.jpg)
1 hour ago
2
Article content
Brampton, Ont.-based MDA Space Ltd.‘s first-quarter revenue beat analysts’ expectations after rising 32 per cent year over year to $464.1 million, primarily due to the 41 per cent growth in its satellite business, the company said on Thursday.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
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 TO UNLOCK MORE ARTICLES
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.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
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.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
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
Sign In or Create an Account
or
Article content
Canada’s largest space company’s satellite revenue hit $313 million during the quarter, driven by an increase in work from its $2.1-billion deal with Telesat Corp. and $1.1-billion deal with Globalstar Inc. to build and deliver low-earth observation satellites.
Article content
Article content
Article content
Revenue rose 18 per cent in its robotics segment to $92 million and 15 per cent in its geointelligence business to $59 million.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
Its profit, however, dipped 10 per cent to $29.6 million from a year ago, largely due to expenses related to its acquisition of a satellite chip company in the third quarter of last year.
Article content
MDA’s adjusted earnings per share (EPS) were at 38 cents, above analyst expectations of 32 cents, while its diluted EPS stood at 22 cents, down 11.5 per cent year over year.
Article content
Shares of MDA increased about five per cent Thursday morning and are up around 90 per cent over the past 12 months.
Article content
“We view the results positively, with a strong revenue beat, solid profitability and a net cash position,” Desjardins Group analyst Benoit Poirier said in a note on Thursday said.
Article content
He also said “we are not overly concerned” about the company’s softer bookings and backlog decline to $3.69 billion from $4 billion in the last quarter.
Article content
The company maintained its guidance for 2026 and predicted revenue will hit $1.7 billion to $1.9 billion for the year. It said it is pursuing acquisitions in the United States and Europe to grow its global revenue, and has a net cash position of $299 million compared to $120 million of net debt in the previous quarter, largely due to proceeds from its initial public offering on the New York Stock Exchange in March.
Article content
Article content
Analysts said they expect MDA will be a beneficiary of Canada’s recent defence spending rush and could score additional Canadian government contracts under the $6.6-billion Defence Industrial Strategy designed to support domestic industry.
Article content
Article content
MDA launched a defence-focused subsidiary earlier this year, and recently signed a contract to build ground-based observatories for the Department of National Defence’s space monitoring activities.
Article content
“We continue to see the speed at which defence spending and demand for new space capability is shaping the market,” chief executive Mike Greenley said in a Thursday statement.
Article content
Article content
English (US)