The worldwide house business is turning into a fast-growing enterprise at this time. Satellite tv for pc web, defence upgrades, Earth monitoring, and superior robotics are all driving new funding. That’s why governments and personal firms are spending closely to construct house infrastructure, and some Canadian firms are serving to organizations obtain that.
One in every of them is MDA Area (TSX:MDA). After posting robust income progress and a multibillion-dollar backlog in 2025, many traders are questioning whether or not MDA inventory will preserve rising in 2026 and past. Let’s discover out.
MDA Area’s concentrate on at this time’s house financial system
In case you don’t comprehend it already, MDA Area operates in three predominant areas: satellite tv for pc methods, robotics and house operations, and geointelligence. In easy phrases, it builds and helps satellites, develops house robotics like Canadarm, and supplies Earth and house statement expertise.
Not like many more recent house firms which can be nonetheless making an attempt to show a revenue, MDA is already worthwhile. It performs an essential position in main international house packages, which provides it a robust aggressive place.
At a latest share worth of round $36 apiece, MDA has a market cap of about $4.6 billion. The inventory has gained round 45% over the previous 12 months, reflecting rising investor confidence as the corporate continues to ship strong outcomes.
Whereas it’s but to announce its fourth-quarter outcomes, the corporate’s income climbed 45% YoY (year-over-year) to $409.8 million within the third quarter of 2025. On the profitability facet, its adjusted EBITDA (earnings earlier than curiosity, taxes, depreciation, and amortization) jumped 49% to $82.8 million, whereas adjusted internet revenue elevated 33% to $46.1 million.
The largest progress driver for MDA has been its satellite tv for pc methods phase. Income on this division greater than doubled YoY within the first 9 months of 2025 with the assistance of its work on the Telesat Lightspeed program and Globalstar’s next-generation low Earth orbit satellite tv for pc constellation. On the identical time, its robotics and house operations phase continued to learn from progress on the Canadarm3 program, strengthening the corporate’s place as a frontrunner in house robotics.
Robust backlog helps 2026 outlook
One of the crucial encouraging indicators for traders is MDA’s backlog. On the finish of the September quarter, the corporate had $4.4 billion in contracted work, reflecting a number of years of future work.
On the identical time, its steadiness sheet seems wholesome. After buying SatixFy Communications in July 2025, MDA ended the third quarter with internet debt of $93.6 million. That equals simply 0.3 instances internet debt-to-adjusted EBITDA, which is a conservative degree. This provides MDA nice flexibility to spend money on new satellite tv for pc expertise, broaden manufacturing, and even make extra acquisitions.
The place might MDA inventory head in 2026?
Wanting forward, three predominant elements will probably form MDA’s efficiency in 2026: how effectively it executes on massive satellite tv for pc constellation initiatives, whether or not it will possibly preserve robust margins, and its means to win new contracts to refill and develop its backlog.
If income continues rising and EBITDA margins keep shut to twenty%, its earnings might continue to grow at a double-digit tempo. And international demand for satellite tv for pc broadband, nationwide house capabilities, and defence upgrades stays robust, which creates a supportive surroundings for the corporate.
For long-term Silly traders who need to profit from the continued commercialization of house and the growth of satellite tv for pc infrastructure, MDA Area continues to be one in all Canada’s most attention-grabbing shares on this fast-growing business.