MDA SPACE REPORTS FOURTH QUARTER AND FISCAL 2024 RESULTS

• Q4 2024 Highlights
  • Backlog of $4.4 billion at quarter-end, up 42% YoY
  • Revenues of $347 million, up 69% YoY
  • Adjusted EBITDA¹ of $71 million, up 68% YoY; adjusted EBITDA margin¹ of 20.5%
  • Adjusted net income¹ of $35 million, up 26% YoY
• Full year 2024 Highlights
  • Revenues of $1,080 million, up 34% YoY
  • Adjusted EBITDA of $217 million, up 25% YoY; adjusted EBITDA margin of 20.1%
  • Adjusted net income of $111 million, up 13% YoY
  • Operating cash flow of $816 million; Free cash flow of $615 million
  • Net cash position of $167 million at year-end
• Introduction of 2025 Financial Outlook
  • Revenues expected to be $1.50 - $1.65 billion, representing ~ 45% YoY growth
  • Adjusted EBITDA expected to be $290 - $320 million, representing ~ 40% YoY growth, with adjusted EBITDA margin of 19%-20%

BRAMPTON, ON, March 7, 2025 /PRNewswire/ - MDA Space Ltd. (TSX: MDA), a trusted space mission partner to the rapidly expanding global space industry, today announced financial results for the fourth quarter and year ended December 31, 2024.

"In 2024, the MDA Space team delivered another year of strong execution reflected in 34% and 25% increases in revenue and adjusted EBITDA, helping to further solidify our position as a trusted mission partner and leader in the expanding space industry," said Mike Greenley, Chief Executive Officer of MDA Space.

"We continued to grow our backlog, securing the next phases of the Canadarm3 program valued at $1 billion, while advancing work on a number of important programs including the Telesat Lightspeed and Globalstar LEO constellations, Canadarm3 robotic program and MDA CHORUS^TM, our next generation Earth observation constellation."

"Post quarter-end, MDA Space was awarded a $1.1 billion contract from Globalstar to manufacture its next generation LEO constellation which will include 50+ MDA AURORA^TM digital satellites. This award marks our third LEO constellation contract in three years and our second constellation with Globalstar, further highlighting the continued momentum we are seeing in our Satellite Systems business driven by strong customer demand for our differentiated technology."

"With a solid backlog of approximately $5 billion today, and a robust opportunity funnel, MDA Space is well positioned to deliver another successful year in 2025 as we continue to execute our strategy to capitalize on growing market demand and deliver shareholder value."

FULL YEAR 2024 HIGHLIGHTS

• Order bookings for the full year totalled $2.4 billion and were largely driven by awards in our Robotics & Space Operations and Satellite Systems businesses. Backlog of $4.4 billion as of December 31, 2024 was up 41.6% compared to December 31, 2023.
• Full year revenues of $1,080.1 million were up 33.7% year-over-year, exceeding the Company's full year revenue guidance of $1,045 - $1,065 million. The year-over-year increase was driven by execution on our backlog, with strong contributions from our Satellite Systems and Robotics & Space Operations businesses.
• Full year adjusted EBITDA of $217.1 million was up 24.6% year-over-year driven by higher volumes across our businesses. Adjusted EBITDA margin of 20.1% in 2024 is consistent with the Company's full year margin guidance of 19%-20% and compares to 21.6% in 2023.
• Full year net income of $79.4 million was up 62.7% year-over-year due to higher operating income. Diluted earnings per share of $0.63 in 2024 were up 57.5% compared to 2023.
• Full year adjusted net income of $111.1 million was up 13.5% year-over-year driven by higher operating income. Adjusted diluted earnings per share of $0.88 in 2024 were up 8.6% year-over- year.
• Operating cash flow of $815.6 million in 2024 compared to $13.5 million in the prior year. The year-over-year increase in operating cash flow was driven by favourable working capital contributions primarily related to the Telesat Lightspeed program.
• Free cash flow of $614.8 million in 2024 compared to $(179.7) million in 2023. The year-over-year increase was driven by improving operating cash flow as a result of the aforementioned favourable working capital contributions.
• Net cash position of $166.7 million at year-end compared to net debt to adjusted EBITDA ratio of 2.4x as of December 31, 2023 as the Company utilized its strong operating cash flow in 2024 to make repayments to its revolving credit facility and deleverage the balance sheet while continuing to invest in its growth initiatives.

