The Tax-Free Financial savings Account (TFSA) is among the strongest wealth-building instruments accessible to Canadians. That’s why what you personal inside it issues a lot.
Filling your TFSA with mediocre, slow-growth holdings is a missed alternative. The smarter transfer is to personal high quality progress shares and corporations which are driving long-term structural tailwinds, producing actual earnings and compounding shareholder wealth yr after yr.
Proper now, one title stands out above the remaining: MDA Area (TSX:MDA). This can be a inventory I’d fortunately maintain ceaselessly in a TFSA. Right here’s why.
Supply: Getty Photos
The bull case for the TSX inventory
MDA Area is among the most superior expertise and repair suppliers to the burgeoning international area business. With a 55-year observe report and greater than 450 missions accomplished, MDA has earned its place as a trusted companion to rising area firms, authorities companies, and prime contractors worldwide.
- In 2025, MDA delivered report income of $1.63 billion, up greater than 50% from the prior yr.
- Adjusted EBITDA (earnings earlier than curiosity, tax, depreciation, and amortization) got here in at a report $324 million, up 49% yr over yr, whereas the corporate maintained a wholesome adjusted EBITDA margin of practically 20%.
- Since 2020, MDA’s backlog has grown sevenfold to $4 billion, and the corporate has compounded revenues at a 32% annual fee over the previous 5 years.
- The worldwide area financial system was estimated at US$626 billion in 2025, in accordance with Novaspace’s Area Economic system report.
- The World Financial Discussion board tasks it’s going to surpass $1.8 trillion by 2035. That’s an infinite addressable market, and MDA is completely positioned to seize a rising share of it.
Demand for satellite-enabled international connectivity is predicted to drive the launch of greater than 43,000 satellites over the subsequent decade. On the similar time, lunar exploration missions are projected to extend 185% over the subsequent 10 years.
Furthermore, governments world wide are pouring cash into space-based defence at a tempo not seen earlier than.
- The U.S. dedicated $175 billion to its Golden Dome area defence structure.
- Germany pledged €35 billion for satellite tv for pc and area situational consciousness capabilities.
- Canada confirmed that area shall be a core a part of its NATO dedication, with plans to extend defence spending to five% of GDP by fiscal yr 2035-2036, probably translating into $155 billion in annual Canadian defence spending.
That’s a large tailwind for a corporation that has served as a trusted defence contractor for many years.
A $40 billion pipeline
Throughout its This fall earnings name, MDA CEO Mike Greenley revealed the corporate’s pipeline now comprises $40 billion in cumulative alternatives over the subsequent 5 years. Inside that determine, $10 billion represents alternatives the place MDA has already been shortlisted by authorities prospects or includes follow-on work with present shoppers.
- For 2026, MDA is guiding for revenues of $1.7 billion to $1.9 billion, roughly 10% progress on the midpoint. Adjusted EBITDA is predicted to come back in at $320 million to $370 million, with margins held at 18% to twenty%.
- The corporate can be reinvesting aggressively, with $225 million to $275 million in deliberate capital expenditures to assist new manufacturing traces, chip growth via its SatixFy acquisition, and industrial progress initiatives.
- MDA is an organization with clear income visibility from its $4 billion backlog, a large and rising pipeline, sturdy revenue margins, and a conservative stability sheet.
- Internet money stood at $152 million at year-end, with complete accessible liquidity of $821 million. MDA additionally generated $165 million in free money circulation in 2025.
- Past 2026, the structural tailwinds embody rising satellite tv for pc demand, surging defence budgets, lunar exploration, and international connectivity.
- With its newly launched 49North division centered on non-space defence alternatives in Canada, MDA can be opening up a wholly new progress channel.
In case you are in search of a high quality Canadian progress inventory to personal inside your TFSA for the subsequent decade and past, MDA Area deserves a severe look. The area business remains to be in its early innings. MDA has the expertise, the infrastructure, and the contracts to develop proper together with it: compounding your wealth in a totally tax-free setting alongside the way in which.
That may be a mixture value holding ceaselessly.