If you try to chase the hype all the time, it becomes really difficult to beat the market. That’s why, more often than not, you may want to focus on spotting strong businesses early — companies with real growth, solid execution, and a clear runway ahead.
One TSX sector that has continued to gain momentum in recent years is space and satellite technology. While it may still feel niche, demand for its services is growing fast across communications, defence, and data. Let’s take a closer look at this undervalued Canadian stock that’s quietly building a strong position in this space tech industry.
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An undervalued stock in a rapidly expanding industry
For investors looking for undervalued opportunities on the TSX, MDA Space (TSX:MDA) could be worth considering right now. This Toronto-based firm operates across three key areas: satellite systems, robotics & space operations, and geo-intelligence.
Although MDA stock has risen 58% so far in 2026, it is still down more than 17% from its 52-week high — making it look undervalued based on its long-term growth outlook. As a result, the stock now trades at $42 per share with a market cap of $5.8 billion.
Strong results driven by execution
In its latest quarterly results for the quarter ended December 2025, MDA’s total revenue jumped 44% year over year (YoY) to a record of $499 million. This growth was largely driven by its satellite systems segment, supported by major projects like Telesat Lightspeed and Globalstar’s next-generation low Earth orbit (LEO) constellations.
At the same time, the company also posted improved profitability as its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 36% YoY to $96 million, while adjusted net profit climbed 67% from a year ago to $59 million. These strong results make it clear that MDA is not only securing deals but also converting them into solid financials.
A solid backlog supporting future growth
Looking at the full year, MDA’s performance remains impressive. In 2025, its revenue surged by 51% YoY, while its adjusted EBITDA for the year grew 49%, with margins close to 20%.
Its $4 billion backlog at the end of 2025 is a major indicator of future growth, giving the company clear visibility into its revenue pipeline.
Even more interesting is its broader opportunity pipeline, which now stands at $40 billion. About $10 billion of that includes government-related or follow-on opportunities, which tend to be more stable and predictable.
Continued focus on the next phase of space technology
In addition to its solid backlog and work on existing projects, MDA is actively investing in future capabilities through programs like MDA AURORA, SKYMAKER, and CHORUS. These efforts are mainly focused on next-generation satellite and data technologies.
Meanwhile, the company is also strengthening its position through quality acquisitions. Its recent purchase of SatixFy Communications brought in advanced space-grade chip technology, helping MDA vertically integrate its operations and improve efficiency.
Why this undervalued Canadian stock could outperform
For 2026, MDA expects revenue between $1.7 billion and $1.9 billion, which implies continued growth. Its adjusted EBITDA for the year is projected between $320 million and $370 million, with margins remaining strong. These projections suggest that the company’s growth is not slowing down — even after a strong 2025.
Moreover, its exposure to satellite infrastructure, defence, and data-driven applications puts it in the middle of several long-term trends. At the same time, its growing backlog and pipeline provide visibility that many growth stocks lack.
Although no stock is guaranteed to beat the market, MDA combines strong execution with a large opportunity ahead, making it naturally stand out.
