MDA Space (MDA) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 32% year-over-year to $464 million, with adjusted EBITDA up 32% to $91 million and a margin of 19.5%, reflecting strong operational execution and broad-based growth across all business areas.

• Completed a successful NYSE IPO, raising $341 million USD, significantly improving liquidity, net cash position, and enhancing global profile.

• Secured major defense and commercial contracts, including with the U.S. Missile Defense Agency, Hanwha Systems, Airbus, and Canada's Defence Investment Agency.

• Advanced key programs in satellite systems, robotics, and geointelligence, including Globalstar satellite deliveries, Canadarm3 progress, and MDA CHORUS milestones.

• Launched MDA MIDNIGHT, a new space control platform targeting defense customers.

Financial highlights

• Q1 2026 revenue was $464 million, up 32% year-over-year, with gross profit rising 44.5% to $115 million and gross margin improving to 24.8%.

• Adjusted EBITDA reached $91 million, up 32% year-over-year, with a margin of 19.5%.

• Adjusted net income was $51 million, up 32%, and adjusted diluted EPS increased 27% to $0.38.

• Backlog ended at $3.7 billion, providing strong revenue visibility into 2026 and beyond.

• Operating cash flow was $61 million, down from $267 million, with negative free cash flow of $28 million due to higher capex and working capital needs.

• Net cash position improved to $299 million, supported by IPO proceeds, with total liquidity of $1.2 billion.

Outlook and guidance

• Full-year 2026 revenue guidance reaffirmed at $1.7–$1.9 billion, representing ~10% growth at midpoint.

• Adjusted EBITDA expected between $320–$370 million, with margins of 18–20%.

• Capital expenditures projected at $225–$275 million, supporting production expansion and chip development.

• Free cash flow expected to be neutral to negative for the year due to working capital and capex.