What’s in Store for MDA Space Stock in 2026?

The global space industry is becoming a fast-growing business today. Satellite internet, defence upgrades, Earth monitoring, and advanced robotics are all driving new investment. That’s why governments and private companies are spending heavily to build space infrastructure, and a few Canadian companies are helping organizations achieve that.

One of them is MDA Space (TSX:MDA). After posting strong revenue growth and a multibillion-dollar backlog in 2025, many investors are wondering whether MDA stock will keep rising in 2026 and beyond. Let’s find out.

MDA Space’s focus on today’s space economy

If you don’t know it already, MDA Space operates in three main areas: satellite systems, robotics and space operations, and geointelligence. In simple terms, it builds and supports satellites, develops space robotics like Canadarm, and provides Earth and space observation technology.

Unlike many newer space companies that are still trying to turn a profit, MDA is already profitable. It plays an important role in major global space programs, which gives it a strong competitive position.

At a recent share price of around $36 apiece, MDA has a market cap of about $4.6 billion. The stock has gained around 45% over the past year, reflecting growing investor confidence as the company continues to deliver solid results.

While it is yet to announce its fourth-quarter results, the company’s revenue climbed 45% YoY (year-over-year) to $409.8 million in the third quarter of 2025. On the profitability side, its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) jumped 49% to $82.8 million, while adjusted net profit increased 33% to $46.1 million.

The biggest growth driver for MDA has been its satellite systems segment. Revenue in this division more than doubled YoY in the first nine months of 2025 with the help of its work on the Telesat Lightspeed program and Globalstar’s next-generation low Earth orbit satellite constellation. At the same time, its robotics and space operations segment continued to benefit from progress on the Canadarm3 program, strengthening the company’s position as a leader in space robotics.

Strong backlog supports 2026 outlook

One of the most encouraging signs for investors is MDA’s backlog. At the end of the September quarter, the company had $4.4 billion in contracted work, reflecting several years of future work.

At the same time, its balance sheet looks healthy. After acquiring SatixFy Communications in July 2025, MDA ended the third quarter with net debt of $93.6 million. That equals just 0.3 times net debt-to-adjusted EBITDA, which is a conservative level. This gives MDA great flexibility to invest in new satellite technology, expand production, or even make additional acquisitions.

Where could MDA stock head in 2026?

Looking ahead, three main factors will likely shape MDA’s performance in 2026: how well it executes on large satellite constellation projects, whether it can maintain strong margins, and its ability to win new contracts to refill and grow its backlog.

If revenue continues rising and EBITDA margins stay close to 20%, its earnings could keep growing at a double-digit pace. And global demand for satellite broadband, national space capabilities, and defence upgrades remains strong, which creates a supportive environment for the company.

For long-term Foolish investors who want to benefit from the continued commercialization of space and the expansion of satellite infrastructure, MDA Space continues to be one of Canada’s most interesting stocks in this fast-growing industry.

The post What’s in Store for MDA Space Stock in 2026? appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar has positions in MDA Space. The Motley Fool recommends MDA Space. The Motley Fool has a disclosure policy.