MDA Space extends maritime surveillance contract with Canadian gov’t

BRAMPTON, Ontario - MDA Space Ltd. (TSX:MDA), a $3.1 billion market cap space technology company with impressive revenue growth of nearly 50% over the last twelve months, announced Monday a contract extension with Fisheries and Oceans Canada (DFO) to continue providing maritime satellite surveillance data and analytics services for dark vessel detection. According to InvestingPro analysis, the company maintains a "GREAT" overall financial health score, suggesting strong operational execution.

The amended agreement extends the original contract announced in 2023 and includes provisions for future utilization of data from MDA CHORUS, the company’s next-generation Earth observation constellation expected to become operational in mid-2026. For detailed analysis of MDA’s growth prospects and comprehensive financial metrics, investors can access the full InvestingPro Research Report, part of the platform’s coverage of over 1,400 stocks.

MDA’s Maritime Insights service combines multiple space-based sensors with AI-based intelligence to monitor maritime activities. The system fuses synthetic aperture radar from MDA RADARSAT-2 with optical, radio frequency, automatic identification systems and vessel monitoring systems data to detect vessels engaged in potentially illegal operations.

"Canada is a leader in international efforts to combat illegal, unreported and unregulated fishing," said Joanne Thompson, Canada’s Minister of Fisheries, in the press release. "MDA Space enables Canada and our partner nations to see, track and intercept illegal activities across vast ocean spaces."

The contract aligns with commitments outlined in the recent G7 Foreign Ministers’ Declaration on Maritime Security and Prosperity, according to the company’s statement.

Mike Greenley, CEO of MDA Space, noted that "next-generation space-based technology like MDA CHORUS will be essential to ensuring continuity of this capability in priority coverage areas of high interest."

The company’s current system delivers near real-time satellite monitoring from the Philippines to the Galapagos Islands in Ecuador and supports Canada’s Indo-Pacific Strategy.

Financial terms of the contract extension were not disclosed in the announcement. MDA’s stock has shown remarkable strength, delivering a 153% return over the past year and currently trading near its 52-week high of $26.01. Based on InvestingPro’s Fair Value analysis, the stock appears slightly overvalued at current levels.

In other recent news, MDA Space Ltd. has assumed operational control of the David Florida Laboratory in Ottawa, ensuring the continued availability of Canada’s only commercial spacecraft testing facility. This transition marks a significant step in the commercialization of Canada’s space industry. Additionally, MDA Space has secured contracts valued at $60 million to supply sensor systems for the Royal Canadian Navy’s River-class Destroyer program, highlighting its role in national defense projects. In merger developments, shareholders of SatixFy Communications Ltd. have approved an all-cash merger with MDA Space, with the deal valued at approximately $280 million. The merger, expected to close in the third quarter of 2025, aims to boost MDA’s satellite systems capabilities. The merger follows an increased offer from MDA, raising the purchase price to $3.00 per share. This acquisition is set to enhance MDA’s technology offerings, with expectations of cost savings and earnings accretion in the coming years. Both companies’ Boards of Directors and major shareholders have expressed unanimous support for the transaction.

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