By Adriano Marchese

MDA Space logged higher profit and revenue in the fourth quarter as defense spending has driven up demand and revenue, a momentum it expects to continue in 2026.

The Canadian space-technology company on Wednesday posted a rise in net income to 108.5 million Canadian dollars ($79.3 million), or C$0.84 a share, up from C$79.4 million, or C$0.63 a share, in the comparable quarter a year ago.

Adjusted earnings were C$0.45 a share. According to FactSet, analysts were expecting C$0.40 a share.

Revenues rose to C$499.1 million from C$346.6 million, topping the more modest growth to C$471.4 million expected by analysts.

The company cited higher volumes of work in its Satellite Systems business, including the impact of the EchoStar termination agreement.

Backlog at the end of the quarter was C$4.01 billion, down from C$4.39 billion as the company continues to work through its orders.

Chief Executive Mike Greenley said 2025 was a dynamic year marked by higher spending and market demand for its products, and that it has seen an uptick in government military contracts both in Canada and the U.S.

For the full year, the company expects revenue to reach C$1.7 billion to C$1.9 billion, which at the midpoint would represent growth of 10%. Analysts expect C$1.78 billion.

Adjusted earnings before interest, taxes, depreciation and amortization is projected in the range of C$320 million and C$370 million, or 7% growth at the midpoint, but noted that free cash flow could be between neutral to negative.

For capital expenditures, the company expects to spend about C$225 million to C$275 million to support the expansion of its Montreal facility and in chip development, it said.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

March 04, 2026 06:36 ET (11:36 GMT)

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