MDA Space Ltd.

Good morning and welcome to the MDA Space Conference call and webcast. This call is being recorded on August 7, 2026 at 830 a.m. Eastern Time. Following the presentation, we will conduct a question and answer session. Instructions will be provided at the time for you to queue up for questions. For those participating via webcast, please note that the company has included a presentation that will follow along with today's discussion. If anyone experiences audio difficulties during the conference call, please press star followed by the zero for operator assistance at any time. I'd like to now turn the call over to Jim Floros, Vice President of Investor Relations at MDA Space.

Thank you, Melissa. Good morning and welcome to the MDA Space second quarter 2026 earnings call. Mike Greenley, our CEO, and Guillaume Lavoie, our CFO, will lead today's call by sharing some prepared remarks before taking your questions. Before we begin, I would like to remind you that today's call is accessible via webcast on our investor relations website. All our disclosures, including the press release, MD&A, and financial statements, are also available on our Investor Relations website in addition to Cedar Plus and EDGAR. I would also like to remind you that today's call will include estimates and other forward-looking information which may differ from actual results. Please review the cautionary language in today's presentation and press release, as well as our other public filings regarding various factors, assumptions, and risks that could cause actual results to differ from those expressed here today. In addition, we may refer to certain non-IFRS financial measures. Although we believe these measures provide useful supplemental information about our financial performance, they do not have any standardized meaning under IFRS, and our approach in calculating these measures may differ from that of other issuers and therefore may not be directly comparable. Please see the company's most recent quarterly report and other public filings for more information, including reconciliations to the nearest IFRS measures. With that, I will turn it over to Mike.

Thank you, Jim. Good morning everyone and thank you for joining us to discuss our Q2 results and also to get an update on the MDA space we are building for the future as a result of recent business activity. I'm going to present a broader range of comments than normal today, starting with an update on Q2 and the year, followed by a discussion of organic growth, then M&A based growth, and I'm going to branch out into some comments on new capabilities in development and the future strategic posture of the company that is driving this recent activity. Guillaume will then take you through the quarterly financial results in more detail. To begin, let's start with the quarter and the headline numbers. Revenue in the quarter was up 34% year over year, leading to adjusted EBITDA of $96 million and adjusted EBITDA margin of 19.3%. This brings first half revenue to $963 million, up 33% year over year, leading to adjusted EBITDA of $187 million year to date, representing adjusted EBITDA margin of 19.4%. The strong first half reflects broad-based growth across the three business areas and provides confidence in our 2026 outlook. This meet or beat performance year to date has resulted in us now raising the midpoint of both our full year revenue and adjusted EBITDA expectations to $1.85 billion and $350 million respectively. with the midpoint of our revenue guide inferring that we expect to continue our track record of delivering double-digit organic revenue growth. This continued business execution performance reflects organic growth across the entire business, including some areas that the casual observer cannot see. Most importantly, Q2 reflects continued momentum building in our order book and our proven ability to convert opportunities within our $40 billion pipeline. leading to a second quarter book to bill ratio of 1.6 times. Several of these orders relate to government or defense work spanning multiple continents and to customers who have either expanded their initial order or issued follow-on contracts. This week, post quarter close, Telesat expanded our scope of work on the Lightspeed LEO constellation to add 27 NDA Aurora satellites on top of the previously announced 198 satellites to be manufactured bringing the total fully funded constellation to 225 satellites. As a result, the total value of our contract for this program has increased by $474 million, which includes these new satellites, the addition of the previously announced military KA band capabilities, and long lead items. The Canadian Space Agency awarded us a follow-on contract valued at over $600 million to supply an advanced synthetic aperture radar satellite that will operate as a fourth satellite within the existing Radarsat Constellation mission. In addition to the space segment, the scope of work includes launch, ground control enhancements, and security and data management systems. This contract builds on our successful delivery of the original Radarsat Constellation mission that MDA Space designed, manufactured, and launched in 2019. The Telesat and CSA orders are an important demonstration of the dynamics of the satellite constellation market. Initial orders to establish a