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Can we get an image tied to Sat Systems rather than GEO? First Quarter 2025 Earnings Presentation May 8, 2025
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Forward-Looking Statements and Non-IFRS Financial Measures 2 Forward-Looking Statements This presentation contains “forward-looking information” within the meaning of applicable Canadian securities laws. Such forward-looking information includes, but is not limited to, information with respect to MDA Space Ltd.’s (“MDA Space”, “MDA” or the “Company“) objectives and strategies to achieve these objectives, as well as information with respect to the Company’s beliefs, plans, expectations, anticipations, estimates, intentions and views of future events. The Company has based the forward-looking information on its current expectations and projections about future events and financial trends that it believes might affect its financial condition, results of operations, business strategy and financial needs. Statements containing forward-looking information are based on certain assumptions and analyses made by the Company in light of management’s experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate, and are subject to risks and uncertainties. These assumptions include our ability to maintain and expand the scope of our business; our ability to execute on our growth strategies; assumptions relating to government support and funding levels for space programs and missions; continued and accelerated growth in the global space economy; the impact of competition; our ability to retain key personnel; our ability to obtain and maintain existing financing on acceptable terms; changes and trends in our industry or the global economy; currency exchange and interest rates; and changes in laws, rules, regulations. Although the Company believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect and there can be no assurance that actual results will be consistent with the forward-looking information. Given these risks, uncertainties and assumptions, readers should not place undue reliance on the forward-looking information. Whether actual results, performance or achievements will conform to the Company’s expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors, including those described in the Company’s latest Annual Information Form (AIF) and listed under the heading “Risk Factors”, which factors should not be considered exhaustive. If any of these risks or uncertainties materialize, or if assumptions underlying the forward-looking information prove incorrect, actual results might vary materially from those anticipated in the forward-looking information. Although the Company bases the forward-looking information on assumptions that it believes are reasonable when made, the Company cautions investors that statements containing forward-looking information are not guarantees of future performance and that its actual results of operations, financial condition and liquidity and the development of the industry in which it operates may differ materially from those made in or suggested by the forward-looking information contained in this presentation. Given these risks and uncertainties, investors are cautioned not to place undue reliance on the forward-looking information. Any forward-looking information that is made in this presentation speaks only as of the date of such statement, and the Company undertakes no obligation to update any forward-looking information or to publicly announce the results of any revisions to any of those statements to reflect future events or developments, except as required by applicable securities laws. Non-IFRS Financial Measures This presentation refers to certain non-IFRS measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management’s perspective. We use non-IFRS measures, including EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted EPS, Order Bookings, Net Debt and Free Cash Flow to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors, and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Additional details for these non-IFRS measures, including a reconciliation of such measures to the most directly comparable IFRS measures, can be found in our most recently issued MD&A which is posted on www.mda.space and available on SEDAR+.
