Led by Virgin Galactic in the U.S. and Maxar Technologies in Canada, the space industry is making significant progress in its mission to send more humans and satellites into space.
Projections for the future space economy remain ambitious, ranging from $1.1 trillion by 2040 (Morgan Stanley) to $2.7 trillion by 2045 (Bank of America). Investment in space infrastructure continues to be robust; in Canada, this momentum is supported by significant government commitment, including a historic announcement in late 2025 to increase investment in European Space Agency (ESA) programs by C$528.5 million to boost R&D for Canadian-made space technology. This capital infusion is likely to create direct opportunities for Canadian companies under the ESA’s geographical return principle, where industrial contracts are awarded in proportion to a country’s financial contribution.
How can investors capture space’s seemingly unlimited potential? Below we’ll break down space stocks and help you decide if you should buy into this high-potential new industry.
What are space stocks?
Space stocks are publicly traded companies that build aircraft, operate satellites, or supply parts for the space industry. While space companies have traditionally been defence companies funded by governments, many new public and private companies have now entered the market, with billions of investment dollars backing their research and innovations.
What are these new space companies trying to accomplish exactly? The new space industry has numerous purposes, including:
- Building powerful new satellites that can advance telecommunication technology and track changes happening to Earth (especially to help sustainability efforts)
- Clean space debris or build strong defences against possible asteroid collisions
- Launch cheaper rockets into space and help send humans to study other planets and stars
Of course, perhaps the new space industry’s most exciting perk is suborbital tourism. Though we haven’t quite reached the point where we can send massive amounts of humans safely and cheaply into orbit, companies like Virgin Galactic, Blue Origin, and SpaceX are aiming to send space tourists on special rockets.
Top Canadian space stocks of 2026
Canada has historically played a key role in the “space race.”
In fact, though much attention is given to the Soviet Union and the United States, both first and second in sending satellites into orbit, Canada was the third country in the world to construct a satellite and send it into space.
The Quebec company Héroux-Devtek designed the telescopic legs for the Apollo lunar module, the first to land on the moon. That’s right— it was actually Canadian legs that touched the moon first, not American ones.
As far as the modern space race goes, Canada does have some exciting growth stocks in the making. Here are a few Canadian space stocks you might want to consider.
| Space Stocks | Market Cap | Description |
| MDA (TSX:MDA) | $2.96 billion | Developer and manufacturer of advanced technology for the space industry |
| Magellan Aerospace (TSX:MAL) | $565.1 million | Parts and replacement parts supplier for aerostructures and aeroengines |
1. MDA
Based in Ontario, MDA sells satellite data services and robotics to corporate and governmental clients around the world.
MDA (TSX:MDA) is perhaps most well-known for developing the Canadarm (then under the company name “Spar Aerospace”), which was a series of remote-controlled mechanical arms that helped astronauts perform numerous tasks in space, including capturing and repairing satellites, moving astronauts around, and carrying cargo.
The company operates across three main areas: Geointelligence (satellite imagery), Robotics & Space Operations (Canadarm3 for the Lunar Gateway), and Satellite Systems (communication satellites and defense programs).
MDA reported a quarter of substantial financial growth in Q3 2025, driven by its Satellite Systems division, with revenues jumping 45% to C$409.8 million and Adjusted EBITDA increasing by 49% to C$82.8 million. Despite the termination of the large EchoStar contract, the company maintained a strong backlog of C$4.4 billion and reaffirmed its full-year 2025 revenue guidance.
2. Magellan Aerospace
With headquarters in Mississauga, Magellan Aerospace (TSX:MAL) serves an essential role in the space industry: manufacturing parts and components for aircraft, engines, and space agencies, including aftermarket spare parts and maintenance services.
The company has two major products, aerostructures and aeroengines. Its clients include governments, space agencies, and even airlines. The company is renowned for its sensors and robotics, and it’s even in the process of developing a platform that can detect approaching space vessels. Though still a micro-cap company, it does have potential for upward growth, especially as the space industry will need new parts and systems for the continued advancement of shuttles and aircraft.
Magellan delivered robust Q3 2025 results that surpassed expectations, achieving C$255.7 million in revenue (a 14.4% increase) and more than doubling its net income to C$12.7 million. This strong profitability was fueled by a 30.3% rise in gross profit, reflecting increased volume and a favorable product mix across its key North American markets.
Investing in the United States’ space markets
Many new publicly traded space companies are emerging in the U.S., with Virgin Galactic leading the way. Though you still can’t buy stock in SpaceX or Blue Origin (the space companies of Elon Musk and Jeff Bezos, respectively), here are a few U.S. space stocks you might want to consider.
| Space Stocks | Market Cap | Description |
| Virgin Galactic (NYSE: SPCE) | $241 million | American company focused on commercial space flight and tourism |
| The Boeing Company (NYSE: BA) | $143 billion | Major developer and manufacturer of commercial jets, satellites, military aircraft, and commercial space flights |
| Northrop Grumman (NYSE:NOC) | $79 billion | Aerospace and defence company that designs aircraft systems |
Are space stocks right for you?
Despite high growth forecasts for the industry, space stocks are still highly speculative investments, and they’re probably not the best choice for those seeking stability. These stocks are better suited for seasoned investors who are okay taking on more risk if it means the potential for long-term growth.
Many space stocks are still relatively new, and their price movements for the near future will likely be fidgety. Quite a few space companies are still unprofitable, and their valuations are based on future speculation alone. The products and services that can help these companies grow—such as space travel and tourism—are unrealized, and the potential for failure is almost as high as that of success.
That said, the space sector has come a long way in a short period of time. While you probably shouldn’t have a large portion of your holdings invested in space, even some exposure could help you capitalize on this industry’s expected growth.