MDA Space: Record Revenue, Decent Pipeline, And A Defense Pivot

Karandeep Kumar146 FollowersFollow5ShareSavePlay(8min)CommentsSummaryMDA Space is up 42% since January, yet still trades at multiples comparable to slower-growing peers like L3Harris and Northrop Grumman.Gross margin contraction is a mix-shift story, not an efficiency problem.Adjusted EBITDA held firm at 20% despite the mix shift; management guides 18-20% for 2026, signaling a well-understood floor.A $4B backlog and $40B pipeline—with $10B already near conversion—give MDA significant visibility.49North Defence opens MDA to land, maritime, and air domains just as NATO defence budgets are structurally expanding. bymuratdeniz/iStock via Getty Images When I first presented my thesis for MDA Space Ltd. (MDA:CA) (MDA), the stock was having a rough time. But since then, it has had a spectacular run of 42% and now trades above $42This article was written byKarandeep Kumar146 FollowersFollowMy name is Karandeep Kumar, and I am the founder of MB30Capital.com where I publish my equity research and much more. My professional background is quite diverse, spanning the worlds of technology, marketing, and creative industries. This multidisciplinary experience gives me a unique vantage point when evaluating a company’s health, as I look beyond just the numbers to understand the "why" behind their business model. I am passionate about finance and investing, and I spend a considerable amount of time reading and understanding quarterly and annual reports. I believe that the best way to understand a company is to read the fine print that others might skip (especially the footnotes!). My personal strategy is a blend of value and growth. I am equally inspired by Benjamin Graham’s value investing principles and the forward-looking, unconventional approach of venture capital. On one hand, I look for solid companies that are currently "on sale" because of weak sentiment. On the other hand, I am always on the lookout for under-the-radar businesses where the real potential isn't yet widely known (Trust me, there are a lot of undervalued gems in Canada!) My goal in writing for Seeking Alpha is simple: I aim to share my research and analysis with you, helping you make more informed investment decisions.Analyst’s Disclosure: I/we have a beneficial long position in the shares of RDW, MDA:CA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.