To find TSX stocks that could soar in 2026, Canadians should look for two things at once: a real tailwind and a business that can turn that tailwind into steady cash flow. The tailwind can come from government spending, industry backlogs, long-term contracts, demographics, or technology adoption that keeps moving forward even if the economy slows.
From there, you look for proof in the numbers, like rising revenue, improving margins, growing backlog, and a balance sheet that can fund growth without constant dilution. Finally, you want a valuation that still leaves room for upside, because even the best story can disappoint if you overpay. So let’s look at one of the best TSX stocks out there for investors to consider.
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MDA
MDA Space (TSX:MDA) sits in a sweet spot, selling the picks and shovels for the space economy. It builds satellites and robotics, and it runs a growing space services business, which can translate into multi-year programs rather than one-off sales. It also has a Canadian advantage, as it often works alongside governments and large prime contractors where relationships, track record, and reliability matter. That gives it a chance to compound through long procurement cycles that do not change direction overnight.
The last year saw the conversation around space shift for MDA from hype to budgets and delivery. Defence and national security demand stayed front and centre, while broadband and Earth observation kept growing as practical needs, not sci-fi dreams. For a TSX stock like MDA, the real “news” investors should watch is contract momentum, backlog strength, and whether it keeps converting that backlog into revenue without margin surprises. If the TSX stock keeps stacking wins and executing, the market usually rewards that kind of visibility.
Earnings support
On earnings, the clean way to frame MDA is to focus on three numbers from its latest report: revenue, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), and backlog. In its third quarter of 2025, it reported revenue of $409.8 million and adjusted EBITDA of $82.8 million, up from $282.4 million and $55.5 million a year earlier. This shows both growth and profitability moved in the right direction. It also ended the quarter with backlog of $4.4 billion, which is the forward engine that supports a “soar in 2026” narrative, signalling multi-year revenue visibility if execution stays tight.
Looking ahead, MDA’s upside rests on scaling production, delivering programs on time, and expanding recurring services that smooth out lumpiness. Management reaffirmed full-year 2025 revenue guidance of $1.57 billion to $1.63 billion, which implies roughly 48% year-over-year growth at the mid-point, alongside full-year adjusted EBITDA guidance of $305 million to $320 million and a 19% to 20% adjusted EBITDA margin.
On valuation anchors, the TSX stock recently traded with an enterprise value of about $5 billion. Using that enterprise value against trailing EBITDA of about $209.9 million implies an EV-to-EBITDA ratio around 24 times. Therefore, the market already prices in meaningful execution. The risk stays execution-heavy, as project delays, cost overruns, or a customer postponing a major program can hit a quarter hard even when the long-term demand picture stays intact.
Bottom line
If you want a TSX stock set up for 2026 and beyond, this TSX stock gives you solid ways to win. MDA offers a growth runway with contract visibility, where strong execution can justify higher valuations over time. The smartest move is to focus on the specific numbers that prove the case each quarter, then let the market catch up in its own time.
