MDA

Good morning, and welcome to MDA Space conference call and webcast. This call is being recorded on May 7, 2026, at 8:30 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, please press *0 for operator assistance at any time. I'd now like to turn the call over to Jim Floros, Vice President of Investments at MDA Space. Please go ahead.

Thank you, Aubrey. Good morning, and welcome to the MDA Space 1st 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 available on our investor relations website as well as SEDAR+ 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 press release and public filings regarding various factors, assumptions and risks that could cause actual results to differ. In addition, during this call, we will refer to certain non-IFRS financial measures.

Although we believe these measures provide useful supplemental information about our financial performance, these measures 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 quarterly report and other public filings for more information about these measures, including reconciliations to the nearest IFRS measures. With that, it's my pleasure to turn the call over to Mike.

Thank you, Jim Floros. Good morning, and thank you to those joining us today to discuss our first quarter 2026 financial results. Our first quarter results reflect a strong start to the year, supported by disciplined execution and continued operational momentum. The MDA Space team delivered quarterly year-over-year revenue growth of 32% while also delivering solid adjusted EBITDA margin of 19.5%. Our Q1 performance reinforces our confidence in delivering the fiscal year 2026 guidance that we issued in March of this year. Our ability to consistently generate profitable growth allows us to continue investing in our future and was a key factor in MDA Space achieving another significant milestone in the quarter as our stock began trading on the New York Stock Exchange, further strengthening our profile within the global investment community.

The highly successful initial public offering bolstered our financial position, providing more flexibility to pursue our growth strategies. We also continue to build strong momentum in the business and in particular with defense opportunities, as evidenced by recent commercial successes. In the quarter, we announced that we have been selected as an approved supplier by the U.S. Missile Defense Agency, receiving an IDIQ contract related to the SHIELD program. We established an MOU with Hanwha Systems to explore opportunities to collaborate in the development of Korea's sovereign low Earth orbit defense constellation. We launched 49 North, a dedicated defense organization exclusively focused on delivering secure multi-domain C4ISR and mission-critical capabilities for Canada's national defense priorities outside the space domain.

We announced that we were contracted by Canada's Defence Investment Agency to deliver three ground-based optical observatories to the Department of National Defence as part of the Surveillance of Space 2 domain awareness program. This is noteworthy as it is another contract to be awarded by the DIA, an agency established to speed up and modernize Canada's defence procurement and integral to Canada's first defence industrial strategy. More recently, we were able to highlight that we've been selected by Airbus for a repeat order of over 1,300 replacement antennas for the OneWeb low Earth orbit constellation extension.

This repeat order is meaningful as it follows an initial order given to MDA Space in 2016 to supply antennas to the second largest constellation in low Earth orbit, underscoring our ability to win repeat orders with existing customers and the ability of MDA Space to support the full satellite constellation lifecycle from initiation to expansion to replacement. In Maritime Launch Services, where we have board representation and have seconded a member of the MDA Space senior leadership team as the VP of operations for MLS as part of our equity investment, announced a CAD 200 million agreement with the Department of National Defence for a dedicated launchpad at Spaceport Nova Scotia, providing MLS with a 10-year anchor tenant. This is a significant milestone towards establishing sovereign launch capability in Canada and reinforces Canada's commitment to having a launch site as part of the NATO launch network.

Operationally, our teams continue to execute on a number of fronts. Within satellite systems, we previously communicated that we completed the critical design review of the Globalstar next generation LEO constellation, and the team continued to build on that success through the achievement of a couple more important milestones. We have started to receive production-ready Prime Two space-grade chips from our chip department, one of the key differentiating technologies behind MDA AURORA Broadband and direct-to-device satellites. These ASIC chips are the most integrated digital beamforming chips on the market for space-based antenna arrays and introduce a number of benefits for satellite operators. This significant milestone demonstrates our ability to integrate newly acquired companies like SatixFy, unlocking value. In addition, the satellite systems team successfully delivered the first set of satellites under our initial 17 satellite constellation contract with Globalstar.

This marks a defining moment in MDA Space history and validates our evolution as a satellite prime contractor. Our Geo Intelligence team continues to make strides towards preparing MDA CHORUS for its expected launch window in late 2026. In the quarter, the team successfully completed spacecraft thermal vacuum testing and shipped the spacecraft back to our integration and test facility, while in parallel readying the integration of the synthetic aperture radar antenna. Our robotics and space operation team achieved a remarkable 25-year milestone with Canadarm2. For over 2 decades now, Canadarm2 has operated on the International Space Station, helping build and maintain the ISS, capturing and berthing visiting spacecraft, carrying astronauts through some of the most spectacular spacewalks. We are extremely proud of this heritage as Canadarm2 continues to operate and perform critical tasks on the ISS.

As the MDA Space team remains focused on executing program deliverables, we also remain confident in our future as the strategic importance of space continues to intensify. Our CAD 40 billion pipeline is significant and includes CAD 10 billion in opportunities with either government customers that have downselected MDA Space or follow on opportunities with existing customers. It also includes meaningful opportunities over the next 5 years across each of our 3 business areas and is well-distributed between government and defense and commercial opportunities. Our satellite systems business represents the largest share of opportunities, underpinned by a significant market opportunity with 40,000-50,000 communication satellites expected to be launched between 2025 and 2034 in the market.

While a portion of this market will be defined by vertically integrated satellite operators or regions that are not acceptable, China and Russia, for example, we estimate our addressable market to be between 20% and 30%, providing significant opportunity for continued growth. 5% of this addressable market has progressed into active customer pursuits with elevated bidding activity translating into CAD 30 billion of cumulative opportunities over the next 5 years for our satellite systems business, nicely distributed between commercial and government opportunities, as well as Canada, U.S., and the rest of the world geographically. We remain confident in our ability to win in this market given technological leadership through our digital capabilities, high volume manufacturing capacity that will soon be fully operational, and a mix of space mission heritage with new space agility.

We continue to expect a healthy market for our robotics and space operations business as robotics and on-orbit infrastructure is fundamental to the expanding Earth to Moon economy and as space exploration becomes interplanetary. Over the next decade, the number of space exploration missions is expected to increase by 185% to 855 missions as countries pursue crewed lunar and Martian missions and other deep space exploration. This is driving an opportunity pipeline of over CAD 3 billion for our robotics and space operations business within applications such as surface infrastructure and mobility, space exploration and commercial space stations, and in-orbit servicing and logistics.

Leveraging our technical leadership as a world leader in space-based robotics to develop products such as MDA SKYMAKER, our commercial robotics suite derived from Canadarm technology, further supported by lifecycle operations services and mission control centers, we are strongly positioned to capitalize in this market. The recent changes to the Artemis mission are part of a renewed focus on accelerating a return to the lunar surface and driving increased momentum for our robotics capabilities. We continue discussions with the Canadian Space Agency on redefining the Canadarm3 robotic systems that will be required to support this new and exciting phase of Moon exploration. The dual use capabilities of MDA Space were on full display at the recently held National Space Symposium in Colorado, where we launched MDA MIDNIGHT, a space control platform for defense agencies to defend and protect the space domain.

This new platform is equipped with a suite of hosted payloads to detect, identify, counter, and deter threats to critical space assets and orbits in the increasingly contested domain. Leveraging the advanced robotics and proximity operations of MDA SKYMAKER with the modular bus of MDA AURORA enables our team to rapidly configure, build, and deploy this product to address emerging customer requirements. Within Geointelligence, defense and intelligence contracts and advanced Earth operation observation products are critical drivers behind the expansion of data and services solutions. As demand for Earth observation data grows, analytics services are becoming increasingly important for synthesizing data and producing actionable insights to support decision-making. This is expected to drive growth in data and services for synthetic aperture radar and optical applications from almost CAD 6 billion in 2025 to CAD 8 billion in 2033.

The additional capacity and enhanced capabilities that will be made available through MDA CHORUS, including higher resolution data collection and near real-time processing, will position us well to grow within this market. In fact, we are seeing early success with nine customer contracts that have already been finalized for CHORUS, along with 32 letters of interest from customers across Asia-Pacific, Latin America, Europe, North America, and the Middle East. We also expect to benefit from opportunities for secure multi-domain C4ISR systems and integration opportunities within 49 North, driven by increasing demand for sovereign defense capability across land, air, maritime, and joint domains. Combining observation and C4ISR opportunities, our geointelligence business has established a robust pipeline exceeding CAD 7 billion. In summary, we are well-positioned to capitalize on expanding addressable markets and leverage multiple growth drivers to continue delivering profitable growth.

With that, I'll hand it over to Guillaume to talk about the financials.

Thank you, Mike. Good morning, everyone. For my update, I will walk you through our Q1 2026 financial results. Q1 was another successful quarter and a solid start to fiscal 2026 for MDA Space as we continue to execute on our backlog, delivering strong growth in both revenue and profitability. Total revenues for the first quarter were CAD 464 million, representing an increase of CAD 113 million or 32% over the same period last year. The year-over-year increase was driven by strong performance within all 3 of our business areas. Revenues and satellite systems of CAD 313 million in the first quarter of 2026 were CAD 91 million or 41% higher compared to the same quarter in 2025. The strong showing was driven by the increased volume of work on the Telesat Lightspeed and Globalstar next generation LEO constellation programs.

As Mike highlighted earlier, our team has delivered the initial batch of ASIC chips for the Telesat Lightspeed program, and the team in Montreal continues to integrate various stages of the production line. For the Globalstar Next Generation LEO program, the team has passed the critical design review stage and continues to work on assembly and integration activities on the 1st satellites. In robotics and space operations, revenues of CAD 92 million in the 1st quarter represented a CAD 14 million or 18% increase over Q1 2025, driven by higher volume of work on the Canadarm3 program as the team continues to work on building and testing engineering models for the flight design.

Revenues in our Geointelligence business were CAD 59 million in the first quarter, representing an increase of CAD 8 million or 15% year-over-year due to higher volume of work on various programs, including the ISTAR program for the Royal Canadian Navy. Comparing total revenue to Q4 2025, we saw a sequential decline of 7%, primarily driven by timing of revenue recognition on our programs within our satellite systems business. Overall, our first quarter revenue was in line with our expectations. Moving to gross profit. For Q1 2026, gross profit was CAD 115 million, representing a CAD 36 million or 45% increase over the same period last year. Gross profit in the first quarter was 24.8%, which was up from 22.7% for the same period in 2025.

Adjusted EBITDA in the quarter was CAD 91 million compared to CAD 69 million in Q1 2025, representing an increase of 32%. This was driven by higher work volumes as we continue to convert our backlog. Adjusted EBITDA margin of 19.5% in Q1 2026 was in line with adjusted EBITDA margin for the same period last year. Adjusted net income in the quarter was CAD 51 million compared to CAD 38 million in Q1 2025. The year-over-year increase of CAD 12 million or 32% was primarily driven by higher operating income. Adjusted diluted earnings per share of CAD 0.38 in Q1 2026 was up 27% versus Q1 2025 because of the higher adjusted net income, which was partially offset by higher average diluted shares outstanding due to the recent equity issuance related to the U.S. IPO we completed in March. Moving to backlog.

We ended the quarter with a solid backlog of CAD 3.7 billion, representing a small decline of CAD 300 million compared to December 31st, 2025. This was driven by continued execution of our backlog into revenue and a lower volume of orders in the quarter, which came in as expected. With our CAD 40 billion opportunity pipeline, which includes CAD 10 billion of down-selected opportunities with government customers for follow-on opportunities with existing customers, further supported by a growing addressable market, as Mike detailed earlier, we are confident in our ability to book new orders in the future and to continue to fuel revenue growth. Moving to CapEx. In Q1 2026, we spent CAD 88 million on capital expenditures, up from CAD 62 million in the same period last year, driven by investments to add high volume production capacity at our Montreal facility.

This level of CapEx is higher relative to the recent quarterly trend as a result of new equipment being installed in Montreal. However, this is progressing ahead of schedule, which is very positive. With a run rate that is expected to decline as we progress through 2026, we are positioned to meet our full year guidance of CAD 225 million-CAD 275 million. Cash from operations during the quarter generated CAD 61 million compared to CAD 267 million in Q1 2025. The year-over-year decrease was primarily driven by lower working capital contributions in the latest quarter as planned. Lower cash from operations combined with higher CapEx drove negative free cash flow of CAD 28 million in Q1 2026, which compares to positive free cash flow of CAD 205 million in the same period last year. Moving to our balance sheet.

We ended the quarter in a strong financial position with cash on hand of CAD 544 million, driven primarily by our highly successful U.S. IPO. An overwhelmingly positive response resulted in a significantly oversubscribed offering, allowing us to raise gross proceeds of $341 million USD. Along with available liquidity of CAD 699 million under our credit facility, we ended the quarter with total available liquidity of CAD 1.2 billion, putting us in a strong position to continue to invest in our growth initiatives. Turning to our 2026 outlook. We are extremely pleased with the strong start to the year and the momentum that we see across our business. That provides us with the confidence to reiterate our full year guidance for 2026.

For the full year, we continue to expect revenues to be between CAD 1.7 billion and CAD 1.9 billion, representing a year-over-year growth of approximately 10% at the midpoint of our guidance. Adjusted EBITDA to be between CAD 320 million and CAD 370 million, representing a year-over-year growth of approximately 7% at the midpoint of guidance and adjusted EBITDA margin of 18%-20%. As I previously stated, we also continue to expect capital expenditures to be between CAD 225 million and CAD 275 million in 2026 to support another year of investments related to expanding production at our Montreal facility, as well as investments to support space grade chip development and commercial growth initiatives.

Lastly, we reaffirm our expectation for full year free cash flow to be neutral to negative, driven by normal program working capital fluctuations, combined with the CapEx required to support future growth. In summary, this was a strong start to fiscal 2026, and we continue to be encouraged by the positive momentum we are seeing across our businesses. The MDA Space team continues to deliver strong financial results, and I want to recognize the hard work, dedication, and passion from all our employees across the business. With that, operator, we are ready for questions.

Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by the 1 on your touchtone phone, and then you will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by the 2. If you are using a speakerphone, please lift the handset before pressing any keys. One moment please for our first question. Our first question comes from Justin Liang of Morgan Stanley. Please go ahead.

Yeah. Hi, good morning. Thanks for taking the question. Mike, I wanted to ask one on direct-to-device. You've been now talking about a sort of neutral host model for MDA. I was hoping you could talk a little bit more about the traction you're seeing for this sort of offering and if there's any way to sort of size the opportunity there?

Yeah. I don't think there'd be a size in the opportunity yet. Right now, it's a series of discussions that we've been pulled into, looking at the neutral host model and the technical achievability of it, which we're very positive about. The basic notion here is the, you know, ability to have a space-based network that works directly with mobile network operators and/or cell phone tower service providers around the world.

To be able to have a space-based network e-extension that can operate using the MNO's existing spectrum, to be able to fill in holes in their coverage areas and/or extend their coverage areas, using, you know, without them having to relinquish control of the customer, without the customer having to roam off of the mobile phone network onto a space-based network and then back onto their network again, giving up customer information, and the like that can happen when you roam onto a space network. Folks are interested in this for sure, and talking to us actively about that around the world.

These are active conversations while we also continue to develop and demonstrate the technical solutions that would enable it for customers at their request. It's very active and a positive encouragement.

Got it. Maybe just as a follow-up. You know, it sounds like from at least what Amazon put out after it announced the Globalstar acquisition that it intends to move forward with your constellation build-out. It seems like they also have kind of grander visions for a bigger D2D constellation. Curious if that might also be addressable to you, and if any of that is in your CAD 40 billion pipeline. Maybe just more generally, how are you thinking about prospects with Amazon after this Globalstar purchase? Thanks.

It's early days, obviously, with the Amazon announcement to purchase Globalstar. We've seen a couple of things there, like, one is the expected close of that acquisition wouldn't be till a year from now, early 2027. You know, as a result, you know, Globalstar continues to execute on its business, and Amazon continues to go through all of its procedures to be able to work through the close of the acquisition itself. As a result of that, you don't immediately engage in conversations with someone that's buying a company. You have to wait a while until they, you know, actually own it. It's been nice to see that no change to our current business, and that was as expected.

That we need to get our work done, get our Thunder satellites delivered. We've recently announced that we'd conducted the first shipment of the 17 satellites, and are completing the next shipment of those, while we continue to get our Globalstar next generation constellation completed. We will remain focused on that. Everyone wants us to. It's extremely important, so that's great. Then I'm sure that as we get, as we start getting these constellations launched and the like, then we can start talking about, you know, how are things gonna work going forward into the future. We'll see if any opportunities emerge there.

Certainly, we have the skill sets and the capabilities and the technology roadmaps to be able to contribute, but we haven't had an opportunity to have those conversations yet.

Okay, thanks. I'll jump back in the queue.

Okay.

Our next question comes from Thanos Moschopoulos of BMO Capital Markets. Please go ahead.

Maybe just starting off on the full-year guide. If I take the strong Q1 results and annualize them, I would end up above the midpoint of your guidance range. In terms of maintaining rather than raising your guide, is that just conservatism on your part, or are there considerations you have to think about as we go through the year?

Hey, good morning, Thanos. you know, really, we're sticking to our guidance, like, CAD 1.7 billion-CAD 1.9 billion. The midpoint is CAD 1.8 billion. We delivered a strong quarter in Q1, CAD 464 million. We're very happy with that, but we expect consistent execution throughout the year, right? This is not a year of ramp up really for us. It's really a year of execution on Telesat, on the Globalstar next-gen LEO program, on Canadarm 3. you know, you can expect sort of consistent, you know, quarterly delivery, and it's gonna vary a little bit. It's not gonna be, you know, always CAD 460 million. Could be a bit lower in some quarters.

Overall, you know, CAD 1.8 billion at the midpoint is a good way to think about our business and, you know, we need a bit of wiggle room to just, like, be able to deal with execution. So CAD 1.7 billion-CAD 1.9 billion remains the best estimate right now for us.

Great. Mike, on Canadarm3, any further color you can provide on the discussions you're having with your customer, following the Lunar Gateway cancellation and how the program might evolve? Maybe just the timing of when we might see some decisions or announcements in terms of contract modifications there.

The key thing for us is that, you know, full steam ahead on Canadarm3. The project team continues to execute as planned towards final designs of, you know, space-based robotics. There are a series of conversations that are occurring in parallel about the opportunity to potentially pivot that capability towards the lunar surface and the lunar program. That's just ongoing activity. I can't really predict, you know, when those activities might be completed, but they need to happen soon so to ensure that the full steam ahead posture on the program is driving towards the right outcome and the most desirable outcomes. That's good. We get to do both at the moment.

Based on where we are in the design process, we have a lot of work to do. Everyone agrees we just need to keep getting our work done, while in parallel, a small group of executives and agencies continue to talk about, you know, how can we be the most value on the lunar surface. All those things continue at the moment.

Great

positive intent.

Great. I'll pass along. Thanks, Mike.

Yep.

Our next question comes from Greg Konrad of Jefferies. Please go ahead.

Hi, guys. This is Egan McDermott on for Greg. Thank you for taking our question. Maybe on backlog. It's come down a little bit on some burn-off, but you've maintained the CAD 40 billion pipeline. Is there, you know, an expected turning point given some of your near-term pursuits? How are you thinking about book-to-bill for the year given that pipeline?

I think we'll definitely obviously keep working the pipeline. There's a number of opportunities that are at a quoting level of maturity that as we go through the remainder of the year, you know, customers would be in a position to make contracting decisions. In some cases, there's government customers out there that have to get through government processes. In other cases, there's industrial commercial customers that, you know, need to get through their business planning and organization activities before they're gonna be ready to move out. There, you know, there's definitely solid, mature quotes that are there that can be turned into contracts. We'll keep working that. We expect to be able to, you know, book obviously, book more business throughout the year.

And we always try to strive to have a, you know, at least a 1-to-1 book-to-bill ratio. You know, we'll see how it plays out as we go through the year, but there's opportunity for that. But we'll continue to work these things. You don't always control your customer's behavior, but we are certainly doing everything possible to support their decision-making and have a lot of strong opportunities. A lot of new things coming along as well. It's been exciting in terms of, you know, not official additions to the pipeline yet, but some really exciting new conversations that have come up with people dropping by and wanting to talk about future business. It's been really good.

Okay. Well, cool. Maybe just as a follow-up on that, you know, given the Airbus announcement, curious how you guys are thinking about the satellite component opportunity within the pipeline today and, you know, just the magnitude of full satellite systems versus components in relation to the satellite system segment going forward.

Yeah. You know, over the last, you know, 5 or 6 years, we've certainly emerged as we've really grown and expanded. We've maintained, during all of that growth, we've maintained a strong, what we call our merchant supplier business, where we're selling satellite components and subsystems to other satellite manufacturers, or for our role on a team of multiple companies that are gonna put together a solution. That's, that's definitely been steady and solid. With us now, you know, we have a lot of expansion in the full satellite level, but with the high-volume manufacturing, it means that, you know, we're able to, both on the, on the bus or platform side of satellites and the digital payload or the, you know, the digital guts of the satellite, you know, that's all coming into high-volume production.

It also means that from a subsystem perspective, you know, if someone just wanted to use our bus or someone just wanted to use our digital payload or a component of it, we're in a strong position to be able to supply that and supply it at speed and good value because of the high volume that comes from the full satellite production. There are a number of opportunities out there that have potential for us to, you know, either team with others to be able to take on a, you know, a certain program or capability and/or just supply folks subsystems to be able to support their efforts. That remains a strong part of the business, and it's good business for us.

It really helps us keep the volumes up as well.

Great. Thank you.

Yep.

We will now have Ken Herbert from RBC Capital Markets. Please go ahead.

Yeah. Hi, good morning, Mike and Guillaume.

Hey

maybe Mike, yeah, just wanted to maybe start on MDA MIDNIGHT. Can you talk about initial customer reception there and maybe how we think about sort of the launch of that and when we could expect some more announcements around customers and potential opportunity there?

It's a key moment, this MDA Midnight announcement. The market in general, as defense continues to be a recognized and important factor of the activities in space, you know, we sort of transitioned where things that were sort of historically talked about, you know, behind closed doors are, you know, increasingly being recognized as important more out in public. That's, you know, our leadership really, which we've demonstrated here by announcing a product into the market to do space control is a key part of this, of this transition or emergence of the true defense opportunity. Certainly there's a number of companies.

A recent market study has identified 13 countries that are talking about, you know, space control or space control, you know, guard satellites, is another word that's often used for their country. There's definitely an emerging market there. For us to come out in public and say, you know, we've spent some time, we've got a product, we're gonna build this and fly it, and that we're out there seeking any discussions people wanna have on two fronts. One would be defense customers in terms of their interest in acquiring this capability. Then the others would be in payload providers. Folks that are building sensors or electronic warfare capability and the like, that could be placed on a space control spacecraft.

Let it be known that we have a product here and that, you know, customers are gonna want different variants of it, and so we're really open for discussions on, you know, what can we do. As a result of those announcements that we made in April, there's been great pickup in conversations. The important thing from a pipeline building perspective was to, you know, lead commercial industry first, indicate clearly we have a product, say that loud and proud to the world, and then start engaging in conversations with both the 2 groups I mentioned, the defense customer and the potential payload partners. Both of those areas have been steady and have picked up since the announcement, we're strongly encouraged.

In terms of when that might convert into like, you know, additional order or things like that, you know, we'll see. That'll, that'll take some time because that's, you know, we're in government procurement here. In this, in this conversation, we're trying to sell, you know, protective spacecraft to militaries. Certainly governments are more interested in sovereign capability and taking care of themselves. They're interested in doing defense procurement faster around the world, but still government procurement. We'll be working through this over the next, the next year or two and see what we can, see what we can sign up.

That's great. Thanks, Mike. If I could just, you've obviously rolled out now the new chips arriving onto the Lightspeed line or the MDA AURORA line. Can you just maybe level set us on where you stand with progress there on MDA AURORA, but I guess more importantly, any change or any update in terms of the assumptions around sort of where you are on the learning curve from a cost standpoint and, you know, sort of the financial implications with this progress or major milestone on either Lightspeed or obviously the MDA AURORA program more broadly?

