Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeInnovationMDA Space posts 34% revenue jump as satellite maker eyes opportunities in U.S., EuropeCEO says business set to grow globally as countries strive to shore up sovereign space capabilities You can save this article by registering for free here. Or sign-in if you have an account.Mike Greenley, CEO of MDA Space, said the company has room to grow globally as countries look to shore up their sovereign space capabilities. Photo by HYUNGCHEOL PARK/PostmediaMDA Space Ltd. on Friday announced a 34 per cent revenue jump to $499 million in the quarter ended June 30, beating analyst estimates and boosted by higher volumes of work across its satellite, robotics and geointelligence business lines.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe company’s net income grew nearly 13 per cent to $51.8 million from the same period last year. Adjusted earnings per share (EPS) was $0.36, just beating the forecast of $0.35.“We view the results positively, with a revenue beat across all segments, continued strength in profitability (and) a net cash position,” Benoit Poirier, analyst at Desjardins Group, wrote in a note on Friday.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againPoirier said the company’s “impressive” growth strategy was not reflected in its current valuation and that it continues to trade at a major discount to its space tech peers.Shares of MDA were trading mostly flat at $48.03 in midday trading in Toronto on Friday.The Brampton, Ont.-based company, which designs and makes satellites and robots for space, said that revenue from its core business line of satellite systems surged 44 per cent to $336 million. The increase was helped by an expanded contract with Telesat Corp. to build 27 new satellites for Telesat’s Lightspeed broadband network, an upgrade that was announced this week and adds $474 million to the record-breaking $2.1 billion deal first signed in 2023.Revenue from MDA’s robotics and space operations unit jumped 13 per cent in the quarter to $100 million due to additional work on the Canadian Space Agency’s Canadarm3 program. Geointelligence revenue also increased, rising 20 per cent to $63 million, driven by higher volumes of work on new programs including one for the Royal Canadian Navy.MDA’s backlog was up eight per cent from the first quarter to reach $4 billion, but down $565 million from the same time last year, with the decrease due to continued conversion of backlog into revenue.Analysts forecast more Canadian and global contracts ahead for MDA, particularly with its recent acquisitions. The company has made quick progress on its global push, buying American satellite and spacecraft component maker Blue Canyon Technologies Inc. for $874 million in June and acquiring a majority stake in French satellite and Earth observation tech provider Collecte Localisation Satellites SAS for $920 million in July.Both purchases will strengthen MDA’s ability to better compete for American and European defence opportunities, Beacon Securities analyst Russell Stanley wrote in a Tuesday note.“With … operations in Canada, the United Kingdom and now Europe … MDA’s multiple inroads to the European Space Agency expand the company’s participation potential in (the agency’s) projects,” Stanley added.MDA chief executive Mike Greenley said on an investor’s call Friday that the Blue Canyon acquisition positions the company to access the United States’ US$50 billion defence portfolio, but added that it will take more time to get there.“We’ll take a bit of time in early (2027) to get all those folks familiar with the full capabilities of MDA Space now available … to take into that U.S. government pipeline,” he said. “The pace of pickup on those will be dependent on when the U.S. government procures. But that’s a very active environment.”The company also raised the bottom end of its guidance for 2026 to $1.8 to $1.9 billion from $1.7 to $1.9 billion. Greenley said that MDA has room to grow globally and in Canada as countries around the world look to shore up their sovereign space capabilities.“We’re feeling a pull into Europe and other nations (and) we will definitely be responding to growing pipeline opportunities. There will be increasing partnerships or little pieces of MDA Space showing up in more places,” he said.In Canada, MDA in late June scored a $688 million federal government contract to build a satellite for Canada’s Radarsat Constellation Mission, a group of Earth observation satellites operated by the national space agency. This week, Ottawa announced that MDA will be the primary contractor for a new military and government communications satellite network. The contract terms are still under discussion but Beacon Securities’ analyst Russell Stanley wrote in a note this week that there is “considerable upside” for MDA’s participation.“There’s still lots to come (on that program) and others in the future with a defence industrial strategy that guides Canada to build with Canadian firms in the space domain,” Greenley said. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.