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MDA Space Interim / Quarterly Report 2025
48075_rns_2025-11-14_b9bdb801-b84e-44fc-9d1e-1df770022d28.pdf
Interim / Quarterly Report
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MDA Space Ltd.
Interim Condensed Consolidated Financial Statements
For the three and nine months ended
September 30, 2025 and 2024
(In millions of Canadian dollars)
MDA Space Ltd.
Unaudited Interim Condensed Consolidated Statement of Comprehensive Income
For the three and nine months ended September 30, 2025 and 2024
(In millions of Canadian dollars except per share figures)
| Note | Three months ended September 30, 2025 | Three months ended September 30, 2024 | Nine months ended September 30, 2025 | Nine months ended September 30, 2024 | |
|---|---|---|---|---|---|
| Revenue | 5, 6 | $ 409.8 | $ 282.4 | $ 1,134.1 | $ 733.5 |
| Cost of revenue | |||||
| Materials, labour and subcontractors | 7 | (288.5) | (197.0) | (810.7) | (502.6) |
| Depreciation and amortization of assets | 9, 10, 11 | (13.2) | (9.7) | (40.8) | (31.1) |
| Gross profit | 108.1 | 75.7 | 282.6 | 199.8 | |
| Operating expenses | |||||
| Selling, general and administration | 7 | (27.8) | (18.4) | (81.0) | (57.9) |
| Research and development, net | 7 | (11.9) | (7.2) | (23.4) | (25.0) |
| Amortization of intangible assets | 11 | (30.0) | (11.6) | (53.3) | (35.5) |
| Share-based compensation | 13 | (5.3) | (3.0) | (12.9) | (8.6) |
| Operating income | 33.1 | 35.5 | 112.0 | 72.8 | |
| Other income (expenses) | |||||
| Unrealized gain (loss) on financial instruments | (4.7) | — | (2.0) | 1.2 | |
| Foreign exchange gain | 13.1 | 7.2 | 15.2 | 8.7 | |
| Finance income | 1.9 | 2.3 | 7.1 | 3.7 | |
| Finance costs | (5.6) | (4.4) | (13.4) | (18.4) | |
| Other income | 1.0 | — | 1.0 | 6.6 | |
| Income before taxes | 38.8 | 40.6 | 119.9 | 74.6 | |
| Income tax expense | (14.4) | (11.1) | (35.4) | (20.3) | |
| Net income | 24.4 | 29.5 | 84.5 | 54.3 | |
| Other comprehensive income | |||||
| Gain (loss) on translation of foreign operations | 4.6 | (0.8) | 5.3 | (1.0) | |
| Loss on cash flow hedges | — | (5.1) | — | (3.2) | |
| Remeasurement gain on defined benefit plans | 17 | — | 12.7 | 6.4 | 12.1 |
| Total comprehensive income | $ 29.0 | $ 36.3 | $ 96.2 | $ 62.2 | |
| Earnings per share: | |||||
| Basic | 15 | $ 0.19 | $ 0.25 | $ 0.68 | $ 0.45 |
| Diluted | 15 | 0.19 | 0.24 | 0.66 | 0.44 |
| Weighted-average common shares outstanding: | |||||
| Basic | 15 | 125,443,486 | 120,107,965 | 123,552,623 | 119,874,946 |
| Diluted | 15 | 130,081,115 | 124,286,353 | 128,845,691 | 123,610,685 |
The accompanying notes are an integral part of these interim condensed consolidated financial statements
MDA Space Ltd.
Unaudited Interim Condensed Consolidated Statement of Financial Position
September 30, 2025
(In millions of Canadian dollars)
| As at | Note | September 30, 2025 | December 31, 2024 |
|---|---|---|---|
| Assets | |||
| Current assets: | |||
| Cash | $ 195.7 | $ 166.7 | |
| Trade and other receivables | 180.6 | 75.9 | |
| Unbilled receivables | 284.4 | 250.1 | |
| Inventories | 17.5 | 8.1 | |
| Income taxes receivable | 43.6 | 54.0 | |
| Other current assets | 8 | 68.3 | 71.7 |
| 790.1 | 626.5 | ||
| Non-current assets: | |||
| Property, plant and equipment | 9 | 579.9 | 496.6 |
| Right-of-use assets | 10 | 118.1 | 115.4 |
| Intangible assets | 11 | 867.5 | 580.0 |
| Goodwill | 11 | 817.7 | 441.0 |
| Deferred income tax assets | 8.5 | 9.9 | |
| Other non-current assets | 8 | 298.6 | 328.1 |
| 2,690.3 | 1,971.0 | ||
| Total assets | $ 3,480.4 | $ 2,597.5 | |
| Liabilities and shareholders' equity | |||
| Current liabilities: | |||
| Accounts payable and accrued liabilities | $ 366.0 | $ 248.7 | |
| Income taxes payable | 8.0 | 1.9 | |
| Contract liabilities | 959.8 | 761.3 | |
| Current portion of net employee benefit payable | 63.3 | 60.2 | |
| Current portion of lease liabilities | 10 | 20.4 | 16.2 |
| Other current liabilities | 7.9 | 2.7 | |
| 1,425.4 | 1,091.0 | ||
| Non-current liabilities: | |||
| Net employee defined benefit payable | 25.0 | 23.7 | |
| Lease liabilities | 10 | 121.6 | 120.6 |
| Long-term debt | 12 | 289.3 | — |
| Deferred income tax liabilities | 263.8 | 185.4 | |
| Other non-current liabilities | 26.0 | 0.8 | |
| 725.7 | 330.5 | ||
| Total liabilities | 2,151.1 | 1,421.5 | |
| Shareholders' equity | |||
| Common shares | 1,042.4 | 975.8 | |
| Contributed surplus | 28.5 | 38.0 | |
| Accumulated other comprehensive income | 35.2 | 23.5 | |
| Retained earnings | 223.2 | 138.7 | |
| Total equity | 1,329.3 | 1,176.0 | |
| Total liabilities and equity | $ 3,480.4 | $ 2,597.5 |
Subsequent events (note 19)
The accompanying notes are an integral part of these interim condensed consolidated financial statements
MDA Space Ltd.