Yeah, I think it's really exciting that we're, you know, that we've now got chips in production and deliveries are occurring, and we're able to really move forward with this, these digital satellite assemblies, which is excellent. The other good story, the other good thing I just wanna mention on that whole chip thing is that, you know, as teams complete, you know, have completed their designs and are in production now of, you know, this first version of technology that we've had following our SatixFy acquisition, it frees up the team to also look at the roadmaps for, like, version 2 and version 3 with, you know, consistently enhanced levels of capability moving forward into the future.

This was another extremely important strategic aspect of that acquisition, that we get our hands on this technology, we'll be able to control our roadmaps for both the chips and then therefore the digital satellite itself. It's the overall satellite roadmap, and be able to ensure that production can scale with the size of our pipeline. All those things are working out extremely well and we're excited about that. In terms of moving into production more on these digital satellites and, you know, what are we seeing about cost? We're not anywhere near the volumes yet that would allow us to have that learning. It's we've always said that's a 2027 thing, is to say, "Okay, what are we seeing in terms of cost?" Is there scaling benefits here?

Can we see the opportunities for margin expansion? That'll be at the end of 27. It's during 27 we'll build a couple other satellites at least, and that would really give us the chance to say, "Okay, we can really see what we can do here.

Great. Thanks, Mike.

Okay.

Our next question will be coming from David Maffei of ATB Capital Markets. Please go ahead.

Oh, great. Excuse me. I was wondering if you guys could give us an update on the ESCAPE program and when we might hear some news on that for you?

Yeah. ESCAPE is the acronym that's used for what we announced in November of 2025, which was a strategic agreement with the Department of National Defence and with Telesat. With that strategic agreement, doing this under the new Defence Investment Agency, it allows the teams to move much quicker than historical. You still have to go through the same sort of largely the same governance process within government. It allows us to work really closely with the Department of National Defence, you know, to work through the process.

You start off with, you know, working through the various options that you have there to be able to do a program like that, get down to recommended options, and then need to go and get those approved so that you can then get really moving forward on the option that you know you're gonna implement. That work is has progressed amazingly fast, amazingly well. It's been excellent through the fall and the winter. You know, as we go through 2026, we would expect to, you know, have those decisions made and approved and allow us to move on to the next phases of that, which would hopefully allow us to then, of course, talk out loud about where we're going with that.

The program is solid. It's been budgeted as a, you know, CAD 5 billion-plus size program historically, and talked about that publicly. We're in there working away on it and getting it through its approval processes to formally move into the next phase or the next step, which we would expect to happen in 2026.

Do you expect that you might have some news, I'll say within the coming months? That's what Telesat has said, that there should be news on this program in the coming months. I was just wondering what the timing might be for you.

You know, like, we're all in the same mix. Yeah, it just depends on how you speak. You can say in the coming months or in 26, that's the same thing to me. Yeah, it is something that's coming up as we go through the next two quarters here for sure.

Just one additional one, if I may. If the government wants MILSATCom and X-band and UHF, clearly you have to put up new satellites, new constellation. Who do you think would own this new constellation if it goes up?

I don't know. Like that's all part of the options and stuff. Historically, if you look at historically, governments have owned and operated their military satellites, but there is increasing opportunities commercially that governments are starting to leverage. You know, both of these types of options are available. Obviously on the Ka-band side, you got Lightspeed there as a strong service in Canada. You just asked about though the other frequencies where satellites would have to be built. You know, historically, the Department of National Defence would own and operate that kind of a capability.

Okay. All right. Thank you.

Yep.

Our next question comes from Seth Seifman of JPMorgan. Please go ahead.

Thanks very much and good morning. I wanted to ask about the GEO business and, you know, we've seen some nice growth there over the past two quarters. You know, would you think about where we are now at this as kind of a run rate level for the business? Then, you know, as I think out about the CHORUS launch. You know, how do we think about the potential for further growth in that business beyond this year and the potential margin implications of that?

I think that, it's been nice to see that business kind of being steady or even having some small single-digit growth. It's been nice to see RADARSAT-2 sales, just very, very slightly, but increasing. You know, you got a satellite that's been up there operational for 15 years, and you've got increasing sales on it. That's awesome. Not because MDA CHORUS is coming. Customers know they can build a relationship with us and have continuity well into the future, and expanded services well into the future, as MDA CHORUS gets launched and operational. With the positivity that we've seen around MDA CHORUS, I mentioned in my remarks that we've got, you know, 40, 41 different conversations that are going on right now, and 9 of them signed contracts.

The remainder has letters of intent that as we approach launch and get past launch, will then convert into signed services contracts. That's all very, very exciting. With that and the expanded services that will come from higher capability satellites and the tipping and queuing relationship, you know, between a broad area surveillance satellite and a zoomed-in follower, that's gonna be It's an exciting new, like, world first commercial service in this area. People are excited about that, and we would expect to get, you know, we need to use a bunch of 2027 to, you know, get this all up and operational and working.

As we go through 2027 and people get experience with these new capabilities, within their signed contract frameworks, we would expect to start to see growth as we go through the latter half of 2027 and into 2028. We should see some pickup there. It's our intent as well. You know, we do a lot of work looking at our analytics capability, exploring the opportunities for artificial intelligence to be used in doing analytics going forward into the future, in addition to our relationships with other sensor providers and other analytics companies. Looking at partnerships, you know, globally in terms of how can we make the most out of this capability.

There's a number of opportunity vectors that we're gonna have to be able to expand our leadership position there in geointelligence.

Great. Great. Excellent. I guess, anything to note or anything you'd say about the M&A environment and the opportunities that are out there now?

Yeah. It's, it's a, it's a solid M&A opportunity environment. You know, there are opportunities around the world. There's definitely, you know, books to be reviewed that are in play around the world. You know, we engage in that always, to see, you know, to see what's what. Towards our goals of. We've always had the same 2 M&A goals. 1 would be opportunities for, you know, smaller things typically that would add to vertical integration, that would allow us to, just like we did with SatixFy, have more control over our roadmaps and/or influence over our ability to scale. We will continue to always track those types of things.

You know, geographic opportunities in Europe or the U.S. that could allow us to become more present in those markets. We continue on that same pattern, and there are definitely things to talk about. That's good.

Okay. Excellent. Thank you.

Yep.

Our next question comes from Greg MacDonald of Stifel. Please go ahead.

Yes, thanks. Good morning, guys. Thanks. Mike, I wanted to ask a follow-on question on MDA Midnight. I'm thinking of it this way. You have a lot of expertise in robotics, obviously. Can you talk a little bit about the technical expertise in that product and in terms of what I'm really trying to get at is how difficult or easy is it for a competitor to replicate this product? Where do you stand kind of globally when it comes to this product?

Yeah, I think if you look at a, you know, I guess, space control type of a capability, there's a few things that are there. You need a solid platform that's got good maneuverability. In addition to you wanna pay attention to the kind of, you know, protection of that platform to make sure that it can, you know, be slightly protected, be a bit jam proof, that type of thing. You know, we've got capability there. You need to have good sensor capabilities to be able to sense and monitor and track other assets in space, other activity in space. We have a strong sensor capability there. You need the ability from a kind of electronic warfare perspective to actively or passively or actively, you know, deter another spacecraft.

If necessary, you know, get involved in proximity operations where you're, you know, getting very close to or engaging with another spacecraft. Those categories of capability exist in the market, so people can definitely, and people are, you know, obviously assembling, you know, guard spacecraft and space control spacecraft around the world. In terms of some of our unique capability, one of the things that's unique about us starts from our high volume production of MDA AURORA. A number of folks will, you know, may say, like, "I'm gonna build a space control spacecraft," and they'll kind of work away on it and build one. Our ability to grab an AURORA bus, do some, you know, some mods in terms of maneuverability and protection to that AURORA bus.

Grab an Aurora bus off a high volume assembly line, and then convert that into a space control spacecraft, is unique around the world. Others don't have that high volume base. For military capability, that creates a fair amount of interest. In terms of our high-volume production satellites and getting into a phase now with MDA SKYMAKER of having standard robotics. That aspect of it is attractive to folks in the market. In terms of RPO rendezvous and proximity operations, the level of experience that we have over the decades of being involved in this is extremely high. We've got really good solutions there.

Of course in robotics itself, our robotics and space operations team has like, literally within our team, millions of hours of experience, you know, developing the procedures for and supporting the grabbing of things in space. Outside of NASA, you know, we would be the most experienced company in the world in this area. That's another really strong capability in our favor. Another part of space control is also being able to provide the military with the ability to maneuver, which can involve refueling. We've, you know, we've been working on refueling for decades.

You know, as far back as 2007, we flew our first demonstration of fluid transfer between two satellites back in 2007 on a mission with NASA. You know, we have had tens of millions of dollars of funded research and development on refueling and refueling interfaces of prepared and unprepared satellites. There's some strong capabilities that we have there from high-volume production, re-rendezvous and proximity operations, refueling capabilities, and robotics and maneuver capabilities, including the operation of those robotics in orbit that will be able to provide us with a distinct advantage in this market.

Great. That bus integration was gonna be my second question. Thanks for that.

Yeah.

The second question I have for you is this just for military customers or one might assume that mega constellations might be looking to protect their satellites as well? Do you see an opportunity in the commercial side?

Yeah. We haven't had that yet. Like, you're right, it's a logical thing people could think about. It is a dual use technology set though as well. Like, you know, if you have a vehicle that can sense other vehicles and approach them and interact with them and do things, you know, there is a civilian market for on-orbit servicing that exists. There's also a thing we call ISAM, which is for in-orbit, you know, service, assembly, and manufacturing. You know, there's definitely a commercial value in this configuration. We're taking it to market as a product targeted at the military and MDA MIDNIGHT as a space control platform. It is a dual use technology set, and it definitely has application.

As commercial infrastructure activities continue to expand in orbit, this capability will have a commercial application as well.

Great. Last, Mike, anything in the pipeline for MDA MIDNIGHT yet?

I would say not really. Like, there's activities that we're driving. We always had, I think, at least one opportunity in there, but yeah. There's maybe at least one or two. I was thinking more is there like, new stuff that's suddenly come in since the announcement of it in April? I would say I don't think we've added anything since April, but we've had one or two there previously.

Okay. Very helpful. Thank you.

Yep.

We will now have Edison Yu from Deutsche Bank. Please go ahead.

Hey, good morning. Thanks for squeezing us in. Wanted to ask you about a broader topic that has, I think, become very hot in the industry, space data centers.

Yep.

I'm curious, what do you think about kind of viability and also let's assume for a second that it is viable, what kind of role you would play in that ecosystem?

Yeah. I think that, we're definitely seeing an increased focus in just We don't wanna just say the word data center yet, but if we say space compute. The ability to have, you know, increased levels of computing power in orbit, to be able to do things, that's definitely an increasing theme in the market. For us, now that we're vertically integrated down to the chip level, we're developing and including our own onboard processors on satellites. You know, we're You know, everything's becoming more digital. There's more levels of processing. Our roadmaps are including increasing levels of processing at the edge, we would call it, so out there on the satellite.

That's gonna be applicable to all areas of our business in terms of having increasing levels of processing for Earth observation satellites, in the future, for communication satellites and network traffic management in the future, and for, you know, intelligent robotics that we were just talking about that can do servicing and other activities, in orbit. This, this notion of more onboard compute and more intelligent AI-based onboard compute, for sure that's gonna increase. There are folks that engage with us, and we talk to people about having onboard computing that can support Earth observation, communication, and other networks in space.

That instead of just transmitting things to the ground like you do today and having, you know, ground-based processing environments that you could do more processing in orbit and then just send the answer down to the ground. That's an increasing trend and is causing increasing opportunities for us to look at, you know, delivering more powerful computers in orbit to support people. Those, those conversations are ongoing. When you say data centers like that, I imagine that's like, you know, there's pictures in the media and stuff like that of these football field-size objects that are like, you know, big computing parks in orbit of some kind. I have not had enough experience to, you know, really get through the viability of all of that yet.

The rationale that people say it makes sense to have those may or may not really make sense. Some of the technical challenges I don't think have been fully solved. Even some of the largest proponents of a space-based data center say they think that that's a possible idea, but they're not quite sure, you know, if that can all be done. There's a lot to work out there going forward. If it ever catches, you know, we would have the opportunity to contribute.

Certainly, any space infrastructure like that that's large and has to be assembled, our conversations about on orbit servicing and assembly and the application of robotics, you know, that's gonna be a strong play there, in terms of our ability to work remotely in orbit and assemble and maintain, you know, any piece of large infrastructure, whatever it is, whether it's a data center or a power station or what have you know, we would have opportunities to be engaged in that.

In terms of the actual data centers themselves, those satellite structures and processing, I think we have to see how that goes to be able to answer that question in terms of like, you know, if people find architectures that are gonna work, then, you know, what do those look like? We'll just hold judgment on that for the moment until it matures a bit more.

Understood. Understood. Appreciate the color. A follow-up question on just some of the activity you're seeing in Asia, in APAC. Obviously, you announced the Hanwha MOU.

Yeah.

I think just this week there was some news about Reliance wanting to build, you know, big LEO. Any sense on, like, maybe timing, when we could get some awards coming out of Asia, just more generally speaking and, kind of the magnitude of those awards?

Yeah, I think they, you know, the certainly over the next couple of years, that's possible. Some things could move quicker than others, in those markets. In some cases, there are opportunities to just, you know, support some smaller scale things with key satellite technology to help some folks out. In other cases, as you've indicated, like, you know, you used some examples there, but there are others in terms of like, you know, larger constellation projects in the market. There you get into the, you know, the multi-billion dollar size opportunities that are, you know, larger constellations.

Certainly, as you go around the world, the notion of sovereign capability is one of the single largest driving factors in the current market and the current pipeline evolutions, you know, of the last six months and certainly the next couple of years moving forward. The number of nations that want to have or want to consider potentially their own constellations for Earth observation or communication, and generally want to, you know, you know, to what extent can I just take care of myself in space and not rely on, you know, deals with other nations. That, that's such an increasing theme that it's, it's definitely causing a number of new conversations around the world. They grow, like, every month or two right now. There's, like, new ones that are coming out.

You know, that's gonna create solid opportunity in all parts of the world, but including the region that you're talking about, over the next couple of years. It really just depends on, you know, in a number of cases, you know, government-linked procurement and how fast people can actually move to get it in place.

Great. Thank you.

Okay, thanks.

Our next question comes from Konark Gupta of Scotiabank. Please go ahead.

Thanks. Good morning, everyone. Just following up on the C3, the Canadarm3, program. I mean, Artemis has been, you know, relatively stable, I would say, regardless of what's been questioned about NASA's budget over the last couple of years. Obviously, every time the news on the NASA or the Artemis came out, and, you know, obviously investors have reacted to that. I'm just curious, you know, like, what are you hearing about Artemis going forward? I mean, I understand your contract is with Canadian Space Agency, not with NASA directly. At the end of the day, if Artemis has any implications from NASA budgets, that might, feed into your Canadarm3 program as well, potentially.

Any thoughts into, you know, how sustainable you think the Canadarm3 program is regardless of the news that we hear every day?

Yeah

what's the opportunity remaining there?

Yeah, there's a couple of things in what you're saying. In the first one on the Artemis program, it remains an extremely high focus and high priority activity. I think I saw the NASA Administrator, Jared Isaacman, announce 2 new countries in the last quarter join the Artemis Accords. New countries are still coming in to the Artemis Accords to be part of the group of people that want to work together to live and work on the Moon. That focus continues to dramatically increase. The United States public focus to wanna get to the Moon and start living and working there in a bit of a timing race against, you know, a China-led consortium is an important driver in all this.

There's like a sort of no holding back focus on getting to the Moon. Where you've seen NASA trim budgets in other places, you know, it's been or, you know, take, you know, stop doing certain things, it's been to massively increase their focus on living and working on the Moon. I think it's very clear that that's a dominant focus in this game. In addition to the notion that was stated by Administrator Isaacman in his ignition event that occurred in March, the focus on speed, the focus on don't polish a rock, don't make some perfect space object here. I think his phrase was that a 70% solution delivered quickly is good enough at this phase.

It's important to get up there and get working and get experience, and has announced a, you know, a large, rapid pace of multiple missions, you know, to get to and land on the Moon and get going and try things out. That's a tremendous opportunity that comes from that for other nations to contribute technologies and solutions to that and to be a part of that through the Artemis Accords. You come to Canadarm3. Canadian Space Agency therefore is gonna wanna have technologies and capabilities that are part of that return to the Moon. Canada has always been a leader in space collaboration since the beginning as the third country into space with satellites after the U.S. and the USSR. Canada's gonna wanna lean into that, to make sure that they're a part of it.

You know, we see strong opportunity for Canadarm3 technology and the commercial derivatives of that, which is the MDA SKYMAKER line that MDA Space takes to market commercially on the moon for the lunar surface. Again in other commercial applications for space stations and debris removal and assembly and manufacturing, a number of the things we talked about today, in other orbits such as low Earth orbit. We're very positive about the opportunity here. The good thing for us is it's full steam ahead.

Keep the project team working on Canadarm3 and keep getting its work done while we do a little bit of activity to reconfigure the, you know, the final outcomes in terms of what are the exact applications that we're gonna tailor this for as we complete the project. It's a good moment. We just gotta work through a couple things.

That is very reassuring. Thanks, Mike. If I can follow up on the backlog comments you made early on in the call. It seems like you're having some new discussions, and you've talked about some exciting opportunities in those discussions. Any concrete examples, even if it's early stage, you know, what kind of exciting opportunities are these? Are these out of your core or within the core and they are more like ancillary or more sort of, you know, tangential to what you do? Any examples? Thanks.

Yeah, I think the, you know, I think the bigger exciting things are gonna be like new conversations around low Earth orbit constellations around the application of the MDA AURORA and high volume manufacturing, you know, to these opportunities. I think that it's just great to see like the number of those that's increasing people want to talk about is continues to grow, which is great. You know, we will fully engage in all of those and in conversations, well certainly with ones that we think have a chance of success. We do a bit of screening in our pipeline, but it's like it's positive right now. It's, there's a lot of bidding activity.

The bid activity is very intense and we will continue to be fully engaged in that and, you know, make announcements or contracts when they come.

Great. No, thanks. All the best with that.

Okay, thanks.

Thank you. Please be advised that we are at the end of our conference time. This is all the time we have for questions today. I would now like to turn the call back over to Mike Greenley for his closing remarks. Please go ahead.

Thanks a lot. Thanks for your time, everyone, this morning. It sounds like we had to cut it off there because of time. Maybe there were some questions that didn't get asked. Sorry about that. It's excellent though that the amount of folks tracking us and wanting to talk to us and ask questions of us is increasing. We really appreciate that and, you know, we'll always take more there. We look forward to updating you on our progress on our next earning call in August of course. We will keep at it here and come back with the latest news of the day in the next quarter. Thanks again.

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

Good morning, and welcome to the MDA Space Ltd. Conference Call and Webcast. This call is being recorded on March 4, 2026, at 8:30 a.m. Eastern Time. [Operator Instructions] For those participating via webcast, please note that the company has included a presentation. Webcast participants can advance the slides by using the arrow seen in the presentation window. [Operator Instructions] I would now like to turn the call over to Jim Floros, Vice President of Investor Relations at MDA Space. Please go ahead.

Thank you, Kel. Good morning, and welcome to MDA Space's Fourth Quarter and Full Year 2025 Earnings Call. Mike Greenley, our CEO; and Guillaume Lavoie, our CFO, will lead today's call and share some prepared remarks before taking your questions. A couple of housekeeping items before we begin. 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 available from our Investor Relations website as well as SEDAR+. 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 press release and public filings regarding various factors, assumptions and risks that could cause actual results to differ. In addition, during this call, we will refer to certain non-IFRS financial measures. Although we believe these measures provide useful supplemental information about our financial performance, these measures 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 quarterly report and other public filings for more information about these measures, including reconciliations to the nearest IFRS measures. And with that, it's my pleasure to turn the call over to Mike.

