— Q2 2025 Highlights
— Backlog of $4.6 billion at quarter-end, provides revenue visibility for 2025
— Revenues of $373.3 million, up 54%YoY
— Adjusted EBITDA1 of $76.3 million, up 57% YoY, and adjusted EBITDA margin1 of 20.4%
— Adjusted net income1 of $48.1 million, up 106% YoY, and adjusted diluted earnings per share1 of $0.38, up 100% YoY
— Operating cash flow of $52.8 million
— Net cash position of $416.8 million at quarter-end
— Subsequent to quarter-end, announced new $1.8 billion LEO constellation award from EchoStar, growing backlog to over $6 billion2
— Updated 2025 full-year financial outlook
MDASpace Ltd. (TSX: MDA), a trusted space mission partner to the rapidly expanding global space industry, today announced its financial results for the second quarter ended June 30, 2025.
https://mma.prnewswire.com/media/2745782/MDA_Space_MDA_SPACE%C2%A0REPORTS%C2%A0SECOND%C2%A0QUARTER%C2%A02025_RESULTS.jpg
“At the half year mark, the MDASpace team continues to execute well, delivering solid second quarter financial results with strong growth in our revenue and profitability as we convert our backlog and meet our customer commitments. Teams across all business areas were also busy advancing existing programs and developing a healthy pipeline of future business,” said Mike Greenley, Chief Executive Officer of MDA Space.
“We also continue to convert pipeline opportunities into contract awards, and were pleased to announce last week our selection byEchoStar to be the prime contractor on EchoStar's new direct-to-device LEO constellation – the world's first 3GPP 5G compliant non-terrestrial network (NTN) using LEO satellites. The initial $1.8 billion contract will see us design, manufacture and test over 100 MDA AURORA™direct-to-device satellites with contract options increasing the network size to over 200 satellites. With this contract, EchoStar becomes the anchor customer for the 3GPP 5G NTN compliant MDA AURORA™ direct-to-device satellite product, further solidifying MDA Space's leadership in the non- terrestrial network market,” continued Mr. Greenley.
“Notable activities in Q2 to highlight include our announcement to acquire SatixFy Communications, a transaction that we completed in early July, and that will further enhance our end-to-end satellite systems offering as demand for next generation digital satellite communications continues to accelerate. I want to take this opportunity to welcome our new colleagues to MDASpace,” continuedMr. Greenley.
“In addition, with the growth in the commercial space industry accelerating, we were pleased to finalize an agreement with the Canadian Space Agency to reopen the David Florida Laboratory under MDA Spacemanagement,maintainingthiscritical spaceandsatellite integrationandtesting facilityforuseby the broad space ecosystem. We are proud to play a leadership role as national space champion for our industry.”
“Given the solid operational performance year-to-date and continued market momentum, we are updating our 2025 financial outlook as we look to deliver another successful year.”
Q22025HIGHLIGHTS
— Backlog of $4.6 billion at quarter-end provides revenue visibility for 2025 and is in line with the backlog levels recorded as of Q2 2024.
— Revenues of $373.3 million in Q2 2025 were up 54.3% year-over-year driven by higher volumes of work, primarily in our Satellite Systems business.
— Adjusted EBITDA of $76.3 million in Q2 2025 compared to $48.7 million in Q2 2024, representing an increase of 56.7% year-over-year driven by higher volumes of work. Adjusted EBITDA margin was 20.4% in Q2 2025, in line with 20.1% reported in Q2 2024 and consistent with the Company's full year margin guidance of 19%-20%.
— Adjusted net income for Q2 2025 was $48.1 million compared to $23.4 million in Q2 2024, representing an increase of 105.6% year-over-year driven by higher operating income. Adjusted diluted earnings per share of $0.38 in Q2 2025 compared to $0.19 in Q2 2024, representing an increase of 100% year-over-year.
— Operating cash flow was $52.8 million in Q2 2025 compared with $144.5 million in Q2 2024. The year-over-year decrease in operating cash flow was primarily due to working capital fluctuations.