Unaudited Interim Condensed Consolidated Statement of Changes in Shareholders' Equity
For the nine months ended September 30, 2025 and 2024
(In millions of Canadian dollars)
| Note | Common Shares | Contributed Surplus | Accumulated other comprehensive income | Retained earnings | Total shareholders' equity | ||
|---|---|---|---|---|---|---|---|
| Number | Amount | ||||||
| As at January 1, 2025 | 121,531,699 | $ 975.8 | $ 38.0 | $ 23.5 | $ 138.7 | $ 1,176.0 | |
| Share-based awards common shares issuance | 13 | 4,768,178 | 66.6 | (16.7) | — | — | 49.9 |
| Net income | — | — | — | — | 84.5 | 84.5 | |
| Other comprehensive income | — | — | — | 11.7 | — | 11.7 | |
| Equity-settled share-based compensation | 13 | — | — | 9.3 | — | — | 9.3 |
| Tax effect of share-based compensation | — | — | (2.1) | — | — | (2.1) | |
| As at September 30, 2025 | 126,299,877 | $ 1,042.4 | $ 28.5 | $ 35.2 | $ 223.2 | $ 1,329.3 | |
| As at January 1, 2024 | 119,514,919 | $ 956.1 | $ 31.3 | $ 18.6 | $ 58.7 | $ 1,064.7 | |
| Share-based awards common shares issuance | 13 | 893,140 | 7.5 | (3.9) | — | — | 3.6 |
| Net income | — | — | — | — | 54.3 | 54.3 | |
| Other comprehensive income | — | — | — | 7.9 | — | 7.9 | |
| Equity-settled share-based compensation | 13 | — | — | 7.7 | — | — | 7.7 |
| Tax effect of share-based compensation | — | — | 1.7 | — | — | 1.7 | |
| As at September 30, 2024 | 120,408,059 | $ 963.6 | $ 36.8 | $ 26.5 | $ 113.0 | $ 1,139.9 |
The accompanying notes are an integral part of these interim condensed consolidated financial statements
MDA Space Ltd.
Unaudited Interim Condensed Consolidated Statement of Cash Flows
For the three and nine months ended September 30, 2025 and 2024
(In millions of Canadian dollars)
| Note | Three months ended September 30, 2025 | Three months ended September 30, 2024 | Nine months ended September 30, 2025 | Nine months ended September 30, 2024 | |
|---|---|---|---|---|---|
| Cash flows from operating activities | |||||
| Net income | $ 24.4 | $ 29.5 | $ 84.5 | $ 54.3 | |
| Items not affecting cash: | |||||
| Income tax expense | 14.4 | 11.1 | 35.4 | 20.3 | |
| Depreciation of property, plant, and equipment | 9 | 7.1 | 4.1 | 21.3 | 14.2 |
| Depreciation of right-of-use assets | 10 | 2.9 | 2.4 | 9.4 | 8.1 |
| Amortization of intangible assets | 11 | 33.4 | 14.8 | 63.6 | 44.3 |
| Gain on disposal of assets | — | — | — | (5.8) | |
| Equity-settled share-based compensation | 13(a) | 4.0 | 2.2 | 9.3 | 7.7 |
| Investment tax credits accrued | (17.5) | (10.5) | (30.8) | (29.7) | |
| Finance costs, net | 3.7 | 2.1 | 6.3 | 14.7 | |
| Unrealized loss (gain) on financial instruments | 4.7 | — | 2.0 | (1.2) | |
| Changes in operating assets and liabilities | 18 | (45.8) | 200.7 | 153.3 | 310.9 |
| 31.3 | 256.4 | 354.3 | 437.8 | ||
| Interest paid | (5.0) | (6.9) | (9.6) | (19.4) | |
| Income tax received, net | 6.5 | 9.3 | 7.9 | 9.6 | |
| Net cash generated in operating activities | 32.8 | 258.8 | 352.6 | 428.0 | |
| Cash flows from investing activities | |||||
| Purchases of property and equipment | 9 | (49.8) | (36.8) | (136.5) | (88.9) |
| Purchases/development of intangible assets | 11 | (19.7) | (16.6) | (64.5) | (46.1) |
| Government grants on capital expenditure | — | — | 33.2 | 7.0 | |
| Proceeds from disposal of assets | — | — | 0.2 | 7.4 | |
| Acquisition of subsidiaries, net of cash | 4 | (359.8) | (4.0) | (362.6) | (27.3) |
| Investment in equity securities | — | — | — | (9.2) | |
| Net cash used in investing activities | (429.3) | (57.4) | (530.2) | (157.1) | |
| Cash flows from financing activities | |||||
| Borrowings from senior credit facility | 12 | 80.0 | — | 330.0 | 110.0 |
| Repayments of loans from financial institutions | (143.2) | (105.0) | (143.2) | (255.0) | |
| Payment of lease liability (principal portion) | (2.4) | (1.6) | (7.1) | (6.1) | |
| Payments on SatixFy warrants | (12.0) | — | (12.0) | — | |
| Proceeds from stock options exercised | 13.1 | 2.2 | 49.5 | 3.0 | |
| Net cash provided by (used in) financing activities | (64.5) | (104.4) | 217.2 | (148.1) | |
| Net increase (decrease) in cash | (461.0) | 97.0 | 39.6 | 122.8 | |
| Net foreign exchange difference on cash | (9.2) | (4.2) | (10.6) | (6.1) | |
| Cash, beginning of period | 665.9 | 46.4 | 166.7 | 22.5 | |
| Cash, end of period | $ 195.7 | $ 139.2 | $ 195.7 | $ 139.2 |
The accompanying notes are an integral part of these interim condensed consolidated financial statements
F-5
MDA Space Ltd.
Notes to the Unaudited Interim Condensed Consolidated Financial Statements
For the three and nine months ended September 30, 2025 and 2024
(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)
1. Nature of operations
MDA Space Ltd. and its subsidiaries (collectively "MDA Space" or the "Company") is a trusted mission partner of leading-edge space missions. The Company's recognized engineering capabilities, portfolio of space technologies, and space mission expertise make it a trusted partner of choice for a broad range of customers worldwide. The Company leverages its capabilities to enable next generation space exploration and infrastructure, space-based communication, and both earth and space observation missions. The Company's space technology solutions and services enable governments and businesses to develop and operate critical space infrastructure used for exploration and space-based science, to research, develop and operate space-based communications supporting our connected world, and to monitor global activities including climate change, illegal and unregulated fishing, and detection of oil spills. The Company's technologies and solutions are also deployed for defence and intelligence applications and space observation missions. MDA Space operates across three business areas: Geointelligence, Robotics & Space Operations, and Satellite Systems, with facilities and sites in Canada, United Kingdom, United States, Israel and Bulgaria. The Company collaborates and partners with governments and space agencies, commercial space companies and defence and aerospace prime contractors in the space industry.
