MDA Ltd.

Total Q2 revenue was $499 million, up 34% year over year. Gross profit was $126 million, up 33%, with gross margin at 25.3%, in line with last year’s second quarter. Adjusted EBITDA was $96 million, up 26%, with adjusted EBITDA margin of 19.3%; adjusted diluted EPS was $0.36, unchanged year over year, and adjusted net income was $52 million, up 13% year over year. For the first half, revenue was $963 million, up 33%, and adjusted EBITDA was $187 million, with 19.4% margin. Full-year 2026 guidance was raised to revenue of $1.8 billion to $1.9 billion and adjusted EBITDA of $330 million to $370 million, while margin guidance stayed at 18% to 20%, CapEx at $225 million to $275 million, and free cash flow expected to be neutral to negative. Management said the midpoint implies about 13% revenue growth and 8% adjusted EBITDA growth versus the prior year.

Mike Greenley framed the quarter as evidence that MDA is becoming a broader global space company with more recurring revenue, stronger backlog, and multiple growth vectors. He emphasized that the company is benefiting from rising sovereign and defense spending, but said commercial remains strong and the business is still balanced across commercial and government markets. He also spent much of his remarks on strategy: vertical integration, AI-enabled analytics, on-orbit compute, and new business models such as SPACERAN and MDA MIDNIGHT.

Guillaume Lavoie focused on the financial execution and funding plan. He said the two announced acquisitions cost about $2 billion including fees, funded through a $1.15 billion equity raise, $600 million of senior unsecured notes, and the rest from cash and a term loan facility; he said leverage should remain within the targeted 1.5x to 2.5x net debt to last-12-months adjusted EBITDA range. He reported Q2 revenue of $499 million, gross profit of $126 million, adjusted EBITDA of $96 million, and backlog of $4 billion, plus $1.1 billion of liquidity and a net cash position of $153 million at quarter-end. He also noted first-half CapEx of $145 million and operating cash flow of negative $33 million, driven by working capital timing on major programs, while reiterating full-year CapEx of $225 million to $275 million and free cash flow expected to be neutral to negative.

Analysts focused on how far MDA is moving toward defense/sovereign work, whether launch constraints could slow conversions, and how the acquisitions and new programs affect 2027 growth. Management said the company remains balanced between commercial and government, that the sovereign trend is creating opportunities but is not replacing commercial demand, and that launch constraints have not yet caused customers to push out timelines. On acquisition-related growth, management said the 2027 outlook they referenced is not formal guidance, but they do expect continued organic growth plus contributions from BCT and CLS once those deals close.