MDA Space Ltd. (TSX: MDA) (NYSE: MDA) will build 27 additional MDA AURORA next-generation broadband satellites for Telesat's Lightspeed low Earth orbit constellation, adding $474 million to its existing contract with the Canadian operator. The follow-on order, announced Tuesday from Toronto, coincides with Telesat's decision to expand Lightspeed from 156 to 225 fully funded satellites and increases MDA's Lightspeed backlog from 198 spacecraft to 225.
Military Ka-Band Baked Into Every Satellite
The expanded scope also adds 500 MHz of military Ka-band spectrum to every Lightspeed satellite currently being built, replacing the same amount of commercial Ka-band. That change lets Telesat serve allied defence customers directly from the constellation and answers a specific need created by the Enhanced Satellite Communications Project-Polar program, which will provide Canadian Armed Forces connectivity across the Arctic.
Backlog And Build Plan
MDA chief executive Mike Greenley said the deal 'helps equip the Canadian Armed Forces with some of the most advanced capabilities on the market'. The company will manufacture the additional AURORA spacecraft at its high-volume Montreal facility, and the bulk of the $474 million will hit MDA's backlog in the third quarter of 2026. The Government of Canada also confirmed Tuesday that MDA Space will serve as prime contractor for the ESCP-P program's UHF and X-band Medium Earth Orbit component, with Telesat as a subcontractor.
Context
The award follows a run of large space wins for MDA including a June deal with Mitsubishi Electric for a Japanese defence satellite and a July agreement with the Canadian Space Agency for RADARSAT replenishment satellites. It also lands two months after MDA agreed to acquire small-satellite specialist Blue Canyon Technologies for $620 million. Telesat plans to launch its Lightspeed satellites on a combination of SpaceX Falcon 9 and other providers starting this year.
Reporting based on coverage from MDA Space, Telesat and SpaceNews.