MDA Space Ltd. was incorporated pursuant to a series of legal entity restructuring. On April 8, 2020, Neptune Acquisition Inc. ("NAI"), an affiliate of Northern Private Capital Ltd. purchased 100% of the equity interest in MDA GP Holdings Ltd., MDA Systems Inc., and Maxar Technologies ULC from Maxar Technologies Inc. The consideration for this transaction was $1 billion. Immediately after closing, NAI amalgamated with Maxar Technologies ULC, and changed its name to Neptune Operations Ltd. ("NOL"). On June 2, 2020, Neptune Acquisition Holdings Inc. ("NAHI") was formed under the laws of the Province of Ontario and became the parent of its wholly owned subsidiary NOL. In March 2021, NAHI changed its name to MDA Ltd., and again to MDA Space Ltd. in April 2024.
MDA Space Ltd. is incorporated and domiciled in Canada, with its head office located at 7500 Financial Drive, Brampton, Ontario L6Y 6K7, Canada. MDA Space's common shares are traded on the Toronto Stock Exchange under the symbol "MDA".
2. Basis of preparation
(a) Statement of compliance
These accompanying unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with IAS 34, Interim Financial Reporting, using accounting policies consistent with IFRS Accounting Standards as issued by the International Accounting Standards Board ("IASB"). The same accounting policies and methods of computation as those used in the preparation of the consolidated financial statements for the year ended December 31, 2024 were followed in the preparation of these interim condensed consolidated financial statements. The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual consolidated financial statements and should be read in conjunction with the Company's consolidated financial statements for the year ended December 31, 2024.
The unaudited interim condensed consolidated financial statements were approved by the Board of Directors of MDA Space on November 13, 2025.
(b) Basis of measurement
The interim condensed consolidated financial statements are presented in Canadian dollars, the Company's functional currency.
The interim condensed consolidated financial statements have been prepared on the historical cost basis except for pension plan assets and liabilities and the following assets and liabilities which are measured at fair value: financial instruments at fair value through profit or loss ("FVTPL") or fair value through other comprehensive income ("FVOCI"), derivative financial instruments, and initial recognition of assets acquired and liabilities assumed in a business combination. Pension plan assets and liabilities are recognized as the present value of the defined benefit obligation net of the fair value of the plan assets.
F-6
MDA Space Ltd.
Notes to the Unaudited Interim Condensed Consolidated Financial Statements
For the three and nine months ended September 30, 2025 and 2024
(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)
(c) Seasonality
The Company's operations historically have not experienced seasonality. However, the Company's results period over period are affected by its stage in the work in progress in each of its long-term contracts. Therefore, the results of operations over a given interim period may not be indicative of full fiscal year results.
(d) Critical accounting estimates and judgments
The preparation of the Company's interim condensed consolidated financial statements requires management to make estimates, assumptions and judgments that affect the application of accounting policies and the reported amounts of assets, liabilities, revenues and expenses. Significant estimates and judgments used in preparation of the interim condensed consolidated financial statements are described in the Company's consolidated financial statements for the year ended December 31, 2024, except as related to the acquisition of SatixFy Communications Ltd.
In a business combination, the identifiable assets acquired and liabilities assumed are recognized at their fair values. The Company estimated the fair value of proprietary technology intangible assets acquired in the acquisition of SatixFy Communications Ltd. using the replacement cost method. The replacement cost method is a valuation technique that estimates the fair value of an intangible asset based on the estimated costs required to create or acquire a comparable asset at the transaction date. Significant estimates and judgments used to estimate the fair value of the acquired intangible assets include factors such as time and costs to redevelop, obsolescence, expected developer's profit margins, and opportunity costs. Changes in these estimates and judgments could result in significant changes to the valuation of the intangible assets.
- Changes in accounting policies and accounting pronouncements
Amendments of IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures
IASB has amended IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures to clarify the timing in the recognition and derecognition of financial assets and the settlement of financial liabilities. These amendments change the timing of recognition or derecognition of financial assets or liabilities from the payment initiation date to the settlement date. Any derecognition of liability earlier than the settlement date would be subject to certain criteria being met, and only applicable to financial liabilities settled using an electronic payment system. These amendments are effective for annual reporting periods beginning on or after January 1, 2026, with earlier application permitted. Management is currently assessing the impact of the amendments to IFRS 9 and IFRS 7 on its consolidated financial statements.
Forthcoming Issuance of IFRS 18 Presentation and Disclosure in Financial Statements replacing IAS 1, Presentation of Financial Statements
IFRS 18 aims to achieve comparability of the financial performance of similar entities and will impact the presentation of primary financial statements and notes, including the statement of earnings where companies will be required to present separate categories of income and expense for operating, investing, and financing activities with prescribed subtotals for each new category. The standard will also require management-defined performance measures to be explained and included in a separate note within the consolidated financial statements. IFRS 18 is effective for annual reporting periods beginning on or after January 1, 2027, with earlier application permitted. Management is currently assessing the impact of adopting IFRS 18 on its consolidated financial statements.
- Acquisitions
Acquisition of SatixFy Communications Ltd.
On July 2, 2025, the Company acquired all of the outstanding shares of SatixFy Communications Ltd. ("SatixFy") in an all-cash transaction. SatixFy is a supplier of cutting-edge semiconductors and solutions for the space and the satellite communications value chain. SatixFy's technology enables satellite broadband and direct-to-device constellations and are designed to meet the needs of the next generation of satellite constellations. SatixFy's space grade chips are used in digital communication satellites to support payload and antenna operations, and are designed
MDA Space Ltd.
Notes to the Unaudited Interim Condensed Consolidated Financial Statements
For the three and nine months ended September 30, 2025 and 2024
(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)
to significantly improve satellite performance and decrease cost. The transaction brings to the Company a differentiated technology portfolio including more than 60 patents issued and pending, as well as a talented and largely specialized technical employee base of approximately 165 people globally. The acquisition has been accounted for using the acquisition method. The interim condensed consolidated financial statements include the results of SatixFy for the approximate 3-month period from the acquisition date.