constellation, such as Radarsat Constellation Mission or Lightspeed, are routinely followed by constellation expansion orders to increase capacity and eventually satellite replacement orders to ensure continuity of service into the future. Establishing sustained customer relationships on these constellations demonstrates the recurring lifecycle nature of satellite orders with these constellation customers. In addition this quarter, Mitsubishi Electric in Japan contracted MDA Space to design and manufacture the digital payload, antennas, and other subsystems for the Japan Ministry of Defense's next generation defense communication satellite program in geostationary orbit. MDA Space UK will deliver the advanced anti-jamming digital beamforming payload that can be dynamically reconfigured in orbit, while our team in Montreal will manufacture and test the advanced antenna solutions. This multinational delivery across two MDA Space sites demonstrates our diverse set of international capabilities. This order is also an important demonstration of the expansion of the MDA Space digital communications payloads to geosynchronous orbit satellites and not just LEO constellations. We were also selected by BAA Systems to support the U.S. Space Systems Command MEO EPOC-2 constellation. A key element of the U.S. multi-orbit missile warning and tracking architecture with critical payload technologies. MDA Space will design and build antennas and antenna control electronics for medium Earth orbit, resilient missile warning and tracking satellites. This award is a continuation of previous work by MDA Space on the Space Systems Command's EPIC-1 constellation, as well as on the Space Development Agency's Low Earth Orbit Proliferated Warfighter Space Architecture The U.S. Air Force renewed its long-term contract for 49 North's Global Procedure Designer Services through a new indefinite delivery indefinite quantity agreement, which provides a ceiling value of up to $43 million through June 2031. This contract supports global military operations and extends a more than 25-year relationship between 49 North and the U.S. Department of War. and we've received a pre-authorization to proceed contract from OHB in Germany to deliver critical lunar landing sensors for the European Space Agency's Argonaut mission. This contract allows MDA Space to begin engineering activities and procure long-lead items from our UK base of operations to support Europe's flagship moon mission ahead of the anticipated full contract. The lunar landing sensor order is a reminder of the extent of MDA Space activity That is now occurring in support of return to the moon and the creation of sustained habitats on other planets. NDA Space is now engaged in multiple lunar landing programs, in rover development programs for lunar transportation and logistics, and in lunar communication network design and development to support teams living and working there. And this week, our robotic and space operations team received formal confirmation from the Canadian Space Agency that plans are advancing to repurpose current Canadarm3 investments to support the next phase of lunar exploration as part of the Artemis program to support a wide range of complex lunar operations. As the global effort to live and work on the Moon builds momentum, MDA Space is in a strong position to expand our involvement in this endeavor. To enable this steady organic growth, we also continue building the operational foundation to support our growth strategy. Recently, in Montreal, We inaugurated our new high-volume satellite manufacturing facility, one of the world's most advanced in its class, doubling our manufacturing floor space. This facility was built in under two years and expands MDA space capability to meet growing global demand for advanced satellite constellations. It represents a significant step in our evolution as a world-leading digital satellite systems provider and a big milestone for our team. With MDA Chorus, our next-generation Earth observation constellation, Full integration of the main C-band spacecraft has been completed, with the smaller X-band satellite successfully completing its pre-ship review. We have also completed launch mission analysis with SpaceX and are now entering environmental and vibration testing phases. In addition, we are getting ready to open the doors to our new control facility in Quebec. Work is progressing well as we continue to track for launch later this year. Within 49 North, we completed a significant refresh of our Global Procedure Designer product and established operationally proven expert software tool for instrument flight procedure design and sustainment, updated to align with the latest regulatory criteria and data standards. In addition to this strong organic growth across MDA Space, we are increasing momentum in our acquisition-based growth in accordance with our strategy. About a year ago, we closed the SATEXFY acquisition in accordance with our strategy to vertically integrate where it makes sense to ensure our differentiated capability roadmaps and that acquisition continues to deliver and prove the business case that was behind it. This past quarter, we turned our attention to geographic expansion of the company and expansion of our geo-intelligence capability. In June, we agreed to acquire Blue Canyon