— Net cash position of $416.8 million at quarter-end, compared to a net cash position of $166.7 million as of December 31, 2024 driven by operating cash flow generation year-to-date.
2025FINANCIALOUTLOOK
As a trusted mission partner and leading global space technology provider, we are leveraging our capabilities and expertise to execute on targeted growth strategies across our end markets and business areas. Our strategic initiatives, which span across our three businesses, include investing in next generation space technology and services, expanding our presence in high growth markets and geographies, scaling and expanding skills, talent and operations to meet current and future market demand and leveraging strategic M&A to complement organic growth. We continue to make good progress against our long-term strategic plan.
MDASpace is well positioned to capitalize on strong customer demand and robust market activity given our diverse and proven technology offerings. Our growth pipeline is significant and underpinned by existing and new programs and our book of business is healthy. We see activities ramping up in line with our expectations and are encouraged by the team's solid execution.
For fiscal 2025, we are updating our full year financial outlook and now expect full year revenues to be$1.57 – $1.63 billion compared to $1.50 – $1.65 billion previously, representing year-over-year growthof approximately 48% at the mid-point of guidance. We are updating our full year adjusted EBITDA range to $305 – $320 million compared to $290 – $320 million previously, representing year-over-year growth of approximately 45% at the mid-point of guidance, and approximately 19% – 20% adjusted EBITDA margin. We reaffirm our expectations that capital expenditures will be $210 – $240 million in 2025, comprising of growth investments to support the previously outlined growth initiatives across our business areas. We continue to expect full year free cash flow to be neutral to positive in 2025.
ForQ32025,weexpectrevenuestobe$385-$415millionaswecontinue toexecuteonourbacklog.
Note that the provided 2025 financial outlook does not incorporate any potential impact from the U.S. tariffs announced this year on articles imported from Canada or the retaliatory Canadian tariffs imposed on Canadian imports from the U.S. MDA Space continues to work collaboratively with our customers to identify solutions and explore mitigation strategies. The Company will continue to closely monitor developments and may elect to update its financial outlook if deemed necessary.
FINANCIALOVERVIEW
KEY INDICATORS SUMMARY
Revenues
Consolidated revenues for the second quarter of 2025 were $373.3 million, representing an increase of$131.3million (or54.3%)fromthesecondquarterof2024. Theyear-over-yearincrease inrevenues was driven by higher volumes of work performed, primarily in our Satellite Systems business.
By business area, revenues in Geointelligence for thesecond quarter of 2025 were $52.7 million, which represents an decrease of $2.2 million (or 4.0%) from the same period in 2024 due to timing of programs. Revenues in Robotics & Space Operations for the second quarter of 2025 were $88.0million, which represents an increase of $9.7 million (or 12.4%) from the same period in 2024 driven largely by the ramp of Phase C of the Canadarm3 Program. Revenues in Satellite Systems for the second quarter of 2025 were $232.6million, which represents anincrease of $123.8million (or 113.8%) from the same period in 2024 driven by the ramp up of the Telesat Lightspeed program and the Globalstar next generation LEO constellation program.
Consolidated revenues for the six months ended June 30, 2025 were $724.3 million, representing an increase of $273.2 million (or 60.6%) from the same period of 2024. The year-over-year increase in revenues was driven by higher volumes of work performed, primarily in our Satellite Systems business.
By business area, revenues in Geointelligence for the first six months of 2025 were $104.4 million, which represents a decrease of $2.0 million (or 1.9%) from the same period in 2024 due to timing of programs. Revenues in Robotics & Space Operations for the first six months of 2025 were $165.3 million, which represents an increase of $16.7 million (or 11.2%) from the same period in 2024. The year-over-year increase is primarily driven by the higher volume of work performed on the Canadarm3 program as Phase C ramps up. Revenues in Satellite Systems for the first six months of 2025 were$454.6 million, which represents an increase of $258.5 million (or 131.8%) from the same period in2024 driven by the ramp up of theTelesat Lightspeed program and the Globalstar next generation LEO constellation program.