The fair values of the identifiable assets and liabilities of SatixFy as at the date of acquisition were:
| Fair value recognized on acquisition | |
|---|---|
| Assets | |
| Cash | $ 20.6 |
| Trade and other receivables | 5.7 |
| Unbilled receivables | 5.5 |
| Prepaid expenses and other | 1.9 |
| Government departments and agencies receivables | 7.3 |
| Inventory | 2.9 |
| Right-of-use assets | 3.1 |
| Property, plant and equipment | 3.9 |
| Intangible assets | 290.4 |
| Other non-current assets | 1.7 |
| $ 343.0 | |
| Liabilities | |
| Accounts payable and accrued liabilities | $ 38.1 |
| Contract liabilities | 10.2 |
| European Space Agency (“ESA”) advance payments | 1.4 |
| Net employee benefit payable | 4.1 |
| Lease liabilities | 3.1 |
| Short term loans from financial institutions | 103.2 |
| Contingent liability | 1.7 |
| Deferred income tax liabilities | 77.0 |
| Other non-current liabilities | 21.5 |
| $ 260.3 | |
| Total identifiable net assets at fair value | $ 82.7 |
| Goodwill arising on acquisition | $ 367.4 |
| Purchase consideration transferred | $ 450.1 |
| Analysis of cash flows on acquisition: | |
| Net cash acquired with the subsidiary (included in cash flows from investing activities) | $ (20.6) |
| Cash paid | 380.4 |
| Net cash flow on acquisition | $ 359.8 |
| Purchase consideration transferred | |
| Cash | $ 380.4 |
| Settlement of pre-existing relationships | 69.7 |
| Total purchase consideration transferred | $ 450.1 |
As a result of the inherent complexity associated with the valuation of net assets acquired the valuation is provisional and has not been completed by the date the interim financial statements were approved for issue by the Board of Directors. Thus, assets and liabilities may need to be subsequently adjusted, with a corresponding adjustment to goodwill when available and no later than July 1, 2026 (one year after the transaction).
F-8
MDA Space Ltd.
Notes to the Unaudited Interim Condensed Consolidated Financial Statements
For the three and nine months ended September 30, 2025 and 2024
(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)
Pre-existing relationship consists mainly of an agreement between the Company and SatixFy for the purchase of SatixFy's space grade chips. The amount of consideration transferred includes the effective settlement of the pre-existing relationship between the Company and SatixFy as the relationship became an intercompany relationship on acquisition. The Company determined that the fair value of the advance payments against future orders of chips at acquisition is similar to their carrying value.
The acquisition date fair value of trade and other receivable amounts to $5.7 which is also the gross amount receivable as it is expected that the full contractual amounts will be collected.
The acquisition date fair value of unbilled receivables amounts to $5.5 which is also the gross amount unbilled receivable as it is expected that the full contractual amounts will be billed and collected.
The acquisition date fair value of government departments and agencies receivables amounts to $7.3 which is also the gross amount receivables as it is expected that the full amounts will be collected.
The Company measured the acquired lease liabilities using the present value of the remaining lease payments at the date of acquisition. The right-of-use assets were measured at an amount equal to the lease liabilities. No adjustment was required for favourable or unfavourable terms since the leases were at market rates.
From the date of acquisition, SatixFy has contributed $3.0 of revenue and $7.0 loss before taxes of the Company.
If the acquisition had taken place at January 1, 2025, management estimates that the Company's combined revenue would have been $1,146.3 and income before taxes for the period would have been $77.5. Income before taxes includes the additional amortization of intangible assets of $56.0 related to this acquisition.
The goodwill recognized is primarily attributed to:
- Enhancing the Company's end-to-end capabilities in digital communication satellites to continue to meet evolving customer needs in the satellite communications market.
- Vertically integrating a key and differentiated technology provider to enhance competitive position and ensure future space chip development is aligned with the Company's digital satellite technology roadmap.
- Expanding offerings into new potential markets by leveraging SatixFy's product portfolio.
- Adding a highly specialized and complementary technical team.
The goodwill is not deductible for income tax purposes.
Other non-current liabilities include accrued income taxes, sales tax and other tax liabilities as at acquisition date.
Acquisition-related costs in 2025 of $10.9 for fees related to bank advisors, legal advisors, and other due diligence professionals and advisors have been expensed and are included in selling, general and administrative costs in the consolidated statement of comprehensive income and are part of operating cash flows in the consolidated statement of cash flows.
Acquisition of SatixFy Space Systems UK Ltd.
On October 31, 2023, the Company acquired 100% share of SatixFy Space Systems UK Ltd ("SSS"), the digital payload division of SatixFy Communications Ltd. to strengthen MDA's global leadership position in the growing market for digital satellite communications solutions. The acquired division, based in the United Kingdom, has been integrated into MDA UK, the company's existing UK subsidiary. The final holdback of $2.8 ($2.0 USD) was released to the seller in the second quarter of 2025.
5. Revenue from contracts with customers
All of the Company's revenue is derived from contracts with customers. Disaggregation of revenue from contracts with customers by business areas is presented in the table below:
MDA Space Ltd.
Notes to the Unaudited Interim Condensed Consolidated Financial Statements
For the three and nine months ended September 30, 2025 and 2024
(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)
| Three months ended September 30, 2025 | Three months ended September 30, 2024 | Nine months ended September 30, 2025 | Nine months ended September 30, 2024 | |
|---|---|---|---|---|
| Business Areas | ||||
| Geointelligence | $ 48.0 | $ 48.3 | $ 152.4 | $ 154.7 |
| Robotics and space operations | 78.3 | 66.5 | 243.6 | 215.1 |
| Satellite systems | 283.5 | 167.6 | 738.1 | 363.7 |
| $ 409.8 | $ 282.4 | $ 1,134.1 | $ 733.5 |
6. Geographic information
Segmented information is reported in a manner consistent with the internal reporting provided to the chief operating decision maker ("CODM"), and reflects the way the CODM evaluates performance of, and allocates resources within, the business. The Company operates substantially all of its activities in one reportable segment, which includes the Geointelligence, Robotics and Space Operations and Satellite Systems operating segments. The reportable segment earns revenue by providing space solutions to customers in a similar market and is managed by the CODM.
Revenues are attributed to geographical regions based on the location of customers as follows:
| Three months ended September 30, 2025 | Three months ended September 30, 2024 | Nine months ended September 30, 2025 | Nine months ended September 30, 2024 | |
|---|---|---|---|---|
| Revenue | ||||
| Canada | $ 254.4 | $ 162.7 | $ 726.2 | $ 431.6 |
| United States | 127.6 | 102.7 | 321.8 | 252.3 |
| Europe | 18.8 | 12.1 | 49.8 | 30.5 |
| Asia and Middle East | 8.3 | 3.5 | 28.0 | 12.8 |
| Other | 0.7 | 1.4 | 8.3 | 6.3 |
| $ 409.8 | $ 282.4 | $ 1,134.1 | $ 733.5 |
The Company's property, plant and equipment, right-of-use assets, intangible assets and goodwill are attributed to geographical regions based on the location of the assets as follows:
| September 30, 2025 | December 31, 2024 | |
|---|---|---|
| Canada | $ 2,305.7 | $ 1,564.0 |
| Other | 77.5 | 69.0 |
| $ 2,383.2 | $ 1,633.0 |
F-10
MDA Space Ltd.
