MDA Space Ltd. (TSX: MDA) has been awarded a strategic contract by the Government of Canada, marking a significant milestone in the country’s satellite-based Earth observation capabilities. The Canadian space and robotics firm announced a CAD 44.7 million contract awarded through Public Services and Procurement Canada on behalf of the Canadian Space Agency, advancing development for a replenishment satellite under the RADARSAT Constellation Mission.
This award forms part of Canada’s broader RADARSAT+ initiative, a CAD 1.012 billion, 15-year commitment to sustain and modernize Canada’s synthetic aperture radar (SAR) infrastructure. In parallel, the government stated its intention to award MDA Space the full contract to build, test, and launch the replenishment satellite, subject to approvals expected in 2026. The development is seen as a critical step in extending the operational continuity of the RADARSAT Constellation Mission, which plays an essential role in monitoring Canadian land and maritime environments, especially in the Arctic.
Why the RADARSAT+ investment reflects a new era for Canadian Earth observation infrastructure
The RADARSAT+ program was introduced in October 2023 to address both short-term continuity and long-term transformation in Canada’s space-based SAR capabilities. As the existing RADARSAT Constellation Mission nears the mid-life of its operational span, the Canadian Space Agency is moving proactively to ensure service continuity for stakeholders across defence, environmental monitoring, disaster response, and maritime surveillance.
The initial contract awarded to MDA Space covers long lead-time components required for the replenishment satellite, but the agency has gone further by naming MDA Space as its intended partner for full mission delivery. By basing the new satellite design on its CHORUS architecture, MDA Space aims to leverage existing technologies and reduce costs while speeding up deployment. The CHORUS platform was developed as a next-generation radar imaging system and is positioned to serve both governmental and commercial users in the high-resolution SAR market.
In addition to the replenishment satellite, MDA Space was also selected for a CAD 747,000 concept study contract to help define the roadmap for Canada’s next-generation national sovereign radar satellite system. This study will explore new system architectures that respond to growing demands across government departments and industries reliant on satellite data for decision-making.
What this government contract means for MDA Space’s strategic trajectory and market position
For MDA Space, the Canadian government’s renewed commitment to sovereign satellite infrastructure aligns closely with the firm’s core strengths in radar systems, satellite payloads, and advanced mission design. The award further consolidates MDA Space’s status as the lead contractor for Canadian SAR programs, building on its decades-long involvement with the original RADARSAT program and its successors.
Chief Executive Officer Mike Greenley stated that the contract would enable the company to deliver a timely and cost-effective replenishment satellite solution by reusing core CHORUS design elements. He added that MDA Space looks forward to finalizing the full mission contract in 2026 and continuing its legacy as a critical contributor to Canadian space capability.
Greenley’s remarks also emphasized the dual mission of national service and market competitiveness. MDA Space continues to market its SAR, robotics, and digital payload platforms globally and views government programs like RADARSAT+ as both national service and innovation accelerators. The CEO also highlighted that MDA Space’s leadership in space technology stems from its ability to deliver operational systems with proven, scalable performance.
How MDA Space’s third quarter performance reflects execution strength and long-term financial health
The latest government contract follows a robust third quarter performance by MDA Space, which reported CAD 409.8 million in quarterly revenues, up 45 percent compared to the same period last year. Adjusted EBITDA reached CAD 82.8 million with a margin of 20.2 percent, while adjusted net income grew 33 percent year-over-year to CAD 46.1 million. The firm ended the quarter with a CAD 4.4 billion order backlog, offering strong visibility into 2026 and beyond.
MDA Space completed its acquisition of SatixFy Communications Ltd. in early July 2025, which is expected to enhance its digital payload and satellite communication capabilities. In the same quarter, the firm demonstrated its AURORA platform’s satellite digital beamforming capability, a technology breakthrough that strengthens its offering in broadband satellite and 5G systems.
The company was also named “2025 Global Satellite Business of the Year” by Novaspace at the World Space Business Week held in Paris, further validating its global relevance and innovation leadership in a sector increasingly shaped by dual-use civilian and defence requirements.
