Canada's MDA beats Q3 revenue estimates on Satellite Systems growth, raises FY outlook
Overview
Canada space technology firm's Q3 revenue rose 22% yr/yr, beating analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Company raised 2026 revenue and adjusted EBITDA guidance
Outlook
MDA raises 2026 revenue guidance to C$1.90-C$1.95 bln from C$1.8-C$1.9 bln
Company lifts 2026 adjusted EBITDA forecast to C$355-C$375 mln from C$330-C$370 mln
MDA maintains 2026 adjusted EBITDA margin outlook at 18%-20%
Result Drivers
SATELLITE SYSTEMS VOLUME - Higher revenue in Q3 driven primarily by increased volume of work on the Telesat Lightspeed program within Satellite Systems
GEOINTELLIGENCE PROGRAMS - Growth in Geointelligence revenue attributed to higher volume of work on new programs
PROGRAM MIX IMPACT - Gross margin declined due to a change in program mix
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | C$498.10 mln | C$442.78 mln (10 Analysts) |
Q3 Adjusted EPS | Beat | C$0.37 | C$0.29 (11 Analysts) |
Q3 Gross Margin | 25.30% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy"
Wall Street's median 12-month price target for MDA Space Ltd. is C$64.00, about 74.6% above its November 4 closing price of C$36.66
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 27 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)