Notes to the Unaudited Interim Condensed Consolidated Financial Statements
For the three and nine months ended September 30, 2025 and 2024
(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)
7. Cost of revenue and operating expenses
The following table shows the breakdown of materials, labour and subcontractors costs included in cost of revenue:
| Three months ended September 30, 2025 | Three months ended September 30, 2024 | Nine months ended September 30, 2025 | Nine months ended September 30, 2024 | |
|---|---|---|---|---|
| Labour, materials and other | $ 163.9 | $ 98.1 | $ 428.5 | $ 301.0 |
| Subcontractors | 141.6 | 109.3 | 412.6 | 231.0 |
| Investment tax credits recognized | (17.0) | (10.4) | (30.4) | (29.4) |
| $ 288.5 | $ 197.0 | $ 810.7 | $ 502.6 |
The following tables show the breakdowns of selling, general and administration expenses and research and development, net included in operating expenses:
| Three months ended September 30, 2025 | Three months ended September 30, 2024 | Nine months ended September 30, 2025 | Nine months ended September 30, 2024 | |
|---|---|---|---|---|
| Selling, general and administration | ||||
| General and administration | $ 17.9 | $ 10.1 | $ 45.0 | $ 32.0 |
| Selling and marketing | 9.9 | 8.3 | 36.0 | 25.9 |
| $ 27.8 | $ 18.4 | $ 81.0 | $ 57.9 | |
| Research and development, net | ||||
| Research and development expense | $ 14.3 | $ 9.3 | $ 30.6 | $ 29.8 |
| Research and development expense recovery | (2.4) | (2.1) | (7.2) | (4.8) |
| $ 11.9 | $ 7.2 | $ 23.4 | $ 25.0 |
8. Other assets
| Note | September 30, 2025 | December 31, 2024 | |
|---|---|---|---|
| Prepaid expenses and advances to suppliers | $ 139.6 | $ 194.7 | |
| Investment tax credits receivable | 154.0 | 149.2 | |
| Investment in equity securities | 14 | 15.0 | 13.2 |
| Derivative financial assets | 14 | 26.2 | 3.4 |
| Pension plan assets | 21.6 | 16.2 | |
| Long-term unbilled receivable | 7.8 | 22.0 | |
| Other | 2.7 | 1.1 | |
| $ 366.9 | $ 399.8 | ||
| Current portion | $ 68.3 | $ 71.7 | |
| Non-current portion | $ 298.6 | $ 328.1 |
MDA Space Ltd.
Notes to the Unaudited Interim Condensed Consolidated Financial Statements
For the three and nine months ended September 30, 2025 and 2024
(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)
9. Property, plant and equipment
| Land, buildings and leasehold improvements | Equipment | Furniture, fixtures and computer hardware | Capital in progress | Total | |
|---|---|---|---|---|---|
| Cost | |||||
| As at December 31, 2024 | $ 142.5 | $ 66.7 | $ 38.8 | $ 305.0 | $ 553.0 |
| Additions | (0.3) | (1.6) | 2.4 | 99.8 | 100.3 |
| Additions from acquisition | 0.3 | 2.3 | 1.3 | — | 3.9 |
| Transfers | 11.6 | 2.3 | 3.1 | (17.0) | — |
| Effect of movements in exchange rates | 0.1 | 0.1 | 0.2 | 0.1 | 0.5 |
| As at September 30, 2025 | $ 154.2 | $ 69.8 | $ 45.8 | $ 387.9 | $ 657.7 |
| Accumulated depreciation | |||||
| As at December 31, 2024 | $ (20.1) | $ (17.8) | $ (18.5) | — | $ (56.4) |
| Depreciation expense | (6.3) | (9.2) | (5.8) | — | (21.3) |
| Effect of movements in exchange rates | — | — | (0.1) | — | (0.1) |
| As at September 30, 2025 | $ (26.4) | $ (27.0) | $ (24.4) | — | $ (77.8) |
| Net book value | |||||
| As at December 31, 2024 | $ 122.4 | $ 48.9 | $ 20.3 | $ 305.0 | $ 496.6 |
| As at September 30, 2025 | $ 127.8 | $ 42.8 | $ 21.4 | $ 387.9 | $ 579.9 |
Depreciation expense included in cost of revenue for the three and nine months ended September 30, 2025 is $6.9 and $21.1, respectively (three and nine months ended September 30, 2024 – $4.1 and $14.2, respectively).
Cumulative government assistance for the nine months ended September 30, 2025 exceeded additions in the same period.
As at September 30, 2025, the Company is committed under legally enforceable agreements for purchases relating to property, plant and equipment of $86.9 in 2025 and $7.4 in 2026.
10. Leases
The Company has lease contracts for buildings and equipment used in its operations. Leases of buildings generally have lease terms between 5 and 20 years, while equipment generally have lease terms between 1 and 5 years.
(a) Right-of-use assets
Set out below are the carrying amounts of right-of-use assets recognized and the movements during the period:
| Buildings | Equipment | Total | |
|---|---|---|---|
| As at December 31, 2024 | $ 111.8 | $ 3.6 | $ 115.4 |
| Additions from acquisitions | 3.1 | — | 3.1 |
| Additions | 8.7 | — | 8.7 |
| Depreciation expense | (8.4) | (1.0) | (9.4) |
| Effect of movements in exchange rates | 0.3 | — | 0.3 |
| As at September 30, 2025 | $ 115.5 | $ 2.6 | $ 118.1 |
Depreciation expense included in cost of revenue for the three and nine months ended September 30, 2025 is $2.9 and $9.4, respectively (three and nine months ended September 30, 2024 – $2.4 and $8.1, respectively).
F-12
MDA Space Ltd.
Notes to the Unaudited Interim Condensed Consolidated Financial Statements
For the three and nine months ended September 30, 2025 and 2024
(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)
(b) Lease Liabilities
Set out below are the carrying amounts of lease liabilities and the movements during the period:
| Lease liabilities | |
|---|---|
| As at December 31, 2024 | $ 136.8 |
| Additions | 8.9 |
| Addition from acquisitions | 3.1 |
| Accretion of interest | 6.7 |
| Payments | (13.8) |
| Effect of movements in exchange rates | 0.3 |
| As at September 30, 2025 | $ 142.0 |
Accretion of interest is included in finance costs in the consolidated statement of comprehensive income.