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3 Pure-play Exposure to the Growing Space Market Global space economy projected to reach US$1.8 trillion by 2035 (1) up from ~US$596 billion in 2024 (2) Why Invest In MDA Space? Established Industry Leader with a Proven Track Record and Strong Competitive Position More than 55 years of innovation in space Strong customer relationships with government agencies and commercial companies Cutting-edge technologies and solutions including robotics, satellite systems and earth observation offerings Rich portfolio of patents and industry know- how Long-tenured and experienced technical team Attractive Fundamentals for Long-term Value Creation Growing backlog, strong profitability and healthy balance sheet (1) World Economic Forum; (2) Novaspace
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Key Messages 4(1) Non-IFRS measure; (2) Capital expenditures include purchase of PPE and Intangible assets FIRST QUARTER 2025 – FINANCIAL HIGHLIGHTS • Backlog of $4.8B at quarter-end, up 46% YoY; provides good revenue visibility for 2025 and beyond • Revenues of $351.0M, up 68% YoY driven by execution on our backlog • Adjusted EBITDA(1) of $68.6M, up 63% YoY; Adjusted EBITDA margin(1) of 19.5% • Adjusted Net Income(1) of $37.2M, up 103% YoY; Adjusted diluted EPS(1) of $0.29, up 93% YoY • Net cash position of $376.3M at quarter-end compared to net cash position of $166.7M as of December 31, 2024 • Reaffirmed 2025 full-year financial outlook o Revenues expected to be $1.50-$1.65B, up ~45% YoY growth at the mid-point of guidance o Adjusted EBITDA (1) expected to be $290-$320M, up ~40% at the mid-point of guidance, and adjusted EBITDA margin expected to be 19%-20% o Capital expenditures(2) expected to be $210-$240M o Free cash flow expected to be neutral to positive o Q2 2025 revenues expected to be $360-$380M
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Key Performance Indicators 5 $3,312M $4,838M Mar 31, 2024 Mar 31, 2025 Backlog $815M $1,222M Mar 31, 2024 Mar 31, 2025 LTM Revenues $167M $244M Mar 31, 2024 Mar 31, 2025 LTM Adjusted EBITDA (1) Adj. EBITDA Margin 20.5% Adj. EBITDA Margin 19.9% (1) Non-IFRS measure $90M $130M Mar 31, 2024 Mar 31, 2025 LTM Adjusted Net Income (1)
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($M, except per share figures) YoY Change ($) YoY Change (%) Revenues $351.0 $209.1 $141.9 68% Gross Profit 79.7 57.9 21.8 38% Gross margin 22.7% 27.7% Adjusted EBITDA 68.6 42.0 26.6 63% Adjusted EBITDA margin 19.5% 20.1% Adjusted Net Income 37.2 18.3 18.9 103% Adjusted Diluted Earnings per share 0.29 0.15 0.14 93% Q1 2025 Q1 2024 • Revenues of $351.0M in Q1 2025 compared to $209.1M in Q1 2024, up 68% YoY driven by strong contributions from Satellite Systems business, and exceeds our guidance of $315 -$335M for Q1 2025 • Adjusted EBITDA of $68.6M in Q1 2025 compared to $42.0M in Q1 2024, up 63% YoY . Adjusted EBITDA margin of 19.5% in Q1 2025 is consistent with Company’s full year margin guidance of 19%-20% and compares to adjusted EBITDA margin of 20.5% in Q1 2024 • Adjusted net income of $37.2M in Q1 2025 compared to $18.3M in Q1 2024, up 103% YoY , driven by higher operating income; adjusted diluted earnings per share of $0.29 in Q1 2025 compared to $0.15 in Q1 2024, up 93% YoY First Quarter 2025 Results 6 (1) (1) Non-IFRS measure; refer to Appendix for reconciliation of non-IFRS to IFRS measures (1) (1) (1)
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• LTM order bookings of $2.7B driven by contract awards across the 3 business areas with strong contributions from Satellite Systems and Robotics & Space Operations • Backlog of $4.8B at quarter-end provides good revenue visibility, up 46% YoY • LTM Book-to-Bill ratio of 2.2x Order Bookings & Backlog 7(1) Non-IFRS measure $430M $333M $2,452M $2,526M $2,895M $4,359M $2,448M $2,369M $2,748M Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 LTM Order Bookings (1) $1,232M $1,098M $3,069M $3,097M $3,312M $4,596M $4,578M $4,386M $4,838M Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Backlog