Thank you, Jim. Good morning, and thank you to those joining us today to discuss our fourth quarter and full year 2025 financial results. Before we get into our update, I want to start by acknowledging and thanking the MDA Space team for delivering another exceptional year of performance, our best yet since the IPO. The level of growth we achieved this past year would not have been possible without your hard work, innovation and total mission focus. Our talented teams around the world are the reason we continue to be a trusted mission partner and leader in the expanding space and defense industry. In 2025, we delivered record results for both revenue and adjusted EBITDA. We grew revenues to $1.6 billion, an increase of more than 50% year-over-year and expanded our adjusted EBITDA to $324 million, up almost 50% versus last year. In addition, we maintained solid adjusted EBITDA margin of approximately 20% for the full year 2025. Our financial performance enables us to continue investing in our business as we deployed $242 million in capital expenditure to support our growth initiatives while also generating positive free cash flow of $165 million. Taking a step back, 2025 built on MDA Space's track record of consistently delivering growth over the long term. Since 2020, our backlog has grown 7x to $4 billion, underpinning a revenue growth CAGR of 32% over the past 5 years, exceeding our stated goal of 20% to 30%. Importantly, this growth has been profitable with demonstrated adjusted EBITDA margin of 20% yet again in 2025. A key driver of this profitable growth relates to the investments we've made to develop industry-leading products and capabilities. We have been deliberate in our focus on R&D as a differentiator for MDA Space. We were ranked 32nd within Canada's top 100 corporate R&D spenders this year. This is the third year in a row where MDA Space has been included in this ranking. In addition, MDA Space ranks within the top 20 Canadian companies when it comes to overall size of our portfolio of patent families and within the top 10 Canadian companies when it comes to the annual patent filings in Canada over the last 5 years. We leverage our R&D investments to deliver value to our customers globally, and we combine this with disciplined operational execution to convert top line growth into profitable cash-generating operations, resulting in a robust balance sheet and a conservative leverage profile. This provides us with flexibility to continue investing in our business to capitalize on growth in our industry as evidenced by the investments we are making in developing commercial and dual-use products and services, expanding our manufacturing capacity and increasing our vertical integration such as the acquisition of SatixFy. Looking ahead, I'm pleased to introduce our 2026 financial outlook. Our backlog of $4 billion at the end of 2025 provides us with strong revenue visibility. And for the full year, we expect revenues to be $1.7 billion to $1.9 billion, representing year-over-year growth of approximately 10% at the midpoint. We expect full year adjusted EBITDA to be $320 million to $370 million, representing year-over-year growth of approximately 7% at the midpoint, with adjusted EBITDA margin of 18% to 20%, in line with our original IPO guidance. We expect capital expenditures to be $225 million to $275 million to continue to support our growth initiatives. And lastly, we expect free cash flow to be neutral to negative for the full year due to normal working capital fluctuation on our existing programs and continued investments in growth CapEx. As we think beyond 2026, the team is energized by the strong momentum and positive trends we are seeing in our end markets, and MDA Space has the right technology portfolio to capitalize on the opportunities ahead of us. We continue to expect to deliver significant revenue growth on average over the next several years. All over the world, governments, defense agencies and corporations are finding new and valuable ways of using the capabilities of space with the benefits of space-based and dual-use solutions expected to grow significantly in the coming years. The space economy is estimated to have grown to USD 626 billion last year, according to Novaspace's Space Economy report and is forecasted to surpass $1.8 trillion by 2035 according to the World Economic Forum projections. A tenfold reduction in launch costs over the past 10 years, combined with more powerful satellite technologies supported a record 329 launch attempts in 2025 and 98% of those were successful. Demand for space-enabled global connectivity is expected to result in more than 43,000 satellites to be launched over a decade starting in 2025. Renewed interest in space exploration is expected to increase the number of missions by 185% over the next decade to 855 with a significant emphasis on establishing a sustained presence on the moon. And space is increasingly emerging as a mission-critical and essential military domain, complementing the traditional fields of air, land and sea. Over the past year, we have observed defense spending on space by the world's leading powers surge to unprecedented levels as space has become critical to safeguarding national interest in evolving geopolitical environment. In particular, the U.S. dedicated $175 billion to its Golden Dome space defense architecture, Germany pledged EUR 35 billion for next-generation satellite and space situational awareness capabilities. And here at home, Canada confirmed that space will be a core element of its current 2% of GDP NATO defense spending commitment with plans to increase this budget to 5% of GDP by fiscal year '35, '36. At 5% of GDP, this would translate to approximately $155 billion in annual spend for Canada, an increase of $90 billion compared to fiscal year '25, '26. And we expected a meaningful amount to be allocated to defense-related programs for which MDA Space is well positioned to deliver given our long-standing heritage of being a trusted contractor for both space and defense opportunities with the Canadian government for decades. And recently, we have demonstrated that MDA Space is in a strong position to participate in defense opportunities through recent announcements such as the strategic partnership with the Government of Canada's Department of National Defense and Telesat to develop and deliver military satellite communication capabilities in the Arctic, a $5 billion-plus program of record. In addition, we were awarded a contract on behalf of the Canadian Space Agency to procure long lead parts for the RADARSAT constellation mission replenishment satellite, part of government's $1 billion RADARSAT+ initiative. We have also been selected as an approved supplier by the U.S. Missile Defense Agency, receiving an IDIQ contract related to the SHIELD program and established an MOU with Hanwha Systems to explore opportunities to collaborate on the development of South Korea's sovereign K-LEO defense constellation. Supplementing this will be opportunities to participate as a key supplier of satellite subsystems similar to contracts we were previously awarded to support U.S. Space Development Agency missions. Beyond space, we are also in a strong position to be Canada's national defense champion. Leveraging our deep mission experience and complex defense capability that has supported Canadian and allied operations for decades, we recently launched 49North, a dedicated defense organization exclusively focused on delivering secure multi-domain C5ISR and mission-critical capabilities for Canada's national defense priorities outside the space domain. This launch reflects increasing demand for sovereign defense capability across land, air, maritime and joint domains. By bringing together proven defense and mission-critical systems expertise under a dedicated organization, we enhance focus, accountability and disciplined program execution. 49North will be focused on building a strong pipeline in non-space defense, actively partnering with domestic and global industry and investing in the capabilities required to support Canada's national defense priorities. All this activity bodes well for the continued growth of MDA Space as we are pleased to announce today that as a result of our annual pipeline review and strong market and customer demand, our pipeline contains $40 billion in cumulative opportunities over the next 5 years. Within this pipeline, $10 billion includes either opportunities with government customers that have downselected MDA Space or follow-on opportunities with existing customers. For opportunities where we have been downselected, this means we are now part of a narrow list of candidates who have moved on to the next stage with the contract award process. In addition, our pipeline is well distributed between government and defense and commercial opportunities. The geographic distribution is balanced between significant opportunities here at home in Canada and the United States with growing opportunities within Europe and other parts of the world, including Southeast Asia. This pipeline should allow us to continue to diversify our customer base and international footprint and combined with our backlog provides us with confidence to continue to drive profitable and stable revenue growth for years to come. I'll now spend a few minutes on each of our business areas. In Satellite Systems, we continue to see good momentum in the market with our teams working to advance multiple requests for communication satellite solutions and a growing number of constellation projects, both for commercial and government applications. We are also seeing strong activity levels from customers and our opportunity pipeline remains robust. Over the past year, our Satellite Systems business delivered year-over-year growth of 85%, a remarkable achievement. On Telesat the Lightspeed program, we continue preparations for the program's engineering and manufacturing development and continue to make progress on completing the final critical design review. We expect to begin delivering a small number of satellites in 2026 with deliveries ramping up in 2027. The team continues to work on the Globalstar next-generation LEO constellation. We achieved a significant milestone with completion of the critical design review. Work is being carried out through development activities on life testing of equipment and procurement activities are advancing with equipment deliveries taking place. We have also begun assembly and integration activities of the first satellites. We also continue to advance work on the initial Globalstar program, where MDA Space is the prime contractor to enhance Globalstar's LEO constellation through the addition of 17 satellites, which support SOS features and direct-to-device communication on certain Apple products. In Q4, the team continued to progress flight hardware production and advanced satellite integration and test work with 15 satellites currently on the shop floor in our facility with 8 satellites successfully completing functional acceptance testing. After experiencing some delays last year, we are tracking towards the revised time line established in Q4 for deliveries this year. We are also making great progress with our Montreal facility expansion, which will add 185,000 square feet to our existing satellite production facility. The manufacturing and engineering group that will support the new production lines have moved into new office space, and the new facility now contains printed circuit board production lines and is capable of producing flight hardware. Once complete, this facility will be one of the world's largest high-volume manufacturing facilities in its satellite class. Finally, we have entered into a termination agreement with EchoStar following the cancellation of the contract they awarded us last year, and we are turning our focus to the other opportunities we are pursuing within our pipeline. Moving to our Robotics & Space Operations business. We continue to see good traction and activity levels on both the government and commercial fronts. As the world leader in on-orbit space robotic operations and decades of experience in building and maintaining the current international space station, we continue to engage with commercial LEO destination companies to provide inputs to their design concepts for SKYMAKER robotics compatibility. MDA SKYMAKER is our commercial suite of robotics products specifically designed to be configured to suit a variety of mission applications, including space station assembly and servicing. While the International Space Station is currently slated to be retired by 2030, NASA is supporting the development of commercially owned and operated space stations in low earth orbit, which the agency, along with other customers can purchase services and stimulate the growth of commercial activities in microgravity. We expect NASA to release the procurement call for the next phase of CLD development in the coming months, and we look forward to continuing to support the CLD candidates in their system development and bids to NASA. This past December, we successfully demonstrated our autonomous lunar logistics capabilities through a prototype vehicle developed for the CSA's lunar utility rover. Using the CSA's analog train in Saint-Hubert, Quebec, the demonstration showed our capability to autonomously transport large cargo elements from a landing site to a habitat, robotically manipulate smaller payloads and have multiple autonomous vehicles coordinate motion and work together on tasks. These are key logistics capabilities pivotal to humanity's return to the moon, and we are proving that we can deliver. Lastly, our team continued to make progress on executing Phase C of the Canadarm3 program while ramping down on Phase B activities, conducting closeout activities throughout Q4. The team is focused on building and testing engineering models of the system elements while working towards critical design review. Moving to our Geointelligence business. In Q4, we were pleased to have been awarded a $45 million authorization to proceed contract by the Canadian Space Agency for critical long lead parts that are required to build a replenishment satellite for the RADARSAT constellation mission as part of the government's $1 billion RADARSAT+ initiative. Alongside this ATP contract, the CSA also announced its intention to further contract MDA Space to build, test and launch this replenishment satellite. In addition, we were selected to deliver a concept study to support the development of RADARSAT+ next-generation mission to eventually succeed the current RADARSAT constellation mission. In Q4, the team also continued to progress work on CHORUS. Our spacecraft electrical integration and testing activities progressed well through the end of the year and made solid progress in testing the full SAR antenna, which was well characterized on our near field test range. We started to validate some of our flight control procedures related to the ground segment and construction work continued for the new mission control center, and we continue to track to our launch window in late 2026. Before I hand it to Guillaume, I want to mention that Alison Alfers has resigned from the Board of Directors due to unexpected family circumstances effective March 3, 2026. Ms. Alfers has been a valued member of the Board since 2022, supporting MDA Space during this exceptional period of growth. We are grateful for her contributions and extend our sincere thanks and best wishes to her and her family. With that, I'll hand it over to Guillaume.

Thank you, Mike, and good morning, everyone. Overall, both Q4 and full year 2025 delivered record results with solid growth in revenue and profitability, combined with strong free cash flow generation and a solid backlog to end the year, positioning us well for 2026 and beyond. Total revenues for the fourth quarter were a record $499 million. This represents $153 million or 44% increase over the same period last year. The year-over-year increase is driven by higher revenues from our Satellite Systems business, including the impact of the EchoStar termination agreement. On a full year basis, total revenues were also a record, coming in at $1.63 billion, an increase of 51% over 2024. The year-over-year increase in revenues was primarily driven by higher volumes of work performed, again, primarily in our Satellite Systems business. By business area, revenues in Satellite Systems of $371 million in the fourth quarter of 2025 were $137 million or 58% higher compared to the same quarter in 2024. The strong showing was driven by the increase in volume of work on the Telesat Lightspeed program, the Globalstar next-generation LEO constellation program and the impact of the closure of the EchoStar agreement. On a full year basis, revenues for Satellite Systems increased to $1.1 billion, which represents an increase of more than $500 million or 85%, which is remarkable from the same period in 2024. And then again, this was driven by volume of work on the Telesat Lightspeed and the Globalstar next-generation LEO constellation programs. In Robotics & Space Operations, revenue of $66 million in the latest quarter were in line with the levels seen in Q4 2024 and in line also with our expectations for this quarter due to timing of revenue recognition on nonlabor costs. For the full year 2025, revenues were $309 million, translating into a year-over-year increase of $29 million or 11%. This increase is primarily driven by the higher volume of work performed on the Canadarm3 program as volume of work on Phase C activity increased throughout the year. Revenues in our Geointelligence business of $62 million in the latest quarter represents an increase of $15 million or 31% year-over-year due to volume of work on programs. For the full year 2025, revenues for Geointelligence were $214 million, representing a $12 million or 6% increase compared to 2024. Moving to gross profit. For Q4 2025, gross profit was $127 million, representing a $45 million or 55% increase over the same period last year. Gross margin in the latest quarter was 25.5% and compares to 23.6% for the same period in 2024. For the year, gross profit was $410 million, representing $128 million or 45% increase over 2024. Gross margin for the year was 25.1%, which compares to gross margin of 26.1% in 2024. The year-over-year change in gross margin is driven by evolving program mix. Adjusted EBITDA in the quarter was a record $96 million compared to $71 million in Q4 2024, driven by higher volumes of work as we continue to convert our backlog. Adjusted EBITDA margin was 19.3% in Q4 and the slight decline in margins compared to Q4 of last year is attributable to our evolving program mix. On a full year basis, adjusted EBITDA was also a record, coming in at $324 million, up from 2024 levels of $217 million, representing $107 million or 49% year-over-year increase. Adjusted EBITDA margin of 19.8% for the full year 2025 compares to 20.1% for 2024 and is driven by, again, an evolving program mix. Adjusted net income in the quarter was $59 million compared with $35 million in Q4 2024 and the year-over-year increase of $23 million or 67% was primarily driven by higher operating income. Full year adjusted net income of $190 million was up 71% year-over-year, also largely driven by higher operating income. And finally, adjusted diluted earnings per share of $0.45 in Q4 and $1.46 for the year were up 61% and 66%, respectively, versus the same period last year. Moving to our backlog. We ended the quarter with a solid $4 billion backlog, which is slightly below December 31, 2024, driven by continued conversion of our backlog into revenue. This is normal and is to be expected due to the order level in 2025, which will vary from 1 year to the other. We continue to expect that MDA Space will be a growing company, supported by our pipeline containing $40 billion in cumulative opportunities over the next 5 years. As mentioned by Mike, within this pipeline, $10 billion includes either opportunities with government customers that have downselected MDA Space or follow-on opportunities with existing customers. Moving to CapEx. We remain focused on making the right investments in the business to support our strategic growth initiatives. In Q4 2025, we spent $70 million on capital expenditures, up $61 million from last year. We continue to be on track with setting up production lines to ramp up high-volume satellite production, and we have virtually completed our investment in MDA CHORUS. In addition, we have started to capitalize work related to our space-grade chip following the acquisition of SatixFy. On a full year basis, our capital expenditure was $242 million compared to $198 million in 2024. We demonstrated once again this year that we can execute our investment plan to deliver sustainable and profitable growth in the future. Cash from operations during the quarter generated $51 million compared to $376 million in Q4 2024. The year-over-year decrease is primarily driven by normal program-related working capital fluctuations in the quarter. Free cash flow was slightly negative at minus $20 million in the quarter versus positive $315 million in the prior year. For the full year, cash from operations generated $407 million compared to a cash generation of $813 million in 2024. The year-over-year decrease in operating cash flow, again was driven by normal program-related working capital fluctuations, including higher advanced payments received in 2024. Free cash flow was a healthy $165 million in 2025, in line with our guidance of neutral to positive free cash flow for the full year and compares to prior year free cash flow of $615 million. Moving to our balance sheet. We ended the quarter with a strong financial position with net cash of $152 million, available liquidity of $669 million under our credit facility and a total available liquidity of $821 million. Our net debt to trailing 12-month adjusted EBITDA ratio was a healthy 0.4x. In the quarter, we strategically evolved our capital structure through the issuance of $250 million in senior unsecured notes due 2030 and with an amendment of our senior revolving credit facility of $700 million, extending the maturity to 2030 and also allowing for a $150 million accordion feature. Our strong balance sheet position provides flexibility and liquidity, allowing us to deploy capital on the right strategic opportunities to support our strong growth profile. In summary, this was a strong quarter to wrap up fiscal 2025, and we continue to be encouraged by the positive momentum we are seeing across our businesses. I also want to take the time here to recognize the work, dedication and passion of the MDA Space team. Without each employee's contribution, these outstanding results would not have been possible. Now let me turn to our 2026 outlook. As Mike noted, we are introducing our 2026 financial outlook, and we are well positioned to capitalize on strong customer demand and robust market activity, given our diverse and proven technology, including our product offerings. For the full year, we expect revenues to be between $1.7 billion to $1.9 billion, representing a year-over-year growth of approximately 10% at the midpoint of the guidance. This is off the back of extraordinary growth in 2025. When comparing the revenue growth between 2020 and the midpoint of our guidance for 2026. This represents a CAGR of close to 30%, which approaches the high end of our stated goal of 20% to 30% CAGR for the business. We expect full year adjusted EBITDA to be between $320 million and $370 million, representing a year-over-year growth of approximately 7% at the midpoint of the guidance and adjusted EBITDA margin of 18% to 20%. The adjusted EBITDA range is to provide flexibility for us to strategically scale up the business for future growth, particularly in R&D and in SG&A and aligns with our historical goal since the IPO and continues to represent very solid profitability. We expect capital expenditures to be between $225 million and $275 million in 2026 to support another year of investments related to expanding production at our Montreal facility, investments in chip development and investments to support commercial growth initiatives. Although we continue to invest in our future, our capital intensity as a percentage of revenues is reducing from an average of over 20% between 2021 and 2024 to now less than 15% in 2025 and 2026 at the midpoint of our guidance. Finally, we expect full year free cash flow to be neutral to negative, driven by normal program working capital fluctuations, combined with the CapEx required to support future growth. With this outlook, MDA Space is positioned to once again deliver a strong year of profitable growth with the vast majority of revenue for 2026 contained within our solid backlog. Looking beyond 2026, we are excited about the opportunities ahead, supported by our $40 billion pipeline. On our mission to grow the business, the team is focused on executing customer commitments and leveraging our capabilities and technology to win new business pursuits while remaining disciplined in delivering sustainable profitable growth. With that, operator, we are ready for questions.

[Operator Instructions] And your first question comes from Doug Taylor from Canaccord Genuity.

Congrats on a great close to 2025 and the outlook for '26. You've given more color to the pipeline, $40 billion. It's a staggering number and a big expansion from the last number you provided. Is it fair to characterize the expansion here as being more defense and intelligence related versus commercial communications? Would you provide some further color as to where you're seeing the most growth and opportunity?

Yes, for sure, we can do that. This is like our annual update to pipeline. We're going to try to make sure that we gave the numbers last year and carried it through the year, and we're up -- we've scrubbed all the numbers at the start of every year and updated the pipeline expectations. So that's what we're doing here now. The growth in terms of the size of the pipeline has certainly been based on opportunities we collected through the year. There are a number of them, yes, that are defense and intelligence related, defense related, both in the space sector in addition to the non-space sector with the announcement of 49North and the focus there. The 49North also creates opportunities for us to, through 49North, take on some new non-space things. And so yes, both domestically and internationally, the defense side has some of the chunkier growth in the pipeline.

Would you quantify just because you mentioned the 49North pipeline as being material within the context of this larger number?

I don't know what the materiality number would be, but there's -- it's early days with 49North, but with the initiation of it as we started the year, it has immediately picked up some media opportunities as a defense prime in Canada.

Okay. And then I'll just ask one more question on the pipeline as it relates to your guidance here, and you get this question every year at this time. So I guess what I'm asking here is the degree of coverage of the guidance you're providing for '26 that you're taking out of backlog. And I guess, I assume it's relatively high. And the flip side of that question was the amount of pipeline conversion that is baked into that guidance versus supporting '27 and beyond.

Yes. Like certainly, '26 is, as I said, is a year of very high visibility on revenue from backlog. So we're executing a lot of backlog as we go through '26. We do expect some orders in the guidance that's been given. The pipeline is a 5-year pipeline. So it's from now through the next 5 years of specific named opportunities that we are pursuing. The pace at which those can come in is often based on customer activity. And some of that customer activity is in areas that are newly emergent such as the Canadian government's new defense industrial strategy, the creation of the new Defense Investment Agency. So we have a lot of new policy and new processes around an expanding defense budget, which assures opportunities in the pipeline, which are great, but there's a little less insight in terms of exactly how fast those things can move. And so we are definitely seeing procurements moving faster, especially strategic procurements in the sovereign defense capability areas identified in the Canadian defense industrial strategy. And so that's really great to see. But in terms of exactly how those will play out, we have to be a little bit cautious until we actually see some more examples of how these things are going to flow through the modified procurement processes. So they're there. Things can happen, both government and commercially as we go through the year, but the pace of those will be based on outside forces.

Your next question comes from Justin Lang from Morgan Stanley.

Mike, you're quite bullish towards the end of the last year that we could see potentially another sizable commercial constellation order announced here in '26. Just curious if you're still hopeful that we could see a large order like that this year? Any color there would be great.

Yes, it's still possible for sure. Like I say, that's all based on commercial customer activity as well and when and how they decide to move out on different opportunities. So we're still actively engaged, actively quoting people in the pipeline on the commercial side of things. So there's absolutely potential that, that could happen, but we'll wait and see how it rolls. But we still are behaving in a way that we are feeding customer with inputs to assure that they're comfortable to move forward.

Okay. Great. And then maybe just on the CapEx guide for the year. If we could just maybe put a finer point on where the investment is going in terms of what exactly is left to build out in Montreal and how much you'll be spending on this chip development effort? And then should we think about CapEx sort of stepping down materially from here into '27? Or is it more of a smoother downward glide path from here?

Thank you, Justin. I'll take that one. So really, the focus this year will be on the Lightspeed and Globalstar production line equipment. That's really the focus for us. We also have to continue to invest in office space and things like parking. I mean, we've been growing a lot. Our factory there in Montreal is virtually completed, like the building is completed, but we need a bit more investments to make sure that everybody can come to work comfortably. The facility has been expanding quite a bit. In terms of chip development, for sure, now we started to capitalize the work that we're doing there. It's intangible assets for the most part. And that's important within the midpoint of $250 million, but it's ramping up essentially in 2026. And finally, we have some commercial sort of opportunities where we see that we need to invest a little bit ahead of getting the business. And so those are really the areas of focus for us. I think if we look beyond 2026, I feel like we're going to still have a good year of spending in 2027. Too early to say if it will be lower than the midpoint we're guiding to this year in 2026. But beyond that, and when looking at the business for the future, I feel like a number of $150 million to $200 million would be a reasonable long-term number to assume now. We've been indicating in the past a bit lower than that. But really, the big driver here is that now we have chip capabilities. And so we're going to have to continue to invest on that front, but that's obviously strategic, and it has a lot of value for us.

And your next question comes from Konark Gupta from Scotiabank.

Just on the pipeline, maybe the $40 billion, obviously, it's an outstanding -- have you like figured out what's the incremental? You said defense obviously driving some of that. But in terms of segments, I'm thinking, is it more on the satellite side that you're seeing these incremental opportunities making satellites? Or is it more from the services side, whether it's geo intelligence or something else?

I would say more on the -- certainly, there's really solid expansion on the satellite side, definitely in two types of satellites, in communication satellites and earth observation satellites. So there's definitely solid growth in contracting for and delivering satellites. There is some new capability offering type stuff in space that is being introduced as the space market continues to expand that can affect robotics and space operations. So that's really been good to see. And so those are the main driver areas. And then like I mentioned before, a little bit of a bump there in the non-space defense with the creation of 49North and the ability to take on defense prime contracts in an improved way.

Okay. And on the $10 billion like BD pipeline seems like it's maybe up the pipe, the opportunities because you've been shortlisted by the governments and you're expecting some follow-ons. In terms of time line, then do you see -- like government orders can be lumpy, obviously, but do you expect some of these $10 billion worth of opportunities might be converting into contracts this year and next year? Or these are more sort of back-end loaded?

No, I would think a lot of the shorter list ones would have -- there's a number of them that would have a chance within that bucket over the next 24 months. Like I said, the -- some of that is government related and therefore, it is going to be linked with the behavior of government under new defense procurement initiatives. But they're not all in some other government ones are just normal procurement processes. So there's some that could come this year and then definitely some that could come next year.

And last one for me before I turn over. In terms of RFPs, I mean, your business has grown a lot. Your opportunity pipeline is expanding. Are you expecting to fill a lot of RFPs this year? Like can you provide some context historically, like how many RFPs typically you fill in a year?

I don't have that number in my head. That's a new good one for me to get in my head, how many bids do we write a year. So I'll have to go and work on that. But it's steady. Let me just say that. For sure, our new business teams are very active. Constantly responding to requests for quotations and request for proposals. So RFQs and RFPs in the system, it is a constant activity. So we will definitely be responding to a number of those as we go through the year for sure.

Your next question comes from Ken Herbert from RBC Capital Markets.

Maybe, Guillaume, I wanted to see on the adjusted EBITDA guide for the year, a bit of a wider range than we would typically see, and I can appreciate some of your comments around the higher R&D spend. But can you give any more detail on maybe some of the puts and takes between the upper end or the lower end of the adjusted EBITDA outlook and maybe any more specifics on the areas of focus for R&D and other investments.

Yes. Thank you, Ken. So at the end of the day, we wanted to give ourselves some wiggle room here. And depending on the timing of the investments that we're contemplating to support our strategic growth, we will see potentially an impact on the EBITDA margin. Again, we've maintained a range of 18% to 20%. So we're going to be strategic about those investments. And it's going to also be sort of part of how we see the timing of revenue recognition. If top line comes in very strong, then we might invest a little bit more. And in an alternative scenario, then we might be a bit more prudent with our different investments. But at the end of the day, I think what's to be sort of highlighted here is that we're coming off a very strong year of growth again. We're now guiding to be a $1.8 billion company, and we were a $400 million company not so long ago. And so Mike and I were thinking about that a lot because we've been investing in our facilities and all of that, but we need to maintain our technological leadership. So that's why we feel like we have some investments to do in R&D. And also, we need to scale the rest of the business, rather if it's us working on making sure we're using AI or making sure that we have enhanced capabilities within finance, legal, HR and IT. And so I think we'll manage it prudently, but -- and we will always do that. We're very disciplined, as you know. But we felt like we needed the proper wiggle room to execute and deliver another good year here in 2026.

Great. Guill, I appreciate all the detail. And then maybe, Mike, we think about your defense exposure today as maybe mid-teens of the business. If you're successful on some of these pipeline opportunities as you've leaned into this opportunity on the defense and national security side, what could defense broadly represent maybe of the revenue mix exiting '26 or into 2027? I mean, can you maybe just frame that opportunity for us?

Yes. I think exiting '26, I wouldn't expect a big sudden change. I think '27, yes, if some things start to get contracted in these various forms of pipeline as we go through '26, then in '27, we could start to see some additional revenue lift from the defense side and then certainly in 2028. So these -- a number of these programs tend to be larger, and so they'll take time and then they'll have to ramp up. But the relative contribution in terms of your mid-teen estimate and how that might change, of course, will be dependent on what else has happened on the commercial side as well, which is still a significant part of the pipeline. And so -- but the defense portion will go up as we go through the next 24 months. That's our expectation.

