- MDA Space (TSX:MDA) released its Q3 2024 financial results, setting the company to boldly go where no stock has gone before
- MDA’s revenues for Q3 2024 reached C$282.4 million, marking a 38 per cent year-over-year increase
- Operating cash flow also saw a remarkable turnaround, reaching C$258.8 million in Q3 2024, compared to C$30.0 million in Q3 2023
- MDA Space stock (TSX:MDA) last traded at C$25.85
MDA Space (TSX:MDA) released its Q3 2024 financial results, setting the company to boldly go where no stock has gone before.
The company reported a backlog of C$4.6 billion at quarter-end, providing strong revenue visibility for 2025 and beyond. This backlog reflects a 49 per cent increase compared to Q3 2023, driven by significant new order bookings, including a C$1 billion award for Phases C/D of the Canadarm3 program announced in Q2 2024.
“The team continued to execute on our major programs, successfully conducting the preliminary design review for the Canadarm3 program, a critical milestone for the program,” Mike Greenley, MDA Space’s chief executive officer, said in a statement. “We also made significant progress on MDA Chorus, our next generation Earth Observation constellation, completing the spacecraft assembly and commencing spacecraft integration and testing. And in our Satellite Systems business, the team made solid progress advancing the engineering work for the Telesat Lightspeed program. In Q3, we also broke ground on our Satellite Systems facility expansion in Quebec which will add 185,000 square feet of advanced manufacturing capacity.”
MDA’s revenues for Q3 2024 reached C$282.4 million, marking a 38 per cent year-over-year increase. This growth was fuelled by higher work volumes across the business, particularly from the Satellite Systems and Robotics & Space Operations sectors. Adjusted EBITDA for the quarter was C$55.5 million, up from C$42.8 million in Q3 2023, representing a 29.7 per cent increase. The adjusted EBITDA margin was 19.7 per cent, consistent with the company’s full-year guidance of 19-20 per cent, although slightly lower than the 20.9 per cent margin reported in the same quarter last year.
The adjusted net income for Q3 2024 was C$34.7 million, a substantial increase from C$21.7 million in Q3 2023, reflecting a 59.9 per cent rise driven by higher operating income. Adjusted diluted earnings per share improved to C$0.28, compared to C$0.18 in the previous year, representing a 55.6 per cent increase.
Operating cash flow also saw a remarkable turnaround, reaching C$258.8 million in Q3 2024, compared to C$30.0 million in Q3 2023. This positive shift was primarily due to favorable working capital contributions, particularly related to the Telesat Lightspeed program.
Consolidated revenues for the third quarter of 2024 totalled C$282.4 million, an increase of C$77.7 million (or 38.0 per cent) from the same period in 2023. This growth was driven by increased work volumes across the business, with notable contributions from the Satellite Systems and Robotics & Space Operations divisions.
By business area, revenues in Geointelligence for Q3 2024 were C$48.3 million, reflecting a slight decrease of C$0.1 million (or 0.2 per cent) from the same period in 2023, indicating steady work volumes. In contrast, revenues from Robotics & Space Operations rose to C$66.5 million, an increase of C$4.6 million (or 7.4 per cent) year-over-year, primarily driven by higher work volumes on the Canadarm3 program. The Satellite Systems segment saw revenues of C$167.6 million, a significant increase of C$73.2 million (or 77.5 per cent) from the previous year, bolstered by contributions from new programs, including Telesat Lightspeed and an authorization to proceed for an undisclosed customer for a NGSO satellite constellation.
For the nine months ended September 30, 2024, consolidated revenues totaled C$733.5 million, representing an increase of C$130.9 million (or 21.7 per cent) from the same period in 2023. This growth was primarily driven by increased work volumes in the Satellite Systems and Robotics & Space Operations sectors.
By business area for the first nine months of 2024, revenues in Geointelligence were C$154.7 million, an increase of C$7.1 million (or 4.8 per cent) from the same period in 2023, reflecting higher work volumes on various programs. Revenues in Robotics & Space Operations reached C$215.1 million, up C$31.6 million (or 17.2 per cent) year-over-year, driven by increased work on the Canadarm3 program. The Satellite Systems segment reported revenues of C$363.7 million, an increase of C$92.2 million (or 34.0 per cent) from the previous year, fueled by contributions from new initiatives.
MDA’s backlog, which comprises remaining performance obligations representing the transaction price of firm orders less revenue recognized to date, stood at C$4.578 billion as of September 30, 2024. This reflects an increase of C$1.509 billion compared to the backlog at the same time last year, driven by new order bookings, partially offset by the continued conversion of backlog into revenue.
The Canadian technology provider to the global space industry, MDA specializes in robotics, satellite systems and geointelligence for the global space industry with a track record spanning more than 55 years and more than 450 missions.
MDA Space stock (TSX:MDA) last traded at C$25.85, and its stock has rocketed 124.39 per cent higher since the year began.
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(Top photo: MDA Space)
