MDA Space Ltd Q4 FY2025 earnings call

• Mike thanked the team for exceptional 2025 performance. 2025 had record revenue and adjusted EBITDA. Backlog grew seven times to $4 billion since 2020. Focus on R&D, ranked in top Canadian R&D spenders, patent filings. Looked ahead to 2026 outlook with revenue $1.7 - $1.9B, adjusted EBITDA $320 - $370M, CapEx $225 - $275M, free cash flow neutral to negative. Discussed defense spending trends, new initiatives like 49North for non-space defense. Talked about business areas: satellite systems with Telesat, Global Star programs; robotics and space operations with lunar logistics demo, Canadarm3 progress; geointelligence with Radarsat contracts.

In 2025, revenues grew to $1.6 billion, adjusted EBITDA to $324 million, with adjusted EBITDA margin ~20%. Satellite systems revenue in Q4 2025 was $371 million, up 58% y-o-y, full-year up ~85%. Robotics and space operations revenue in Q4 2025 was $66 million, in line with Q4 2024, full-year up 11%. Geointelligence revenue in Q4 2025 was $62 million, up 31% y-o-y, full-year up 6%.

• For 2026, expects revenues $1.7 to $1.9 billion (midpoint ~10% y-o-y growth). Adjusted EBITDA $320 to $370 million (midpoint ~7% y-o-y growth), margin 18 - 20%. CapEx $225 to $275 million. Free cash flow neutral to negative due to working capital and growth capex.

• Q: Doug Taylor asked about pipeline expansion and defense vs commercial.

A: Pipeline growth due to defense and intelligence related opportunities, 49North creating non-space defense opportunities.

Q: Justin Lang asked about commercial constellation orders.

A: Still possible, actively engaged.

Q: Honor Gupta asked about pipeline segments.

A: More on satellite side, communication and Earth observation satellites, some in robotics and space operations, non-space defense with 49North.

Q: Ken Herbert asked about adjusted EBITDA guide and defense revenue mix.

A: Wiggle room for investments, defense portion to increase over next 24 months.

Q: Russell Stanley asked about gross margins and backlog management.

A: 2026 margin range 18 - 20%, well positioned with infrastructure to take on more business.

Q: David McFadden asked about pipeline specifics.

A: Don't talk about specific opportunities, pipeline built annually.

Q: Athanos Majopoulos asked about Global Star deliveries.

A: Global Star first contract deliveries in first half, Telesat Lightspeed some deliveries end of year.

Q: Greg McDonald asked about Golden Dome and 49North opportunities.

A: Golden Dome related opportunities, 49North strong in autonomous systems, sensors, etc.

Q: Michael Caprias asked about capital allocation and M&A.

A: Pipeline good, focus on vertical integration and geographic expansion, CapEx focus on growth initiatives.