MDA SPACE REPORTS SECOND QUARTER 2025 RESULTS

• Q2 2025 Highlights
  • Backlog of $4.6 billion at quarter-end, provides revenue visibility for 2025
  • Revenues of $373.3 million, up 54% YoY
  • Adjusted EBITDA¹ of $76.3 million, up 57% YoY, and adjusted EBITDA margin¹ of 20.4%
  • Adjusted net income¹ of $48.1 million, up 106% YoY, and adjusted diluted earnings per share¹ of $0.38, up 100% YoY
  • Operating cash flow of $52.8 million
  • Net cash position of $416.8 million at quarter-end
• Subsequent to quarter-end, announced new $1.8 billion LEO constellation award from EchoStar, growing backlog to over $6 billion²
• Updated 2025 full-year financial outlook

BRAMPTON, ON, Aug. 7, 2025 /PRNewswire/ – MDA Space Ltd. (TSX:MDA), a trusted space mission partner to the rapidly expanding global space industry, today announced its financial results for the second quarter ended June 30, 2025.

“At the half year mark, the MDA Space team continues to execute well, delivering solid second quarter financial results with strong growth in our revenue and profitability as we convert our backlog and meet our customer commitments. Teams across all business areas were also busy advancing existing programs and developing a healthy pipeline of future business,” said Mike Greenley, Chief Executive Officer of MDA Space.

“We also continue to convert pipeline opportunities into contract awards, and were pleased to announce last week our selection by EchoStar to be the prime contractor on EchoStar’s new direct-to-device LEO constellation – the world’s first 3GPP 5G compliant non-terrestrial network (NTN) using LEO satellites. The initial $1.8 billion contract will see us design, manufacture and test over 100 MDA AURORA^™ direct-to-device satellites with contract options increasing the network size to over 200 satellites. With this contract, EchoStar becomes the anchor customer for the 3GPP 5G NTN compliant MDA AURORA™ direct-to-device satellite product, further solidifying MDA Space’s leadership in the non- terrestrial network market,” continued Mr. Greenley.

“Notable activities in Q2 to highlight include our announcement to acquire SatixFy Communications, a transaction that we completed in early July, and that will further enhance our end-to-end satellite systems offering as demand for next generation digital satellite communications continues to accelerate. I want to take this opportunity to welcome our new colleagues to MDA Space,” continued Mr. Greenley.

“In addition, with the growth in the commercial space industry accelerating, we were pleased to finalize an agreement with the Canadian Space Agency to reopen the David Florida Laboratory under MDA Space management, maintaining this critical space and satellite integration and testing facility for use by the broad space ecosystem. We are proud to play a leadership role as national space champion for our industry.”

“Given the solid operational performance year-to-date and continued market momentum, we are updating our 2025 financial outlook as we look to deliver another successful year.”

Q2 2025 HIGHLIGHTS

• Backlog of $4.6 billion at quarter-end provides revenue visibility for 2025 and is in line with the backlog levels recorded as of Q2 2024.
• Revenues of $373.3 million in Q2 2025 were up 54.3% year-over-year driven by higher volumes of work, primarily in our Satellite Systems business.
• Adjusted EBITDA of $76.3 million in Q2 2025 compared to $48.7 million in Q2 2024, representing an increase of 56.7% year-over-year driven by higher volumes of work. Adjusted EBITDA margin was 20.4% in Q2 2025, in line with 20.1% reported in Q2 2024 and consistent with the Company’s full year margin guidance of 19%-20%.
• Adjusted net income for Q2 2025 was $48.1 million compared to $23.4 million in Q2 2024, representing an increase of 105.6% year-over-year driven by higher operating income. Adjusted diluted earnings per share of $0.38 in Q2 2025 compared to $0.19 in Q2 2024, representing an increase of 100% year-over-year.
• Operating cash flow was $52.8 million in Q2 2025 compared with $144.5 million in Q2 2024. The year-over-year decrease in operating cash flow was primarily due to working capital fluctuations.
• Net cash position of $416.8 million at quarter-end, compared to a net cash position of $166.7 million as of December 31, 2024 driven by operating cash flow generation year-to-date.

2025 FINANCIAL OUTLOOK

As a trusted mission partner and leading global space technology provider, we are leveraging our capabilities and expertise to execute on targeted growth strategies across our end markets and business areas. Our strategic initiatives, which span across our three businesses, include investing in next generation space technology and services, expanding our presence in high growth markets and geographies, scaling and expanding skills, talent and operations to meet current and future market demand and leveraging strategic M&A to complement organic growth. We continue to make good progress against our long-term strategic plan.

MDA Space is well positioned to capitalize on strong customer demand and robust market activity given our diverse and proven technology offerings. Our growth pipeline is significant and underpinned by existing and new programs and our book of business is healthy. We see activities ramping up in line with our expectations and are encouraged by the team’s solid execution.