Despite a year-over-year decline in operating cash flow to CAD 32.8 million, primarily due to working capital fluctuations, MDA Space maintained a conservative financial profile with a net debt-to-EBITDA ratio of just 0.3x. The balance sheet strength supported the SatixFy acquisition and leaves headroom for further strategic investment as the firm scales its manufacturing footprint and satellite delivery pipeline.
How investor sentiment and market confidence are shaping MDA Space’s growth story
MDA Space stock (TSX: MDA) has held steady through 2025 amid volatile broader market conditions, thanks in part to consistent backlog conversion and visibility into long-term growth programs. With the Canadian government publicly backing its future involvement in RADARSAT+ and an expanding international presence, analysts believe MDA Space is in a strong position to lead in the small- to medium-class SAR satellite market.
Institutional investors have continued to show interest in MDA Space given its proven execution, multi-year revenue outlook, and increasing exposure to defence and climate resilience sectors. Analysts tracking Canadian aerospace and space tech equities describe MDA Space as one of the most investable public plays in North America’s strategic space capability segment, citing both its government ties and expanding commercial relevance.
What to expect next as MDA Space advances its SAR and satellite portfolio into 2026
Looking ahead, MDA Space reaffirmed its 2025 revenue guidance of CAD 1.57 to 1.63 billion, representing 48 percent growth at the midpoint, and projected adjusted EBITDA of CAD 305 to 320 million. Capital expenditures for the year are expected to range between CAD 210 to 240 million, largely directed toward capacity expansion and technology development. The firm also maintained its guidance for full-year free cash flow to remain neutral to positive, reflecting disciplined capital allocation despite aggressive growth investments.
The financial outlook does not yet factor in any potential cost impact from ongoing U.S.–Canada tariff tensions, but MDA Space confirmed it is working with customers to develop mitigation strategies if needed. Final updates to guidance may follow depending on further clarity from trade regulators.
As 2026 approaches, investors and industry stakeholders will closely monitor the timing and scope of the full RCM replenishment contract, the results of the concept study for the next-gen SAR system, and commercial traction for MDA Space’s AURORA and CHORUS platforms in global markets. The firm’s ability to translate technical milestones into multiyear customer wins will likely define its trajectory across both civil and defence domains.
What are the key takeaways from MDA Space’s RADARSAT replenishment contract and Q3 2025 performance?
- MDA Space Ltd. (TSX: MDA) has been awarded a CAD 44.7 million contract by the Government of Canada to procure long-lead components for the RADARSAT Constellation Mission (RCM) replenishment satellite.
- The Canadian Space Agency intends to finalize a full build, test, and launch contract with MDA Space in 2026 as part of the CAD 1.012 billion RADARSAT+ initiative.
- A separate CAD 747,000 award was issued to MDA Space to conduct a concept study for Canada’s future national synthetic aperture radar (SAR) satellite system.
- MDA Space will use its CHORUS satellite architecture to deliver the replenishment satellite, aiming for faster delivery and cost efficiency.
- In Q3 2025, the company posted revenues of CAD 409.8 million (up 45 percent YoY) and adjusted EBITDA of CAD 82.8 million with a margin of 20.2 percent.
- Adjusted net income reached CAD 46.1 million in Q3 2025, up 33 percent from the prior year, with earnings per share rising to CAD 0.35.
- MDA Space’s order backlog stood at CAD 4.4 billion at quarter-end, providing strong revenue visibility through 2026 and beyond.
- The company reaffirmed its FY25 guidance with revenue expected to reach CAD 1.57–1.63 billion and adjusted EBITDA between CAD 305–320 million.
- Recent strategic moves include the acquisition of SatixFy Communications Ltd. and a successful demo of the AURORA platform’s beamforming capabilities.
- Investor sentiment remains positive, with institutional analysts highlighting MDA Space’s leadership in sovereign satellite infrastructure and next-generation space systems.
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