When a stock’s momentum is backed by strong business fundamentals and a clear long-term vision, it could turn into something much bigger over time. If investors can spot such opportunities early, it could make a big difference to their long-term returns.
But the challenge for most investors is identifying companies that aren’t just benefiting from short-term trends but are positioned for sustained growth. In this article, let’s take a closer look at one such Canadian growth stock that could continue climbing in 2026 and beyond.
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Why this space-focused company is gaining serious traction
As the global space economy continues to expand, a handful of companies are positioning themselves at the center of this next frontier. MDA Space (TSX:MDA) currently looks really attractive in this space, quietly building momentum as a key partner in satellite communications, earth and space observation, and exploration infrastructure. The company operates as a global space mission partner, working across communications satellites, earth and space observation, and space exploration infrastructure.
After rallying by around 90% over the last 12 months, MDA stock currently trades at $46.92 per share with a market cap of $6.5 billion. The recent rally in its stock clearly highlights strong investor confidence amid growing demand for its services.
What makes MDA even more interesting is its diversified business model. It operates across three core segments: Satellite Systems, Robotics & Space Operations, and Geointelligence. This diversification allows it to tap into multiple high-growth areas within the expanding global space economy.
Strong financial performance driving momentum
In the fourth quarter of 2025, MDA’s revenue jumped 44% year-over-year (YoY) to a record of $499 million. For the full year, its revenue climbed 51% YoY to reach $1.6 billion.
On the profitability side, the company’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) came in at $96 million for the quarter and $324 million for the full year. While its EBITDA margins saw some pressure due to program mix changes, the overall growth trend remained strong.
A key driver behind this strong performance has been higher activity in its Satellite Systems segment. Programs like Telesat Lightspeed and Globalstar’s next-generation low Earth orbit (LEO) satellites have significantly boosted MDA’s work volumes. At the same time, steady demand in its Geointelligence and Robotics & Space Operations segment has added further support.
A solid foundation for future growth
One of MDA Space’s biggest strengths is its strong backlog and pipeline. The company ended 2025 with a backlog of $4 billion, providing clear revenue visibility into 2026 and beyond. Even more impressive was its $40 billion opportunity pipeline, including $10 billion tied to government-related contracts or repeat business.
Meanwhile, its balance sheet also remains healthy, with its net debt-to-adjusted EBITDA ratio standing at 0.4 times. This ratio clearly reflects its manageable debt position even after the recent acquisition of SatixFy Communications.
Investing in the next phase of space tech
Beyond current contracts, MDA is also actively developing advanced technologies such as MDA AURORA, MDA SKYMAKER, and MDA CHORUS, which are expected to play an important role in next-generation space infrastructure. It’s also expanding its presence in defence and government projects. Its recent contracts include partnerships with Canada’s military for Arctic satellite communications and an agreement with the U.S. Missile Defense Agency.
These developments and growth plans could help MDA stock benefit from rising global demand for space-based and defence-related technologies in the years to come.
