Strong top-line beat and raised guidance confirm robust execution and demand in satellite systems and defence. However, negative free cash flow and working capital swings warrant monitoring — the stock may react positively to the growth narrative but cash conversion will be a key focus on the earnings call. Watch for updates on the Blue Canyon Technologies and CLS acquisitions and further CHORUS contract awards.
Price Chart
Executive Summary
MDA Space reported Q2 2026 revenue of $498.6M (+34% YoY) and Adjusted EBITDA of $96.3M (+26% YoY), beating expectations and raising the midpoint of full-year revenue and Adjusted EBITDA guidance. Backlog grew $310M sequentially to $4.0B, driven by strong bookings including contracts with the Canadian Space Agency, Japan Ministry of Defense, and European Space Agency. However, operating cash flow was -$93M and free cash flow -$150M due to working capital swings, and GAAP diluted EPS fell 9.5% to $0.20 on share dilution from the NYSE IPO.
Key Facts
- Q2 2026 revenue of $498.6M, up 33.6% YoY, driven by growth across all three business areas (Satellite Systems +44.5%, Robotics +13.1%, Geointelligence +19.5%)
- Adjusted EBITDA of $96.3M, up 26.2% YoY; Adjusted EBITDA margin of 19.3% within full-year guidance of 18%-20%
- Backlog of $4.0B at quarter-end, up $310M from Q1 2026, with Q2 order bookings of $808.9M
- Raised 2026 revenue guidance to $1.8-$1.9B (from $1.7-$1.9B) and Adjusted EBITDA to $330-$370M (from $320-$370M), implying ~13% and ~8% YoY growth at midpoint respectively
- Net cash position of $152.8M vs net debt of $120.0M at Dec 2025, improved by IPO proceeds; total liquidity of $1.1B
- Operating cash flow of -$93.4M and free cash flow of -$150.2M due to normal program working capital fluctuations and higher capex
- GAAP diluted EPS of $0.20, down 9.5% YoY due to increased share count from March 2026 NYSE IPO; adjusted diluted EPS flat at $0.36
Financial Impact
Revenue growth of $125.3M (+34% YoY) and Adjusted EBITDA growth of $20.0M (+26% YoY); guidance midpoint raised by ~$50M for revenue and ~$5M for Adjusted EBITDA
Risk Factors
- Negative free cash flow of -$150M driven by working capital fluctuations and elevated capex ($225-$275M guided for 2026)
- Backlog declined $565M YoY to $4.0B, partly due to scope reduction on the River-class Destroyer (CSC) program
- GAAP diluted EPS declined 9.5% YoY due to share dilution from the NYSE IPO; adjusted EPS flat
- Revenue concentration in a small number of large contracts (Telesat Lightspeed, Canadarm3) creates execution risk
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001104659-26-092384 |
| Document: tm2621766d2_6k.htm | 0001104659-26-092384 |
| Document: 0001104659-26-092384-index-headers.html | 0001104659-26-092384 |
| Document: 0001104659-26-092384-index.html | 0001104659-26-092384 |
| Document: 0001104659-26-092384.txt | 0001104659-26-092384 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 15, 2026 12d ago | Press Release | $28.67 $26.80 | ▼ −6.52% | ▼ −5.51% | $29.27 (+2.09%) |
Oct 15, 2026 12d ago | Press Release | $28.67 $26.80 | ▼ −6.52% | ▼ −5.51% | $29.27 (+2.09%) |
Oct 14, 2026 13d ago | SC 13D | $27.57 $28.72 | ▲ +4.17% | ▲ +3.72% | $29.27 (+6.17%) |
Sep 21, 2026 5w ago | 6-K | $31.79 $31.05 | ▼ −2.33% | ▼ −1.31% | $29.27 (−7.93%) |
Aug 7, 2026 11w ago | 6-K | $34.59 $35.21 | ▲ +1.79% | ▲ +1.39% | $29.27 (−15.38%) |
Aug 7, 2026 11w ago | 6-K | $34.59 $35.21 | ▲ +1.79% | ▲ +1.39% | $29.27 (−15.38%) |
Aug 5, 2026 11w ago | 6-K | $33.94 $35.63 | ▲ +4.98% | ▲ +4.63% | $29.27 (−13.76%) |
Jul 20, 2026 14w ago | 6-K | $30.00 $29.57 | ▼ −1.43% | ▼ −1.01% | $29.27 (−2.43%) |
Jul 14, 2026 15w ago | 6-K | $33.89 $30.00 | ▼ −11.48% | ▼ −10.18% | $29.27 (−13.63%) |
Jul 9, 2026 15w ago | 6-K | $34.00 $31.42 | ▼ −7.59% | ▼ −7.03% | $29.27 (−13.91%) |
US Market Status
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