MDA Space raised its yearly revenue guidance as it announced another strong quarter of financial results.
The progress the company noted has all been in the works for a long time: the preliminary design review for the Canadarm3 robotic arm to serve NASA’s Gateway space station, continued work on the next-generation Chorus Earth observation constellation, and engineering work for the Telesat Lightspeed low Earth satellite program of 198 satellites, which launches in 2026. (Many other contracts have been announced, but these are some of the larger ones.)
“The Lightspeed constellation will utilize our innovative MDA Aurora digital satellites to provide high-speed internet access across Canada and globally and help bridge the digital divide,” CEO Mike Greenley said in a phone call to investors on Nov. 15 discussing the third-quarter results ending Sept. 30.
Revenues for fiscal 2024 are now expected to be between $1.045 billion and $1.065 billion, up from between $1.020 billion and $1.060 billion.
MDA Space also hosted the government announcement finalizing funding for Lightspeed from the governments of Canada and Quebec, he noted. The funding, announced in September, will bring $2.54 billion in agreements to meet rising inflation costs for the constellation.
The quarter also saw MDA Space break ground on its already announced satellite systems facility expansion in Quebec, which will soon bring 185,000 square feet for manufacturing. Greenley also pointed to continued interest worldwide in space exploration, signaled by the Artemis Accords.
Nearly 50 countries are on board the NASA-led alliance, which has some nations contributing hardware for Artemis moon missions – like the Canadian Space Agency funded Canadarm3 – and others committing to peaceful space exploration norms.
“We continue to see steady interest from non-traditional, space-bearing nations which are now building their own national space programs, a development that bodes well for the broader space market into the future,” Greenley said.
MDA Space continued to post strong quarterly financials, including revenues of $282.4 million (up 38% from the same period last year), adjusted EBITDA of $55.5 million (up 30%) and net income of $34.7 million (up 60%.)
Its backlog is $4.6 billion, up from $1.5 billion a year ago, with one notable contract being the $1 billion award for Canadarm3’s Phases C and D already announced in the last quarter. The higher revenues largely came from “higher work volumes across the business with strong contributions from the satellite systems and robotics and space operations businesses,” MDA Space noted in a statement.
