MDA Space (MDA) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue rose 34% year-over-year to $499 million, with broad-based growth and major contract wins across all business areas.

• Adjusted EBITDA increased 26.2% year-over-year to $96.3 million, with a margin of 19.3%.

• Backlog at quarter-end was $4.0 billion, up $310 million sequentially, providing strong revenue visibility.

• Announced acquisitions of Blue Canyon Technologies (BCT) and CLS to expand U.S. defense, global geointelligence, and recurring revenue.

• Inaugurated a new high-volume satellite manufacturing facility in Montreal, doubling production capacity.

Financial highlights

• Q2 adjusted net income was $51.8 million, up 13% year-over-year; adjusted diluted EPS was $0.36, down 1.5% due to higher share count post-IPO.

• Gross profit for Q2 was $125.9 million (gross margin 25.3%), up 32.8% year-over-year.

• Operating cash flow for H1 was $(93.4) million, free cash flow $(150.2) million, reflecting working capital swings and higher CapEx.

• Net cash position at quarter-end was $152.8 million, improved from net debt at year-end 2025, mainly due to IPO proceeds.

• Book-to-bill ratio was 1.6x in Q2, reflecting strong order intake.

Outlook and guidance

• 2026 revenue guidance narrowed to $1.8–$1.9 billion (midpoint 13% growth); adjusted EBITDA guidance $330–$370 million (midpoint 8% growth).

• Adjusted EBITDA margin reaffirmed at 18–20%; CapEx expected at $225–$275 million.

• Free cash flow expected to be neutral to negative due to working capital and investment needs.

• Guidance excludes BCT and CLS contributions; pro forma 2026 revenue would be $2.5 billion with both acquisitions.

• Expecting another year of ~50% growth in 2027, with over a third of revenue recurring.