Peter Hodson MDA Ltd. MDA-T HOLD Sep 19, 2025

Exciting prospects. Cost of space has dropped so much it really opens up the market. That sector will have very strong tailwinds over the next several decades. Around for 55 years. Leader in space; satellites, sensors, components, Canadarm. Huge backlog. Great topline and bottom line growth. No dividend.

Really feeds into growth in the satellite business and space-based Wi-Fi. Lots of opportunity for growth in competition to Starlink. Run up. Better than 93% of companies in the S&P over last 52 weeks, so he wouldn't bet on a significant pullback. Still room to run.

Despite growth profile, people were worried about its debt. Then it demonstrated its cost-saving abilities to one company and just took off. No longer undiscovered. 

Growth is there, 3 big contracts (1 Canadian, 2 US). Bright future, but it's priced in. If it's 5% of your portfolio, hold on and enjoy the ride. If you're way overweight, definitely trim some.

The costs of space are coming way down and MDA is getting more and bigger contracts for more components. The backlog continues to grow. It executes well on its numbers. Space is an area to grow. It expands as prices come down which expands the whole market.      Buy 6 Hold 1 Sell 0

One of the themes he's focused on is space, a long-term secular trend. Space economy is in very early stages, and will go on for a long time. This one is fully exposed to that economy. Three basic verticals:  robotics and space operations, low-orbiting satellite systems for Wi-Fi via satellite (best-known right now, huge backlog), geo-intelligence (defense). 

Leader in the group. Clean balance sheet. Interesting strategic acquisitions. Growth stock. No dividend.

They lost the Echo Star contract and shares plunged 25%. Was trading at 39x PE and now at 33x. Is cheap now and will recover their growth.

They lost a big contract last week, but this is an isolated incident (to be confirmed). The company they lost the contact to had lost their spectrum to SpaceX over regulatory reasons. The rest of MDA's business is intact and should not be negatively impacted. The huge backlog from other clients should make up the lost capacity, though may see less business from the U.S. MDA should be fine going forward.

Intriguing. Likes business fundamentals. Space economy has a $1.5T addressable market. Has a $4.8B backlog, though did lose the EchoStar contract. Top-tier customers. NATO allies significantly upping defense spending. 

His team is assessing risk/reward. Watching, hasn't pulled trigger. Stay tuned.