MDA Space secures $688M contract for RADARSAT replenishment satellite

1 min read Updated on 24 Jun 2026, 04:43 PM

Reviewed by

Shriram SScanX News Team

AI Summary

MDA Space Ltd. has been awarded a $688 million contract by the Canadian Space Agency to design and build a synthetic aperture radar satellite for the RADARSAT Constellation Mission. The project, part of the $1,012 billion RADARSAT+ portfolio, includes launch services and system upgrades, with work to be conducted in Montréal.

*this image is generated using AI for illustrative purposes only.

MDA Space Ltd. has secured a $688 million contract from the Canadian Space Agency (CSA) to supply an advanced, synthetic aperture radar (SAR) satellite that will operate with the RADARSAT Constellation Mission (RCM) satellites. The agreement encompasses the space segment, launch services, and enhancements to ground control, security, and data management systems. This contract will be added to MDA Space's backlog in the second quarter of fiscal 2026, ensuring the continuity of the RCM mission and bolstering sovereign Earth observation capabilities.

The new satellite serves as a follow-on order to the RCM, which MDA Space originally built and launched in 2019. It will be based on the company's fourth-generation MDA CHORUS platform, currently in its final integration phase with a launch expected later in 2026. The replenishment satellite is part of the Government of Canada's $1,012 billion RADARSAT+ portfolio, announced in October 2023.

Contract Details and Scope

The contract follows an initial $44.7 million award issued in December 2025 for the procurement of long lead parts. The full scope of work includes the assembly, integration, and testing of the satellite at MDA Space's facility in Montréal. The satellite will provide day-night, all-weather broad surveillance area data globally.

Contract Component	Details
Total Contract Value	$688 million
Initial Contract Value	$44.7 million
Fiscal Impact	Added to Q2 FY26 backlog
Location	Montréal facility

Strategic Importance

Mike Greenley, CEO of MDA Space, emphasized the reliance of Canadians on Earth observation technology for maritime safety, Arctic surveillance, disaster response, and environmental monitoring. He stated that leveraging commercial investments in MDA CHORUS allows Canadians to benefit from world-leading technologies developed domestically. The satellite will operate alongside existing RCM satellites to support these critical services.

How will this contract influence MDA Space's competitive position in the global commercial satellite market?

What are the potential risks or delays associated with integrating the new satellite with the existing RCM constellation?

Could this agreement pave the way for additional follow-on orders under the RADARSAT+ portfolio?

Rating and Target Details

The Sector Outperform rating indicates that the company is expected to perform better than the average company in the sector. The price target revision to C$71 suggests a slight improvement in the expected valuation of the shares.