And your next question comes from Russell Stanley from Beacon Company.

Congrats on the quarter. Maybe a follow-up on that last question around your revenue mix expectations. How should we think about the gross margins kind of on a midterm basis? I think people might generally assume that defense-related work must come at lower margins. Is that -- are you seeing that? Or do you expect that? Or are you more or less kind of expecting gross margins to be unchanged relative to the work you see on the commercial front?

Maybe I take that one, Russ, and give you some insights here. So 2026, 18% to 20%. We're very confident about that range for the business. We don't expect that to change in the near term. So I would expect that we could continue to deliver within that range for 2027. And then what's going to happen is two things. First, as we increase our production in Montreal, we might see some margin opportunities in terms of margin expansion in the future. Now with that said, when we look at defense contracts, they do typically come with lower EBITDA margin. It's too early to tell like what will our mix be. Today, it's about 70% commercial, 30% government and defense. And so we'll see how that evolves. But one thing to keep in mind is that we are seeing very, very large opportunities coming for us, given everything that we've been saying this morning. And so at the end of the day, if we would be in a position in a number of years where we would see a lot of big defense opportunity coming to us, we might see a bit of compression on the EBITDA margin. But at the end of the day, we don't take margin to the bank, right? And from my perspective, this would be still very good for our business because we would increase our earnings per share and absolute EBITDA number. But that's all the color that I guess we can give at this stage, and we'll continue to provide updates as things evolve over the next few years here.

That's great color. And maybe my follow-up just around the backlog and given the pipeline and the huge growth you've seen there, this is a bit of a hood problem question, but how do you think about managing the backlog as a multiple of revenue, balancing wanting to keep the backlog as healthy as possible while managing delivery time lines and expectations for customers with a $40 million pipeline at some point, that might be a nice problem to have, but I'd love to hear how you're thinking about it right now.

Yes, I'll start. Maybe Mike can -- yes, sorry, Mike and I were not in the same location today. He's in Europe, and we're here in Toronto. So that's a great question, Russ. Like from our perspective, like we have a really good thing going on for us here because we've invested in a brand-new center of excellence right here in Brampton, Ontario. So we can take on a lot more work. And as I commented earlier, we're now very close to having a world-class high-volume satellite manufacturing facility in Montreal that can deliver up to 400 satellites per year. And so I mean, we've made all those investments, and now we're basically ready to convert more opportunities from our pipeline into our backlog and then continue to execute and generate revenue growth. Now we are obviously targeting a book-to-bill ratio above 1 compared to our revenue every year. This year, we were a bit below that. But if you look at the past 2 years, then we were above. So it's just going to be a matter of timing here. In our business, it takes a bit of time to convert pipeline opportunities into orders. But I think we're very well positioned here from an infrastructure and footprint standpoint to take on a lot more business. Maybe, Mike, if you want to add anything?

No, I think that's great.

And your next question comes from David McFadgen from ATF Cormark (sic) [ ATB Cormark ].

A couple of questions. Maybe I'll ask one on the pipeline as well. So we've seen it double since Q3, and you now disclosed that $10 billion of the $40 billion is for follow-on orders or defense or I guess, a combination of both. Can you confirm that Apple Globalstar follow-on order would be in that $10 billion pipeline?

We're not going to -- no, we don't talk about specific opportunities in our pipeline. But the -- the other thing is that it hasn't been like a -- it's been a jump over the next year. Like we're trying to make sure we update the pipeline annually and make sure that we give as part of guidance for the year, we give an update on pipeline. So we'll carry this pipeline number as we go through the year. We're not going to talk on a quarter-by-quarter basis about adjustments to the pipeline. Our order development and order cycle is such that we shouldn't be thinking about quarterly stuff. We should be thinking about annually stuff. So we'll be working this pipeline as we go through this year and give an update to it at the same time next year. And so there hasn't been like some huge swing just in the 3-month period. It's been building as we've been going through '25 and with all the changes that have occurred in the market and our changes to our position that have contributed to that. So -- but I don't want to comment on specific opportunities like that.

Okay. Do you know when NASA is going to announce this -- the award for this like over USD 4 billion RMS contract for the manned lunar train utility vehicle, it's just been over a year now delayed.

Yes. It's been like -- people have been looking for that to be announced every month for many months. And so I think that it probably got slowed down as in the fall, which would be expectation was there as the new NASA administrator Jared Isaacman, came into his job and everybody has to confirm what all the priorities are. So I think that probably slowed down a little bit. And then you will have seen like a strong burst in the last little while about ensuring the return to the lunar surface and ensuring in the sort of mini space race that's going on here, maybe it's not too much of a mini space race, the space race that's going on here between the United States and China to be able to get humans back on the moon and start having habitats there and all that kind of stuff, there's a significant focus on that. So I think that probably in the architecture of their programs and which sequence of things need to be decided and announced in what order has probably been reshuffled a bit as the new administrator has come into his job. But in the background, people continually expect that as being one of the programs that could be announced at any time kind of a thing because the -- it's been -- we agree that the community has been waiting for a while for that announcement.

Okay. And then just on Lightspeed, can you confirm that the critical design review is complete and you started construction of those satellites?

The critical design review, I think there's a few actions that are still being worked like the -- the critical design review process absolutely was conducted. And then there's a few odds and sods of things that people are following up on that always happens in the CVRs. In terms of being able -- talking about moving forward with the construction of satellites, certainly, that's all progressing because we owe a couple of satellites this year into Telesat. So we're leaning into that.

Okay. And then was the EchoStar payment, was that anything material in the quarter?

So maybe I'll take that one, David. So that contract termination process with EchoStar is now completed. We've received payments for all termination amounts that we were entitled to receive under the terms of the original contract. And the terms of that agreement with EchoStar, the termination agreement are confidential. And we are precluded from sharing details of the agreement, including the dollar amount that we were compensated for. But this is behind us. We're moving forward. We have a strong pipeline, and we're glad that this was completed in the fourth quarter.

And your next question comes from Thanos Moschopoulos from BMO Capital Markets.

With respect to Telesat and Globalstar, can you remind us when the first deliveries happen? Is that kind of Q3 time frame? Or when would that be?

Globalstar from that first contract for 17 satellites, there will be deliveries through the first half of the year. And then with Telesat with Lightspeed, there'll be some deliveries near the end of the year.

Okay. And then for the second Globalstar contract, would there also be deliveries towards the end of the year?

I think I have to check on that in terms of the latest status for that in terms of whether it's late in the year or early in the next, but I'd have to check on that. There's lots of moving parts still on that program.

I think that's a good way to put it, Mike. We're very advanced with that contract. We started the construction. As Mike said, we have completed the CDR. And so it's just a matter of working with the customer here. We've always said that we would have some ramp-ups mostly in 2026 with a more significant year of production and delivery in 2027. But as Mike said, there's a lot of moving parts with the second contract here. So we expect that we'll start delivering either at the end of 2026 or in 2027.

Great. And then, Mike, with respect to 49North, what would be some of the, I guess, more meaningful areas of opportunity that you call out? Clearly, you have a broad range of capabilities. You're already getting a lot of non-space work with the service combatants. But what would be some of the near-term or larger opportunities or buckets within non-space that you would hope for within the defense sector in Canada?

Yes. In terms of areas where we've got a really strong history of past performance, one of the key areas would be on autonomous systems. We're a leader with the Canadian forces in the delivery and/or operation of autonomous air systems like drones for the military. And so that's an area of strength for us. Another area of strength would be in sensors. You mentioned the Canadian Surface Combatant, we're the River-class destroyer, where we're responsible for the integration of the electronic warfare suite and the sensors around that. And so these are -- those are example areas where we're historically strong. The -- we have strengths in things like submarine command training, for example, that will be a hot topic as we move forward into the future as Canada goes and buys new submarines. We're responsible for that today. So -- and then the -- there's some -- there'll be some large programs coming forward in integrated command control communications with sensors and the like, where we have strong secure systems integration expertise that can lead programs in that area. That will apply to a number of different programs that could come along.

And your next question comes from Greg MacDonald from Stifel.

Mike, I know you don't want to talk about specifics on the pipeline, but the Golden Dome, I think most of us would consider a different risk profile than some of your other opportunities. Can you say -- are you willing to say whether there's anything in the Golden dome inside the pipeline?

I think there could be opportunities related to that. Like you would have seen us get a -- we announced an IDIQ contract signature there with the SHIELD program with the U.S. Missile Defense Agency, which is really an opportunity to be able to be sort of inside the tent and able to bid on things. And so that creates some opportunity. And then some of the opportunities for Canada that are related to Arctic Defense, whether that's Arctic Defense Communication or Arctic Defense Surveillance, those types of programs that are Canadian programs would be eligible to be part of Golden Dome scope. And so I think that I have to honestly say that those things could absolutely be related to Golden Dome scope, but they would be Canadian programs. In the U.S., on the U.S. side of things, we would continue to have conversations with folks that could benefit from our space capabilities as they continue to advance their solutions for Golden Dome on the U.S. side. You would have seen us in the last number of years be providing satellite technology to all the satellite primes in the SDA LEO constellations. And so we've got a strong history of performance there delivering into U.S. primes when their programs ramp up.

Great. That's helpful. And then second quick question on 49North. To what extent -- you talked a lot about hardware. We know that Canada does and you do sensors well, systems integrations well. When you talk about systems integration, should we assume that includes software and in particular, kind of the command and control integration stuff and the AI prediction stuff? Or is that beyond the scope of what you guys are looking at?

No, it could definitely include those types of things. We're strong in systems integration. That can include hardware and software integration to deliver a system for sure. And we have past performances of that in the 49North team. So we have strong capability there. So yes, that can definitely be part of that. In terms of AI, that's going to depend on the systems. These days, when you have sensors that are delivering data into an integrated system that you then need to determine what the current situation is and evaluate alternative courses of action from that information you're receiving. Of course, our artificial intelligence-related system elements can be logically part of that. And we see that on all of our programs, including our space programs these days. As you look at the road maps for the evolution of these technologies, AI has more and more of an opportunity all the time. And so that can definitely come up as part of a systems integration solution.

And your next question comes from Michael Kypreos from Desjardins Securities.

I'll be quick here. Just any updates on capital allocation and how the M&A pipeline is these days?

The pipeline is good. So I was just going to say from a pipeline perspective, the pipeline is good. So we keep an eye on all the same areas we ever talked about M&A. We talk about vertical integration. We talk about geographic expansion to open up bigger pipelines for ourselves around the world. Those types of thought processes absolutely continue, and we continue to look at and focus on targets, but I'll let Guillaume talk to capital allocation.

Thank you, Mike. Michael, so yes, I mean, focus for us is to continue to look for targets so we can expand geographically. And then obviously, the second priority is to execute our growth organic plan. And again, you saw the guidance this morning for this year. We're going to spend at the midpoint, $250 million into CapEx. And so those are really the 2 priorities, potentially doing some acquisitions and then focus on delivering on our investments that we need to support our growth. We're not thinking of introducing any dividends at this point or share buybacks or things like that. We're very focused on continuing to grow the company.

And there are no further questions at this time. Mr. Mike Greenley, you may proceed with the call.

Okay. Well, thanks, everybody. I appreciate all the questions and the discussion, and we will get back at it and look forward to talking to you again in the next quarter. Thanks a lot.

This does conclude your conference call for today. Thank you very much for your participation. You may now disconnect. Have a great day.

Good morning, ladies and gentlemen, and welcome to MDA Space Limited Conference Call and Webcast. This call is being recorded on November 14, 2025, at 8:30 a.m. Eastern Time. Following the presentation, we will conduct a question-and-answer session. Instructions will be provided at that time for you to queue up for questions. [Operator Instructions] I'd now like to turn the conference over to Shereen Zahawi, Head of Investor Relations at MDA Space. Please go ahead.

Thank you, operator. Good morning, and welcome to MDA Space Third Quarter 2025 Earnings Call. Mike Greenley, our CEO; and Guillaume Lavoie, our CFO, will lead today's call and share some prepared remarks before taking your questions. A couple of housekeeping items before we begin. 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 available from our Investor Relations website and from SEDAR+. 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 press release and public filings regarding various factors, assumptions and risks that could cause actual results to differ. In addition, during this call, we will refer to certain non-IFRS financial measures. Although we believe these measures provide useful supplemental information about our financial performance, these measures 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 quarterly report and other public filings for more information about these measures, including reconciliations to their nearest IFRS measures. And with that, it's my pleasure to turn the call over to Mike.

Thank you, Shereen. Good morning, everyone, and thank you for joining us today to discuss our third quarter 2025 financial results. In Q3, the MDA Space team delivered another quarter of strong financial performance with double-digit growth in both revenue and profitability. Our revenues totaled $410 million, up 45% year-over-year. Adjusted EBITDA was $83 million, up 49% year-over-year, and adjusted EBITDA margin was a solid 20.2%. Operating cash flow was healthy at $33 million, and we ended the quarter with a strong balance sheet. Our backlog of $4.4 billion at quarter end provides revenue visibility for 2025 and 2026 and beyond. Q3 and the subsequent period was a busy one for MDA Space. In early July, we closed the previously announced acquisition of SatixFy Communications, a leader in next-generation satellite communication solutions based on in-house design chipsets. SatixFy's operations and full technology portfolio is now part of the Satellite Systems business area of MDA Space and integration activities are well underway. As you know, during the quarter, we also announced our selection by EchoStar to be the prime contractor on a new low Earth orbit direct-to-device satellite constellation valued at approximately USD 1.3 billion, whereby MDA Space was tasked with the design, manufacture and testing over 100 software-defined MDA AURORA direct-to-device satellites. EchoStar subsequently terminated the contract for convenience in September 2025. As per our contract, MDA Space is entitled to and expect to be compensated for all related termination costs and fees and is in discussions to finalize that contract termination agreement. While we are disappointed with the EchoStar development, as we have said previously, it is unrelated to MDA Space performance and our products and services. These remain in high demand. In events and forums around the world this fall, we continue to be encouraged by the high level of customer interest we are seeing in our space technology, which is uniquely positioned to serve the emerging and evolving needs of the space market. We are also pleased and honored to be named the 2025 Global Satellite Business of the Year by Novaspace and presented with the award, which celebrates excellence in satellite business at the annual -- at the annual World Space Business Week in Paris this past September. I want to take this opportunity to congratulate and thank our MDA Space team for their commitment, expertise and award-winning industry leadership. Subsequent to quarter end, we announced a $10 million equity investment in Maritime Launch Services, a Canadian-owned commercial space company that is developing Spaceport in Nova Scotia, Canada's first commercial orbital launch complex. The investment will help accelerate the Spaceport's readiness for orbital launch operations, providing reliable domestic launch capability for commercial, civil government and defense clients in Canada. We are also reaffirming our previous 2025 full year outlook, which we provided with our Q2 2025 earnings release with full year revenues expected to be between $1.57 billion and $1.63 billion representing year-over-year growth of approximately 48% at the midpoint of guidance and full year adjusted EBITDA expected to be between $305 million and $320 million, representing year-over-year growth of approximately 45% at midpoint of guidance. We look forward to delivering another year of solid financial performance in 2025. I want to take a moment to speak to what we see as an increasing market opportunity for MDA Space related to the growing focus on defense investment as NATO countries rapidly move to reinvest to build capabilities and infrastructure. With the space domain increasingly recognized as a critical domain for defense and security, we believe MDA Space is well positioned for this opportunity to extend our mission capabilities and support the strategic sovereignty and security requirements of Canada and its partners and allies. We are in the early days of a new and what is projected to be a prolonged investment cycle. We are noticing a change in pace and intensity of defense space conversations and are actively engaged in these discussions. I'll now give you an update on our 3 business areas and then pass it to Guillaume for a deep dive on the financials. In Satellite Systems, we continue to see good momentum in this market with our teams working to advance multiple requests for communication satellite solutions and a growing number of constellation projects from multiple markets and geographies. We are also seeing good activity levels from customers and our opportunity funnel remains strong. In Q3, our teams were busy advancing work on our programs. On the Telesat Lightspeed program, our teams are currently working on the program's detailed engineering and manufacturing preparation phase, including the critical design review, which is taking place this year. The team is also advancing work on the Globalstar next-generation LEO constellation, where MDA Space was selected as the prime contractor to manufacture more than 50 MDA AURORA software-defined digital satellites. The team is making good progress on the engineering, development and procurement activities for the program and is progressing work related to the critical design review milestone. In July, our Satellite Systems team also achieved an industry first by demonstrating digital beam forming and steering multiple beams with Ka-band direct radiating arrays using direct sampling. These are among the key features of the MDA AURORA Ka-band DRA and the demonstration marks a key milestone in the development of the digital payload technology for the MDA AURORA software-defined product line. We also continue to advance work on the initial Globalstar program, where MDA Space is the prime contractor to enhance Globalstar's LEO constellation through the addition of 17 satellites, which support SOS features and direct-to-device communication on certain Apple products. In Q3, the team progressed flight hardware production. The team continues to advance final satellite integration and test work with 9 spacecraft currently on the shop floor in our Montreal facility. Due to delays resulting from a number of factors, including the supply chain, the delivery of these satellites is now expected in early 2026. We are currently in discussions with Globalstar to address any potential liquidated damages that might result from this delay. It's important to note that our contracts with our supply chain are structured in a manner that embeds liquidated damage clauses as well. So we have recourse in the event of supplier delays. We're also making solid progress on our facility expansion in Montreal, Quebec, which will add 185,000 square feet to our existing satellite production facility. A portion of the office space is now complete and a number of engineers have moved in with great excitement. And we continue to finalize interior elements of the production facility, which remains on track to be completed this year. Once complete, it will be the world's largest high-volume manufacturing facility in its satellite class with capacity to deliver 2 MDA AURORA digital satellites per day. Finally, in late October, 21 low Earth orbit satellites for the Space Development Agency's Tranche 1 Transport Layer were successfully launched from California's Vandenberg Space Force Base and MDA Space was part of this mission. We provided all Ka-band and L-band antennas as well as motor control electronics for the satellites. The SDA's Tranche 1 Transport Layer, a mesh network of 126 satellites will deliver resilient, low-latency connectivity to support military operations in the United States. Our technology plays a key role in enabling secure and reliable communication across the constellation. Congratulations to everyone involved in making this achievement possible. Moving to our Robotics & Space Operations business. We continue to see good traction and activity levels on both the government and commercial fronts. In Q3, we continued to ramp up work volumes on Phase C of the Canadarm3 program, which we were awarded together with Phase D in 2024. During the quarter, our teams were busy actively building and testing engineering models of the system elements. Phase C will see us completing the final design before we move on to Phase D, which will see the construction, system assembly, integration and test of the full robotic system as well as a ground segment for command and control. We also announced in July that an MDA Space-led team was selected by the Canadian Space Agency to conduct an early phase study for Canada's proposed Lunar Utility Vehicle or LUV. Recall that the 2023 CSA -- recall that in 2023, CSA announced $1.2 billion in funding for a Canadian utility rover that would be contributed to the Artemis program and would support human exploration on the lunar surface. This initial phase study is a first critical step in defining the LUV mission concept and technology development plan. As part of this effort, the team will integrate MDA SKYMAKER, our full suite of scalable and modular space robotics derived from Canadarm technology, paving the way for scalable autonomous mobility solutions on the lunar surface. Moving to our Geointelligence business. Customer demand for our Earth observation offering remains robust, and we are seeing increased recognition of the role that commercial Earth observation satellites can play to provide near real-time data and analytics to governments and private enterprise. Notable awards in Q3 include 2 contracts to equip the Royal Canadian Navy's Halifax-class ships and up to 6 new Uncrewed Aircraft Systems. Part of the Intelligence, Surveillance, Target Acquisition and Reconnaissance Uncrewed Aircraft System, known as ISTAR UAS project, these new systems will significantly enhance the Navy's ability to detect and monitor potential maritime threats, both at home and abroad. The award includes an acquisition contract valued at approximately $39 million for the initial procurement of 2 uncrewed aircraft systems with options to procure 4 additional systems and an in-service support contract estimated at $27 million over an initial 5-year period to sustain operations with opportunities for extension beyond the initial period. We were also selected to deliver enhanced space situation awareness to the Department of National Defense. The standing offer awarded to MDA Space in partnership with Canadian-based Thoth Group underscores the growing importance of space domain awareness in safeguarding Canada's critical space assets amid a rapidly evolving and increasingly congested orbital environment. Building on MDA Space's proven legacy as a space domain mission partner and leveraging Thoth Group's initiative Earthfence radar capability, the new service integrates high-fidelity sensor data with secure cloud-based infrastructure optimized for tracking and assessing satellite and space objects in the geosynchronous belt, approximately 36,000 kilometers above the Earth surface. We also continue to advance work on MDA CHORUS. Our spacecraft electrical integration and testing activities continued, and we have all spacecraft units on hand. Solid progress was made in building and testing the SAR antenna panels, and we're building up the last of 4 panels in parallel with electrical and RF characterization and test activities of the second and third panels. On the ground segment side, the MDA Space team continues to track to development and release plans. Construction works also continues for a new mission control center from where MDA CHORUS will be operated. And while we are overall pleased with the performance of our supply chain, we have encountered some delays with certain units, which are impacting the program time line. As a result of those delays, we are now targeting a launch window for MDA CHORUS in late 2026. We are looking forward to deliver the constellation's enhanced functionality to our current and future customers with many active discussions of the future opportunities in our pipeline. I also want to provide an update with respect to a proposed class action claim that MDA Space was served subsequent to quarter end. The allegations are related to the announcement and subsequent cancellation of the EchoStar constellation contract that was announced by MDA Space in the third quarter of 2025 and the sales by certain insiders of shares after the announcement of contract and before its termination. MDA Space believes the claims are without merit and intends to vigorously defend itself. With that, I'll hand it over to Guillaume to walk us through the financial details.

Thank you, Mike, and good morning, everyone. For my update, I will walk you through our Q3 financial results and provide more details on our 2025 financial outlook. Overall, Q3 results were solid with growth in revenue and profitability and a strong balance sheet and backlog, providing us good revenue visibility for the remainder of 2025, 2026 and beyond. Total revenues for the third quarter were $410 million. This represents a $127 million or 45% increase over the same period last year. The year-over-year increase is driven by higher volumes of work performed in our Satellite Systems and Robotics & Space Operations businesses. By business area, revenues in Satellite Systems of $284 million in the third quarter were $116 million or 69% higher compared to the same period in 2024. The growth was driven by the ramp-up of the Telesat Lightspeed program and the Globalstar next-generation LEO constellation program. In Robotics & Space Operations, revenue of $78 million in the latest quarter represented a $12 million or 18% increase versus Q3 of last year, driven by the continued ramp of Phase C of the Canadarm3 program. Revenues in our Geointelligence business of $48 million in the latest quarter were in line with our expectations and the levels reported in that business segment last year. Moving to gross profit. For Q3, gross profit was $108 million, representing a $32 million or 43% increase over the same period last year, again driven by higher volumes of work. Gross margin in the latest quarter was 26.4% and compares to 26.8% for the same period in 2024. Adjusted EBITDA in the latest quarter was $83 million compared to $56 million in Q3 2024, representing an increase of $27 million or 49% year-over-year, again, driven by higher work volumes as we continue to execute on our backlog. Adjusted EBITDA margin was 20.2% in the latest quarter, consistent with the company's full year margin guidance of 19% to 20% and compares to adjusted EBITDA margin of 19.7% reported in the third quarter of 2024. Adjusted net income for Q3 was $46 million compared to $35 million in the same period last year. The year-over-year increase of $11 million or 33% is primarily driven by higher operating income after adjusting for the amortization of intangibles expenses incurred in Q3 2025 and attributable to the SatixFy Communications transaction, which we've closed on July 2, 2025. Moving to our backlog. We ended the quarter with $4.4 billion in backlog, a decrease of $185 million or 4% compared with the backlog as of September 30, 2024, driven by continued conversion of our backlog into revenue. Last 12-month book-to-bill ratio stood at 0.9x at quarter end and our current backlog provides us with high revenue visibility for the remainder of 2025, 2026 and beyond that. Moving to CapEx. We remain focused on making investments in the business to support our strategic growth initiatives. In Q3, we spent $70 million on capital expenditures compared to $53 million last year as we continue to progress our development of CHORUS, where most of the investment has been incurred. And other growth initiatives such as the expansion of our Montreal satellite manufacturing facility. Cash from operations during the quarter generated $33 million compared to a cash generation of $259 million in Q3 2024. The year-over-year change was primarily due to working capital fluctuations. Free cash flow was negative $37 million in the quarter, and compares to $205 million for the same period in 2024, with the year-over-year change attributed to the previously noted working capital fluctuations. Excluding growth CapEx, free cash flow was $26 million in the latest quarter and compares to $253 million for the same period last year. Moving to our balance sheet. We ended the quarter with cash of $196 million, available liquidity of $404 million under our revolving credit facility and total liquidity of $600 million. Our net debt to last 12 month adjusted EBITDA ratio stood at 0.3x at quarter end. The slight uptick in leverage is due to the completion of the previously announced SatixFy Communications Ltd. acquisition, which closed again on July 2, 2025. Recall that the company used cash on hand and borrowings from our revolving credit facility to pay for the transaction. In summer, this was a strong quarter, and I'd like to thank our teams for their dedication and efforts to make this happen. Let me now turn to our full year outlook. As Mike noted, we are reaffirming the previous 2025 outlook provided in our Q2 '25 earnings release. For fiscal '25, we continue to expect full year revenue to be between $1.57 billion and $1.63 billion, representing year-over-year growth of approximately 48% at the midpoint of guidance. We continue to expect full year adjusted EBITDA to be between $305 million and $320 million representing year-over-year growth of approximately 45% at the midpoint of guidance and approximately 19% to 20% adjusted EBITDA margin. We reaffirm capital expenditures to be between $210 million and $240 million, comprising of growth investments to support the previously outlined growth initiatives across our business areas. Lastly, we expect full year free cash flow to be neutral to positive in 2025. Note that the financial outlook provided does not factor any potential impact from tariffs. We continue to expect our potential exposure, if any, to be manageable. We are monitoring the situation and may elect to update our financial outlook if deemed necessary. With our $4.4 billion backlog, combined with a robust $20 billion opportunity pipeline, we are confident in delivering continued growth while remaining focused on disciplined execution and profitability. Mike, with that, I'll turn it over back to you.

