On Friday MDA Space (MDA) announced its third major satellite constellation project - a $1.8B deal with EchoStar with purchase options for an additional $1.7B, representing up to 200 satellites set for 2028 delivery.

The contract materially raises the floor on revenue from MDA’s satellite segment, which has been its fastest growing over the past year…

… thanks to similar deals with Globalstar and Telesat. With a rapid shift towards low-earth orbit (LEO) satellite deployment, there’s likely more big contracts to come…

… and with shorter replacement cycles, MDA’s business model is getting more predictable - driving the multiple expansion that‘s been a tailwind for the Canadian space names we highlighted in February.