- Intangible assets and goodwill
| Goodwill | Proprietary technologies | Contractual backlog | Customer relationships | MDA trademark | Software | Total | |
|---|---|---|---|---|---|---|---|
| Cost | |||||||
| As at December 31, 2024 | $ 441.0 | $ 281.0 | $ 41.0 | $ 458.5 | $ 25.6 | $ 51.7 | $1,298.8 |
| Additions | — | $ 50.6 | — | — | — | 2.1 | 52.7 |
| Addition from acquisitions | 367.4 | 290.4 | — | — | — | — | 657.8 |
| Transfers | — | 0.2 | — | — | — | (0.2) | — |
| Effect of movements in exchange rates | 9.3 | 8.7 | — | — | — | — | 18.0 |
| As at September 30, 2025 | $ 817.7 | $ 630.9 | $ 41.0 | $ 458.5 | $ 25.6 | $ 53.6 | $2,027.3 |
| Accumulated amortization | |||||||
| As at December 31, 2024 | $ — | $ (50.6) | $ (41.0) | $ (153.8) | $ (6.0) | $ (26.4) | $ (277.8) |
| Amortization expense | — | (31.5) | — | (24.4) | (1.0) | (6.7) | (63.6) |
| Effect of movements in exchange rates | — | (0.7) | — | — | — | — | (0.7) |
| As at September 30, 2025 | $ — | $ (82.8) | $ (41.0) | $ (178.2) | $ (7.0) | $ (33.1) | $ (342.1) |
| Net book value | |||||||
| As at December 31, 2024 | $ 441.0 | $ 230.4 | $ — | $ 304.7 | $ 19.6 | $ 25.3 | $1,021.0 |
| As at September 30, 2025 | $ 817.7 | $ 548.1 | $ — | $ 280.3 | $ 18.6 | $ 20.5 | $1,685.2 |
For the three and nine months ended September 30, 2025, the amortization expense related to a portion of proprietary technologies and software of $3.4 and $10.3, respectively (three and nine months ended September 30, 2024 – $3.2 and $8.8, respectively) is included in cost of revenue. For the three and nine months ended September 30, 2025, the amortization expense related to all other intangible assets of $30.0 and $53.3, respectively (three and nine months ended September 30, 2024 – $11.6 and $35.5, respectively) is included in operating expenses.
As at September 30, 2025, the Company is committed under legally enforceable agreements for purchases relating to intangible assets of $9.9 in 2025 and $1.5 in 2026.
F-13
MDA Space Ltd.
Notes to the Unaudited Interim Condensed Consolidated Financial Statements
For the three and nine months ended September 30, 2025 and 2024
(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)
12. Long-term debt
(a) Senior revolving credit facility
As at September 30, 2025, the Company through its wholly owned subsidiary Neptune Operations Ltd. ("NOL") had borrowings of $290.0 (December 31, 2024 - nil) under the senior revolving credit facility in the form of a CORRA Loan, which is recorded at a carrying amount of $289.3 on the consolidated statement of financial position classified as non-current. This facility bears interest at the bank's prime rate or alternate base rate of Canada plus an applicable margin of 45 to 175 basis points ("bps") or CORRA plus an applicable margin of 145 to 275 bps, based on the Company's total debt to EBITDA ratio. At September 30, 2025, the interest rate on the outstanding CORRA loan was 4.56% (December 31, 2024 - nil).
The Company also had $6.1 letters of credit at September 30, 2025 (December 31, 2024 - $6.8), bearing an applicable margin of 97 bps plus a fronting fee of 25 bps.
(b) Security and guarantees
The senior revolving credit facility is guaranteed by all subsidiaries of NOL other than certain excluded subsidiaries (immaterial subsidiaries and non-wholly owned subsidiaries) and secured by all of the present and future assets, property and undertakings of NOL and its subsidiary guarantors, as well as a limited recourse guarantee and pledge of NOL from the Company.
The Company must satisfy certain financial covenants as defined by the credit agreement, including the following:
- The Company is required to maintain an interest coverage ratio of at least 3.0 to 1 at all times
- The Company is required to maintain a specified total debt to EBITDA ratio of less than or equal to 4.0 to 1 at all times
The Investissement Québec Forgivable Loan is guaranteed by the same security as the noted above for the senior revolving credit facility, albeit on a subordinated basis. The Company must satisfy the same financial covenants as defined by the senior revolving credit facility.
As at September 30, 2025, the Company was in compliance with these covenants.
(c) Interest expense on long-term debt
Interest expense on the Company's long-term debt for the three and nine months ended September 30, 2025 is $3.4 and $3.6, respectively (three and nine months ended September 30, 2024 – $6.3 and $22.2, respectively). This amount is included in finance costs in the consolidated statement of comprehensive income.
Interest expense is net of the expense capitalized on certain qualifying assets that take a substantial period of time to prepare for their intended use. Capitalized interest is a component of both property, plant and equipment and intangible assets. The capitalization for the three and nine months ended September 30, 2025 is $1.3 and $1.3, respectively. The capitalization rate used to capitalize interest was 4.59%. The capitalization for the three and nine months ended September 30, 2024 was $4.8 and $12.3, respectively. The capitalization rate used to capitalize interest was 6.79%.
13. Share-based compensation
The Company has equity-settled and cash-settled share-based compensation plans.
(a) Equity-settled share-based compensation plans
In 2021, the Company established an Omnibus Long-term Incentive Plan ("Omnibus Plan"). The Omnibus Plan is a share-based plan, under which the Company receives services from directors and employees as consideration for equity instruments of the Company. The Company can issue stock options, deferred share units ("DSUs"), restricted share units ("RSUs"), and performance share units ("PSUs") pursuant to the terms and conditions of the Omnibus Plan and the related award agreements entered into thereunder.
F-14
MDA Space Ltd.
Notes to the Unaudited Interim Condensed Consolidated Financial Statements
For the three and nine months ended September 30, 2025 and 2024
(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)
The Company also has in place an Employee Share Trust Agreement arrangement, where eligible employees are issued shares held in a company trust ("Trustee Shares") and released upon meeting prescribed conditions.
Stock Options
The Company did not grant any stock options during the three and nine months ended September 30, 2025. The existing granted stock options have graded vesting schedules ranging from 1 to 4 years from the grant date. Vesting is conditional on continuous employment from the grant date to the vesting date. The stock options have a maximum term of 10 years.