FOURTH QUARTER 2024 HIGHLIGHTS

• Revenues of $346.6 million in Q4 2024 were up 69.1% year-over-year driven by strong contributions from Satellite Systems business.
• Adjusted EBITDA of $70.9 million in Q4 2024 was up 68.4% year-over-year driven by higher volume of work as we execute on our backlog. Adjusted EBITDA margin of 20.5% in Q4 2024 was in line with the 20.5% margin reported in Q4 2023 and consistent with the Company's full year adjusted EBITDA margin guidance of 19%-20%.
• Net income of $25.1 million in Q4 2024 was up 85.9% year-over-year driven by higher operating income. Diluted earnings per share of $0.20 were up 81.8% year-over-year.
• Adjusted net income of $35.1 million in Q4 2024 was up 26.3% year-over-year largely due to higher operating income. Adjusted diluted earnings per share of $0.28 were up 21.7% year-over- year.
• Operating cash flow was $383.1 million in Q4 2024 compared to $(41.2) million in Q4 2023. The year-over-year increase in operating cash flow was driven by positive working capital contributions primarily related to the Telesat Lightspeed program and the Globalstar Authorization to Proceed (ATP) contract.

2025 FINANCIAL OUTLOOK

As a trusted mission partner and leading global space technology provider, we are leveraging our capabilities and expertise to execute on targeted growth strategies across our end markets and business areas. Our strategic initiatives, which span across our three businesses, include investing in next generation space technology and services, expanding our presence in high growth markets and geographies, scaling and expanding skills, talent and operations to meet current and future market demand and leveraging strategic M&A to complement organic growth. We continue to make good progress against our long-term strategic plan.

MDA Space is well positioned to capitalize on strong customer demand and robust market activity given our diverse and proven technology offerings. Our growth pipeline is significant and underpinned by existing and new programs and our book of business is healthy. We see activities ramping up in line with our expectations and are encouraged by the team's solid execution.

For fiscal 2025, we expect full year revenues to be $1.50 – $1.65 billion, representing year-over-year growth of approximately 45% at the mid-point of guidance. We expect full year adjusted EBITDA to be $290 – $320 million, representing year-over-year growth of approximately 40% at the mid-point of guidance, and approximately 19% – 20% adjusted EBITDA margin. We expect capital expenditures to be $210 – $240 million in 2025, comprising of growth investments to support the previously outlined growth initiatives across our business areas. We expect full year free cash flow to be neutral to positive in 2025.

For Q1 2025, we expect revenues to be $315 – $335 million as we continue to execute on our backlog.

Note that the provided 2025 financial outlook does not incorporate any potential impact from the recently announced U.S. tariffs on articles imported from Canada or the retaliatory Canadian tariffs imposed on Canadian imports from the U.S. MDA Space continues to work collaboratively with our customers to identify solutions and explore mitigation strategies. The Company will continue to closely monitor developments and may elect to update its financial outlook if deemed necessary.

FINANCIAL OVERVIEW

KEY INDICATORS SUMMARY

REVENUES BY BUSINESS AREA

Revenues

Consolidated revenues for the fourth quarter of 2024 were $346.6 million, representing an increase of $141.6 million (or 69.1%) from the fourth quarter of 2023. The year-over-year increase in revenues was primarily driven by strong contributions from our Satellite Systems business.

By business area, revenues in Geointelligence for the fourth quarter of 2024 were $47.4 million, which represents a decrease of $2.5 million (or 5.0%) from the same period in 2023 due to timing of programs. Revenues in Robotics & Space Operations for the fourth quarter of 2024 were $64.7 million, which represents a decrease of $0.2 million (or 0.3%) from the same period in 2023 driven by the gradual ramp of Phase C of the Canadarm3 Program which was awarded in Q2 2024. Revenues in Satellite Systems for the fourth quarter of 2024 were $234.5 million, which represents an increase of $144.3 million (or 160.0%) from the same period in 2023 driven by the ramp of the Telesat Lightspeed program and contributions from the Globalstar ATP which was awarded in Q4 2023.