For fiscal 2025, we are updating our full year financial outlook and now expect full year revenues to be $1.57 – $1.63 billion compared to $1.50 – $1.65 billion previously, representing year-over-year growth of approximately 48% at the mid-point of guidance. We are updating our full year adjusted EBITDA range to $305 – $320 million compared to $290 – $320 million previously, representing year-over-year growth of approximately 45% at the mid-point of guidance, and approximately 19% – 20% adjusted EBITDA margin. We reaffirm our expectations that capital expenditures will be $210 – $240 million in 2025, comprising of growth investments to support the previously outlined growth initiatives across our business areas. We continue to expect full year free cash flow to be neutral to positive in 2025.

For Q3 2025, we expect revenues to be $385 – $415 million as we continue to execute on our backlog.

Note that the provided 2025 financial outlook does not incorporate any potential impact from the U.S. tariffs announced this year on articles imported from Canada or the retaliatory Canadian tariffs imposed on Canadian imports from the U.S. MDA Space continues to work collaboratively with our customers to identify solutions and explore mitigation strategies. The Company will continue to closely monitor developments and may elect to update its financial outlook if deemed necessary.

FINANCIAL OVERVIEW

KEY INDICATORS SUMMARY

 

 

Revenues

Consolidated revenues for the second quarter of 2025 were $373.3 million, representing an increase of $131.3 million (or 54.3%) from the second quarter of 2024. The year-over-year increase in revenues was driven by higher volumes of work performed, primarily in our Satellite Systems business.

By business area, revenues in Geointelligence for the second quarter of 2025 were $52.7 million, which represents an decrease of $2.2 million (or 4.0%) from the same period in 2024 due to timing of programs. Revenues in Robotics & Space Operations for the second quarter of 2025 were $88.0 million, which represents an increase of $9.7 million (or 12.4%) from the same period in 2024 driven largely by the ramp of Phase C of the Canadarm3 Program. Revenues in Satellite Systems for the second quarter of 2025 were $232.6 million, which represents an increase of $123.8 million (or 113.8%) from the same period in 2024 driven by the ramp up of the Telesat Lightspeed program and the Globalstar next generation LEO constellation program.

Consolidated revenues for the six months ended June 30, 2025 were $724.3 million, representing an increase of $273.2 million (or 60.6%) from the same period of 2024. The year-over-year increase in revenues was driven by higher volumes of work performed, primarily in our Satellite Systems business.

By business area, revenues in Geointelligence for the first six months of 2025 were $104.4 million, which represents a decrease of $2.0 million (or 1.9%) from the same period in 2024 due to timing of programs. Revenues in Robotics & Space Operations for the first six months of 2025 were $165.3 million, which represents an increase of $16.7 million (or 11.2%) from the same period in 2024. The year-over-year increase is primarily driven by the higher volume of work performed on the Canadarm3 program as Phase C ramps up. Revenues in Satellite Systems for the first six months of 2025 were $454.6 million, which represents an increase of $258.5 million (or 131.8%) from the same period in 2024 driven by the ramp up of the Telesat Lightspeed program and the Globalstar next generation LEO constellation program.

Gross Profit and Gross Margin

Gross profit reflects our revenues less cost of revenues. Q2 2025 gross profit of $94.8 million represents a $28.6 million (or 43.2%) increase over Q2 2024 driven by higher volumes of work performed in our Satellite Systems and Robotics & Operations businesses. Gross margin in Q2 2025 was 25.4%, which is in line with the Company’s expectations, and compares to a gross margin of 27.4% in Q2 2024 driven by an evolving program mix.

For the six months ended June 30, 2025, gross profit of $174.5 million represents a $50.4 million (or 40.6%) increase over 2024 levels driven by higher volumes of work performed in our Satellite Systems and Robotics & Operations businesses. Gross margin for the six months ended June 30, 2025 was 24.1% which is in line with the Company’s expectations and compares to 27.5% in Q2 2024. The year- over-year change in gross margin is driven by evolving program mix.

Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA for the second quarter of 2025 was $76.3 million compared with $48.7 million for the second quarter of 2024, representing an increase of $27.6 million (or 56.7%) year-over-year driven by higher work volumes as we continue to convert our backlog. Adjusted EBITDA margin was 20.4% in the second quarter of 2025, in line with the 20.1% adjusted EBITDA margin reported in the second quarter of 2024 and consistent with the Company’s full year margin guidance of 19%-20%.

Adjusted EBITDA for the six months ended June 30, 2025 was $144.9 million compared with $90.7 million for the same period in 2024, representing an increase of $54.2 million (or 59.8%) year-over-year. The improvement was driven by higher volumes of work performed year-over-year. Adjusted EBITDA margin was 20.0% for the six months ended June 30, 2025 compared with 20.1% in 2024.

Adjusted Net Income

Adjusted net income for the second quarter of 2025 was $48.1 million compared with

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