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/Mis Actual Consensu

s s

Estimate

Q2 Beat C$373.30 C$370.50

Revenue mln mln (5

Analysts

)

Q2 C$76.30

Adjusted mln

EBITDA

Q2 Gross 25.4%

Margin

Q2 20.4%

Adjusted

EBITDA

Margin

Q2 Gross C$94.80

Profit 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 ( MDALF ) 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:

(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.)