Consolidated revenues for the year ended December 31, 2024 were $1,080.1 million, which were $272.5 million (or 33.7%) higher than 2023. The year-over-year increase in revenues was primarily driven by strong contributions from our Satellite Systems and Robotics & Space Operations businesses.

By business area, Revenues in Geointelligence for the year ended December 31, 2024 were $202.1 million, which represents a year-over-year increase of $4.6 million (or 2.3%) reflecting steady volume of work. Revenues in Robotics & Space Operations for the year ended December 31, 2024 were $279.8 million, which represents an increase of $31.4 million (or 12.6%) over 2023. The year-over- year revenue increase is primarily driven by the higher volume of work performed on the Canadarm3 program. Revenues in Satellite Systems for the year ended December 31, 2024 were $598.2 million, which represents an increase of $236.5 million (or 65.4%) over 2023 driven by the ramp up of the Telesat Lightspeed and contributions from the Globalstar ATP.

Gross Profit and Gross Margin

Gross profit reflects our revenues less cost of revenues. Q4 2024 gross profit of $81.9 million represents a $24.1 million (or 41.7%) increase over Q4 2023 driven by higher volumes of work performed in our Satellite Systems business. Gross margin in Q4 2024 was 23.6%, which is in line with our expectations, and compares to a gross margin of 28.2% in Q4 2023 driven by an evolving program mix and higher depreciation expense.

For the year ended December 31, 2024, gross profit of $281.7 million represents a $37.7 million (or 15.5%) increase over 2023 driven by higher volume of work performed year-over-year. Gross margin for the year ended December 31, 2024 was 26.1%, which is in line with our expectations driven by an evolving program mix and higher depreciation expense. Comparatively, gross margin in 2023 was 30.2%.

Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA for the fourth quarter of 2024 was $70.9 million compared with $42.1 million for the fourth quarter of 2023, representing an increase of $28.8 million (or 68.4%) year-over-year driven by higher work volume as we continue to execute on our backlog. Adjusted EBITDA margin was 20.5% for the fourth quarter of 2024, in line with the 20.5% adjusted EBITDA margin reported for the fourth quarter of 2023 and consistent with the Company's full year margin guidance of 19%-20%.

Adjusted EBITDA for the year ended December 31, 2024 was $217.1 million compared with $174.2 million for 2023, representing an increase of $42.9 million (or 24.6%) year-over-year. The improvement was driven by higher volume of work performed year-over-year and effective scaling of operating expenses. Adjusted EBITDA margin of 20.1% for the year ended December 31, 2024 is consistent with the Company's full year margin guidance of 19%-20% and compares with 21.6% in 2023.

Adjusted Net Income

Adjusted net income for the fourth quarter of 2024 was $35.1 million compared with $27.8 million for the fourth quarter of 2023, representing an increase of $7.3 million (or 26.3%) year-over-year largely due to higher operating income in Q4 2024.

Adjusted net income for the year ended December 31, 2024 was $111.1 million compared with $97.9 million for the year ended December 31, 2023, representing an increase of $13.2 million (or 13.5%) year over year. The increase for the full year period is largely due to higher operating income.

Backlog

Backlog is comprised of our remaining performance obligations which represents the transaction price of firm orders less inception to date revenue recognized and excludes unexercised contract options and indefinite delivery or indefinite quantity contracts. Backlog as at December 31, 2024 was $4,385.5 million, an increase of $1,288.5 million compared with the backlog at December 31, 2023 driven by new order bookings partially offset by continued conversion of our backlog into revenue. The following table shows the build up of backlog for Q4 and the year ended December 31, 2024 as compared with the same periods in 2023. 

CONFERENCE CALL AND WEBCAST

MDA will host a conference call and webcast to discuss these financial results on Friday, March 7, 2025 at 8:30 am ET. Interested parties can join the call by dialing 416-945-7677 (Toronto area) or 1-888-699-1199 (toll-free North America) or +44-800-279-7040 (United Kingdom) and entering the conference ID 07101. A live webcast of the conference call and an accompanying slide presentation will be available at https://mda-en.investorroom.com/events-presentations.

