Results / Canadian Defense /
MDA Space lifts Q2 2026 revenue 34% while free cash flow turns negative
Revenue of C$498.6 million and C$808.9 million of bookings lifted backlog to C$4.0 billion, up C$310 million from March but down C$565 million from a year earlier; operating cash flow was an outflow of C$93.4 million and guidance was narrowed upward.
MDA Space reported revenue of C$498.6 million for the quarter ended June 30, 2026, up 33.6% from a year earlier, with Satellite Systems at C$336.1 million, up 44.5%, on the Telesat Lightspeed program. Adjusted EBITDA (non-IFRS) was C$96.3 million, a 19.3% margin, and net income C$27.9 million, or C$0.20 a diluted share. Order bookings of C$808.9 million, against C$143.9 million in the first quarter, took backlog to C$4,003.0 million, up C$310 million from March 31 but still C$564.9 million below June 30, 2025. Management narrowed its 2026 guidance to revenue of C$1.8 to C$1.9 billion and adjusted EBITDA of C$330 to C$370 million, raising the low end of each range [1][2].
The cash line went the other way. Operating cash flow was an outflow of C$93.4 million, which the company attributes "primarily to normal program working capital," and free cash flow (non-IFRS) an outflow of C$150.2 million after C$52.1 million of capital spending; the company repeated that 2026 free cash flow would be "neutral to negative." Cash was C$397.8 million and net cash C$152.8 million at quarter end, before the C$600 million of 6.50% notes that closed on August 5 and before either of the announced acquisitions closes [1][3].
For a U.S. reader the quarter answers one of the two questions our July brief posed, and not the other. Bookings exceeded revenue, so the order book was replaced rather than consumed this quarter. Whether the backlog converts to cash on the schedule the revenue line implies is still open; a satellite builder paid in milestones can grow revenue by a third and burn cash in the same quarter, and this one did.
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MDA Space reports second quarter 2026 results
Toronto, Aug. 7, 2026; (TSX: MDA) (NYSE: MDA). Quarter ended June 30, 2026: revenue C$498.6M (+33.6% from C$373.3M); Satellite Systems C$336.1M (+44.5%), driven primarily by Telesat Lightspeed; Robotics & Space Operations C$99.5M; Geointelligence C$63.0M; gross profit C$125.9M (25.3%); adjusted EBITDA C$96.3M (+26.2%), margin 19.3%; net income C$27.9M (+2.6%); diluted EPS C$0.20; adjusted net income C$51.8M; adjusted diluted EPS C$0.36; operating cash flow −C$93.4M (C$52.8M), 'primarily due to normal program working capital'; free cash flow −C$150.2M (C$16.2M); capex C$52.1M; backlog C$4,003.0M, +C$310M vs Q1 2026, −C$564.9M vs June 30, 2025; order bookings C$808.9M (C$102.8M); cash C$397.8M; net cash C$152.8M; total liquidity C$1.1B; long-term debt C$245.0M; diluted weighted average shares 142,521,230; 2026 outlook narrowed to revenue C$1.8–1.9B and adjusted EBITDA C$330–370M, margin 18%–20%, capex C$225–275M, free cash flow neutral to negative; nine early CHORUS contracts; Montreal facility inaugurated; River-class Destroyer scope reduction.
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MDA Space reports first quarter 2026 results
Quarter ended March 31, 2026: revenue C$464.1M; backlog C$3,692.7M; order bookings C$143.9M; prior 2026 outlook revenue C$1.7–1.9B, adjusted EBITDA C$320–370M.
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MDA Space announces closing of C$600 million offering of senior unsecured notes due 2033
C$600M of 6.50% senior unsecured notes due 2033; proceeds to fund part of the Blue Canyon Technologies purchase price; Rule 144A and Regulation S offering alongside Canadian accredited investors.
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