MDA Space Ltd Q1 FY2026 earnings call

• Strong Q1 performance with 32% year-over-year revenue growth and 19.5% adjusted EBITDA margin, reinforcing confidence in fiscal 2026 guidance. - Stock began trading on NYSE after successful IPO. - Key operational highlights include being selected as approved supplier by U.S. Missile Defense Agency, MOU with Hanwha Systems, launch of 49 North, contract with Canada's Defense Investment Agency, repeat order from Airbus, $200 million agreement for Maritime Launch Services, completed critical design review of Global Star Next Generation LEO constellation, received production-ready Prime 2 space-grade chips, delivered first set of satellites under GlobalStar contract, completed spacecraft thermal vacuum testing for geo-intelligence, Robotics and Space Operations team achieved 25-year milestone with Canadarm2. - $40 billion pipeline with significant opportunities in satellite systems, robotics and space operations, and geo-intelligence.

Total revenues for Q1 2026 were $464 million, up 32% year-over-year. Satellite systems revenues were $313 million, up 41% year-over-year. Robotics and space operations revenues were $92 million, up 18% year-over-year. Geo-intelligence revenues were $59 million, up 15% year-over-year. Gross profit was $115 million, up 45% year-over-year. Adjusted EBITDA was $91 million, up 32% year-over-year. Adjusted EBITDA margin was 19.5%. Backlog ended the quarter at $3.7 billion, a small decline from December 31, 2025.

• Reiterates full-year 2026 guidance: revenues between $1.7 and $1.9 billion, adjusted EBITDA between $320 and $370 million with 18-20% margin. - Capital expenditures expected to be between $225 and $275 million. - Full-year free cash flow expected to be neutral to negative.

Q: Justin Liang asked about directed device traction and prospects with Amazon after Global Star purchase.

A: Active conversations on neutral host model, early days with Amazon's acquisition of Global Star, focus on current business like delivering Thunder satellites.

Q: Tanis Misopoulos asked about full-year guide and Canada Arm 3.

A: Sticking to 1.7 - 1.9 billion revenue guidance, ongoing discussions on Canada Arm 3 potentially pivoting towards lunar surface.

Q: Greg Conrad asked about backlog and satellite component opportunity.

A: Working the pipeline, opportunities at quoting level, strong merchant supplier business and full satellite level expansion.

Q: Ken Herbert asked about MDA Midnight and Aurora program chips.

A: Positive customer reception for MDA Midnight, chips in production with focus on future roadmaps and cost learning in 2027.

Q: David McFetchin asked about ESCAPE program.

A: ESCAPE program progressing, expected decisions and approvals in 2026.

Q: Seth Siffman asked about geo business and M&A.

A: Geo business expected growth post Chorus launch, solid M&A opportunity environment.

Q: Greg McDonald asked about MDA Midnight and commercial opportunity.

A: MDA Midnight has dual-use technology, potential commercial application in on-orbit servicing.

Q: Edison Yeh asked about space data centers and Asia activity.

A: Increasing focus on space compute, ongoing conversations, sovereign capability driving opportunities in Asia.

Q: Connor Gapta asked about Canada Arm 3 and exciting opportunities.

A: Strong opportunity for Canada Arm 3, exciting new conversations around low Earth orbit constellations