A replay of the conference will be archived on the MDA Space Investor Relations website following the call. Parties may also access a recording of the call which will be available until March 14, 2025, by dialing 1-888-660-6345 and entering the passcode 07101 #.

NON-IFRS FINANCIAL MEASURES

This press release refers to certain non-IFRS measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, the measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. We use non-IFRS measures, including EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Earnings per Share, Order Bookings, Net Debt and Free Cash Flow, to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We define EBITDA as net income (loss) before: i) depreciation and amortization expenses, ii) provision for (recovery of) income taxes, and iii) finance costs. Adjusted EBITDA is calculated by adding to and deducting from EBITDA, as applicable, certain expenses, costs, charges or benefits incurred in such period which in management's view are either not indicative of underlying business performance or impact the ability to assess the operating performance of our business, including i) unrealized foreign exchange gain or loss ii) unrealized gain or loss on financial instruments and iii) share-based compensation expenses, and iv) other items that may arise from time to time. Adjusted EBITDA margin represents Adjusted EBITDA divided by revenue. Order Bookings is the dollar sum of contract values of firm customer contracts. Adjusted Net Income is calculated by adding to and deducting from net income, as applicable, certain expenses, costs, charges or benefits incurred in such period which in management's view are either not indicative of underlying business performance or impact the ability to assess the operating performance of our business, including i) amortization of intangible assets related to business combinations, ii) unrealized foreign exchange gain or loss, iii) unrealized gain or loss on financial instruments, and iv) share-based compensation expenses, and iv) other items that may arise from time to time. Adjusted Earnings per Share represents Adjusted Net Income divided by the weighted average number of shares outstanding. Order Bookings is indicative of firm future revenues; however, it does not provide a guarantee of future net income and provides no information about the timing of future revenue. Net Debt is the total carrying amount of long-term debt including current portions, as presented in the 2024 Audited Financial Statements, less cash (or plus bank indebtedness) and excluding any lease liabilities. Net Debt is a liquidity metric used to determine how well the Company can pay all of its debts if they were due immediately. Free Cash Flow is a supplemental measure used to monitor the availability of discretionary cash generated, and available to the Company to repay debt, make strategic investments, and meet other payment obligations. We define Free Cash Flow as operating cash flows less net capital expenditures.

FORWARD-LOOKING STATEMENTS

This press release may contain forward looking information within the meaning of applicable securities legislation, which reflects the Company's current expectations regarding future events. Forward looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward looking information. Such risks and uncertainties include, but are not limited to the factors discussed under "Risk Factors" in the Company's Annual Information Form (AIF) dated March 7, 2025 and available on SEDAR+ at www.sedarplus.ca. MDA Space does not undertake any obligation to update such forward looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

ABOUT MDA SPACE

Building the space between proven and possible, MDA Space (TSX: MDA) is a trusted mission partner to the global space industry. A robotics, satellite systems and geointelligence pioneer with a 55-year+ story of world firsts and more than 450 missions, MDA Space is a global leader in communications satellites, Earth and space observation, and space exploration and infrastructure. The MDA Space team of more than 3,400 space experts in Canada, the US and the UK has the knowledge and know- how to turn an audacious customer vision into an achievable mission – bringing to bear a one-of-a-kind mix of experience, engineering excellence and wide-eyed wonder that's been in our DNA since day one. For those who dream big and push boundaries on the ground and in the stars to change the world for the better, we'll take you there. For more information, visit mda.space.

MDA Space Ltd.
Consolidated Statement of Comprehensive Income
For the years ended December 31, 2024 and 2023
(In millions of Canadian dollars except per share figures)

MDA Space Ltd.
Consolidated Statement of Financial Position
December 31, 2024 and 2023
(In millions of Canadian dollars)

MDA Space Ltd.

Consolidated Statement of Cash Flows
For the years ended December 31, 2024 and 2023
(In millions of Canadian dollars)

RECONCILIATION OF NON-IFRS MEASURES

The following table provides a reconciliation of net income to EBITDA, adjusted EBITDA, and adjusted net income: 

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/mda-space-reports-fourth-quarter-and-fiscal-2024-results-302395289.html

SOURCE MDA Space