1 Canadian Stock I’d Happily Hold in a TFSA Forever

The Tax-Free Savings Account (TFSA) is one of the most powerful wealth-building tools available to Canadians. That’s why what you own inside it matters so much.

Filling your TFSA with mediocre, slow-growth holdings is a missed opportunity. The smarter move is to own quality growth stocks and companies that are riding long-term structural tailwinds, generating real profits and compounding shareholder wealth year after year.

Right now, one name stands out above the rest: MDA Space (TSX:MDA). This is a stock I’d happily hold forever in a TFSA. Here’s why.

The bull case for the TSX stock

MDA Space is one of the most advanced technology and service providers to the burgeoning global space industry. With a 55-year track record and more than 450 missions completed, MDA has earned its place as a trusted partner to emerging space companies, government agencies, and prime contractors worldwide.

• In 2025, MDA delivered record revenue of $1.63 billion, up more than 50% from the prior year.
• Adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) came in at a record $324 million, up 49% year over year, while the company maintained a healthy adjusted EBITDA margin of nearly 20%.
• Since 2020, MDA’s backlog has grown sevenfold to $4 billion, and the company has compounded revenues at a 32% annual rate over the past five years.
• The global space economy was estimated at US$626 billion in 2025, according to Novaspace’s Space Economy report.
• The World Economic Forum projects it will surpass $1.8 trillion by 2035. That’s an enormous addressable market, and MDA is perfectly positioned to capture a growing share of it.

Demand for satellite-enabled global connectivity is expected to drive the launch of more than 43,000 satellites over the next decade. At the same time, lunar exploration missions are projected to increase 185% over the next 10 years.

Moreover, governments around the world are pouring money into space-based defence at a pace not seen before.

• The U.S. committed $175 billion to its Golden Dome space defence architecture.
• Germany pledged €35 billion for satellite and space situational awareness capabilities.
• Canada confirmed that space will be a core part of its NATO commitment, with plans to increase defence spending to 5% of GDP by fiscal year 2035-2036, potentially translating into $155 billion in annual Canadian defence spending.

That’s a massive tailwind for a company that has served as a trusted defence contractor for decades.

A $40 billion pipeline

During its Q4 earnings call, MDA CEO Mike Greenley revealed the company’s pipeline now contains $40 billion in cumulative opportunities over the next five years. Within that figure, $10 billion represents opportunities where MDA has already been shortlisted by government customers or involves follow-on work with existing clients.

• For 2026, MDA is guiding for revenues of $1.7 billion to $1.9 billion, roughly 10% growth at the midpoint. Adjusted EBITDA is expected to come in at $320 million to $370 million, with margins held at 18% to 20%.
• The company is also reinvesting aggressively, with $225 million to $275 million in planned capital expenditures to support new production lines, chip development through its SatixFy acquisition, and commercial growth initiatives.
• MDA is a company with clear revenue visibility from its $4 billion backlog, a massive and growing pipeline, strong profit margins, and a conservative balance sheet.
• Net cash stood at $152 million at year-end, with total available liquidity of $821 million. MDA also generated $165 million in free cash flow in 2025.
• Beyond 2026, the structural tailwinds include growing satellite demand, surging defence budgets, lunar exploration, and global connectivity.
• With its newly launched 49North division focused on non-space defence opportunities in Canada, MDA is also opening up an entirely new growth channel.

If you are looking for a quality Canadian growth stock to own inside your TFSA for the next decade and beyond, MDA Space deserves a serious look. The space industry is still in its early innings. MDA has the technology, the infrastructure, and the contracts to grow right along with it: compounding your wealth in a completely tax-free environment along the way.

That is a combination worth holding forever.

The post 1 Canadian Stock I’d Happily Hold in a TFSA Forever appeared first on The Motley Fool Canada.

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More reading

• Top Canadian Stocks to Buy With $5,000 in 2026
• The Best Stocks to Invest $1,000 in Right Now
• 3 TSX Superstars That Could Beat the Market in 2026 (Get In Now)
• 3 Defence Industry Stocks That Investors Shouldn’t Sleep On
• 1 TSX Stock Set to Soar in 2026 and Beyond

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends MDA Space. The Motley Fool has a disclosure policy.