of the global space industry. The company’s strong financial foundation assures stakeholders of its ability to navigate future challenges and achieve sustained success.

For continued updates, investors are encouraged to follow MDA Space’s announcements as they navigate through their ambitious growth journey onto the global stage.