Thank you, Guillaume. With that, operator, we will open it to questions.

[Operator Instructions] First, we will hear from Benoit Poirier at Desjardins Capital Markets.

Yes. Mike and Guillaume. Maybe first question, could you comment about your latest updates with Globalstar and also how a potential sale would impact your contracts? So if ultimately, Globalstar decided to sell itself, what -- if any, protections do you have in place? I know this is out of your control, but if you could provide any color, that would be great.

Thanks. As you would appreciate, as a matter of company policy, we can't really comment on rumors or speculation concerning another company or what people are talking about it. For us, with Globalstar, we're actively involved in executing on our 2 contracts. We are making good progress on those 2 contracts as we've indicated. On our original contract, we have 9 satellites being completed and getting ready to be shipped out in early 2026, ready for launch. And in our second larger contract, we continue to execute well on those satellites moving forward. These satellites are important to Globalstar for their constellations, and we are actively engaged in getting them delivered.

Okay. That's great. And in terms of outlook, obviously, you're very encouraged with all the discussion you have. But could you maybe quantify your bidding pipeline and talk also about how it has evolved versus last quarter? And I would be curious to see where do you see the greatest opportunities among them.

Sure. The company pipeline remains at around $20 billion over the next 5 years of specific opportunities that we are speaking with people about in the markets. Of that $20 billion, approximately $13 billion of it would be in the Satellite Systems business area, primarily in the area of constellations for both broadband satellites and/or direct-to-device satellites. After that, there'd be solid opportunities in Geointelligence, specifically around -- the larger opportunities would be around satellite systems for government programs, for Earth and space observation. And then a solid pipeline in robotics for robotics and rover systems for both government and commercial programs.

Okay. And you mentioned some delays related to Globalstar and CHORUS. So what could be the -- Mike, the potential outcomes for MDA in terms of liquidated damages? And could you be maybe more specific about what's causing the delays? And is it the same supplier? And do you see an opportunity to do some vertical integration?

Yes. In Globalstar and CHORUS, I indicated in each case, there was some delays and in each case due to activities in suppliers. They are different suppliers, different topics. Just different people having challenges that we've worked with them to work through. In each case, we've worked through them and have solutions now for the -- to move forward, but they did cause some delays. In the case of Globalstar, to answer your question about liquidated damages, it is normal. All of our firm fixed price contracts have liquidated damages clauses. And so it's been disclosed by Globalstar and by ourselves that those clauses do exist. And as a result of the deliveries now being late due to the supplier issues, that it's eligible to talk about liquidated damages clauses. And these are in discussion. It is normal for us to have back-to-back liquidated damages clauses with our suppliers so that if they are late, then we can impose liquidated damages on them. So all of this is a discussion point. The focus is absolutely just getting the satellites finished by getting them out in early 2026 and getting them to launch. And so that is all well underway and everyone's entire focus across all the teams involved in that project. In CHORUS, that supplier delay had occurred, a different supplier, again, resolved. And so now we're completing the assembly of the units on that satellite and getting it ready out for test. And so the implications are what we stated is that we shifted our target launch date to the end of 2026, and we continue to progress on that basis.

Okay. And last one for me, just for Guillaume. In terms of capital allocation, given the recent drop in share price, how does it impact your capital allocation strategy? Do you still see some attractive M&A opportunities out there? Or do you see an opportunity for buyback or -- yes.

Yes. Thank you, Benoit. We obviously always look at capital allocation. I'm not going to comment too much on the share price movement other than saying that, yes, we are where we are right now. It's not just MDA. The whole sector is down. Our strategy regarding M&A hasn't changed really. We're focused in 2 areas. One of which is, if there are opportunities for us to continue to strategically pursue supply chain opportunities, we'll do that. We did that this year with SatixFy. And the other area of focus for us is to consider expanding in new regions, primarily targeting Europe and the U.S. And obviously, we always think about what type of financing we would need for such potential acquisitions, but I'll leave it at that for the moment, Benoit.

Next question will be from Konark Gupta at Scotiabank.

I wanted to ask you, Mike, you mentioned in the opening remarks about space defense. I think you're attending and maybe presenting at a conference next week in Ottawa. What kind of space defense opportunities are we talking about here? Like is it all constellation related, just geo, maybe robotics, it's all across? Or anything specific you're focusing on in the near term?

Sure. From an MDA Space capabilities perspective, space defense provides a number of opportunities. One of the areas would be in defense communication networks. You would have heard in my remarks that we do provide key technologies into the communication satellites in the United States for their Department of Defense communication satellites. We have opportunities in multiple countries to provide satellites and satellite technologies for military communication networks. A second area would be in Earth observation. We own and operate RADARSAT-2 where, as we just discussed, heading towards the launch of CHORUS. Our provision of synthetic aperture radar-based imagery to defense and intelligence customers around the world is obviously a strong defense asset to provide Earth observation for military surveillance operations. Another area is space observation, whereby it was announced in my remarks that we just recently picked up a new contract in partnership with [ Thoth Group ] in Canada to provide space observation to track the activities of satellites in orbit, which is tracking what people are up to and who's moving around and who's going where in orbit with their satellites, which is an important defense-related activity. There are a number of opportunities in Canada and around the world for us to provide space observation technologies, both from the Earth and from orbit, which means from satellites to be able to contribute to space domain awareness or space observation pictures. Once you observe activity in space, sometimes you want to do something about it from a military operations perspective, which is starting to open up a market in the counter space domain. I call it the counter space domain. You would have seen announcements in some countries recently talking about guard satellites, for example. These are defense departments putting up satellites that can sense what other satellites are doing that can maneuver to protect satellites and keep other satellites away from them and/or go and inspect or investigate other satellites from a military perspective. Our really strong experiences in satellite design and operation and proximity operations from our 40 years of robotics activity. We have a very strong background in proximity operations and our experience in robotics. All of these capabilities put us in a strong position to be able to offer counter space or guard satellite solutions for the market. And militaries around the world are increasingly looking for those as the space domain becomes more congested. So that's the long story. The short story is there's opportunities in all 3 business areas.

That's great. Great to hear that. And if I can follow up, your recent equity investment in Maritime Launch, what's the idea there? I mean, are you guys looking to eventually become more vertically integrated like with obviously SatixFy now on the supply side and now the launch maybe? Or is it just a one-off to support Canada's missions?

Yes, it's a bit of a longer-term strategic view. Certainly, the words that you just used, which is to support the Canadian space ecosystem is an important element of this. MDA Space, as the largest space company in Canada has a number of roles in addition to delivering a good business. We also have a leadership or championship role that we have in the country to be able to help make everything work in the space ecosystem. One of those areas, as countries get more interested in sovereignty, being able to just take care of themselves as a country. One of the key areas from the space domain for both civil and military purposes is to have domestic launch capability. Canada is moving towards this. Maritime Launch has been advancing this over the last few years. So our small investment gives us a position with the company. It gives us certain investor rights such as Board positions and the like, so that we can be involved in helping to shepherd the advancement of that capability in the country. Over time, we'll continue to monitor that participation, could result in increased investments in the future or not. But it certainly allows us to leverage our size, scope and leadership and different skill sets to the Maritime Launch capability to ensure that Canada advances an effective domestic launch capability through the Spaceport, Nova Scotia.

Got it. And last one for me before I turn over. Maybe Guillaume can answer this. Looking at the working capital swing, I think it's pretty normal. These swings are happening. Anything out of the ordinary you could point out in Q3? And I'm specifically also looking at the contract liability item. I think it went up. Some is obviously driven by SatixFy acquisition because you tuck them in, but it seems without SatixFy, you also got some increase in liabilities there. Is there like -- is it driven by the new contracts? Or it's driven by the existing contract like SatixFy, Globalstar?

Yes. Konark, so first of all, the fluctuation in Q3 is totally normal. We've been saying all along that from one quarter to the other, we will be seeing working capital fluctuations. So we had a bit of a reversal this quarter. Overall, our free cash flow performance year-to-date is quite strong. But yes, we maintain our outlook of neutral to positive for this year. We are always being conservative on the cash planning. We're happy with the progress with our programs and overall with our cash management. And from a contract liability, this is just like us progressing the work. And you can see the balance sheet fluctuations associated with that, but there was nothing outside of the ordinary for this quarter, Konark.

Next question will be from Thanos Moschopoulos at BMO Capital Markets.

Mike, with respect to the pipeline for Satellite Systems, how would you characterize the mix between government relative to commercial opportunities and how that's evolved? Is it a good split? Or is it heavily weighted towards one versus the other? And then on commercial, are we talking mostly about incumbent operators looking for satellites? Are we talking about maybe corporate entities who are new to the satellite industry, but want to buy infrastructure? Is it start-ups, all of the above? Just any color on the nature of the customers there would be helpful.

Sure. Yes, satellite opportunities are mainly commercial. There are some government opportunities, but they are mainly commercial, to answer your first question. On commercial opportunities, they are varied. They include experienced satellite operators for sure. Maybe the majority would be experienced satellite operators around the world. There are some that are pulling together new investments to be able to produce space-based networks as a business opportunity. And then there are some that would be corporations looking to have networks. But the majority would be established financed space network operators.

Okay. And with respect to your digital cable technology, how important is that becoming a differentiator? Like obviously, you've talked in the past about new customers needing some education maybe in terms of the benefits. But are your advantages there now becoming more recognized? Or are most of the RFPs still looking for analog satellites?

I think that people are increasingly appreciating the opportunity that digital satellites offer. I think that in my remarks, I mentioned our demonstration capability that we now have in our facility in Montreal to be able to demonstrate dynamic beam forming. This is very important for customers to be able to come in and actually see dynamic beam forming in operation. So to have those technologies advance to the demonstration level is extremely important for those customers to be able to not only mathematically realize the benefits of a digital satellite, but to visually see and experience that technology in operation. I think that, that is really important. I think that our completion of our expanded satellite production facility, high-volume production facility, as I mentioned, with engineers now moving into their spaces, in an exciting development and thus now finishing the manufacturing environment as we complete 2025 puts us in a position where we not only have this digital technology, we can demonstrate this digital technology, but we're entering into a production mode where we can do it at scale and at pace. And so the space-based network market is competitive. There's a lot of activity in this sector, especially in the direct-to-device element of the sector. And so the race to revenue is important. And so our ability to be able to have shorter high-volume delivery times of an advanced demonstratable digital technology is definitely a differentiating element of competitive conversations.

Next question will be from Doug Taylor at Canaccord Genuity.

Mike, I want to ask another question on the direct-to-handset (sic) [ direct-to-device ] market. You referenced a very dynamic situation right now with some of the participants. I think investors are grappling with what the end state of that market looks like with all these vertically integrated participants moving pretty quickly to consolidate spectrum. Can you talk about how you see that end state evolving here from where you sit in your conversations as a supplier into that market?

Yes. I think it's -- I agree with your characterization of it as being dynamic. It's certainly a busy time. There have been some moves by players. Obviously, the SpaceX acquisition of EchoStar spectrum has been -- was a sudden development that suddenly occurred and is causing people to adjust. I think that there are a number of parties in the market that are really running, like I say, the race to revenue, really working hard and fast to get their direct-to-device network projects moving forward. And that's an important thing. As a supplier of satellite technology into those markets, there are definitely in our pipeline, a number of opportunities for us to provide our MDA AURORA digital satellite into folks that want to build and operate direct-to-device networks. And those conversations continue. I think that sometimes in the pipeline, as people look at their plans and competitor plans and how to collaborate with each other and stuff, it is resulting in some dynamic conversations to be able to ensure that folks that do want to collaborate can collaborate in the market space in the future, and that's kind of interesting to be able to work through with people. But it's a dynamic busy time. That's for sure. But the opportunities are there.

Okay. And a lot of focus on that direct-to-handset application of the LEO network. And maybe I can flip to talking about some of the other parts of that communications satellite market being the broadband and satellite-based backhaul applications, more of that Lightspeed type model. How the pipeline on that side progress and that market evolved in response to all this?

Yes, it's solid. It's definitely solid. There are strong commercial opportunities there to have Lightspeed like relationships with folks around the world. And so we're actively engaged in those types of conversations in our pipeline. There are government opportunities there. One of the geopolitical shifts over the last year in 2025 has been the interest in countries to have increased sovereignty, defense sovereignty, security, sovereignty, economic sovereignty, which can include at times in some countries' minds, the importance of having domestic communications capability and/or domestic Earth observation capability for their country. And so these are -- as folks are looking at increased government spend to increase sovereignty and security of their nations, communication systems and observation systems are key elements, of those sovereignty type postures. And so both in the commercial sector and the Telesat Light companies around the world, in addition to the government sector, there's an increased interest in space-based communication networks.

And so last question for me with everything that you've just said, and I think you previously talked about the potential for another LEO satellite constellation award within the next year or 12-month time frame even after the EchoStar situation. Is that still the case? Are there programs out there with that kind of immediacy in the pipeline?

Yes. Certainly, the order pace is always up to the customer in terms of when they want to move out and place an order. I always look at and talk about the maturity of bids. Bids get more and more mature and more and more specific when you're interacting with customers. And so yes, there are a number of opportunities out there that are at a maturity level where people could choose to move over the next year. And so we -- that remains a possibility for sure. And I should emphasize it's a possibility, but it's not a necessity. The backlog that Guillaume speaks to in the company of over $4 billion is extremely strong. It's a good position to be in. It's really important in our focus to execute well on that backlog. But to have the current size of our company, basically a 3-year backlog of signed contracts in hand that we're executing on, we're in a good spot. It means that over the next couple of years, we definitely have to get more orders and have a lot of opportunities to do so. Some of them could come in the next year for sure. But no panic there, but there is a lot of opportunity that we're working as we move forward within that pipeline.

Next question will be from David McFadgen at Cormark Securities.

Yes, a couple of questions. Can you give us an update on what's happening with that Artemis contract, the USD 4 billion contract for the vehicle, the Lunar vehicle? What's happening there? I thought that to be awarded this year?

The original plan -- that project is called the Lunar Terrain Vehicle System (sic) [ Lunar Terrain Vehicle Services ] or LTVS. We are on one of the teams for the Lunar Terrain Vehicle System (sic) [ Lunar Terrain Vehicle Services ] and -- which is the Lunar Outpost team and really good progress on that team's evolution of its rover solution and in its bid to NASA. It was NASA's intent to announce a winner to that. I believe there's been some delays in that due to the government shutdown in the United States. So there's only certain things that you can do during a government shutdown in the mindset. As -- it looks like that's getting cleaned up right now. So as that gets cleaned up, hopefully, they can complete their assessment and announcement process.

Okay. But do you -- would you expect they would announce that contract award in 2025 or now it's more 2026?

We still think there's a chance of talking about it in 2025. We don't obviously control the pace of the U.S. government making announcements, but our indications are that there's still a chance that the winner could be discussed publicly in 2025. If not, obviously, it would drift into 2026, but we're still hopeful that something could be said this year.

Okay. And then what about the Canada's plans for the RADARSAT Constellation Mission replacement? I haven't heard anything about this for quite some time. [indiscernible] on that?

Yes. So Canada announced, what was that, about a year or more ago, that they intended to -- that they put some money aside to do a couple of things, which was to add some additional radar satellite capability into the RADARSAT Constellation Mission to ensure its resiliency moving forward in addition to looking at radar-based or Earth observation-based services moving forward into the future, and doing some studies on the next-generation synthetic aperture radar or radar-based Earth observation capability for the country. There are activities in all 3 of those areas going on within government and back and forth asking industry for inputs in those areas. And so they do -- they all continue to progress. I don't have a focused estimate of like when those things would come out in public or whatever. But there's definitely solid progression of those things in the -- inside government and in the government to industry kind of Q&A information exchange activities.

Okay. And then maybe if I can ask a couple of questions on your pipeline. So within the satellite opportunity pipeline, is there -- are you in discussions with Apple, Globalstar to expand the number of satellites on the second constellation?

Right now, our focus with Globalstar is execution on our current work. And so that's our absolute focus right now is to make sure that we get those satellites built and moving forward into orbit.

Okay. And of the $13 billion pipeline that you said on the satellite side, how much of that would be, say, direct-to-device versus broadband?

I don't have an exact percentage number, but it's -- I'm just thinking through my head in real time here. It might be 50-50, 60-40 kind of thing, but there's a legitimate handful of each of those things in the pipeline.

Okay. And then just lastly, you talked about defense and how defense spending is going up around the world. We all know that. Is defense a material part of the pipeline right now? And is it growing?

I would say it has the potential to grow in the pipeline. We do have some significant opportunities for sure in our pipeline related to defense, but that is an area where it's -- and that's why I made remarks about it in my comments because you can feel the number of conversations increasing in the defense sector. And so that is likely to result in further and new opportunities in the pipeline going forward. So I do expect that based on -- we don't put things in the pipeline until we can talk about a program with a budget that we think is going to move and then we put it in the pipeline. We will have all kinds of conversations, obviously, with people about the potential to do things before they become a specific opportunity that's got parameters around it. And so in the defense sector, you can certainly feel the intensity of the conversation is increasing. The number of questions people are asking are increasing. And so I think that there will be the opportunity to add more defense to our pipeline as we go forward in the future.

Next question will be from Ken Herbert at RBC Capital Markets.

Maybe Guillaume, can you level set us on what you expect -- how much of the third quarter revenues were from EchoStar and what you expect sort of the full year run rate to be on that? And should all of maybe those negotiations be cleaned up? Or would there be any sort of final recognition of EchoStar revenues or reimbursements into '26?

Thank you for the question, Ken. So we have not recognized a lot of revenue, obviously, for EchoStar. It was very small in Q3. And now we're working with them to have a contract termination agreement. So I won't speculate on the timing of that. And that's why we left our guidance basically intact because that's one thing that's in flux right now, but very minimal revenue associated to that contract in Q3, Ken.

Okay. And you've obviously seen some -- you called out supply chain challenges in both CHORUS and on Globalstar. Are you seeing any incremental risk on the supply chain with Lightspeed? And I guess, do the challenges or delays with -- site delays with Globalstar and CHORUS, do those represent maybe any opportunity to pull Lightspeed to the left a bit?

I don't think there'd be an opportunity -- I don't think that would represent something to pull Lightspeed to the left. I also don't see any unique, whatever the word you said was incremental supply chain risk. I'm just thinking through the elements of Lightspeed at the moment. So I think that's an issue -- that's not an issue that I would be thinking about at the moment. The Lightspeed project, like I mentioned, continues well through its critical design review process. And so -- and you would have heard from their CEO recently on their earnings call.

Just finally on that, Mike, any update on timing as to when the options on either of the existing contracts could potentially when we -- when is a realistic time frame to expect those could be exercised if they are going to be?

Yes, I don't really have any specifics on that. The -- all those customers, the customers with options are constantly looking at their businesses and their business activities and the health and size and capacity of their networks to meet the demand that they want to load up on their network, and they'll make their calls there. So I don't -- Yes, I don't have any specific guidance in terms of when we would expect those things. They remain valid. They remain active as opportunities for us, but no specific time estimates.

[Operator Instructions] Next, we will hear from Kristine Liwag at Morgan Stanley.

This is Justin on for Kristine. Mike, just on the $13 billion satellite systems pipeline, I know you've mentioned in the past that the opportunities can span anywhere from $1 million to over $2 billion. Is there any way to put a finer point on that? Maybe how many discrete opportunities are in that pipeline that are valued around $1 billion or more potentially?

Yes, I don't have a specific number in my head, but there's certainly the number. I would say the range of those would be sort of $250 million to $2.5 billion plus, like in terms of the range of sizes, it depends on the size of constellations that people want to talk about and what orbit they're in. I think that there are definitely a number of them. I think your question was how many are over $1 billion. I don't have a specific number, but there are definitely more than a handful.

Okay. Great. And then just a quick one. Guillaume, the free cash flow guidance looks like it would imply significant free cash flow burn in 4Q if you get close to that neutral guide, and that would be on lighter implied CapEx. So just curious what you're expecting from working capital to end the year? And if you can provide any color on the drivers there would be helpful.

Justin, so look, we haven't changed our guidance. I think overall, when I take a step back here, we're looking at significant growth year-on-year on the top line. I mean, at the midpoint, it's going to be 48% adjusted EBITDA, 45% growth. And yes, we continue to invest in our business. So far from a CapEx standpoint, we've been sort of spending at the rate we were expecting. And we have a good position on the free cash flow year-to-date, slight consumption in Q3 related to working capital. And so we decided to keep our neutral to positive guidance. I think we're in a good position. And I think that we always plan conservatively. We could see some working capital consumption in the fourth quarter. But again, back to Konark's question, I mean, this is normal as part of our business. And for the time being, we remain focused on getting our milestones completed and then invoicing our customer, getting the cash in the door and then obviously managing our outflows. And as I mentioned earlier, we're very pleased so far with how we've been able to manage our working capital throughout this year. So I'll leave it at that. But for now, there's no concerns on the working capital from my perspective for the fourth quarter.

At this time, Mr. Greenley, we have no further questions registered. Please proceed.

Okay. Well, thank you. Thanks for the operator, and thank you, everyone, for your time this morning. We look forward to updating everyone on our progress at our next earnings call. Have a great day.

Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. And at this time, we do ask that you please disconnect your lines. Have a good weekend.

Good morning, ladies and gentlemen, and welcome to MDA Space Limited conference call and webcast. This call is being recorded on August 7, 2025, at 8:30 a.m. Eastern Time. [Operator Instructions] I'd now like to turn the call over to Shereen Zahawi, Head of Investor Relations at MDA Space.