GrossProfitandGrossMargin
Gross profit reflects our revenues less cost of revenues. Q2 2025 gross profit of $94.8 million represents a $28.6 million (or 43.2%) increase over Q2 2024 driven by higher volumes of work performed in our Satellite Systems and Robotics & Operations businesses. Gross margin in Q2 2025 was 25.4%, which is in line with the Company's expectations, and compares to a gross margin of 27.4% in Q2 2024 driven by an evolving program mix.
For the six months ended June 30, 2025, gross profit of $174.5 million represents a $50.4 million (or 40.6%) increase over 2024 levels driven by higher volumes of work performed in our Satellite Systems and Robotics & Operations businesses. Gross margin for the six months ended June 30, 2025 was 24.1% which is in line with the Company's expectations and compares to 27.5% in Q2 2024. The year- over-year change in gross margin is driven by evolving program mix.
AdjustedEBITDAandAdjustedEBITDA Margin
Adjusted EBITDAfor the second quarter of 2025 was $76.3 million compared with $48.7 million for the second quarter of 2024, representing an increase of $27.6 million (or 56.7%) year-over-year driven by higher work volumes as we continue to convert our backlog.Adjusted EBITDAmargin was20.4% in the secondquarterof2025, inlinewiththe20.1%adjustedEBITDA marginreportedinthesecond quarterof 2024 and consistent with the Company's full year margin guidance of 19%-20%.
Adjusted EBITDA for the six months ended June 30, 2025 was $144.9 million compared with $90.7 million for the same period in2024, representing anincrease of $54.2million (or 59.8%) year-over-year. The improvement was driven by higher volumes of work performed year-over-year. Adjusted EBITDA margin was 20.0% for the six months ended June 30, 2025 compared with 20.1% in 2024.
AdjustedNetIncome
Adjusted net income for the second quarter of 2025 was $48.1 million compared with $23.4 million for the second quarter of 2024, representing an increase of $24.7 million (or 105.6%) year-over-year largely due to higher operating income in Q2 2025.
Adjusted net income for the six months ended June 30, 2025 was $85.3 million compared with $41.9 million for the same period in 2024, representing a increase of $43.4 million (or 103.6%) year-over-year largely due to higher operating income in 2025.
Backlog
Backlog is comprised of our remaining performance obligations which represents the transaction price of firm orders less inception to date revenue recognized and excludes unexercised contract options and indefinite delivery or indefinite quantity contracts. Backlog as at June 30, 2025 was $4,567.9 million, a decrease of $28.1 million compared with the backlog at June 30, 2024 driven by continued conversion of our backlog into revenue. The following table shows the build up of backlog for six months ended June 30, 2025 as compared with the same periods in 2024.
CONFERENCE CALL AND WEBCAST
MDA Space will host a conference call and webcast to discuss these financial results on Thursday, August 7, 2025 at 8:30 a.m. ET. Interested parties can join the call by dialing 416-945-7677 (Toronto area) or 1-888-699-1199 (toll-free North America) or +44-800-279-7040 (toll-free United Kingdom) and entering the conference ID 55781. A live webcast of the conference call and an accompanying slide presentation will be available at https://mda-en.investorroom.com/events-presentations.
A replay of the conference will be archived on the MDA Space website following the call. Parties may also access a recording of the call which will be available until August 14, 2025, by dialing 1-888-660-6345 and entering the passcode 55781 #.
