Summary of MDA Space Conference Call Company Overview - **Company**: MDA Space - **Date of Call**: September 8, 2025 - **Key Participants**: Mike Greenley (CEO), Guillaume Lavoie (CFO), Luigi Posabani (VP of Satellite Systems) Key Industry and Company Insights Contract Termination - MDA Space received a termination-for-convenience notification from EchoStar Corporation regarding a satellite constellation contract valued at approximately CA$1.8 billion for over 100 software-defined MDA AURORA satellites [4][5] - The termination was due to EchoStar's sudden change in business strategy following spectrum allocation discussions with the FCC, leading to the sale of its AWS-4 and H Block spectrum to SpaceX [4][5] Financial Impact - MDA Space will be compensated for all related termination costs and fees as per the contract, ensuring no financial loss from this event [5][9] - The company maintains a backlog of CA$4.6 billion at the end of Q2 2025, excluding the EchoStar contract, providing revenue visibility for 2025 and beyond [5][36] Business Fundamentals - MDA Space has a robust opportunity pipeline of CA$20 billion, with CA$13 billion related to satellite constellations [6] - The company continues to focus on execution, converting opportunities, and expanding leadership in core markets while maintaining strong profitability and free cash flow [6] Guidance and Future Outlook - MDA Space reiterated its 2025 financial outlook and guidance, unaffected by the EchoStar contract termination [5][36] - The company expects to maintain a compound annual growth rate (CAGR) of 20% to 30% over the next five years, driven by its strong backlog [36] Additional Insights Risk Profile Comparison - The existing backlog has a lower risk profile compared to the EchoStar contract, which was an unexpected termination due to a drastic change in EchoStar's business plan [12][11] - Current contracts with customers like Telesat and Globalstar are deep into execution, reducing risk [12][13] Technological Advancements - MDA Space has developed a 5G-compliant version of the AURORA digital satellite, which was accelerated by the EchoStar contract, positioning the company favorably in the market [44][45] Market Dynamics - The direct-to-device market remains competitive, with multiple players expected to emerge, similar to terrestrial mobile networks [29][48] - The termination of the EchoStar contract may influence other companies to expedite their own direct-to-device plans [48] Geopolitical Considerations - There is a growing trend among countries to enhance their technological independence, which may be fueled by recent developments in the space communications sector [55][56] Upcoming Events - MDA Space plans to engage with new customers at the World Satellite Business Week, focusing on their products and services despite the loss of collaboration with EchoStar [61][62] Conclusion - MDA Space remains optimistic about its future prospects, maintaining strong fundamentals and a solid pipeline of opportunities despite the unexpected termination of the EchoStar contract. The company is well-positioned to continue its growth trajectory in the satellite communications industry.