MDA Space is a top pick for fund manager Bruce Campbell

StoneCastle Investment Management fund manager Bruce Campbell likes what he sees from MDA Space (MDA Space Stock Quote, Chart, News, Analysts, Financials TSX:MDA).

Campbell appeared on BNN Bloomberg’s “Market Call” July 9th to talk about his current “Top Picks” and MDA was one of them.

“If you have heard a presentation from the CEO you can’t be not excited about the prospects for this company,” Campbell said. “He talks about the fact that the cost of space has dropped so much and will continue to drop. What that does is open up the market, it allows more people to get into the market. So over the next few decades we are going to continue to see that sector have very strong tailwinds.”

The fund manager said the company is already benefiting from this development.

“They’re seeing amazing growth,” he said. They have a huge backlog, and if you look at the projects that are on the go, that are now moving towards proposals for pricing, they are in all those conversations and they’re going to get a certain amount of that business.”

On May 8th, MDA reported its Q1, 2025 results. The company posted Adjusted EBITDA of $68.6-million on revenue of $351.0-million, a topline that was up 68%, year-over-year.

“Q1 marked a strong start to the year with the MDA Space team delivering another quarter of solid growth in our top and bottom lines as we continued to execute and convert our backlog,” CEO Mike Greenley said. “With robust momentum in our end-markets, we continue to grow our backlog, which at quarter-end stood at ~$5 billion providing good revenue visibility for 2025 and beyond. Notable awards in Q1 included a contract from Globalstar for its next generation LEO constellation which will include more than 50 MDA AURORA™ digital satellites. “Subsequent to quarter-end, we announced that we have entered into a definitive agreement to acquire SatixFy Communications, a transaction that once complete, will further enhance our end-to- end satellite systems offering as demand for next generation digital satellite communications continues to accelerate.”