The stock options are measured at fair value using the Black-Scholes option pricing model on the grant date and subsequently expensed on a graded basis over the vesting period. The amount expensed for the three and nine months ended September 30, 2025 was $0.2 and $0.5, respectively (three and nine months ended September 30, 2024 – $0.5 and $1.6, respectively).
Trustee Shares
Trustee Shares have graded vesting schedules ranging from 1 to 4 years from the grant date. Vesting is conditional on continuous employment from the grant date to the vesting date and the meeting of specified price targets. The amounts expensed for the three and nine months ended September 30, 2025 are nil and nil, respectively (three and nine months ended September 30, 2024 – $0.1 and $0.2, respectively).
DSUs
The Company has offered DSUs to its independent directors since 2022, entitling them to receive all or a portion of their annual compensation in the form of DSUs in place of cash. The DSUs vest immediately upon grant and are equity-settled, entitling participants to receive one common share for each DSU. The amount expensed for the three and nine months ended September 30, 2025 is $0.3 and $1.1, respectively (three and nine months ended September 30, 2024 - $0.3 and $1.0, respectively).
RSUs and PSUs
The Company grants RSUs and PSUs to eligible employees. The RSUs vest over 1 to 3 years in annual installments from the grant date. Vesting is conditional on continuous employment from the grant date to the vesting date. The PSUs vest over 3 years from the grant date and vesting is conditional on meeting performance targets and continuous employment. The amounts expensed for the three and nine months ended September 30, 2025 are $3.5 and $7.7, respectively (three and nine months ended September 30, 2024 – $1.2 and $4.8, respectively).
Award units continuity – Stock Options, Trustee Shares, DSUs, RSUs and PSUs
The table below shows the movement in the award units outstanding over the nine months ended September 30, 2025:
| Stock Options | Trustee Shares | DSUs | RSUs | PSUs | |
|---|---|---|---|---|---|
| As at January 1, 2025 | 7,616,195 | 19,529 | 266,146 | 1,088,312 | 526,748 |
| Granted | — | — | 38,983 | 517,714 | 166,905 |
| Forfeited/Cancelled | — | — | — | (29,652) | (67,151) |
| Exercised/Converted | (4,133,638) | — | — | (558,825) | (75,715) |
| As at September 30, 2025 | 3,482,557 | 19,529 | 305,129 | 1,017,549 | 550,787 |
(b) Cash-settled share-based compensation plan
In 2024, the Company established an employee share purchase plan ("ESPP"). The ESPP is a cash-settled share-based payment plan whereby employees of the Company can acquire common shares through regular payroll deductions. Company-matched employee contributions, up to a maximum of five thousand dollars per annum, are restricted to a one-year holding period. The employees' and Company's contributions are remitted to an independent plan administrator, who is responsible for purchasing common shares on the market on behalf of the employees.
The amount expensed for the three and nine months ended September 30, 2025 is $1.3 and $3.6, respectively (three and nine months ended September 30, 2024 - $0.9 and $1.0, respectively).
F-15
MDA Space Ltd.
Notes to the Unaudited Interim Condensed Consolidated Financial Statements
For the three and nine months ended September 30, 2025 and 2024
(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)
14. Financial instruments and fair value disclosures
(a) The classification of financial instruments and their carrying amounts are as follows:
| September 30, 2025 | December 31, 2024 | |
|---|---|---|
| Financial assets (liabilities) measured at FVTPL | ||
| Derivative financial assets | $ 26.2 | $ 3.4 |
| Derivative financial liabilities | (10.0) | — |
| Investment in equity securities | 15.0 | 13.2 |
| Financial assets (liabilities) measured at amortized cost | ||
| Cash | $ 195.7 | $ 166.7 |
| Trade and other receivables | 180.6 | 75.9 |
| Unbilled receivables | 284.4 | 250.1 |
| Accounts payable and accrued liabilities | (366.0) | (248.7) |
| Long-term debt | (289.3) | — |
Derivative assets and investment in equity securities are included in other assets on the interim condensed consolidated statement of financial position, as presented in note 8. Derivative liabilities are included in other liabilities.
The fair values of cash, trade and other receivables, unbilled receivables, and accounts payable and accrued liabilities approximate their carrying amounts due to their short-term nature. For the other financial instruments presented, the table below shows their respective fair values with their levels in the fair value hierarchy:
| September 30, 2025 | December 31, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |
| Assets | ||||||||
| Derivative financial instruments | $ — | $ 26.2 | $ — | $ 26.2 | $ — | $ 3.4 | $ — | $ 3.4 |
| Investment in equity securities | 5.0 | 10.0 | — | 15.0 | 3.5 | 9.7 | — | 13.2 |
| Liabilities | ||||||||
| Derivative financial instruments | $ 3.7 | $ 6.3 | $ — | $ 10.0 | $ — | $ — | $ — | $ — |
Over the nine months ended September 30, 2025, no transfers occurred between levels of the fair value hierarchy.
Level 2 derivative financial instruments comprise foreign exchange embedded derivatives within revenue and purchase contracts. The Company determines the fair value of its derivative financial instruments based on management estimates and observable market-based inputs. Management estimates include assumptions concerning the amount and timing of estimated future cash flows. Observable market-based inputs are sourced from third parties and include currency spot and forward rates.
The Company mitigates its foreign exchange risk through reducing mismatches between currencies in its foreign currency revenue contracts and the related purchase contracts to create natural economic hedges. The Company also utilizes foreign exchange forward contracts to supplement its natural hedge strategy, where needed, to further reduce the exposure arising from expected foreign currency denominated cash flows. The term of the foreign exchange forward contracts can range from less than one month to several years. At September 30, 2025, the Company had outstanding foreign exchange forward contracts reported in level 1 derivative financial instruments. The Company does not enter into foreign exchange forward contracts for trading or speculative purposes and does not have any qualifying hedges for accounting purposes.
F-16
MDA Space Ltd.
