MDA boosted by Apple contract
November 14, 2022
By Chris Forrester
Canada-based space technology business MDA reported “strong top-line” growth for Q3 2022, with revenues at C$172 million (€125.6m), up 55 per cent y-o-y. Profitability was solid with EBITDA of C$38.8 million (up 22 per cent y-o-y).
Perhaps even more importantly, the company’s backlog is up a very healthy 70 per cent to C$1.4 billion, an increase of C$541 million compared to the position at December 31st 2021.
The company reaffirmed its expected revenue for the fiscal year to C$630-650 million, and raised its expected EBITDA (from C$120-130m) to C$130-135 million.
The improved contract backlog came from a major business win from Globalstar’s low Earth orbiting constellation (worth about C$415 million). Globalstar is working with Apple on the SOS/Text-to-cellular service and has ordered 17 new satellites specifically to help with the Apple contract and has options for an additional 9 satellites.
Globalstar is still hoping for new contacts, notably from fellow-Canadian operator Telesat of Ottawa. Telesat’s Lightspeed $5 billion-valued low Earth orbiting scheme might see a decision by year-end on how it is to be financed but MDA says it has removed the potential work from its projected revenues for 2022. MDA CEO Mike Greenley told analysts that they continued to view Lightspeed as an “opportunity” in its pipeline.