MDA, the leading Canadian space technology company, is optimistic about its financial performance this year. The company anticipates higher revenues, thanks to robust demand across its end markets and a significant contract with satellite operator Telesat.
According to MDA’s latest announcement, full-year revenues are projected to fall between CAD 785 million ($583.7 million) and CAD 810 million. This forecast represents a substantial year-over-year growth of approximately 25% at the midpoint.
MDA has been selected as the prime contractor for Telesat’s low-Earth orbit satellite constellation, called Telesat Lightspeed. The agreement, valued at CAD 2.1 billion, marks MDA’s largest contract to date. As part of the deal, MDA will be responsible for overseeing the design, manufacture, assembly, and testing of 198 satellites. Furthermore, Telesat has the option to purchase an additional 100 satellites.
Updated Earnings Projection
MDA has also raised its forecast for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). The company now expects the adjusted EBITDA range to be CAD 155 million to CAD 165 million for the entire year. This projection translates to an adjusted EBITDA margin of 19% to 20%.
Capital Expenditure Forecast
MDA’s anticipated capital expenditures for the year range from CAD 200 million to CAD 220 million. These investments will primarily focus on growth initiatives and other expansion projects.
Exciting Prospects for MDA
Based on these positive developments, MDA is poised for strong growth in 2022. With a robust revenue outlook, a groundbreaking partnership with Telesat, and an upgraded earnings projection, MDA is well-positioned to continue its success in the space technology industry.