MDA Space (MDA) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $282.4 million, up 38% year-over-year, with strong execution across all business lines, especially Satellite Systems and Robotics & Space Operations.

• Backlog reached $4.6 billion, up 49% year-over-year, providing strong revenue visibility into 2025 and beyond.

• Adjusted EBITDA was $55.5 million, up 30% year-over-year, with a margin of 19.7%.

• Adjusted net income increased 60% year-over-year to $34.7 million, and adjusted diluted EPS rose 56% to $0.28.

• Operating cash flow was $258.8 million, supporting deleveraging and growth investments, with net debt to adjusted EBITDA improved to 0.8x.

Financial highlights

• Q3 2024 revenues: $282.4 million (up 38% year-over-year); gross profit: $75.7 million (up 31%); gross margin: 26.8% (down from 28.2%).

• Adjusted EBITDA: $55.5 million (up 30% year-over-year); adjusted EBITDA margin: 19.7%.

• Adjusted net income: $34.7 million (up 60% year-over-year); adjusted diluted EPS: $0.28 (up 56%).

• Free cash flow was $205 million, compared to a usage of $79 million in Q3 2023.

• Net debt at quarter-end was $155 million, with liquidity of $535 million and leverage ratio at 0.8x.

Outlook and guidance

• 2024 revenue guidance raised to $1,045–$1,065 million (~30% growth at midpoint).

• Adjusted EBITDA guidance narrowed to $205–$210 million (19–20% margin); capital expenditures reaffirmed at $200–$220 million.

• Positive free cash flow expected for 2024, with further deleveraging planned.

• Backlog expected to reach $5 billion by year-end, pending finalization of a major NGSO constellation contract.