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.
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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.