Thank you, operator. Good morning, and welcome to MDA Space second quarter 2025 earnings call. Mike Greenley, our CEO; and Guillaume Lavoie, our CFO, will lead today's call and share some prepared remarks before taking your questions. A couple of housekeeping items before we begin. 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 available from our Investor Relations website and from SEDAR+. 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 press release and public filings regarding various factors, assumptions and risks that could cause actual results to differ. In addition, during this call, we will refer to certain non-IFRS financial measures. Although we believe these measures provide useful supplemental information about our financial performance, these measures 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 quarterly report and other public filings for more information about these measures, including reconciliations to the nearest IFRS measures. And with that, it's my pleasure to turn the call over to Mike.

Thank you, Shereen. Good morning, and thank you to those joining us today to discuss our second quarter 2025 financial results. At the half-year mark, the MDA Space team continues to execute well, delivering solid second quarter results with strong growth in our revenue and profitability as we convert our backlog and meet our customer commitments. Our Q2 revenues totaled $373 million, up 54% year-over-year. Adjusted EBITDA was $76 million, up 57% year-over-year, and adjusted EBITDA margin was a solid 20.4%. Operating cash flow was healthy at $53 million, and we ended the quarter with a net cash position of $417 million. Our backlog of $4.6 billion at quarter end provides us with good revenue visibility for 2025 and beyond. With the addition of the recently announced EchoStar contract award, our backlog rose to over $6 billion. Q2 and the subsequent period was a busy one for MDA Space. As I just referenced, last week we announced the selection by EchoStar to be the prime contractor on EchoStar's new direct-to-device LEO constellation, the world's first 3GPP 5G compliant nonterrestrial network using LEO satellites. The initial $1.8 billion contract will see us design, manufacture and test over 100 MDA AURORA direct-to-device satellites with contract options that, if exercised, will increase the network size to over 200 satellites and approximately $3.5 billion in contract value. With this contract, EchoStar becomes the anchor customer for the 3GPP standards, 5G standards-based compliant, MDA AURORA direct-to-device satellite product, further solidifying MDA Space's leadership in the nonterrestrial network market. This is our fourth LEO constellation contract award in just over 3 years, cementing our market leadership position and accelerating our strategy as we shift to high-volume standards-based satellite product manufacturing. Moving to Q2, during the quarter, we entered into a definitive agreement to acquire SatixFy Communications, a transaction that we completed in early July and that will further enhance our end-to-end satellite systems offering as demand for next-generation digital satellite communications continues to accelerate. Once again, I want to take this opportunity to welcome our new colleagues from SatixFy to MDA Space as you join us on developing the next generation of digital satellite technology. In Q2, we were pleased to finalize an agreement with the Canadian Space Agency to reopen the David Florida Laboratory under MDA Space Management, maintaining this critical space and satellite integration and testing facility for use by the broader space ecosystem in Canada. The agreement enables MDA Space to ensure and expand our spacecraft testing capacity, while also providing a national test site for all Canadian industry and academia that requires space-based testing facilities at market prices. We are proud to play a leadership role as a national space champion for our industry. Throughout the quarter, our teams have continued to execute on our existing programs, including major programs like the Telesat Lightspeed as well as both low Earth orbit constellations for Globalstar. We also continue to execute on the development of our Canadarm3 robotic program and MDA CHORUS, our next-generation Earth observation constellation. As always, our strong performance in the quarter would not have been possible without the extremely hard work and dedication of the entire MDA Space team, who I'd like to thank and acknowledge. With a solid operational performance year-to-date, we are updating our previous 2025 full year financial outlook, which we provided with our Q1 2025 earnings release. We remain confident and now expect full year revenues to be $1.57 billion to $1.63 billion, representing year-over-year growth of approximately 48% at the midpoint of guidance. We are updating our full year adjusted EBITDA range to $305 million to $320 million, representing year-over-year growth of approximately 45% at the midpoint of guidance and approximately 19% to 20% adjusted EBITDA margin. We reaffirm our expectations that capital expenditures will be $210 million to $240 million in 2025 as we invest in our growth initiatives. We continue to expect full year free cash flow to be neutral to positive in 2025. As we look to the balance of 2025, the team is energized by the solid momentum we are seeing in our end markets. MDA Space has the right products, technology and services portfolio to fully capitalize on the opportunities ahead of us. I'll now give you an update on our 3 business areas and then pass it over to Guillaume for a deep dive on the financials. In Satellite Systems, we continue to see good momentum in this market with our teams working to advance multiple requests for communication satellite solutions and a growing number of constellation projects. We are also seeing good activity levels from customers and our opportunity funnel or pipeline remains strong. In Q2, our teams were busy advancing work on a number of programs. On the Telesat Lightspeed program, our teams are currently working on the program's detailed engineering and manufacturing preparation phase, including the critical design review, which is taking place later this year. With all critical subsystem suppliers under contract, the stage is set for work volumes to accelerate this year, consistent with our program plans. The team is also progressing work on the Globalstar next-generation LEO constellation, where MDA Space was selected as a prime contractor to manufacture more than 50 MDA AURORA software-defined digital satellites. The team is making good progress on the engineering, development and program procurement activities for the program and has transitioned towards the critical design review taking place later this year. Our satellite systems team also achieved an industry first recently by demonstrating digital beam forming and steering multiple beams with Ka-band direct radiating array using direct sampling. These are among the key features of the MDA AURORA Ka-band DRA, and their successful validation marks a significant breakthrough in satellite communication systems that support broadband connectivity and 5G networks. It also marks a key milestone in the development of the digital payload technology for the MDA AURORA software-defined product line for next-generation satellite constellations. We also continue to work -- advance work on the initial Globalstar program, where MDA Space is the prime contractor to enhance Globalstar's LEO constellation through the addition of 17 satellites, which support SOS features and direct-to-device communication on certain Apple products. In Q2, the team progressed flight hardware production. The team continues to advance satellite integration work with 9 spacecraft currently on the shop floor in our Montreal facility. We are also making significant progress on our facility expansion in Montreal, which will add 185,000 square feet to our existing satellite production facility. With the building shell complete, we continue to progress construction on the interior elements of the facility and the building is now connected to the power grid. Once complete, it will be the world's largest high-volume manufacturing facility in its satellite class with capacity to deliver 2 MDA AURORA digital satellites per day. The production line remains on track to be operational in Q4 2025. And finally, work has commenced on integrating SatixFy Communications operations and technology portfolio into the Satellite Systems segment of MDA Space following the acquisition close in early July. Early integration initiatives are progressing well. Moving to our Robotics and Space Operations business. We continue to see good traction and activity levels on both the government and commercial fronts. In Q2, we continue to ramp up work volumes on Phase C of the Canadarm3 program, which we were awarded together with Phase D in 2024. Phase C will see us completing the final design before we move on to Phase D, which will see the construction, system assembly, integration and test of the full robotic systems as well as a ground segment for command and control. MDA Space will support commissioning of Canadarm3 robotic system once in orbit from our new mission control facility at our global headquarters and Space Robotics Center of Excellence in Brampton, Ontario. I also wanted to briefly comment on the NASA budget development south of the border. We were pleased to see funding restored for a number of NASA programs, including the Gateway program in the recently passed One Big Beautiful Bill Act signed by the Trump administration in early July. This comes on the heels of earlier recommendations unveiled by the White House in May regarding NASA spending levels for the 2026 fiscal year, which contemplated ending the Gateway program, the Lunar Space Station that is part of the Artemis program and for which the Canadian Space Agency is contributing the Canadarm3 robotic system. As a reminder, our contract for Canadarm 3 is with the Canadian Space Agency and the Government of Canada and not NASA, and there has been no change to any MDA Space contract as a result of these U.S. budget developments back and forth, again, now with it being fully funded. Additionally, NASA has signaled its commitment to work with its Artemis partners, which include the CSA on expanding opportunities for meaningful collaboration to the Moon and Mars. The agency is also committed to commercialization efforts in space, including replacing the International Space Station with private commercial stations when the ISS is deorbited in 2030. The Canadarm3 contract serves multiple purposes, including both space agency and commercial opportunities. NASA's increasing commercial orientation bodes well for MDA Space. We continue to advance opportunities to incorporate our robotic technology on multiple near-term opportunities, including lunar mobility programs, on-orbit operations, including commercial space stations and ongoing space exploration opportunities. And subsequent to quarter end, we announced that an MDA Space-led team was selected by the Canadian Space Agency to conduct an early phase study for Canada's proposed lunar utility vehicle. Recall that in 2023, CSA announced $1.2 billion in funding for a Canadian utility rover that would be contributed to the Artemis program and would support human exploration on the lunar surface. This initial phase study is a critical first step in defining the lunar utility vehicle mission concept and technology development plan. As part of this effort, the team will integrate MDA SKYMAKER, our full suite of scalable and modular space robotics derived from Canadarm technology, paving the way for scalable autonomous mobility solutions on the lunar surface. Moving to our Geointelligence business. Customer demand for our Earth observation offerings remains robust, and we are seeing increased recognition of the role that commercial Earth observation satellites can play to provide near real-time data and analytics to government and private enterprise. Notable awards in Q2 include the $60 million next phase contracts for the delivery and integration of 2 critical sensor systems for the River-Class Destroyer program, previously known as the Canadian Surface Combatant Program or CSC. The contracts are for the delivery and integration of sensor systems for the first 3 ships that improve situational awareness and protect the ships against laser and optical guided threats. Our Geointelligence team also secured a contract extension with Fisheries and Oceans Canada to provide critical data and continuous maritime satellite surveillance data and analytics services for dark vessel detection, utilizing MDA Space's Maritime Insights platform. As part of the contract renewal, Fisheries and Oceans Canada has also amended its contract with MDA Space to enable future utilization of data and services from MDA CHORUS once it's operational. And subsequent to quarter end, we were awarded 2 contracts to equip the Royal Canadian Navy's Halifax class ships with up to 6 new uncrewed aircraft systems, or UAS. Part of the intelligence surveillance, target acquisition and reconnaissance uncrewed aircraft systems, known as iSTAR UAS project, these new systems will significantly enhance the Royal Canadian Navy's ability to detect and monitor potential maritime threats, both at home and abroad. We also continue to advance work on MDA CHORUS and are excited to deliver the constellation's enhanced functionality to our current and future customers. Our spacecraft electrical integration and testing activities continue, and we have all spacecraft units on hand. Solid progress was made in building and testing the synthetic aperture radar antenna panels, and we're building up the latest of 4 panels in parallel with electrical and radio frequency characterization and test activities of the second and third panels. On the ground segment side, the MDA Space team continues to track to development and release plans. We've also progressed facilities for a new mission control center from where MDA CHORUS will be operated. Shifting to operations. We continued our hiring efforts to support the growth we see in our business. Now with more than 3,800 highly skilled MDA staff, today, we have the people and talent to help propel our growth and give us the scale to execute on the market opportunities we see emerging. I also wanted to provide an update on the imposed U.S. tariffs and counter tariffs announced by the Canadian government. As we noted on our last earnings call in May, we see the situation is manageable for MDA Space. As demonstrated by the EchoStar contract, U.S. customers continue to look to MDA Space for our differentiated solutions. Our teams continue to assess mitigation strategies, including compliance with USMCA and our analysis for some of our more complex products that we export, including finished satellites, suggest that these products are USMCA compliant. We'll be monitoring this situation closely as it remains dynamic, and we'll update you as necessary. To recap, we are pleased with our performance this quarter and the momentum we are seeing in our end markets. Our team is energized, and we remain laser-focused on our priorities, a strong focus on execution, converting opportunities in our funnel and expanding our leadership in core markets while maintaining strong profitability and a healthy balance sheet to help fund our growth initiatives. With that, I'll hand it over to Guillaume to walk us through the detailed financials.

Thank you, Mike, and good morning, everyone. For my update, I will walk you through our Q2 financial results and provide more details on our 2025 financial outlook. Overall, Q2 results were strong with solid growth in revenue and profitability. This, combined with a healthy balance sheet and backlog is positioning us well for the remainder of 2025 and beyond. Total revenues for the second quarter were $373 million. This represents $131 million or 54% increase over the same period last year. The year-over-year increase is driven by higher volumes of work performed, primarily within our Satellite Systems business. By business area, revenues in Satellite Systems of $233 million in the second quarter of 2025 were $124 million or 114% increase compared to the same quarter in 2024. The strong performance was driven by the ramp-up of the Telesat Lightspeed and the Globalstar next-generation LEO constellation programs. In Robotics and Space Operations, revenues of $88 million in the quarter represented a $10 million or 12% increase versus Q2 of last year, driven by the continued ramp of the Phase C of the Canadarm3 program. As Mike noted in his remarks, there have been no changes to the Canadarm3 program as a result of the recent budget deliberations in the U.S., and we continue to engage closely with the CSA on this program and to focus on its execution. Revenues in our Geointelligence business of $53 million in the latest quarter were down $2 million or 4% year-over-year due to the timing of programs. This was in line with our expectations for the Geointelligence business this quarter. Moving to gross profit. For Q2 2025, gross profit was $95 million, representing a $29 million or 43% increase over the same period last year, driven by higher volumes of work performed in our Satellite Systems and Robotics and Space Operations businesses. Gross margin in Q2 was 25.4%, which is in line with our expectations and compares to 27.4% for the same period in 2024. The year-over-year change in gross margin is driven by evolving program mix. Adjusted EBITDA in the latest quarter was $76 million compared to $49 million in Q2 of 2024, representing an increase of $28 million or 57% year-over-year, driven again by higher work volumes as we continue to execute on our backlog. Adjusted EBITDA margin was 20.4% in Q2, consistent with the company's full year margin guidance of 19% to 20% and compares to adjusted EBITDA margin of 20.1% reported in the second quarter of 2024. Adjusted net income for Q2 was $48 million compared to $23 million in the same period in 2024. The year-over-year increase of $25 million or 106% is largely due to higher operating income in Q2 2025. Moving to our backlog. We ended the quarter with $4.6 billion in backlog, which is consistent with the levels we recorded in Q2 2024 and up 4% year-to-date. Last 12 months book-to-bill stood at 1x our revenue, and our current backlog level provides us with high visibility for 2025 and beyond. Note that the Q2 backlog does not include the recently awarded $1.8 billion EchoStar contract. This contract will be added to our backlog in Q3 of 2025. On a pro forma basis, including the EchoStar award, this expands our backlog to over $6 billion, representing a very robust level of backlog as the MDA Space team continues to convert opportunities in our pipeline. Moving to CapEx. We remain focused on making the right investments in the business to support our strategic growth plan. In Q2 2025, we spent $37 million on capital expenditures net of government grants compared to $34 million last year as we continued to progress our development of CHORUS and the expansion of our Montreal satellite manufacturing facility. Note that the CapEx figure in Q2 2025 is net of $33 million primarily related to the Investissement Quebec IQ forgivable loan recoveries, which were recorded in the second quarter, in line with our planning. Cash from operations during the quarter generated $53 million compared to a cash generation of $145 million in Q2 2024. The year-over-year change was primarily due to working capital fluctuations. Free cash flow was $16 million in the latest quarter and compared to $110 million for the same period in 2024, with the year-over-year change attributed to the previously noted working capital fluctuations, which are normal and aligned to our expectations. Moving to our balance sheet. We ended the quarter with cash of $666 million, inclusive of the consideration held in trust related to the SatixFy Communications acquisition, which was completed post quarter end, available liquidity of $443 million under our revolving credit facility and total liquidity of $1.1 billion. As a result of our strong cash position year-to-date, we continue to expect our net debt to last 12-month adjusted EBITDA leverage ratio to be below 1x adjusted EBITDA when accounting for the SatixFy Communications acquisition, which closed on July 2, 2025, and is not currently reflected in our Q2 financials. In summary, this was a strong quarter and the MDA Space team continues to execute well. And I also want to thank the team for their outstanding dedication, passion and hard work. Let me now turn to our full year outlook. As Mike noted, we are updating the previous 2025 outlook provided in Q1 2025 earnings release, and we are well positioned to capitalize on strong customer demand and robust market activity, given our diverse and proven technology and product offerings. For fiscal '25, we now expect full year revenues to be between $1.57 billion and $1.63 billion compared to $1.5 billion to $1.65 billion previously, representing a year-over-year growth of approximately 48% at the midpoint of guidance. We have updated our full year adjusted EBITDA range to be between $305 million and $320 million compared to $290 million to $320 million previously, representing a year-over-year growth of approximately 45% at the midpoint of the guidance and approximately 19% to 20% adjusted EBITDA margin. We reaffirm capital expenditures to be between $210 million and $240 million in 2025 to support the previously outlined growth initiatives across our business areas. And we still expect full year free cash flow to be neutral to positive in 2025. Finally, for Q3 2025, we expect revenues to be between $385 million and $415 million as we continue to execute on our backlog. Please note that the financial outlook provided does not factor any potential impact from the tariffs announced this year. As Mike noted in his remarks, our current assessment is that our potential tariff exposure, if any, is manageable. We will continue to monitor the situation and may elect to update our financial outlook if deemed necessary. With a solid backlog and healthy opportunity pipeline, we remain focused on disciplined execution and leveraging our capabilities and technology to grow profitably in line with our long- term strategic plan. Mike, with that, I'll turn it over back to you.

Thank you, Guillaume. With that, operator, we will open it up for questions.

[Operator Instructions] Your first question comes from the lines of Konark Gupta from Scotiabank.

So I wanted to ask you about the production curve, Mike, between the 3 digital satellite constellation contracts you have, I think you have about 350 satellites or so, which you need to produce over the next 4 years maybe. How do you expect the production curve to shape over the next 4 years? I mean, like how much -- how many satellites are you expecting to start producing this year, next year as you ramp up capacity in Montreal?

Yes. So I think with the expansion of the Montreal facility, as we keep mentioning, as we enter into 2026, we'll be capable of production rate of up to 2 satellites a day. So of course, that's 200 workdays a year, so that's 400 satellites a year. In 2026, we don't expect anywhere near that. We'll have a much slower ramp-up of this new facility to work out all the kinks in it. And then as we go through the year, we'll be producing a few dozen satellites. In 2027, we start to get into the couple of hundred satellites and more level of production, but still not using the full capacity of 400 satellites and then, of course, more in 2028. With each of our contracts that we announced and certainly all of the opportunities in our pipeline, this is a key point of discussion that we always have. Any time you meet a new customer, you review the technical capabilities of the product and confirm interest in that MDA AURORA satellite. And then quickly, the conversation moves to what do our production rates look like and where are their demands going to fit in. So this is a constant source of discussion that we're always working through. And so far, of course, we're nowhere near getting ourselves into any kind of capacity limitations. If you think about the next 5 years, at 400 satellites a year at 2,000 satellites over the next 5 years. And as you've indicated, we've only got orders for 300 plus. So we'll continue to manage this. We do have the capability if we needed to. We do talk to people about this that we could add another set of production equipment and move to 3 satellites a day if we ever had to for a peak capacity moment. That's a very manageable CapEx investment someday in the future if we needed to do it. But no need to consider that at the moment. That's just there sitting on the sidelines if we ever need to pull out that card.

Okay. So it sounds like '27 or '28, probably '28 maybe is sort of your peak production year based on the backlog?

Yes, right now, it will continue to build. We always talk to our -- with our customers, right? We get these initial orders to initiate these constellations and then customers will want to talk about expansion orders to be able to get more satellites for their constellations. In this EchoStar announcement, we talked about that we've got this first $1.8 billion to get going with these first 100-plus MDA AURORA satellites and then with options to add more than 100 more to bring the full order up to $3.5 billion and to deliver over 200 satellites to them. So as these optional pieces and expansion orders come in, there'll be all kinds of activities that happen as we go through the next 2 or 3 years. That will continue to use up the capacity in the satellites. I think we'll build up to solid production rates for sure in 2027 and 2028.

Just a follow-up maybe for Guillaume on the free cash side. So working capital obviously swung in Q2, which is kind of normal, I guess, as you said, with respect to both working cap and CapEx, how do you envision the back half of the year kind of shaping up here as these contracts roll in the EchoStar, for example, right, obviously, it comes with maybe some advances for working cap purposes, et cetera? And then you still have, I think, CHORUS CapEx continuing through the end of this year, maybe or maybe early next year, right?

Thank you, Konark. So CHORUS, we're tracking to our plan. It's part of our guidance in terms of CapEx. So that's tracking. We don't expect any spending really related to CapEx in 2026 for CHORUS. This is really the final year. In terms of how the rest of the year will unfold for free cash flow and CapEx, look, we reiterated our guidance. I'd rather not start guiding on a quarterly basis for these things, but we have a bit of a head start, I will say, at the end of Q2 for free cash flow, we're around $220 million. And so with that, we're confident that we can still deliver neutral to positive year this year in terms of free cash flow.

Your next question is from the line of Ken Herbert from RBC Capital Markets.

Mike, Guillaume and Shereen, congratulations on the recent contract. Mike and Guillaume, maybe just on that, can you talk a little bit further now that you've got the contract in place, how we should expect the cash flow and the revenues associated with EchoStar to maybe flow in the back half of this year and in '26 and '27 because I can appreciate there will be some timing discrepancies between those 2 aspects of the contract.

Yes. So maybe I'll take that one, Ken. So for 2025, the impact is not really material on both revenue and cash. I mean we just secured the contract. So -- and also, this was all sort of planned into our ranges. So no impact to 2025 outside of our current guidance. And then we expect the contract to ramp, obviously, in 2026 and with the bulk of the execution being done aligned to Mike's remarks around production ramp-up and all that in 2027 and 2028, and we expect to complete the contract in 2029. In terms of cash, yes, we will be receiving and are receiving advances related to the initial award. So that's obviously helping us to obviously deliver our free cash flow guidance. And the contract is structured in a way where on a cumulative basis, we cover our costs, we cover our overhead, we cover our fees. And at the end of the day, it's a positive free cash flow curve. We also always cover for any termination liabilities that we could have if the contract for whatever reason would be canceled. So the cash flow curve on this contract is quite standard for us. And again, no major impact on 2025 and the ramp-up will really start in 2026.

That's helpful. And as we think about the margin performance so far this year and into the back half of the year, is there anything in particular as we see maybe some more positive movement on the adjusted EBITDA margins in the back half? Anything in particular you'd call out which could be behind some potential increases in the second half margins, either from a programmatic standpoint or maybe from a cost standpoint as you're now further down the cost curve somewhat on the new facility?

Not really. Ken, we did reaffirm our guidance to be between 19% and 20%. Obviously, we had a very strong quarter at 20.4% this quarter. I just want to note here that there was a bit of a positive impact due to the IQ forgivable loan that we basically -- for which we have completed the initial claim, and that has impacted primarily our CapEx, but there was a bit of a revenue and margin retroactive adjustment. So that bumped up a little bit our EBITDA margin. So I would say that if you exclude the impact of this IQ forgivable loan, we were pretty much at the midpoint of our range. So no change to our expectations for Q3 and Q4 and for the full year.

Your next question is from the line of Stephen Machielsen from BMO Capital Markets.

So clearly, the Canadian government is looking to spend more on defense. You're already involved in some of the key areas like surface combatant and future radar sat investment. But to the extent that you can comment, what other types of opportunities might materialize as a result of this higher defense spend?

Yes, I think that it is true. The Canadian government has made public announcements and commitments to increasing defense spend. They want to do that at an accelerated pace. There are announcements and commitments to spending increased levels of money this year and in the next years. So they're definitely doing that. There's a lot of increased activity in Ottawa these days in that regard. If you look at the historical defense plans that have been published over the last several years in terms of the Department of National Defense strategies, they've included satellites for Earth observation, for space observation and for space-based communication. So I would expect those areas to continue to be focus areas for them and that as they accelerate and want to do things faster and/or expand and do more that it would be in those areas. The space domain gives great advantages to military operations on Earth in terms of Earth observation. Canada as a large country with 3 maritime [ coasts ] including the Arctic and an increased role in Arctic security greatly benefits from space-based Earth observation. With the increased congestion in space and increased countries and activities, in satellite and space operations, the need for really strong military space domain awareness or observation of all the satellites and what they're up to is an important area of military operations and will continue to be so for Canada. And then space-based communications, especially in the Arctic, as Canada continues to increase its role in Arctic security and sovereignty will be increasingly important. So we would expect to see activity in those areas as defense continues to advance their plans.

