MDA Space (MDA) Q4 2025 earnings summary

Executive summary

• Achieved record 2025 revenue of $1.63 billion (up 51% year-over-year) and adjusted EBITDA of $324 million (up 49%), driven primarily by Satellite Systems.

• Adjusted net income grew 71% to $190 million; adjusted diluted EPS rose 66% to $1.46.

• Maintained adjusted EBITDA margin near 20% and generated positive free cash flow of $165 million.

• Backlog at year-end was $4 billion, supporting strong revenue visibility for 2026 and beyond, with a $40 billion pipeline.

• Strategic investments in R&D, manufacturing capacity, and next-generation technologies, including Montreal facility expansion and SatixFy acquisition.

Financial highlights

• Q4 2025 revenue was $499 million, up 44% year-over-year; Q4 adjusted EBITDA was $96 million (19.3% margin).

• Full-year adjusted net income was $190 million, up 71% year-over-year; adjusted diluted EPS was $1.46, up 66%.

• Gross margin for 2025 was 25.1%, slightly down from 26.1% in 2024.

• Year-end net debt to adjusted EBITDA ratio was 0.4x, reflecting strong deleveraging and the SatixFy acquisition.

• Operating cash flow was $407 million; free cash flow totaled $165 million.

Outlook and guidance

• 2026 revenue guidance: $1.7–$1.9 billion, representing ~10% growth at midpoint.

• 2026 adjusted EBITDA guidance: $320–$370 million, margin 18–20%.

• 2026 CapEx expected at $225–$275 million, focused on production expansion and chip development.

• Free cash flow for 2026 expected to be neutral to negative due to working capital and CapEx.