Reflections from our CEO

2023 was an extraordinary year for MDA Space. We completed our first double – growing revenue from $400 million to $800 million over the last few years. We profitably grew our business and delivered meaningful value creation for our shareholders, we enabled and participated in some of the most ambitious and important space missions ever undertaken, and we executed on our backlog of work by delivering for our customers. And that is just the beginning. We are carrying our momentum into 2024 with a clear path to continue this pace of growth in the years ahead.

We are doing this by leaning into our established track record of success, and executing on our strategy to be a trusted mission partner to the full range of civil, defence and commercial enterprises and organizations around the world. These partners are increasingly turning to space technology and services to achieve their goals in a rapidly expanding global space economy.

With our world-class team and capabilities in three business areas – Satellite Systems, Geointelligence, and Robotics & Space Operations – MDA Space is at the heart of leading-edge development in satellite communication, Earth and space observation, and space exploration and infrastructure.

We are bringing our advanced engineering expertise and diversified portfolio of space technologies to all parts of the space economy, and we are investing in research and development to fuel future innovation and growth.

The results are clear

We grew annual revenue by 26% year over year to $808 million in 2023, and increased adjusted EBITDA by more than 20% to $174 million. We finished 2023 with a company record backlog of $3.1 billion, up 125% over the prior year. While we did all that, we added almost 900 new team members to deliver on existing contracts and to be ready to meet future demand.

In 2024, we are building on those achievements.

We expect full-year 2024 revenues to rise to $950 million–$1.05 billion, representing robust growth of approximately 25% at the mid-point of guidance compared to 2023 levels, and we expect full year adjusted EBITDA to be $190–$210 million.

This growth and execution is translating directly into shareholder value. MDA Space stock performed well in 2023, and in March 2024, the company was added to Canada’s benchmark equity index, the S&P/TSX Composite Index. Joining the index that represents Canada’s largest and most liquid companies was an important milestone in our life as a public company

Meeting the moment

Those who follow us closely will know we talk a lot about “the rapidly expanding global space economy” and our opportunity in it. That’s because, put simply, we are a global leader in a business that has vast and growing potential.

The global space economy grew to US$509 billion in 2023, an increase of 10% since 2022, and it is projected to reach US$1.5 trillion by 2040. Worldwide investments in space are growing from both commercial and government sources. We have also seen an increase in global spacecraft launches, correlating with more competitive launch costs.

MDA Space is well positioned to meet this moment. Today, companies and governments launch missions to space to achieve three primary objectives, and we are a world leader in all three areas:

• Utilizing space-based networking and satellites to communicate;

• Looking down to observe the Earth or looking out further into space; and

• Building space infrastructure to explore and soon conduct business in orbit with space-based servicing, assembly and manufacturing.

Our position as a technology leader across all three areas gives our business breadth and diversification. Combine that with our track record of growth and profitability, and MDA Space is – and will continue to be – a trusted partner for our customers to meet their mission needs, and a compelling way for investors to access the growth opportunity across the space economy.

Investing in the MDA Space portfolio

The team at MDA Space understands that to meet the needs of the emerging global commercial space market, developing a diverse portfolio of proven next-generation space technology is pivotal.

Development is well underway with our significant investment in MDA CHORUS™, our next generation Earth observation constellation. In addition to MDA CHORUS™, in 2023, we unveiled our new, game-changing software-defined satellite product line, now branded as MDA AURORA™ that addresses the growing demand for higher performance and cost-effective digital constellations. This transformational product line will deliver enhanced performance and cost savings to customers worldwide – including Telesat, our anchor customer.

We’ve also announced MDA SKYMAKER™, a new suite of space robotics built to meet the growing needs of the international space market. Building on world-leading technology derived from Canadarm, MDA SKYMAKER™ offers cost-effective, flexible space robotics that can serve a variety of missions in significantly reduced timeframes. This product line will provide customers with direct access to the world’s most flight tested and proven space robotics solutions for any mission or application, including lunar surface rovers and landers, space stations, satellite servicing in all orbits, and in-space assembly and manufacturing.

Finally, reflecting our growth, evolution and leadership position as a space company, in 2024 we rebranded to MDA Space, an identity that honours the past, recognizes the present, and positions our company to lead in the future. The core of our brand identity will always remain MDA – the three iconic letters that stand for our 55-year heritage, our more than 450 missions, and our record of firsts.

The message behind our new brand is simple and powerful. It signals our market leadership position as a space company. As we grow and continually expand our customer roster, our refreshed brand also echoes our intention to lead a new era of development and innovation in the space sector.

The MDA Space Way

What makes us successful? We have the right strategy, we have the track record, and we have the capabilities and financial strength to execute on that strategy.

However, what truly sets us apart are our people, our values, and the way we interact with one another and our customers. Inside the company, we call this the MDA Space Way, and it is a big contributor to our success.

I am a strong believer that innovation is about people, and when dedicated, smart, creative people work together to solve hard challenges, extraordinary things happen.

MDA Space has a diverse team of more than 3,000 of the most highly skilled space engineers, scientists, technicians and business leaders. At the core of this talented team is a drive to solve problems that enable us to turn the proven into the possible.

We’re keen to collaborate with our customers, our partners and our suppliers because we know we’re better together.

We put the customer mission first because we are genuinely passionate about space and what our customers want to accomplish. We listen to their questions and concerns, we prioritize their needs, and we provide them with solutions to ensure their mission is a success.

Our people do the right thing and aspire to be exceptional. We are committed to finding innovative solutions to complex problems, and we approach finding those solutions at a trusted mission partner level.

We will always deliver for our customers, our partners, our stakeholders and each other. We are resilient, passionate and wholly committed to getting the job done right.

With this approach, we create solutions that bring our customers value and help them address some of the most complex challenges on Earth and beyond. In doing so, we also build value for our shareholders.

It’s what we have always strived for, what we accomplished in 2023, and what we intend to do in the years to come.

Thank you to our team, our customers, our communities and our shareholders for all the support and encouragement as we enable the next era of yet-to-be-imagined missions in space. With each new innovation, milestone, contract and mission accomplished, we can feel our momentum building, and we are honoured to have you along for the ride.

Sincerely,

Mike