Now I know that the E.U. and U.S. sovereign satellite opportunities have dominated the press coverage over the last half year or so, but to the extent that you can, where -- are you seeing any other opportunities in any other regions? Are there any that are particularly rich in terms of pipeline for you guys or potential pipeline?

Certainly, I agree with you that United States and Europe continues to be important areas of government-based pipeline growth, especially in the defense and security-related areas. We've mentioned in our sort of target areas for mergers and acquisitions, M&A activity that looking at MDA Space presence in the future, capacity and geographic presence in Europe or the United States to be able to access those pipelines and expand our pipelines continues to be an important area of focus. We do today deliver into those things and most of the U.S. Department of Defense or all the U.S. Department of Defense satellite providers that are working on their SDA low Earth orbit constellations, we provide them satellite subsystems for their satellite manufacturing from our merchant supplier portion of our business and satellite systems out of Montreal. So that continues to be strong business for us as we then figure out how to get more present and open up these pipelines further for us. There is opportunity for us in other parts of the world, yes. So I don't really want to comment exactly on which countries and things, but there are 3 additional regions come to mind that are engaging with us through their local space companies that are looking for support, especially in satellite -- communication satellite. And then as the MDA CHORUS team continues to work around the world on its letters of intent leading towards future contracts, that's a very robust area of activity at the moment with a number of new regions of the world being interested in signing up for CHORUS data services -- data products and services as we move forward into the future. So really good activity in both the Earth observation and space-based communications front internationally.

The next question is from the line of David McFadgen from Cormark Securities.

A couple of questions. But just on EchoStar, if we just pretend hypothetically that they have a problem with the FCC on their spectrum and stuff, do you think that there's any risk to the contract with EchoStar with you?

Certainly, EchoStar is working through issues with the FCC, and they've been doing that for a while and continue to do so. We get somewhat regular updates on that activity. Those were all considerations in the awarding of that contract. I think that the fact that we all signed this contract and was awarded that we're comfortable that those issues are not going to get in the way of contract execution since we're all now moving out in the contract. There's always some very, very small chance that something could go wrong. That can always happen in any regulatory process in any of the areas of our business. But right now, it's feeling comfortable that they'll get that solved and worked through.

Okay. So just on CHORUS, when do you expect those 2 satellites to be launched? And when do you expect to start to generate revenue on CHORUS?

Yes. We're still holding to the sort of mid-'26 launch and in our window in all of our planning, there would be commissioning period that would occur through that last piece, the last quarter of last -- well, half or quarter of the year in 2026 and to bring everything into service and so there might be a little bit of things generated there, but really, it's in 2027 that we would expect things to really kick in. A number of customers, we've seen slight increases in RADARSAT-2 levels of business, which is great for a satellite that's been operating for a number of years. Customers have a lot of confidence in CHORUS and therefore, our really relying on RADARSAT-2 and sort of some -- we see some upticks here and there in people's interest in RADARSAT-2 on their way to CHORUS. And so that's really good to see. So we're already seeing some small increases in revenues in some customers as we head towards that CHORUS activity, call it, 18 months from now.

Okay. So I mean, best that I read about the satellite aperture radar -- or sorry, Synthetic Aperture Radar market shows that it's a pretty robust strong market. Are you seeing that?

Yes, it's a pretty strong market. Synthetic Aperture Radar is an Earth observation sensor of interest, especially to defense and intelligence agencies around the world, and there is an increasing level of defense and intelligence activity around the world. And so because Synthetic Aperture Radar is an active sensor, it's sending a radar ping down to the Earth surface and receiving the bounce back from that ping, it means that it's not like an optical sensor. It's not affected by day or night. It's not affected by weather. So you can see it during the day, you can see at night, you can see through clouds, you can see through weather. So it's a very effective sensor, especially for defense and security operations and intelligence operations. So that's strong in general. The Synthetic Aperture Radar market typically includes a couple of bands of behavior. So a lot of the companies and activities that you see in the news these days are using X-band satellites. So an X-band satellite is a very narrowband Synthetic Aperture Radar, and it's for more sort of zoomed in, higher-resolution imaging. When it takes a scan of the Earth surface, it might be taking a 15 kilometer scan image at a time. Another area is the C-band satellites, which is a very broad area surveillance satellite and very effective for doing large scans, which is for us, our C-band satellites are 500 to 700 kilometer wide bands when we scan the Earth surface. And so RADARSAT-2 is a C-band satellite, the main core satellite is a C-band satellite. And so in that niche, which is really useful for a number of things, especially maritime domain awareness, but also increasingly other activities. We're seeing like really strong interest in that. And then with our CHORUS constellation being a C-band satellite paired with an X-band satellite that trails it about 1.5 hours behind it in its orbital path so that we can detect things in the broad area swath and then zoom in with the X-band over the next hour as we go past it again, that's a unique called tipping and queuing capability, which is a unique commercial service that this commercial service doesn't exist in the SAR business right now. And so that's getting strong interest as well, again, from especially the defense and intelligence community because of its effectiveness of doing a broad scan, picking something up, zooming in on it right away and then really understand what's going on. So yes, we're seeing strong demand for Synthetic Aperture Radar imagery as we move forward.

Okay. And then just lastly, when do you expect to finish the revenue recognition on the first Globalstar order?

So we're almost done, David. There's minimal revenue recognition remaining on that contract. We're really at the final stage as Mike described, like the spacecraft are on the floor, and we're just doing final assembly integration and testing. So we're almost completed on the revenue recognition.

And the first 8 and then the next 9 will get done right after that.

Yes.

So say, Q3 would be wind it up, I guess?

It will be a little bit in Q4 because we got to get --

Yes, just a little bit I mean, very minimal.

Yes.

Okay, so say for 2025, you're wrapped up.

Yes, yes, you can say that. Yes, yes, that's it.

[Operator Instructions] Your next question comes from the line of Benoit Poirier from Desjardins Capital Markets.

Could you maybe might provide additional context on the announcement that MDA is set to prime SkyPhi with ESA in the U.K. Can this be tied into other European constellation opportunities like EUTELSAT or IRIS 2, especially as the U.K. is now invested?

Yes. The big thing with SkyPhi is it continues to advance our 5G capabilities. And we've been able to pick up some European Space Agency funding for this project to be able to do 5G onboard processor demonstrations. And so that's really good for us. It helps bring additional funding to advancing the technologies in our road maps. We've been investing our own R&D in our 5G processors. You've seen from the EchoStar contract, we're now going to be delivering 3GPP, 5G compliant satellites at scale now into the market. And so this is like a parallel really ESA project that helps advance and demonstrate those technologies in Europe. Whether or not those technologies would ever click into, you had asked the question, any of the European programs, we'll see. Certainly, getting some European Space Agency support through our MDA U.K. business area for that helps position more of our work in Europe, but we'll just have to wait and see based on industrial strategies in government procurement, how MDA Space shows up in the European region, whether or not all these things can click together to create a bigger opportunity for us in Europe. But right now, for today, it's a great program to have. It really helps the European teams accelerate the demonstration of our 5G technologies, and it helps us as a company bring more resources to the completion of those 5G technologies.

Okay. SpaceX, Mike, has announced that they will begin launching their third-generation satellites in the first half of 2026. Any thoughts on how the beamforming stacks up to MDA's AURORA? And do you get a sense that given geopolitics, it will be tough for some Canadian telcos to deal with SpaceX, especially once cellular satellites, LEO satellites becomes operational in 2026?

Yes. I think I don't have anything specific to say about SpaceX's technical capabilities. I know that competitively, we have strong capabilities and our customers are in a strong place with our satellites and their technical characteristics, combined with the capabilities of our customers that operates and have the spectrum to operate their low Earth orbit constellations. I think that people have a strong position in the marketplace. And so I think that that's great. I think that there will be multiple direct-to-device space networks that are commercially developed around the world. In this conversation, we just mentioned SpaceX having that ambition and EchoStar having that ambition. There certainly will be others. There are opportunities, for example, for a Canadian company to do that. That's out there in the mix in addition to other players in other parts of the world. And so I think we're going to see over the next several years, all kinds of new collaboration. I think we'll see collaboration between space network operators to see what kind of global services they can bring. We'll see new combinations of collaboration between space network operators and terrestrial mobile phone operators, especially now with this new 5G satellite that we're putting into the market. That's super important that it's a 5G standard compliant satellite. It means that a satellite can be on a terrestrial cell phone network on Earth and then just basically like roam or slide into space-based services in a 5G compatible network from space and then back to a terrestrial network and do seamless transitions. And so the collaboration opportunities between space-based network operators and Earth-based mobile phone operators are now going to be greatly increased. And so I think we'll see all kinds of new collaborations and combinations of capability around the world moving forward.

Very interesting. And just a quick one for Guillaume. Guidance for free cash flow is unchanged despite the very strong first half and the recent contract announced with EchoStar. What are the key elements we should consider in terms of offset for the second half, Guillaume?

Yes. Well, Benoit, it's like it's -- we have a lot of contracts right now that we're dealing with. So obviously, for the back half of 2025, EchoStar will be a positive to the working capital. That's quite typical as we are receiving initial award advances. With that said, for some other contracts, there's a little bit of working capital consumption, and that's just normal. It's part of our business. And we feel good about our guidance. We're managing the business prudently. We're happy to see that we have a good head start to the year, and now we're going to focus on executing our plan for Q3 and Q4.

There are no further questions at this time. I'd like to turn the call over to Mike Greenley for closing comments. Sir, please go ahead.

Okay. Well, thanks, everyone, for your time this morning. We definitely look forward to updating you on our progress during our next earnings call in November. Have a great day, and we'll talk again the next time. Thanks.

Ladies and gentlemen, this concludes today's conference call. Thank you very much for your participation. You may now disconnect.

Good morning, ladies and gentlemen. Welcome to MDA Space Ltd. Conference Call and Webcast. This call is being recorded on May 8, 2025, at 8:30 a.m. Eastern Time. Following the presentation, we will conduct a question-and-answer session. Instructions will be provided at that time for you to queue up for questions. For those viewers listening via webcast, please note that the company will be using a presentation. [Operator Instructions] I would now like to turn the call over to Shereen Zahawi, Head of Investor Relations at MDA Space. Please go ahead, ma'am.

Thank you, John. Good morning, and welcome to MDA Space First Quarter 2025 Earnings Call. Mike Greenley, our CEO; and Guillaume Lavoie, our CFO, will lead today's call and share some prepared remarks before taking your questions. A couple of housekeeping items before we begin. 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 available from our Investor Relations website and from SEDAR+. 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 press release and public filings regarding various factors, assumptions and risks that could cause actual results to differ. In addition, during this call we will refer to certain non-IFRS financial measures. Although we believe these measures provide useful supplemental information about our financial performance, these measures 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 quarterly report and other public filings for more information about these measures, including reconciliations to the nearest IFRS measures. And with that, it's my pleasure to turn the call over to Mike.

Thank you, Shereen. Before my remarks this morning, I just want to speak to my quality of voice. So a nasty cold has caught me in the last week. And as a result, my voice will seem a little bit weird today. In addition, I may break into an enthusiastic coughing burst from time to time. If that does happen, I will go on mute for a few seconds, and then I will come back. So good morning, everybody, and thank you to those for joining us today to discuss our first quarter 2025 financial results. The MDA Space team delivered another strong quarter in Q1, driven by solid execution, as we continue to convert our backlog and meet our customer commitments. Our Q1 revenues totaled CAD 351 million, up 68% year-over-year; adjusted EBITDA was CAD 69 million, up 63% versus last year; and adjusted EBITDA margin was a solid 19.5%. Operating cash flow was strong, at CAD 267 million, and we ended the quarter with no debt and a net cash position of CAD 376 million. Our backlog of CAD 4.8 billion at quarter-end provides us with good revenue visibility for 2025 and beyond. The strength of our backlog was significantly enhanced in February when we announced that MDA Space has been awarded a CAD 1.1 billion follow-on contract from Globalstar to manufacture its next-generation low Earth orbit constellation, which will include over 50 MDA AURORA digital satellites. This is our third LEO constellation contract in 3 years and second constellation with Globalstar, further highlighting the continued momentum we are seeing in our Satellite Systems business, driven by strong customer demand for our innovative technology. With a solid start to the year, we are reaffirming our previous 2025 full year financial outlook, which we provided with our Q4 2024 earnings release. We remain confident and continue to expect revenues to be between CAD 1.5 billion to CAD 1.65 billion, representing year-over-year growth of approximately 45% at the midpoint of guidance. We expect full year adjusted EBITDA to be between CAD 290 million to CAD 320 million, representing year-over-year growth of approximately 40% at the midpoint of guidance, and approximately 19% to 20% adjusted EBITDA margin rates. We continue to expect capital expenditures to be between CAD 210 million to CAD 240 million as we invest in our growth initiatives. We also expect free cash flow to be neutral to positive for the full year. Q1 and the subsequent period was a busy one for MDA Space. Throughout the quarter, our teams have continued to execute on our existing programs, including major programs like Telesat Lightspeed as well as both low Earth orbit constellations for Globalstar. We also continue to execute on the development of our Canadarm3 robotic program and MDA CHORUS, our next-generation Earth observation constellation. And subsequent to quarter-end, we announced that MDA Space has entered into a definitive agreement to acquire all outstanding shares of SatixFy Communications Ltd. in an all-cash transaction of USD 2.10 per share. The transaction, which represents an equity value for SatixFy of approximately USD 193 million, is expected to further enhance the end-to-end Satellite Systems offering of MDA Space, as demand for next-generation digital satellite communications continues to accelerate. The transaction represents a total cash consideration of approximately USD 269 million after accounting for SatixFy's existing debt, which MDA Space plans to retire immediately upon closing. We expect the transaction to close in the third quarter of 2025, subject to customary closing conditions and required regulatory approvals. As always, our strong performance in Q1 would not have been possible without the hard work and continued dedication of the entire MDA Space team, whom I'd like to thank and acknowledge. As we look to the balance of 2025, the team is energized by the solid momentum we are seeing in our end markets, and MDA Space has the right technology portfolio to capitalize on the opportunities ahead of us. I'll now give you an update on our 3 business areas and then pass it over to Guillaume for a deep dive on the financials. In Satellite Systems, we continue to see good momentum in this market, with our teams working to advance multiple requests for communication satellite solutions and a growing number of constellation projects. We are also seeing good activity levels from customers, and our opportunity funnel remains strong. In Q1, our teams were busy advancing work on a number of programs. On the Telesat Lightspeed program, our teams have now transitioned to the program's detailed engineering and manufacturing phase, including the critical design review, which is taking place later this year. This follows the successful completion of the preliminary design review, which took place in Q4 of 2024. With all critical subsystem suppliers now under contract, the stage is set for work volumes to accelerate this year, consistent with our program plans. As I noted earlier, MDA Space has been selected by Globalstar to be the prime contractor for the satellite operator's next-generation LEO constellation, where MDA Space will manufacture more than 50 MDA AURORA software-defined digital satellites. The contract value of approximately CAD 1.1 billion is a follow-on to an initial Authorization to Proceed contract we previously announced in November 2023 with an undisclosed customer. A contract value of approximately CAD 750 million was added to the company's backlog in the first quarter of 2025. This amount is in addition to the ATP value of approximately CAD 350 million that was previously added to backlog in '23 and '24. The team is making good progress on the engineering, development and program procurement activities for this program and has transitioned towards the critical design review taking place in the second half of this year. We are also continuing to advance work on the initial Globalstar program, where MDA Space is the prime contractor, to enhance Globalstar's LEO constellation through the addition of 17 satellites which support SOS features and direct-to-device communication on certain Apple products. In Q1, the team progressed flight hardware production and flat track testing of the bus and payload systems. The team continues to advance satellite integration work following a successful spacecraft integration readiness review. We're also making good progress on our facility expansion in Quebec, which will add 185,000 square feet to our existing satellite production facility. The building shell has now been completed, and we continue to progress construction on the interior elements of the facility. Once complete, it will be the world's largest high-volume manufacturing facility in its satellite class, with capacity to deliver 2 MDA AURORA digital satellites per day. The production line is expected to be operational in the second half of 2025. Moving to our Robotics & Space Operations business, we continue to see good traction and activity levels on both government and commercial fronts. In Q1, we continued to ramp up work volumes on Phase C of the Canadarm3 program, which we were awarded together with Phase D in June of 2024. Phase C will see us completing the final design before we move on to the Phase D, which will see the construction, system assembly, integration and test of the full robotic system as well as ground segment for command and control. MDA Space will support commissioning of the Canadarm3 robotic system once in orbit from our new mission control facility at our global headquarters and Space Robotics Center of Excellence in Brampton, Ontario. I also wanted to briefly comment on the NASA budget developments south of the border. Last week, the White House unveiled its recommendations for NASA spending levels for the 2026 fiscal year, including contemplation of ending the Gateway program, the lunar space station that is part of the Artemis program and for which the Canadian Space Agency is contributing the Canadarm3 robotic technology. As a reminder, our contract for Canadarm3 is with the Canadian Space Agency and the government of Canada, and not NASA, and there has been no change to any MDA Space contract as a result of these U.S. budget recommendations. We are in discussion with the CSA and the government of Canada officials with respect to government-to-government dialogue on this matter. With respect to the U.S. budget process, as you know, it is a lengthy process that requires congressional discussion, review and approval, and the final budget may differ from recommendations based on stakeholder input. In its recent update, NASA has signaled its commitment to work with Artemis partners, which include the Canadian Space Agency, on expanding opportunities for meaningful collaboration on the moon and Mars and to repurpose components for use in other missions. NASA is also committed to commercialization efforts in space, including replacing the International Space Station with private commercial stations upon its retirement in 2023. The Canadarm3 contract serves multiple purposes, including both space agency and commercial opportunities. Irrespective of the Gateway project, NASA's increasing commercial orientation bodes well for MDA Space. We continue to advance opportunities to incorporate our robotic technology on multiple near-term opportunities, including lunar mobility programs; on-orbit operations, including commercial space stations; and ongoing space exploration opportunities. During the quarter, we progressed the design and development of the MDA SKYMAKER robotics for the Lunar Outpost Lunar Terrain Vehicle Services, or LTVS, contract and supported Lunar Outpost on its NASA LTVS preliminary design review with NASA. Moving to GeoIntelligence business, customer demand for our Earth observation offering remains robust, and we are seeing increased recognition of the role that commercial Earth observation satellites can play to provide near-real-time data and analytics to both governments and private enterprise. In Q1, we continued to advance work on MDA CHORUS. The MDA Space team finished harness installation and started unit installation in the main spacecraft body. The first 4 SAR antenna panels progressed through its electrical characterization. Our solar assemblies were delivered. We are now well into a busy second quarter, where we plan to test and characterize the second SAR antenna panel and expect to complete testing of the remaining units before installation into the aircraft. The MDA Space team also delivered another iteration of the ground segment software and are tracking continuous development and release plans. Overall, we continue to make good progress in MDA CHORUS and are excited to deliver the constellation's enhanced functionality to all of our current and future customers. Shifting to operations, we continued our hiring efforts to support the growth we see in our business. With close to 3,500 highly skilled MDA Space staff today, we have the people and talent to help propel our growth and give us the scale to execute on the market opportunities we are seeing. I also wanted to provide an update on the imposed U.S. tariff and counter-tariffs announced by the Canadian government. As we noted in our last earnings call in early March, we see the situation as very manageable for MDA Space. We continue to actively engage with government and regulatory bodies in both the U.S. and Canada regarding tariff mechanics, and our teams are assessing mitigation strategies, including compliance with USMCA. On the latter, our preliminary analysis for some of our more complex product that we export, including finished satellites, suggests that these products are largely USMCA-compliant. As a reminder, at the end of Q1, approximately 80% of our backlog of CAD 4.8 billion derived from geographies outside of the U.S. And when we look at our supply chain, particularly for our satellite manufacturing business, it's well diversified, with a little over 1/4 of suppliers based in the U.S. In most cases, the technologies and products we are offering are differentiated and cost-competitive and, as a result, not easily replaced. We continue to see strong desire by customers and potential customers to engage with us, and our opportunity pipeline remains very strong. We'll be monitoring this situation closely, as it remains dynamic, and we'll update you as necessary. To recap, we're pleased with our performance this quarter and the momentum we are seeing in our markets. Our team is energized. We remain laser-focused on our priorities: a strong focus on execution, converting opportunities in our funnel and expanding our leadership in core markets, while maintaining strong profitability and a healthy balance sheet to help fund our growth initiatives. With that, I'll hand it over to Guillaume to walk us through the detailed financials.

Thank you, Mike, and good morning, everyone. For my update, I will walk you through our Q1 financial results and provide an update on our 2025 financial outlook. Overall, Q1 results were strong, with growth in revenue and profitability. We remain with a solid balance sheet and backlog, positioning us well for the remainder of 2025 and beyond. Total revenues for the first quarter were CAD 351 million. This represents a CAD 142 million, or 68%, increase over the same period last year. By business area, revenues in Satellite Systems of CAD 222 million in the first quarter were CAD 135 million, or 155%, higher compared to the same quarter in 2024. The strong growth was driven by the ramp-up of the Telesat Lightspeed program and the Globalstar next-generation LEO constellation program. The latter contract was finalized in February of 2025. In Robotics & Space Operations, revenues of CAD 77 million in the latest quarter represent a CAD 7 million, or 9%, increase versus Q1 of last year, driven by the gradual ramp of Phase C of the Canadarm3 program, which was awarded in Q2 2024 by the Canadian Space Agency. As Mike noted in his remarks, there have been no changes to the Canadarm3 program as a result of the recent budget deliberations in the U.S., and we continue to engage closely with the CSA on this program, while focusing on executing our work. Revenues in our GeoIntelligence business of CAD 52 million in the latest quarter were flat year-over-year, reflecting steady work volumes in line with our expectations. Moving to gross profit. For Q1 2025, gross profit was CAD 80 million, representing a CAD 22 million, or 38%, increase over the same period last year, driven by higher volumes of work performed in our Satellite Systems and Robotics & Space Operations businesses. Gross margin in the latest quarter was 22.7%, which is in line with our expectations and compares to 27.7% for the same period in 2024. The year-over-year change in gross margin is driven by our evolving program mix and higher depreciation expenses as new assets come into service. Adjusted EBITDA in the latest quarter was CAD 69 million, compared to CAD 42 million in Q1 2024, representing an increase of CAD 27 million, or 63%, year-over-year, again driven by higher work volumes as we continue to execute on our backlog. Adjusted EBITDA margin was 19.5% in Q1 2025, consistent with the company's full year margin guidance of 19% to 20%, and compares to adjusted EBITDA margin of 20.1% reported in the first quarter of 2024. Adjusted net income in Q1 2025 was CAD 37 million, compared to CAD 18 million in the same period in 2024. The year-over-year increase of CAD 19 million, or 103%, is largely due to higher operating income in Q1 of 2025. Moving to backlog, we ended the quarter with a solid CAD 4.8 billion in backlog, representing an increase of 46% year-over-year. The growth in the backlog was driven by the addition of a number of sizable awards, including the Globalstar next-generation LEO constellation program, Phases C and D of the Canadarm3 robotic program, the contract extension from the Canadian Space Agency to support robotics operation on the ISS as well as other awards across our business areas. Moving to CapEx. We remain focused on making investments in the business to support our strategic growth plan. In Q1 2025, we spent CAD 62 million on capital expenditures, up from CAD 44 million last year, as we continue to progress our development of CHORUS and the expansion of our Montreal satellite manufacturing facility. Operating cash flow during the quarter generated CAD 267 million, compared to CAD 25 million in Q1 of 2024. The year-over-year increase was driven by favorable working capital contributions, primarily from the Globalstar next-gen LEO constellation and Telesat Lightspeed programs. Free cash flow was CAD 205 million in the latest quarter and compares to negative CAD 16 million in the previous year, with the year-over-year improvement largely due to the previously noted working capital contributions. Moving to our balance sheet. We ended the quarter with a strong financial position, with net cash of CAD 376 million, available liquidity of CAD 690 million under our revolving credit facility and total liquidity of close to CAD 1.1 billion. As a result of our strong cash position year-to-date, we expect our net debt-to-last 12 month adjusted EBITDA ratio to be below 1x EBITDA once the SatixFy acquisition closes, which is expected in Q3 of this year, again, subject to the closing conditions and required regulatory approvals. In summary, this was a strong quarter and a solid start to 2025. Now let me turn to our full year outlook. As Mike noted, we are reaffirming the previous 2025 outlook provided in our Q4 '24 earnings release, and we are well positioned to capitalize on strong customer demand and robust market activity given our diverse and proven technology and product offerings. For Fiscal 2025, we continue to expect full year revenues to be CAD 1.5 billion to CAD 1.65 billion, representing a year-over-year growth of approximately 45% at the midpoint of the guidance. We continue to expect full year adjusted EBITDA to be between CAD 290 million and CAD 320 million, representing year-over-year growth of approximately 40% at the midpoint of the guidance, and approximately 19% to 20% adjusted EBITDA margin. We reaffirm capital expenditures to be between CAD 210 million and CAD 240 million in 2025, comprised of growth investments to support the previously outlined growth initiatives across our business areas. Finally, we expect full year free cash flow to be neutral to positive in 2025. For the second quarter of 2025, we expect revenues to be between CAD 360 million to CAD 380 million as we continue to execute on our backlog. As Mike noted in his remarks, our current assessment is that potential tariff exposure is manageable and that the MDA Space team continues to work with our customers to identify solutions and explore potential mitigation strategies. We will continue to monitor the situation and may elect to update our financial outlook if found necessary. With a solid backlog and healthy pipeline, we remain focused on disciplined execution on our customer commitments and leveraging our capabilities and technology to grow in a profitable way in core and emerging markets in line with our long-term plan. Mike, with that, I'll turn it back to you.

