MDA: MDA announces $688M follow-on contract for RCM, a positive for 2Q26 bookings and out-year backlog

Research evidence excerpt

MDA: MDA announces $688M follow-on contract for RCM, a positive for 2Q26 bookings and out-year backlog

EQUITY RESEARCH QUICK TAKE

RBC Capital Markets, LLC

Ken Herbert (Analyst)

Stephen Strackhouse (Vice President)

Kevin Liu (Senior Associate)

Sanika Merchant (Associate)

June 24, 2026

MDA Space Ltd.

MDA announces $688M follow-on contract for RCM, a positive for 2Q26 bookings and

out-year backlog

TSX: MDA | CAD 55.05 | Outperform | Price Target CAD 58.00

Sentiment: Positive

MDA Space (MDA) announced today that it has received a $688M contract from the CSA for an RCM replenishment satellite.

MDA has been awarded a contract by the Canadian Space Agency (CSA) to supply an advanced synthetic aperture radar (SAR)

satellite to augment the existing RADARSAT Constellation Mission (RCM), following an initial $45M long-lead parts contract

awarded in December 2025. The new satellite will be based on MDA's fourth-generation MDA CHORUS Earth observation

platform—currently in final integration ahead of a late-2026 launch—and will provide day-night, all-weather broad surveillance

coverage supporting maritime safety, Arctic monitoring, disaster response, and environmental services. The contract is part of the

Government of Canada's ~$1.0B RADARSAT+ portfolio announced in October 2023, aimed at ensuring RCM mission continuity and

strengthening Canada's sovereign Earth observation capabilities. The satellite will be assembled at MDA's Montreal facility, with

the contract value to be added to MDA's backlog in 2Q26. Having been an investor focus as a potential near-term contract award,

we view today's announcement as positive for sentiment on the stock. However, we would also highlight that management has

been signaling that it expected this contract in 2026.