Sometimes, a promising industry can attract plenty of attention, but investors still need to see real business growth before investing. That matters even more in the space sector, where bold ideas do not always turn into rising revenue and profits.
MDA Space (TSX: MDA) is beginning to show that it could bridge that gap in the years to come. The Canadian space technology firm is converting its backlog into sales, expanding its manufacturing capacity, and deepening relationships with government and commercial customers. Its financials continue to show healthy growth across all three business areas. Yet the shares remain well below their 52-week high after a steep pullback. For long-term investors, that weakness may offer a more attractive entry point before its next earnings update due on August 7.
In this article, I’ll explain why MDA Space could be one Canadian stock worth buying before the next earnings surprise.
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Why MDA Space deserves a closer look
In short, MDA supplies technology and services to the global space and defence industries. Its operations span satellite systems, robotics, space operations, and geointelligence.
MDA shares recently closed at $42.26 per share, giving the company a market cap of about $6.8 billion. Although it sits roughly 38% below its 52-week high, it remains up 59% in 2026 and 417% over the last three years.
The stock has lost momentum in recent months, but MDA’s underlying business has continued to grow. That is what makes the pullback especially interesting before its next earnings report.
Strong first-quarter growth
MDA’s first-quarter revenue rose 32% year over year (YoY) to $464 million as work volumes increased across each of its three business areas. Its satellite systems segment led the way, with revenue climbing 41% to $313 million. Higher activity on the Telesat Lightspeed and Globalstar programs drove that increase.
Its revenue from robotics and space operations also rose nearly 19% YoY to $91.6 million as work expanded on the Canadarm3 program. In addition, the Canadian space technology firm’s geointelligence segment revenue grew nearly 15% in the March quarter to $59.4 million because of higher activity across several programs.
The growth was not limited to sales as MDA’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) also climbed 32% YoY to $90.6 million.
Meanwhile, the company’s free cash flow came in at negative $27.6 million as working capital contributions fell and capital spending increased. Even so, MDA’s management reaffirmed its full-year 2026 outlook.
Taken together, the quarter showed a business still growing quickly while continuing to invest in future expansion. That gives investors a solid reason to watch the stock before the next earnings release.
New contracts are strengthening the pipeline
Since its first-quarter earnings event, MDA has announced several developments that could support future revenue and earnings growth prospects.
In May, the company opened a 185,000-square-foot satellite manufacturing expansion in Montréal. The new site doubles MDA’s manufacturing floor space and is designed to support production of up to 400 satellites per year.
More recently, MDA was selected by BAE Systems to work on a U.S. missile-warning satellite program. The Canadian space technology firm also secured a $688 million contract from the Canadian Space Agency to build a next-generation Earth observation satellite.
Beyond North America, MDA recently announced contracts tied to Japan’s next-generation defence communications satellite program and the European Space Agency’s Argonaut lunar mission. Those awards broaden the company’s reach across government, defence, communications, and exploration markets.
Foolish bottom line
With a $3.7 billion backlog, a $40 billion opportunity pipeline, more manufacturing capacity, and several new contracts moving into future periods, MDA has multiple paths to continued growth. For investors trying to get ahead of the next earnings surprise, the recent pullback makes this Canadian space stock worth a closer look.