Okay. Thank you, Guillaume. Operator, we can now open it up for questions.

[Operator Instructions] We now have our first question, and this comes from Konark Gupta, from Scotiabank.

Maybe I can begin with the Canadarm3 contract. Obviously, the recent headlines were clearly not indicating that there's a lot of confidence with the NASA budget, clearly. But I don't think you guys are suggesting that you're seeing a lot of risk to Canadarm3, given CSA is the backstopping customer on that. Now the question I have is, what have been the discussions lately with CSA or indirectly with NASA on Canadarm3? I mean, if NASA does not get the budget they want, how can they support the program, the Artemis? And what could Canada do differently to continue to fund this program?

I think there's not a strong history of talking about this particular topic because the inputs from the White House on the budget were just that; like, the preliminary inputs from the White House on the budget. So that kind of essentially comes out of nowhere. It's just their suggestions of the things they would like people to talk about as they go through the budget cycles. So those inputs have now been received within the last week, and now everyone will start to talk about them. So for all of us, we just continue to do our work. We have a contract with the Canadian Space Agency. The Canadian Space Agency continues to have a commitment to NASA to provide robotics for the moon, and we just continue with that. As we go through the next several months, the U.S. budget will obviously go through its process. These inputs, including the White House input, will be reviewed by all the various departments. The congressional staff will start to opine on things that they care about. There will be, I guess, a draft budget that will come out later in May, and then there'll be the congressional review process that occurs through the summer. And I think the normal U.S. budget cycle is an October season for a budget, should it get conducted and it doesn't go into Continuing Resolution. So for us, that means that largely 2025, for us, at the moment, is just get your work done, keep developing the program, keep advancing the robotic system and let that budget process continue in the background. So that's really the position that we're in at the moment.

Okay. That's fair, Mike. I understand. Obviously, a lot of things are on the move here. On LEO, shifting gears, the LEO market, you guys have obviously 2 big contracts, with Telesat and the Globalstar next-gen, I guess, but you also had Globalstar from before. I mean, you have 2 big customers there, and there's a pipeline which is pretty strong. Would you say, like, given your positioning in the market, being sort of an early mover on digital satellites, the reason why you don't have more than 2 customers on the digital side is because of the lack of capacity, which you are building right now in Montreal? Or is it because of the brand reputation, that the market did not recognize your reputation, like, a few years ago?

I'd say that we have a very strong pipeline. We're in a very good position with a number of additional constellations, and all that remains in place. People who would make orders for new satellites, say, if anybody ordered some in 2025, they would not be in production in a factory until sometime in late '26 and early '27. And so those customers in our pipeline understand the capacity that's being built. They've seen it, they've viewed it, they've seen computer animations of it, they've toured through the construction sites. They're very aware of what will come as we go through 2025, and they believe in our ability to have capacity. So there are no concerns with the limitations of our capacity. I think MDA Space as a provider of satellites for low Earth orbit constellations is very well known by those that are building low Earth orbit constellations in the market. I would say all of the premier constellation projects that are available for competition would probably be talking to MDA Space in one way or another, and those are very good dialogues. I think that that's it. You have not, I don't think, because I'm not aware of any, heard of any constellations outside of SpaceX or Amazon Kuiper that would be progressing. Any announced constellations that are in construction is SpaceX doing [indiscernible], Amazon building Kuiper or MDA Space building for Globalstar and Telesat. As we go through the pipeline, we will see how many of the additional next-generation constellations MDA Space is also the provider of satellites for, but we are not losing any competitions.

And the next question comes from the line of Ken Herbert, from RBC.

Mike, maybe to start off, you're involved in a number of the commercial space station opportunities that are very early stages. But I'm just thinking, depending upon how the NASA reorganization goes, to what extent could commercial opportunities for the Canadarm3 technology maybe offset some potential risk or timing from the CSA? And maybe can you just give us a little bit more detail on your commercial initiatives on the robotics side as it relates to C3?

In terms of the construct of offsetting Canadarm3 opportunities, so when you speak of that you're suggesting that perhaps in the final execution of the entire budget process, that later in 2025, we learn that, yes, for real, Canadarm3 would not go to Gateway as a space station. In that outcome, we have already heard the leaders of the space agencies indicate that they are all communicating with each other and will continue to communicate with each other about the use of their contributions to the lunar program. So the lunar program includes the space station Gateway. It includes the spaceships that go to the moon. It includes all the logistics vehicles and activities to move things around the moon. It includes the vehicles that will be used for doing tasks on the lunar surface. So there's a number of different elements to the lunar activity. So they're all in discussions about where can they use all these different elements to do good things on the moon and make sure that everyone's contributions are recognized and useful. So that would be an area of reuse, for example, if the worst outcome was to ever come, like, a year from now. In terms of the use of Canadian robotics technology for the commercial space stations in low Earth orbit, yes, we talk with all of those commercial space stations today. Our MDA SKYMAKER derivatives of the Canadarm3 technology are bid to a number of those different commercial space stations, and we remain engaged in that. So there is strong opportunity for us to deploy Canadian robotics to the commercial space stations in low Earth orbit as well, yes.

Great. That's helpful. And maybe a question for Guillaume. You had really good cash generation in the first quarter. You've maintained the full year breakeven to positive. How should we think about the cadence of the free cash flow? Do we continue to see positive free cash in the second quarter? Or how does this flow through the year?

Yes, we're pretty happy with the free cash flow generation in the first quarter. Again, like I said, it's a good start to the year, but we still have 3 quarters to go. So we maintain our guidance of neutral to positive free cash flow. I think the way to think about Q2, 3 and 4 is, yes, neutral-ish, with potentially some variation in between the quarters with regards to the working capital. But again, we just want to be prudent here. We had a strong start to the year. And then from my perspective, we keep the guidance, and we'll update everyone as we progress through the year.

And the next question comes from the line of Stephen Machielsen, from BMO Capital Markets.

Mike, so I have a question about tariffs. I know you've said in the past that you've been able to manage them for the existing projects. But I'm just wondering in your conversations for prospective constellations or other projects, how are tariffs coming into those conversations?

The notion of tariff is always in a contract. It's a little more popular at the moment as a topic area in contract negotiations. But it's really just working through who owns what responsibility for what aspects of tariffs, that's a normal contract negotiation construct, and then working with the customers with our mutual understanding of how would tariffs work on this particular project: how would tariffs work, what would the potential impact be and which of us is going to be responsible for which pieces of them. And so that's the discussion that we have on each contract.

Okay. And have the answers to any of those questions been changing in the last 6 months versus what you've seen historically in terms of who is responsible for what?

Not really. It goes back and forth with different customers in different situations. I think maybe the only difference might have been that on some contracts we might want to consider changing roles of who's responsible for what, just to be able to make the situation work out optimally. But no big changes.

Okay. And on M&A, so after you close the acquisition of SatixFy, how do you think about your capacity to do more M&A? And are you seeing any more opportunities maybe amongst your supplier base just given the disruption that tariffs might cause?

I think that we will continue with our M&A plans as we've indicated them previously. We've always indicated that there's 2 categories of M&A for us. One is vertical integration, to be able to maybe bring some suppliers vertically integrated into the business, like we're doing with Satixfly, in order to secure the supply chain and make sure we can control our road maps for the future. There are some very small activities in addition to M&A, maybe some licensing deals and things like that, that we work on in that category as well, just to make sure that we are doing that. That's a theme for us in the business. The second theme would be capacity and geographic expansion to be able to get more production capacity, maybe in Europe or the United States, try to open up the government pipelines more in those regions. We will continue to look at those things as well. We definitely have capacity to do so. As we've indicated, we'll do this deal on SatixFy, but we're in a good strong cash position. And of course, our revolver is fully available. So we might get into a situation, as Guillaume said, where we may end up with a small bit of leverage, less than 1 turn, as we go through the year and close that transaction, which means we definitely still have capacity on the debt side. And of course if anything substantial came that was really going to be transformational, I'm sure we could raise equity if we needed it. We have an enthusiastic and supportive community around us. So we feel we can do acquisitions if the right opportunity comes along, and we continue to work on those things.

The next question comes from David McFadgen, from Cormark Securities.

A couple of questions. First of all, just start off with the Canadarm, if I may. So last year, you announced the CAD 1 billion contract for Canadarm3, comprised of 2 phases, Phase C and D. Can you give us a breakdown of that CAD 1 billion between C and D?

No, I can't off the top of my head. Sorry.

Okay. And how much of the backlog right now, CAD 4.8 billion, is represented by Canadarm3?

It's under CAD 1 billion, obviously, as we've been executing the program since we were awarded the Phases C and D. So it's, I would say, under CAD 900 million at the moment.

Sorry. Under CAD 900 million?

Under CAD 900 million at the moment.

Okay. So I was just wondering, by the time Congress decides yes or no about the Gateway project, what percentage of the Canadarm, the CAD 1 billion contract, do you think you will have fulfilled?

It all depends on when that stuff happens, right? So like, I think we'll go through 2025 normally while the U.S. finishes its budget process. That budget process could conclude that Gateway remains and everything stays exactly the way it is. That can be an outcome. The 2 big things related to the Artemis program that are discussed in the budget is the SLS rocket system and Gateway, the space station. And there are certainly a number of congressional elements out there that are not willing to allow that to go through the budget. And so there's going to be a lot of review and discussions that will occur as people go through the summer, and we'll see what happens. In terms of the U.S. reaching a budget, which is obviously a large-cut budget, with a proposed $163 billion of reductions in government spending, people have to get aligned around that and approve a budget. That could happen on time through October, or there could be a Continuing Resolution that is necessary while they continue to debate budgets that could go on until this time next year. So who knows? We will just continue to work on the projects as we are, full steam, and keep getting our work done. It's also important to note that in a situation on large programs like this in the aerospace and defense sector, like globally, if a project sometime in the future was ever shut down, there's a whole process to pay industry and all of its suppliers for all of their costs and the associated expenses with actually buttoning up the project and shutting it down if that were to ever occur. And so there's a lot of water to flow under the bridge here as we go forward into the future. Anybody who feels that because the U.S. White House budget input made a suggestion that Gateway be closed means that, that will lead to Canada not building Canadarm3 and that will lead to us not doing anything more work on this contract, that's a false interpretation of a situation. We will continue to work fully through '25, I would expect, and I would expect there would be significant work beyond that whenever the budget is done. And I know that all the parties are working on what different purposes on the moon or commercially can Canadarm3 serve in the future. So we are a very, very long way away from talking about any changes to our contract structure.

Okay. And just on Artemis, have you heard any discussion about that USD 4 billion contract for the Lunar Training Vehicle? Because it was expected to be announced, I believe, in April. We heard nothing. Just wondering, have you heard anything about that one and an update there?

It still continues in their evaluations. For sure, that is progressing. We have to submit updated inputs into that process on a regular basis. We're doing some updated inputs at the moment. So yes, that continues as a live pursuit.

Okay. And then just moving on to satellites. So just when you look at your pipeline, do you see more demand to build your broadband satellite or your direct-to-device satellite?

There's definitely demand for both. I think the most active discussions at the moment are probably more on the direct-to-device side, but there are some broadband folks that have continued to come along and ask for proposals. So both parts of it are active, with maybe a little bit more enthusiasm on the direct-to-device these days.

Okay. And then just lastly, just on SatixFy, there's a go-shop period that's still live. I would imagine if there was another interested party in the company, you would be aware of it. Have you seen any competing bids for SatixFy?

We have matching rights, we've announced that publicly, in that process, and we have not been informed of any formal bids that we would need to respond from a matching perspective against. That has not occurred yet.

And if I may just add, the go-shop ends on May 16. So it's coming quickly.

The next question comes from Kristine Liwag from Morgan Stanley.

This is Justin on for Kristine this morning. A quick one, just to start with, for Guillaume. It looks like gross margin stepped down a bit in the quarter, and you noted it was in line with expectations. But maybe you could just talk quickly about the drivers there and what you're expecting moving through the year. Is this low-20s range sort of the new normal? Or do you expect to get back up to that kind of mid- to high 20s, approaching 30%, as you've done historically?

I think we've been very clear that our gross margin is evolving due to our changing program mix. And then the other component is really all the investments that we're doing and that we've made into the business. Now we're getting more depreciation as all those assets come into service. So yes, the gross margin was right where we expected it to be. And again, this translates into us delivering between 19% to 20% EBITDA margin, and we expect that this will continue for the foreseeable future. So everything is as per our plan and consistent with our expectations.

Okay. Very helpful. And then, Mike, just going back to the NASA budget and maybe putting Gateway and Canadarm3 aside, are there any other sort of risks or opportunities? I understand this is an initial proposal, but did anything pop out to you outside of sort of Gateway, Canadarm3? And then is there a good way to think about total NASA exposure for you as an end customer, even considering that Canadian Space Agency is the contracting -- you have a contract with them, but ultimately, NASA is the end customer? Any way to sort of size that exposure?

I don't really have a NASA exposure number. I think there's a growing NASA opportunity, for sure. Earlier questions on the NASA LVTS program, that's us teaming with American firms and bidding directly into NASA, for example. So that's also part of our life, in addition to the work that we do through the Canadian Space Agency with NASA. Important to note, we also do work with the European Space Agency, and the Canadian Space Agency is also part of the European Space Agency. So the global space community continues to be very, very active. I think in the discussions around the budget, one of the most encouraging things that was said was the geopolitical competition with China on getting to the moon, and I think some statements were made about ensuring that the United States gets boots on the moon before or at least as fast as China. I think both sides are endeavoring to do that before 2030. What that means is a strong focus on launch systems and return systems to get back and forth to the moon over the next 3, 4 years, in addition to making sure that things like lunar terrain vehicles, habitats and the other things that you need on the lunar surface once you have humans on the lunar surface continue to progress at pace to be able to keep up with that. And so I think that's one of the most important dynamics for everyone to keep in mind, that the Artemis Accords have been signed by over 50 countries, working with the United States in collaboration to live and work on the moon, and that consortium of enthusiastic participants is not going to concede to China and the 11 countries working with it their activities on the moon. So I think that geopolitical tension continues to hold and did hold in the budgetary remarks. So the reconfiguration of budgets to focus on certain things like ensuring we get to the moon and ensuring there's a follow-on effort to Mars, I think, are very positive for the opportunities that we continue to track in our pipeline.

The next question comes from the line of Benoit Poirier from Desjardins.

Just talking about your bidding pipeline for satellite systems, back in December you mentioned earlier that you were seeing about half of winnable bidding opportunities over the next 2 years. Obviously, the geopolitical situation brought increased dialogue. So I was curious to know if you're seeing more than a handful of winnable bidding opportunities these days. And given the acquisition of SatixFy, I was wondering if you got any feedback from potential customers and whether you're getting more confidence that you could get at least one this year, or maybe we could see 2, constellation awards in 2025.

I think the feedback from customers on the acquisition of SatixFy has been very positive. People are very supportive of that. They thank us for doing that, and they see that as us -- the whole phrase that we use as "trusted mission partner," that's not a marketing buzzword or anything. Like, it's a real thing. It's, like, our customers see that we get it. We're committed to these digital satellites, we're going to own the solution, and we're going to be able to evolve the road map for that solution through MDA AURORA version 1, 2 and 3 as we go through the next several years. And so people really appreciate that and are congratulating us and thanking us for doing that. So that's really good. The pipeline does remain strong. People continue to move forward with their plans for space-based networks. People want to get those things done quickly, which is good to see. And as a result, our bidding activity with network operators remains robust. It's a very, very busy period of time. I had indicated lately that I think over the next year that we should expect to be able to see an opportunity for at least another constellation, maybe 2. I still believe that, that over the next year that, that can happen, that 1 or 2 can come through, based on the maturity that some of these bids are at that we have with people. Bids will move from early discussions to rough orders-of-magnitude estimates to then not-to-exceed estimates often to firm fixed-price commitments and then with the terms and conditions around them. They go through a process of increasing maturity. And there's a couple out there that are mature enough that if the customers decided to move, they could, as they go through the next year. So that remains the case.

Okay. That's great. And Mike, when we look at the supply chain environment, you've done a good job securing your supply chain in the past. Could you talk a little bit about the state of the supply chain environment and if there are any parts that are more fragile at this point?

I think it's strong. It's solid. Like, we always want really strong performers. Obviously, that's been a big part of our history, having delivered over 450 missions to space in our history. Having suppliers that have the proven ability to work and deliver in space is very important to us to maintain our "trusted mission partner" status with our customers. So we're very comfortable with our supply chain. I have commented a number of times that as we've gone through, especially on satellites, as we've gone through the next year, the ability for our suppliers to scale with us has become increasingly important. So that as we're now bidding on 50 or 200 satellites out for different customers, that we need the supply chain to keep up with that. So we have increasing dialogue around that. We're seeing that people are able to do that. They're committed to doing that. They're willing to invest in that. And so with SatixFy, getting part of the company, then that's going to help us really get very clear on our road map over the next 2 or 3 versions of satellites and mature our conversations with our customers about what we might need from them over the next 5 years. And so it's just a good conversation with everybody that's maturing and letting everybody have information that they need to stay a little bit ahead of demand to be ready to be able to scale up or be ready with the next generation of solution. So it's generally working well.

Okay. That's great. And maybe last one, for Guillaume. I appreciated your comments with respect to [indiscernible] free cash flow in the remaining quarters for 2025. Could you maybe talk a little bit about the assumption in terms of booking activity in order to -- what you're assuming for the remaining quarters in terms of free cash flow and also maybe the key milestones to watch that could influence the working capital contribution, such as the critical design review with Telesat that will take place later this year?

Thank you for your question, Benoit. Well, on the free cash flow planning, we're typically conservative, in the sense that we really don't include inflows or advances for contracts that we haven't won just yet. So that's one thing. So obviously, if we have new awards, that could have a potentially beneficial impact to our plan. Secondly, in terms of the program execution, each of our programs have a lot of different milestones. You can think of a couple of hundred milestones, for example, on a given contract. And we're tracking all of those milestones very closely. We have reviews on a monthly basis to look at the progress of the work and how we're doing in terms of cash inflows and, obviously, cash outflows. So we have a good grasp on our forecast. And I would say, as Mike said, really, for Telesat, the focus is on the critical design review. It's the same thing with the Globalstar contract. And also with regards to the Canadarm3 program. We're working on the Phase C right now. So we're tracking all the milestones. And so far, our guidance takes into account the execution and a wide range of potential outcomes, which, again, we are comfortable with in saying that we'll be neutral to positive free cash flow this year. And again, we had a good start to the year. So we're happy about that, but we still have 3 quarters to go, and we're focused on executing those milestones so we can collect our cash.

And the next question comes from the line of Jason Gursky from Citigroup.

Mike, I'd love to get your take on the Artemis program overall. This is something that was started by the Trump administration, Trump 1, so to speak. What do you think has changed here, kind of why the change of heart on Gateway at this point? What's been the major driver for the decision to make a move here?

I think that my sense of it is really just, like everything else in government, it's all about budgets and efficiencies. I think that the commitment to the Artemis program and the commitment to the moon remains, but folks are looking, like they are everywhere in government, for any opportunities for efficiency. The 2 main items that have been discussed as ideas to talk about in this latest budget input has been the SLS rocket system and Gateway as a space station. The SLS rocket system is extremely expensive. It's a multibillion-dollar per launch activity. And arguments have been made that there could be more effective or efficient ways of doing launch. And then when people talk about space programs, they talk about the architecture of a space program. And so in the architecture of the elements of the Artemis program, the Gateway was there as part of that architecture. So it's a space station that allowed people to launch from Earth, travel to the space station, spend some time there, then transit from the space station down to the lunar surface, do their business, maybe come back up to the space station, then continue back to Earth. There could be people in the space station providing supervisory roles over what's going on down on the lunar surface, et cetera. So there was a role for that space station in the architecture of lunar missions. Some folks, I'm assuming, in suggesting that maybe Gateway go away, are suggesting that maybe the architecture could change. Maybe we don't need a space station at the moon, and you could just launch from Earth and go directly to the moon, do your business and then launch back off the moon and come back to Earth and don't worry about having a space station there. I think there'll be lots of debate about that as we go through the summer, in terms of the pros and cons of that and the value of those things. And so people will be looking at those 2 items as, is this a way of saving money and focusing the effort while still ensuring that the Artemis program continues and that the Artemis Accords and all the countries involved still have an active and robust activity on the moon?

Right. Okay. That's helpful. And I think Lockheed Martin mentioned the Canadian Surface Combatant this quarter on their earnings call. I hadn't heard them do that in quite some time, which begs the question to you. Kind of what's the update there for MDA on the Canadian Surface Combatant?

We're seeing a bit of burst of activity there right now. I think that the designs and stuff are starting to get really finalized in terms of what's on the ship, what's off the ship and how is all of that going to work. There'll be contract movement, I think, over the next couple of quarters as people get under contract for what's called the implementation phase, which is, like, really get on with it and get these first 3 ships built, which is the first block of ships. So I think that -- I'm not aware of what Lockheed Martin's remarks were, but certainly, there's a leaning-forward posture, I think, that we're feeling right now as people are leaning into getting going and getting things done, and I know our people are busy responding to questions and answers and stuff within the project. So yes, I think that's what's happening. People are leaning into getting this first block of ships built.

Right. And to your point, Lockheed's comments was more about the pace of activity is picking up here. But I'm just kind of curious, has there been any change in what you think you're going to be doing on those ships? Has the addressable market, so to speak, shifted one way or another for you as you are moving now further into this project?

There's nothing official yet. In the discussion points, like, you get asked to chip in on stuff and give your inputs on this and that. And sometimes that is related to what things could be done, and then sometimes that's related to what if we didn't do this thing, what would be the implications of that. And so you answer that back-and-forth questions, but we're waiting to see what all the final strokes here is on these implementation contracts that now people are moving out with.

Thank you. And we don't have any further questions that came through at this time. I will now turn the call over back to Mike Greenley. Please go ahead, sir.

Okay. Thank you, operator. And for everybody else, thanks for your time this morning. It's been a great first quarter, a great start to the year. Really impressed with the team and everything that they're doing. People are working extremely hard, this new larger team that keeps getting larger here at MDA Space. But really appreciate the fact that people are working well together and doing a great job. And we will continue to lean into it. We look forward to updating you on our progress during our next earnings call, which will be in August. Have a great day. Thanks, everybody.

Thank you. This concludes our conference call for today. Thank you all for participating. You may now disconnect.