MDA Space (MDA) Q2 2024 earnings summary

Executive summary

• Achieved record backlog of $4.6B at quarter-end, up 318% year-over-year, driven by major contract wins including $1B for Canadarm3 and $2.4B for Telesat Lightspeed, with strong contributions from Robotics & Space Operations and Satellite Systems.

• Q2 2024 revenues reached $242.0M, up 23% year-over-year, with adjusted EBITDA of $48.7M (21% growth, 20.1% margin) and adjusted net income of $23.4M (up 7%).

• Operating cash flow surged to $149.0M, supporting deleveraging, growth investments, and a healthy balance sheet.

• Leadership transition with the departure of the CFO and appointment of an interim CFO.

• Workforce expanded by 900 hires over the past year, supporting growth and operational scale.

Financial highlights

• Q2 2024 revenue was $242.0M, up 23% year-over-year; record backlog reached $4.6B, up 318%.

• Gross profit rose 8% to $66.2M; gross margin was 27.4% versus 31.3% last year, reflecting program mix and higher depreciation.

• Adjusted EBITDA was $48.7M, up 21% year-over-year, with a margin of 20.1%.

• Adjusted net income was $23.4M, up 7% year-over-year; adjusted diluted EPS was $0.19, up 6%.

• Net debt at quarter-end was $352.3M, with a leverage ratio of 2.0x, down from Q1 and year-end 2023.

Outlook and guidance

• 2024 revenue guidance raised to $1,020–$1,060M, implying ~30% year-over-year growth at midpoint.

• Adjusted EBITDA guidance narrowed to $200–$210M (19–20% margin); CapEx guidance narrowed to $200–$220M.

• Free cash flow expected to be positive in 2024, one year ahead of plan; 2025 expected to be at least cash flow neutral.

• Q3 2024 revenue expected at $270–$280M as backlog conversion accelerates.

• CapEx primarily for growth investments, with outlook based on current backlog and available information.