NON-IFRSFINANCIAL MEASURES
Thispressrelease referstocertain non-IFRSmeasures.These measuresarenotrecognizedmeasures under IFRS, do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies. Rather, these measures are provided asadditionalinformationtocomplementthoseIFRSmeasures byprovidingfurther understandingofour results of operations from management's perspective. Accordingly, the measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. We use non-IFRS measures, including EBITDA,Adjusted EBITDA,Adjusted EBITDAmargin,Adjusted Net Income, Adjusted Earnings per Share, Order Bookings, Net Debt and Free Cash Flow, to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We define EBITDA as net income (loss) before: i) depreciation and amortization expenses, ii) provision for (recovery of) income taxes, and iii) finance costs. Adjusted EBITDA is calculated by adding to and deducting from EBITDA, as applicable, certain expenses, costs, charges or benefits incurred in such period which in management's view are either not indicative of underlying business performance or impact the ability to assess the operating performance of our business, including i) unrealized foreign exchange gain or loss ii) unrealized gain or loss on financial instruments and iii) share-based compensation expenses, and iv) other items that may arise from time to time.Adjusted EBITDAmargin representsAdjusted EBITDAdivided by revenue. Order Bookings is the dollar sum of contract values of firmcustomer contracts.AdjustedNetIncomeiscalculatedbyaddingtoanddeductingfromnetincome, as applicable, certain expenses, costs, charges or benefits incurred in such period which in management's view are either not indicative of underlying business performance or impact the ability to assess the operating performance of our business, including i) amortization of intangible assets related to business combinations, ii) unrealized foreign exchange gain or loss, iii) unrealized gain or loss on financial instruments, and iv) share-based compensation expenses, and iv) other items that may arise from time to time. Adjusted Earnings per Share represents Adjusted Net Income divided by the weighted average number of shares outstanding. Order Bookings is indicative of firm future revenues; however, it does not provide a guarantee of future net income and provides no information about the timing of future revenue. Net Debt is the total carrying amount of long-term debt including current portions, as presented in the Q2 2025 Financial Statements, less cash (or plus bank indebtedness) and excluding any lease liabilities. Net Debt is a liquidity metric used to determine how well the Company can pay all of its debts if they were due immediately. Free Cash Flow is a supplemental measure used to monitor the availability of discretionary cash generated, and available to the Company to repay debt, makestrategic investments, and meet other payment obligations. We define Free Cash Flow as operating cash flows less net capital expenditures.
FORWARD-LOOKINGSTATEMENTS
This press release may contain forward looking information within the meaning of applicable securities legislation, which reflects the Company's current expectations regarding future events. Forward looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward looking information. Such risks and uncertainties include, but are not limited to the factors discussed under “Risk Factors” in the Company's Annual Information Form (AIF) dated March 7, 2025 and available on SEDAR+ at www.sedarplus.ca. MDA Space does not undertake any obligation to update such forward looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
ABOUTMDASPACE
Building the space between proven and possible, MDA Space (TSX:MDA) is a trusted mission partnerto the global space industry. A robotics, satellite systems and geointelligence pioneer with a 55-year+ story of world firsts and more than 450 missions, MDA Space is a global leader in communications satellites, Earth and space observation, and space exploration and infrastructure. The global MDA Space team of more than 3,800 space experts has the knowledge and know-how to turn an audacious customer vision into an achievable mission – bringing to bear a one-of-a-kind mix of experience, engineering excellence and wide-eyed wonder that's been in our DNA since day one. For those who dream big and push boundaries on the ground and in the stars to change the world for the better, we'll take you there. For more information, visit www.mda.space.
MDASpaceLtd.
UnauditedInterimCondensedConsolidatedStatementofComprehensiveIncome For the three and six months ended June 30, 2025 and 2024 (In millions of Canadian dollars except per share figures)
MDASpaceLtd.
UnauditedInterimCondensedConsolidatedStatementofFinancial Position June 30, 2025
(In millions of Canadian dollars)
MDASpaceLtd.
UnauditedInterimCondensed ConsolidatedStatementofCashFlows For the three months and six months ended June 30, 2025 and 2024 (In millions of Canadian dollars)
RECONCILIATION OFNON-IFRS MEASURES
The following table provides a reconciliation of net income to EBITDA, adjusted EBITDA, and adjusted net income:
https://c212.net/c/img/favicon.png?sn=TO46136&sd=2025-08-07
View original content to download multimedia:https://www.prnewswire.com/news-releases/mda-space-reports-second-quarter-2025-results-302523864.html
SOURCE MDA Space
https://rt.newswire.ca/rt.gif?NewsItemId=TO46136&Transmission_Id=202508070545PR_NEWS_USPR_____TO46136&DateId=20250807