Notes to the Unaudited Interim Condensed Consolidated Financial Statements
For the three and nine months ended September 30, 2025 and 2024
(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)
15. Earnings per share
The following table reflects the net income and share data used in the basic and diluted earnings per share calculations:
| Three months ended September 30, 2025 | Three months ended September 30, 2024 | Nine months ended September 30, 2025 | Nine months ended September 30, 2024 | |
|---|---|---|---|---|
| Net income | $ 24.4 | $ 29.5 | $ 84.5 | $ 54.3 |
| Weighted average shares outstanding – basic | 125,443,486 | 120,107,965 | 123,552,623 | 119,874,946 |
| Adjustments for | ||||
| Employee stock options | 3,042,326 | 2,746,551 | 3,752,261 | 2,509,716 |
| Trustee shares | 19,189 | 71,824 | 19,121 | 71,337 |
| DSUs | 294,349 | 232,306 | 278,629 | 208,168 |
| RSUs and PSUs | 1,281,765 | 1,127,707 | 1,243,057 | 946,518 |
| Weighted average shares outstanding – diluted | 130,081,115 | 124,286,353 | 128,845,691 | 123,610,685 |
| Basic earnings per share | $ 0.19 | $ 0.25 | $ 0.68 | $ 0.45 |
| Diluted earnings per share | 0.19 | 0.24 | 0.66 | 0.44 |
At September 30, 2025, 199,055 RSUs and PSUs (September 30, 2024 – 3,924 options and 127,436 RSUs and PSUs) were excluded from the diluted weighted average number of ordinary shares calculation because their effect would have been anti-dilutive.
16. Government assistance
(a) Investment tax credits
During the three and nine months ended September 30, 2025, the Company recognized investment tax credits related to its Canadian operations of $17.1 and $30.8, respectively, (three and nine months ended September 30, 2024 – $10.5 and $29.7, respectively) as a reduction in cost of materials, labour and subcontractors, and research and development, net, on the interim condensed consolidated statement of comprehensive income.
As at September 30, 2025, the Company has investment tax credits of approximately $194.5 (December 31, 2024 – $179.9) available to offset future Canadian Federal and Provincial income taxes payable which expire between 2030 and 2045. Investment tax credits are only recognized in the consolidated financial statements when the recognition criteria have been met as described in note 3(q) of the Company's consolidated financial statements for the year ended December 31, 2024. Investment tax credits that are expected to be realized within 12 months are classified as current; investment tax credits that are expected to be realized beyond 12 months are classified as non-current.
(b) Long Term Economic Benefits to Province of Ontario Grant (the "Ontario Grant"):
The Ontario Grant was awarded to the Company in March 2022 by the Minister of Economic Development, Job Creation and Trade to encourage investment in Ontario, which will benefit Ontario's economic growth. Under this grant agreement, the Ontario Government will fund 24.74% of eligible spending to a maximum of $25.0, conditional on the Company investing a minimum of $101.0 in eligible project expenditures. The Company will use the funding received under the grant towards the building of its centre of control and excellence in Brampton, Ontario, as well as development of proprietary technology. For the three and nine months ended September 30, 2025, the Company has not recorded any recoveries. The Company has received $4.0 proceeds in connection with this grant for the nine months ended September 30, 2025.
F-17
MDA Space Ltd.
Notes to the Unaudited Interim Condensed Consolidated Financial Statements
For the three and nine months ended September 30, 2025 and 2024
(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)
(c) Investissement Québec Forgivable Loan (the “IQ Loan”):
The Company entered into a definitive agreement with Investissement Québec in respect of the IQ Loan in February 2025. The forgiveable loan, in an amount up to $75.0 is intended to support with infrastructure projects and the expansion of development capabilities to design and produce satellites at the Company's facilities in Québec. The loan will be forgiven if certain requirements related to these projects are met. During the three months ended September 30, 2025, the Company has recorded recoveries of $3.1 against cost of revenues, $0.1 against research and development, net, and $9.2 against long-term assets. During the nine months ended September 30, 2025, the Company has recorded recoveries of $16.3 against cost of revenues, $3.2 against research and development, net, and $44.8 against long-term assets. As at September 30, 2025, the Company received $43.5 proceeds in connection with the IQ Loan.
- Remeasurement gain on defined benefit plans
A remeasurement of the assets and obligations in the Company's defined benefit pension plans and other post-retirement benefit plans was performed and an actuarial gain, net of tax, of nil and $6.4 were recorded for the three and nine months ended September 30, 2025, respectively (three and nine months ended September 30, 2024 – gain of $12.7 and $12.1, respectively) in other comprehensive income mainly due to the increase of fair value of pension assets and decrease in discount rate.
- Supplementary cash flow information
The below table provides changes in operating assets and liabilities:
| Three months ended September 30, 2025 | Three months ended September 30, 2024 | Nine months ended September 30, 2025 | Nine months ended September 30, 2024 | |
|---|---|---|---|---|
| Trade and other receivables | $ (69.9) | $ (22.8) | $ (74.5) | $ 23.8 |
| Unbilled receivables | (25.8) | 5.6 | (14.6) | (108.4) |
| Inventories | (1.0) | 0.1 | (6.5) | (0.2) |
| Prepaid expenses and advances to suppliers | (13.6) | (19.9) | 2.6 | (69.0) |
| Other assets | (8.2) | (5.0) | (26.7) | (3.1) |
| Trade and other payables | 14.4 | 23.3 | 75.5 | 36.0 |
| Contract liabilities | 51.5 | 222.7 | 186.9 | 446.2 |
| Employee benefits | 2.6 | 0.9 | 3.4 | (6.7) |
| Other liabilities | 4.2 | (4.2) | 7.2 | (7.7) |
| $ (45.8) | $ 200.7 | $ 153.3 | $ 310.9 |
MDA Space Ltd.
Notes to the Unaudited Interim Condensed Consolidated Financial Statements
For the three and nine months ended September 30, 2025 and 2024
(Amounts in millions of Canadian dollars, except share-based compensation awards and per share amounts)
19. Subsequent Events
-
On November 3, 2025, the Company entered into an agreement for a $10 million equity investment in Maritime Launch Services Inc. ("Maritime Launch"), a Canadian-owned commercial space company that is developing Spaceport Nova Scotia, Canada's first commercial orbital launch complex. As part of the investment, the Company also entered into an Investor Rights Agreement providing the Company with certain governance rights with respect to Maritime Launch, including the right to nominate an individual to sit on the Board of Maritime Launch.
-
The Company has been served with a Notice of Action that was filed in the Ontario Superior Court of Justice on October 16, 2025 with respect to a proposed class action claim against the Company, its CEO, CFO and Board of Directors. The allegations are related to the announcement and subsequent cancellation of the EchoStar constellation contract that was announced by the Company in Q3 2025 and the sales by certain insiders of shares after the announcement of the contract and before its termination. The Company believes the claims are without merit and intends to vigorously defend itself. Due to the inherent uncertainties of litigation, it is not possible to predict the outcome of this proposed class action or determine the amount of potential losses, if any. As a result, the Company does not presently have any significant accruals or provisions for this matter recorded in these interim condensed consolidated financial statements.
F-19