Technologies or BCT, a spacecraft and satellite component manufacturer based in Colorado. BCT is a proven supplier to blue chip US defense primes with 18 years of flight heritage, over 85 spacecrafts launched and more than 3,500 products on orbit. BCT is a profitable, growing business with 75% of their revenue attributable to defense applications and is expected to add approximately $5 billion to our opportunity pipeline once the transaction closes, estimated for Q4, 2026. Bringing together our complementary product portfolios expands our total addressable market through greater participation in the space economy. While BCT is a strong company on its own merits, we expect the combination of MDA Space and BCT to unlock meaningful synergies for our product lines. The facility security clearance that BCT maintains from the Defense Counterintelligence and Security Agency provides a direct pathway to classified U.S. government programs and increases access to a $50 billion U.S. defense space budget for MDA Space technologies. In addition, BCT's industry-leading guidance, navigation, and control technology provides high precision, high pointing accuracy, and low jitter platforms and components, supporting vertical integration opportunities within product lines such as MDA Aurora and MDA Midnight. Earlier this month, we announced a second transition where we entered into an agreement to acquire a majority interest in CLS, providing a unique opportunity to create a vertically integrated global space-based geo-intelligence leader. CLS serves more than 14,000 customers across approximately 150 countries through 41 sites in 19 countries including a 24-hour-a-day, 7-day-a-week global monitoring command center in Toulouse, France. It delivers advanced Earth observation monitoring and forecasting services through AI-driven multi-source data analytics and insights supported by over 250 proprietary algorithms and models as well as data from more than 400 satellites. CLS serves five distinct client ecosystems, environmental monitoring, energy and infrastructure, fisheries monitoring, maritime security, and mobility. The scale of operations is significant. CLS processes 30 million maritime positions daily, monitors 100% of global maritime traffic, tracks 100,000 connected mobile assets, has tracked 400,000 land and marine animals over the last 40 years, and more. CLS directly integrates proprietary sensors with over 60% of their revenue tied to those infield devices working in combination with space-based data. This underlying data set and access to it underpins the value that CSS provides its customers. CLS AI and machine learning models leverage this data to produce intelligence and insights that a new market entrance simply cannot replicate easily, as this takes decades to build. Combining our geo-intelligence business with CLS's profitable, and the rest of the world. Delivers vertical integration benefits and establishing an MDA Space strategic presence in Europe along with maintaining CLS's long-standing partnership with France's national space agency, CNES, is expected to open doors into the European space ecosystem for other MDA Space business areas. I'd now like to comment on two aspects of the emerging growth of MDA Space beyond straightforward organic and M&A based growth activities. The first is the emergence of new business models in response to market demand. We have already made moves to respond to the global surge in defense spending in response to sovereignty and security programs. This has resulted in our creation of 49North, our non-space defense subsidiary in Canada, which is now in its first year of execution and is steadily building its pipeline of opportunity for the future while executing on historical backlog in this area. This has also resulted in our launch of MBA Midnight in April this year at the National Space Symposium Introducing this new product line of spacecraft to protect and defend satellites and constellations as part of nation's sovereignty programs. Interest in this product post-launch continues to build. MDA Midnight has the potential to be delivered as a spacecraft for operation by international customers, but also as a service, with MDA leveraging our decades of experience in rendezvous and proximity operations on orbit and our newly constructed mission control centers in Toronto to deliver on-orbit protection and security as a service. for countries and companies interested in this capability. A second area of evolving business models is in the area of AI-based analytics. Today, MBA Space conducts a range of AI-based R&D in our geo-intelligence business to rapidly analyze geospatial data to create information products for customers. However, with the acquisition of the CLS business, our geo-intelligence business will now have a much broader offering of AI-based information products and platforms to offer the world across a much broader range of application verticals. With more than 15 years of archives of Earth observation imagery from Radarsat-2 and significant archives at CLS, combined with CLS's 10 years of machine learning and AI-based delivery of over 7,000 information products to 14,000 customers in over 150 countries, MBA Space will be at a new level of AI-based data analysis and delivery to commercial and government customers worldwide as we enter 