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Canada's MDA beats Q3 revenue estimates on Satellite Systems growth, raises FY outlook

By Reuters News


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


Reuters Recommended Reads

  • Nov 5 - Russia may have rehearsed attack on satellite, specialist says, flagging another approach

  • Nov 2 - Israel's Tower Semi Q3 revenue growth of 33% tops estimates, sees faster Q4 growth

  • Nov 3 - Arista Networks Q3 revenue beats estimates on strong momentum across customer sectors


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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