MDA SPACE SIGNS $1.1B CONTRACT WITH GLOBALSTAR TO BUILD NEXT GENERATION LEO CONSTELLATION

Rhea-AI Summary

MDA Space has secured a definitive contract worth $1.1 billion CAD with Globalstar to serve as the prime contractor for their next-generation low Earth orbit (LEO) constellation. The agreement involves the manufacture of more than 50 MDA AURORA software-defined digital satellites.

This contract follows an initial Authorization to Proceed (ATP) contract announced on November 17, 2023. Approximately $750 million will be added to MDA's backlog in Q1 fiscal 2025, supplementing the previous ATP value of $350 million.

Positive

• Secured major $1.1B CAD contract for satellite constellation
• Will manufacture over 50 AURORA satellites
• $750M addition to company backlog in Q1 2025

Negative

• None.

Insights

Financial Analyst

This $1.1 billion constellation contract marks a pivotal moment for Globalstar's competitive positioning in the rapidly evolving satellite communications market. The investment in 50+ software-defined digital satellites represents more than just a fleet renewal - it's a strategic leap toward enhanced service capabilities and operational flexibility.

Software-defined satellites are particularly significant as they allow for dynamic reconfiguration of coverage areas and service types post-launch, enabling Globalstar to adapt to evolving market demands without launching new hardware. This technological advantage could help secure and expand partnerships similar to their existing collaboration with Apple for emergency SOS services.

The financial structure of the deal reveals careful capital management: the initial $350 million ATP followed by the additional $750 million commitment suggests a phased approach to this major capital expenditure. For MDA Space, this contract significantly bolsters their backlog, providing strong revenue visibility and potentially improving their borrowing terms and investor confidence.

In the broader LEO satellite market context, this investment positions Globalstar to compete more effectively against emerging players like Starlink and established operators like Iridium. The timing aligns with growing demand for global connectivity services, particularly in IoT, maritime and emergency communications sectors.

Technology Analyst

MDA's AURORA software-defined digital satellites represent a quantum leap in satellite technology that will fundamentally transform Globalstar's service capabilities. Unlike traditional satellites with fixed hardware configurations, these new platforms can be dynamically reprogrammed in orbit, allowing Globalstar to rapidly deploy new services, adjust coverage patterns and optimize network performance in response to market demands.

This technological upgrade positions Globalstar to potentially expand into new high-value markets such as advanced IoT services, precision agriculture, maritime communications and enhanced mobile broadband. The software-defined architecture also provides important future-proofing, as new protocols and standards can be implemented through software updates rather than requiring new satellite launches.

The selection of MDA's AURORA platform suggests a focus on advanced digital signal processing and beam-forming capabilities, which could significantly improve spectrum efficiency and service quality. This technological foundation will be important for competing in the increasingly crowded LEO satellite market, where service differentiation and adaptability are key success factors.

BRAMPTON, ON, Feb. 10, 2025 /PRNewswire/ - MDA Space Ltd. (TSX: MDA), a trusted mission partner to the rapidly expanding global space industry, today announced that it has signed a definitive contract with Globalstar Inc. (NYSE American: GSAT) to be the prime contractor for the satellite operator's next generation low Earth orbit (LEO) constellation, with a total contract value of approximately $1.1 billion*.

As part of the definitive contract for the full LEO constellation, MDA Space will manufacture more than 50 MDA AURORA^TM software-defined digital satellites for Globalstar.

"We are pleased to once again be working with Globalstar as they develop their next generation LEO constellation," said Mike Greenley, CEO of MDA Space. "With the full contract now in place, we are moving full speed ahead on the program."

The definitive contract announced today is a follow-on to an initial Authorization to Proceed (ATP) contract with an undisclosed customer, previously announced on November 17, 2023.

A contract value of approximately $750 million will be added to the company's backlog in the first quarter of fiscal 2025. This amount is in addition to the ATP value of approximately $350 million that was previously added to backlog, for a total value of $1.1 billion under the definitive contract.

^{*Contract value is stated in CAD. Management assumed US/CAD exchange rate of 1.43.}

ABOUT MDA SPACE
Building the space between proven and possible, MDA Space (TSX:MDA) is a trusted mission partner to the global space industry. A robotics, satellite systems and geointelligence pioneer with a 55-year+ story of world firsts and more than 450 missions, MDA Space is a global leader in communications satellites, Earth and space observation, and space exploration and infrastructure. The MDA Space team of more than 3,000 space experts in Canada, the US and the UK has the knowledge and know-how to turn an audacious customer vision into an achievable mission – bringing to bear a one-of-a-kind mix of experience, engineering excellence and wide-eyed wonder that's been in our DNA since day one. For those who dream big and push boundaries on the ground and in the stars to change the world for the better, we'll take you there. For more information, visit www.mda.space.

FORWARD-LOOKING STATEMENTS
This press release contains forward-looking information within the meaning of applicable securities legislation, which reflects the Company's current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risk Factors" in the Company's Annual Information Form available on SEDAR+ at www.sedarplus.com. MDA Space does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

INVESTOR CONTACT
Shereen Zahawi
Senior Director, Investor Relations
647-401-3230
shereen.zahawi@mda.space

SOCIAL MEDIA
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SOURCE MDA Space

FAQ

What is the total value of MDA Space's contract with Globalstar (GSAT)?

The total contract value is approximately $1.1 billion CAD for the next-generation LEO constellation project.

How many satellites will MDA Space build for Globalstar's (GSAT) new constellation?

MDA Space will manufacture more than 50 MDA AURORA software-defined digital satellites for Globalstar's LEO constellation.

When will the $750M be added to MDA Space's backlog from the Globalstar (GSAT) contract?

The $750 million will be added to the company's backlog in the first quarter of fiscal 2025.

What was the value of the initial ATP contract between MDA Space and Globalstar (GSAT)?

The initial Authorization to Proceed (ATP) contract was valued at approximately $350 million.