The following is a summary of the MDA Space Ltd. (MDALF) Q3 2024 Earnings Call Transcript:

Financial Performance:

• MDA Space Ltd. reported Q3 2024 revenues of $282 million, a 38% increase year-over-year.

• Adjusted EBITDA for the quarter was $55.5 million, up 30% from the previous year, with a margin of 19.7%.

• Operating cash flow was strong at $259 million, and the company ended the quarter with a leverage ratio that continued to decline.

• Backlog stood at $4.6 billion, providing solid revenue visibility for 2025 and beyond.

Business Progress:

• MDA Space is expanding its satellite systems facility in Quebec by 185,000 square feet to support two MDA AURORA digital satellites production per day.

• The company successfully conducted a preliminary design review for the Canadarm3 program and advanced manufacturing on the MDA CHORUS next-generation Earth observation constellation.

• Key customer and government engagements included hosting senior government officials and participating in funding announcements for major projects like the Telesat Lightspeed Constellation.

Opportunities:

• MDA Space is capitalizing on the expanding broader space market, with specific advancements in satellite systems and the introduction of the MDA AURORA digital satellites.

• The company is set to benefit from global interest in space exploration and new commercial activities, such as partnerships for developing direct-to-device communication services.

• Anticipated growth in non-geostationary orbit satellite constellations, with MDA positioned as a prime contractor for contracts valued at a minimum of $750 million.

Risks:

• Delays in satellite launches, like the postponed mid-2026 launch for MDA CHORUS due to additional security enhancements, could impact project timelines and revenue recognition.

• Changes in government contracting and funding could affect long-term projects and backlog, such as developments seen with various government space program adjustments.

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