MDA Space reports 38 pc revenue growth in Q3 2024
MDA Space reported impressive growth across various segments, driven by its robust backlog, new contracts, and innovative offerings
In an exciting third-quarter performance for 2024, MDA Space, a leader in space exploration and satellite communications, has exceeded expectations. The company reported impressive growth across various segments, driven by its robust backlog, new contracts, and innovative offerings.
In a press statement, MDA says that revenues for the third quarter of 2024 is USD 282.4 million, reflecting an increase of USD 77.7 million, or 38 pc, compared to the third quarter of 2023.
It adds this growth was driven by heightened activity in the company’s Satellite Systems and Robotics & Space Operations segments, its revenue amounted to USD 167.6 million, up from USD 94.4 million a year ago, while robotics and space operations revenue totalled UD 66.5 million, up from USD 61.9 million.
According to report the company’s EBITDA for the quarter stood at USD 40 million, up from USD 32 million in Q3 2023, showcasing a 25 pc increase.
It adds that MDA’s EBITDA margin also improved, reflecting operational efficiency and the scalability of its high-margin offerings in commercial satellite services.
The report adds that the income followed suit with a 20 pc increase to USD 18 million compared to USD 15 million in the same quarter last year.
MDA says that one of the standout elements of MDA’s Q3 results is its record backlog, which grew to USD 1.5 billion, up from USD 1.2 billion in the previous quarter. The increase in backlog was fuelled by several new contracts across both government and commercial sectors.
The statement adds that the MDA Space continues to expand its footprint by focusing on emerging technologies in space-based communication, with specific emphasis on low Earth orbit (LEO) satellite systems. The company has invested heavily in R&D for next-generation satellite systems that promise to enhance global connectivity. MDA is also working on space robotics and autonomous spacecraft, areas in which it has long been recognised as an industry leader.
The report says that for the first nine months of 2024, geointelligence revenues reached USD 154.7 million, a 4.8 pc increase from 2023, driven by higher work volume on CSC and other new programmes
It adds that robotics and space operations saw revenues of USD 215.1 million, up 17.2 pc year-over-year, mainly due to increased work on the Canadarm3 programme.
It furthers says that Satellite Systems revenues totalled USD 363.7 million, a 34 pc increase, fuelled by contributions from the Telesat Lightspeed programme and a new NGSO satellite constellation ATP for an undisclosed customer.
MDA says it earned 28 cents per diluted share in its latest quarter compared with an adjusted profit of 18 cents per diluted share a year ago.
The report says that adjusted net income also saw a significant rise, increasing by 60 pc to USD 34.7 million. Adjusted diluted earnings per share also grew by 56 pc, reaching USD 0.28, reflecting the company’s strong operating income.
It adds that the company advanced its Earth Observation constellation, MDA CHORUS, which completed spacecraft assembly and entered integration and testing. The statement adds that MDA remains positioned to benefit from strong customer demand and has raised its full-year revenue guidance to between USD 1,045 million and USD1,065 million, reflecting a 30 pc increase from the previous year.
It adds that as of September 30, the backlog was USD 4,578.1 million, an increase of USD 1,509.4 million compared to last year.
It adds that this growth was driven by new order bookings, partially offset by the continued conversion of backlog into revenue. The backlog is comprised of remaining performance obligations, representing the transaction price of firm orders minus recognised revenue to date, and excludes unexercised contract options and indefinite delivery or indefinite quantity contracts. The following table compares the backlog for Q3 2024 with the same period in 2023.
Mike Greenley
“In Q3, the MDA Space team delivered another strong quarter with double digit growth in our top and bottom lines as we continued to execute and convert our backlog,” says Mike Greenley, Chief Executive Officer of MDA Space.
“The team continued to execute on our major programmems, successfully conducting the preliminary design review for the Canadarm3 programme, a critical milestone for the programme. 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 programme. In Q3, we also broke ground on our Satellite Systems facility expansion in Quebec which will add 1850 sqm of advanced manufacturing capacity,” he adds.
“I am also pleased to welcome Guillaume Lavoie to the MDA Space Team as Chief Financial Officer. Guillaume brings a wealth of financial leadership experience and will be instrumental in supporting our long-term growth plans and helping us deliver successfully for our customers and shareholders,” Greenley adds.
