- MDA Space (TSX:MDA), a technology provider to the global space industry, has signed a C$1 billion contract with the Canadian Space Agency to continue developing its Canadarm3 space robotics system
- The most advanced system of its kind, the Canadarm3 will be deployed aboard Gateway, an international project led by NASA to install a space station in lunar orbit
- MDA Space 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 has added 63.72 per cent year-over-year, but remains down by 25.06 per cent since its initial public offering in 2021
MDA Space (TSX:MDA), a technology provider to the global space industry, has signed a C$1 billion contract with the Canadian Space Agency to continue developing its Canadarm3 space robotics system.
The most advanced system of its kind, the Canadarm3 will be deployed aboard Gateway, an international project led by NASA to install a space station in lunar orbit, allowing for human and robotic missions to the surface of the moon.
Funding will cover the Canadarm3’s final design, construction, system assembly, integration and testing through March 2030, and involve more than 200 Canadian companies in MDA’s supply chain, with the technology provider signed on to support commissioning once in orbit from a new mission control facility at its headquarters in Brampton, Ontario.
The news should bring added attention to MDA’s Skymaker suite of commercial space robotics, which are derived from Canadarm3 technology to serve emerging markets such as commercial space stations, lunar surface rovers and landers, satellite servicing and in-space assembly and manufacturing.
Investors can expect to see the contract reflected in MDA’s robust more than C$3 billion backlog in Q2 FY2024. The company expects to collect between C$950 million to a little more than C$1 billion in revenue in 2024, representing about a 100 per cent increase from 2021, backed by strong customer demand and a healthy adjusted EBITDA margin of 19-20 per cent.
Leadership insights
“We are entering an exciting period where Canadarm3 will take shape and come to life on our production floor. This critical investment in Canadarm3 reinforces and expands our national and industry leadership as a new era of space opens up,” Mike Greenley, MDA Space’s chief executive officer, said in a statement. “This major milestone also reflects our strategy in action as we build our significant backlog and bring to market a new generation of commercial space products and services.”
“This contract highlights Canada’s commitment to the next chapter of lunar exploration. Building on the legacy of strategic investments in space robotics, Canadarm3 showcases our commitment to innovation,” said François-Philippe Champagne, Minister of Innovation, Science and Industry. “Beyond enhancing Canada’s position of developing and retaining top talents and world-renowned innovators, this initiative supports high-quality jobs and opportunities for growth within the country’s expanding space sector.”
About MDA Space
MDA specializes in robotics, satellite systems and geointelligence for the global space industry with a track record spanning over 55 years and over 450 missions.
MDA Space (TSX:MDA) is up by 9.23 per cent trading at C$13.13 per share as of 10:24 am ET. The stock has added 63.72 per cent year-over-year, but remains down by 25.06 per cent since its initial public offering in 2021, despite posting increasing profitability over the period. Net income came in at C$2.9 million in 2021, C$26.30 million in 2022 and C$48.80 million in 2023.
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(Top photo: MDA Space)