2027. Lastly, this past quarter there has been increasing dialogue in the space sector about MDA space moves to secure spectrum and potentially own and operate a satellite communication network. Many of you may have seen publicly disclosed information about an MDA space filing for spectrum with Canada in support of an initiative we call Space RAN. This is a collaborative initiative led by MDA Space but involving a consortium of Canadian partners to leverage our MDA Aurora satellites now entering high volume production to establish a sovereign direct-to-device and Internet of Things space network for Canada with the ability to partner and deliver capability worldwide. Investors should not assume this will represent a large investment for MDA Space as it is expected to be funded through partnerships with other very capable parties. However, Space RAN is a strong business opportunity for the company, adding a new line of business to our offering, extending our business models in the future. As we execute our business and work with partners and customers around the world, our development activities are creating new capabilities that will become more prevalent as we continue to expand as a global business. One of these areas is on-orbit compute. Following the acquisition of Satec SPY, MDA Space now designs and produces our own line of space-grade chips. These in turn lead to the development of digital satellite capability, including our own onboard processor or compute capability. In addition, we are in discussions with multiple parties about the development and launch of on-orbit compute satellites for various processing tasks in orbit. The first MDA Space capability in this area will be on our MDA Chorus constellation to be launched this year. which includes a vessel detection onboard processor, a new development that will enable us to pilot onboard processing of radar data on the actual satellite for the first time. All of these development activities will result in increasing discussion of on-orbit compute and on-orbit compute satellite platforms as an MDA space development area and a topic within our pipeline in future orders. On-orbit compute will then provide a platform for on-orbit AI applications. whereby my previous comments on leveraging AI to create information products will have the opportunity to move to the edge in the future and be a key capability on the in-orbit platforms we develop and deliver. Lastly, we are now in our second full year of formal research and development of AI applications for our enterprise operations. MBA Space now has a corporate senior director of AI and AI champions are being established within each of our business areas. These teams are working on a series of proof-of-concept initiatives on enterprise AI applications and leading the rollout of operational capability as it becomes mature. MBA Space now has an operational on-premises generative AI platform that we have logically named ChatMBA that is now available to all 4,000 employees across the company to provide rapid support to business operations. We are now using well-managed deployments of AI tools and software development to enhance productivity. Our AI teams are leading the company through a series of pilot projects to evaluate a range of additional AI use cases in a number of areas that will systematically be rolled out once operational. These new business models and new areas of capability under development are a natural evolution of our business into the strongest growing areas of the global markets we serve, leveraging the trends in the growth of space, the growth of sovereign defense spend, and the growth of AI-based digital capabilities. As a result of my remarks today, I hope that you can gain an appreciation for the strategic direction of MDA Space as we advance to the future and can understand the differentiated posture that we have as a company compared to our space peers. MDA Space is a financially strong industrial company that specializes in space. We have a strong balance sheet, strong financial statements, persistent growth, steady profits, sustained cash generation, and Discipline Targeted Investment. Guillaume will provide commentary on this financial discipline in a few minutes. MBA Space is emerging into a global full-spectrum space company that is engaged in a growing market along multiple growth vectors and we are positioned to fully benefit from global growth trends in space, defense, sovereignty and AI-based digital capabilities. At the same time, our business is increasing in the recurring nature of our revenues. further stabilizing financial performance and fueling investments in our continued growth. As the investment community models our future, we have been clearly communicating the pro forma impact of recent wins and recent acquisitions once they close. While our guidance for the year is targeted at $1.85 billion in revenue at the midpoint, our pro forma company including these recent transactions would be $2.5 billion in 2026. As we roll that business into 2027, We expect to see another year of around 50% growth compared to our 2026 close, along with more than a third of our revenue being recurring, a strong backlog, a strong pipeline, and a strong balance sheet for the future. I will now pass it over to Guillaume to walk through the financial results in detail.