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$5M $5M Q1-24 Q1-25 Capital Expenditures $25M $267M Q1-24 Q1-25 Operating Cash Flow -$16M $205M $20M $262M Q1-24 Q1-25 Free Cash Flow (1) FCF FCF excluding Growth Capex • Operating cash flow of $267.0M in Q1 2025 reflects positive working capital contributions primarily related to Globalstar next generation LEO constellation and Telesat Lightspeed constellation programs • Capex of $61.5M in Q1 2025 primarily to support growth capex • Net debt to LTM adjusted EBITDA ratio of (1.5)x as of March 31, 2025 reflects debt repayment in 2024 and strong cash position Cash Generation & Financial Position 8(1) Non-IFRS measure $40M Maintenance Capex Q1 2024 Maintenance Capex Q1 2025 1.2x 1.2x 1.7x 2.4x 2.6x 2.0x 0.8x -0.8x -1.5x Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Net Debt to LTM Adj. EBITDA(1) $62M
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Outlook Assumptions • Financial outlook reflects management’s judgment based on Company’s current backlog and information available at the time of this release • Provided financial outlook does not incorporate any potential impact from the U.S. tariffs announced this year on articles imported from Canada or retaliatory Canadian tariffs imposed on Canadian imports from the U.S. The Company will continue to closely monitor developments and may elect to update its financial outlook if deemed necessary • Capital expenditures comprised primarily of growth investments; full-year maintenance capex expected to be ~$30 - $40M 2025 Financial Outlook Reaffirmed 9 Financial Metric 2025 Financial Outlook (May 8, 2025) 2025 Financial Outlook (March 7, 2025) Revenue YoY Growth at mid-point $1.50 - $1.65B ~45% $1.50 - $1.65B ~45% Adjusted EBITDA YoY Growth at mid-point Adjusted EBITDA Margin $290 - $320M ~40% ~19% - 20% $290 - $320M ~40% ~19% - 20% Capital Expenditures (1) $210 - $240M $210 - $240M Free Cash Flow Neutral to Positive Neutral to Positive (1) Capital expenditures include PPE and Intangible assets
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Can we get an image tied to Sat Systems rather than GEO? APPENDIX
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Appendix – Reconciliation of Non-IFRS Measures 11 ($M) Q1-25 Q1-24 Net income $32.9 $13.8 Depreciation and amortization of assets 13.7 10.5 Amortization of intangible assets related to business combination 11.6 12.3 Income tax expense 12.4 5.7 Finance income (1.7) (0.7) Finance costs 4.9 6.1 EBITDA 73.8 47.7 Unrealized foreign exchange gain (11.4) (1.5) Unrealized gain on financial instruments (0.1) (0.9) Gain on disposal of assets - (5.8) Acquisition, integration and reorganization costs 3.5 - Equity-settled share based compensation 2.8 2.5 Adjusted EBITDA 68.6 42.0
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Appendix – Reconciliation of Non-IFRS Measures 12 ($M, except per share figures) Q1-25 Q1-24 Net income $32.9 $13.8 Amortization of intangible assets related to business combination 11.6 12.3 Acquisition, integration and reorganization costs 3.5 - Gain on disposal of assets - (5.8) Unrealized gain on financial instruments (0.1) (0.9) Net foreign exchange gain (13.1) (2.3) Embedded derivative effects 1.1 0.4 Equity-settled share-based compensation 2.8 2.5 Income taxes related to above items (1) (1.5) (1.7) Adjusted Net income 37.2 18.3 Weighted average number of shares outstanding – Diluted 127,589,192 123,263,439 Adjusted Earnings per share – Diluted 0.29 0.15 (1) Standard income tax rate of 26.5% applied
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Appendix – Backlog and Leverage Trends 13 ($M) Q1-25 Q4-24 Q3-24 Q2-24 Q1-24 Q4-23 Q3-23 Q2-23 Q1-23 Opening Backlog $4,385.5 $4,578.1 $4,596.0 $3,312.2 $3,097.0 $3,068.7 $1,093.8 $1,232.4 $1,378.2 Revenue recognized (351.0) (346.6) (282.4) (242.0) (209.1) (205.0) (204.7) (196.0) (201.9) Order Bookings 803.9 154.0 264.5 1,525.8 424.3 233.3 2,175.1 61.9 56.1 Ending Backlog 4,838.4 4,385.5 4,578.1 4,596.0 3,312.2 3,097.0 3,068.7 1,098.3 1,232.4 ($M, except ratios) Q1-25 Q4-24 Q3-24 Q2-24 Q1-24 Q4-23 Q3-23 Q2-23 Q1-23 Total Debt - - $293.8 $398.7 $468.6 $438.9 $303.8 $248.7 $268.7 Cash (376.3) (166.7) (139.2) (46.4) (29.3) (22.5) (13.4) (39.0) (67.9) Net Debt (376.3) (166.7) 154.6 352.3 439.3 416.4 290.4 209.7 200.8 Adjusted EBITDA (LTM) 243.7 217.1 188.3 175.6 167.3 174.2 172.0 168.0 162.3 Net Debt to Adjusted EBITDA Ratio (1.5)x (0.8)x 0.8x 2.0x 2.6x 2.4x 1.7x 1.2x 1.2x
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Can we get an image tied to Sat Systems rather than GEO?