MDA SPACE REPORTS SECOND QUARTER 2026 RESULTS

MDA Space Ltd. (TSX: MDA) (NYSE: MDA), a trusted mission partner to the rapidly expanding global space industry, today announced its financial results for the second quarter ended June 30, 2026.

"With our continued focus on disciplined execution, the MDA Space team delivered another quarter of strong, profitable year-over-year growth in Q2 as we continue to advance our long-term growth strategy. Robust order momentum drove backlog higher than the preceding quarter. Contract wins supporting programs with the Canadian Space Agency and Japan Ministry of Defense, as well as more recently the Canadian Armed Forces and European Space Agency, demonstrate how MDA Space is positioned to benefit from the growing demand for sovereign and defence space-based capabilities around the world. We announced nine early customer contracts for MDA CHORUS TM, along with 32 letters of interest from customers across five regions and we inaugurated our new high-volume satellite manufacturing facility in Montreal, one of the largest in its satellite class. The agreements to acquire Blue Canyon Technologies and CLS further expand our global reach and significantly increase our total addressable market. These two established businesses meet our strategic and financial criteria as profitable, cash-generating businesses that are highly complementary to MDA Space, and further position us to expand our existing $40 billion pipeline. With these additions, we are building a stronger, more diversified and global MDA Space to maximize our market opportunities. We remain confident in our ability to execute on our growth plans and continue to deliver value for shareholders." Mike Greenley, CEO of MDA Space

Backlog of $4.0 billion at quarter-end provides revenue visibility for 2026 and beyond and compares to $4.6 billion as of Q2 2025. This is an increase of $310 million compared to Q1 2026 driven by strong bookings in the quarter that exceeded conversion of backlog into revenue.

Revenues of $498.6 million in Q2 2026 were up 33.6% year-over-year driven by higher volumes across all business areas in the quarter.

Adjusted EBITDA of $96.3 million in Q2 2026 increased 26.2% year-over-year driven by higher volumes of work. Adjusted EBITDA margin of 19.3% in Q2 2026 is consistent with the Company's full year margin guidance of 18%-20%.

Net income of $27.9 million in Q2 2026 was up 2.6% year-over-year. Diluted earnings per share was $0.20 in Q2 2026, a decrease of 9.5% year-over-year driven primarily by the increase in the average number of common shares outstanding following the Company's initial public offering on the New York Stock Exchange in March 2026.

Adjusted net income in Q2 2026 was $51.8 million increasing 12.9% year-over-year driven by the higher gross profit, partially offset by investments in SG&A and R&D. Adjusted diluted earnings per share of $0.36 in Q2 2026 decreased 1.5% year-over-year as the higher adjusted net income was offset by higher average shares outstanding largely due to the abovementioned IPO in the US.

Operating cash flow of $(93.4) million in Q2 2026 compared with $52.8 million in Q2 2025. The year-over-year decrease in operating cash flow was primarily due to normal program working capital fluctuations on major contracts.

Free cash flow of $(150.2) million in Q2 2026 compared to $16.2 million in Q2 2025. The year-over-year decrease was driven by reduced operatin...