Welcome to the 2026 annual general meeting of shareholders of MDA Space Ltd. Please note that today's meeting is being recorded. However, no attendees are permitted to use a recording device. I would like to introduce Brendan Paddick, the Chair of the Board of MDA Space. Mr. Paddick, the floor is yours.
Thank you, and good morning, ladies and gentlemen. Welcome to the MDA Space Annual General Meeting of Shareholders. My name is Brendan Paddick, and I'm the Chair of the Board of MDA Space. MDA Space is holding this year's meeting in a virtual format, which provides the advantage of allowing registered shareholders and duly appointed proxy holders to participate and vote at the meeting from any location. I will now call this meeting to order. I will act as Chair of the meeting, and David Schnerch, Vice President, General Counsel, and Corporate Secretary for MDA Space, will act as secretary of the meeting. Unless there is an objection, I appoint Rebecca Prentice of TSX Trust Company, the appointed registrar and transfer agent, as scrutineer for the meeting. Let me briefly explain the format of today's proceedings.
We will first deal with the necessary administrative items before proceeding to the formal business of this annual general meeting, which is to receive the 2025 financial statements, to elect the Board of Directors, to appoint the auditor for the coming year, and to approve a non-binding advisory resolution on the company's approach to executive compensation. As this say-on-pay vote is an advisory vote, the results will not be binding on the board. Later, we will hear from Mike Greenley, MDA Space Chief Executive Officer and Director, who will provide a business update. Guillaume Lavoie, MDA Space Chief Financial Officer, is also with us today and will be available to answer questions during the Q&A portion of the meeting. Jim Floros, MDA Space Vice President of Investor Relations, will help us field your questions following the management's remarks.
Given the virtual format of the meeting, Karl Smith, chair of the audit committee of the board, will perform my role in the event I am disconnected due to a technical malfunction. Before we get to the formal business of the meeting, I want to share a few thoughts on how the board of directors sees MDA Space today and the market opportunity we see for the company going forward. 2025 was another remarkable year for MDA Space, during which we continued to see meaningful impact of our long-term strategy to maximize our opportunities in the global space market, resulting in substantial progress against our growth plan.
Where in prior years we characterized the space market as evolving, in 2025, we witnessed a step function improvement in the market's maturity, awareness of space as critical infrastructure, and new and urgent demand to accelerate program development and procurement, both from commercial and government customers. Notably for MDA Space was the emergence of new defense sector spending initiatives globally and increased recognition space as a core to national sovereignty and military operations, all driven by geopolitical change in priorities. With our long heritage as a trusted mission partner, combined with strategic investments in our next generation of space product development and manufacturing capacity, MDA Space is ideally positioned to capitalize on these market opportunities.
All of these factors add to the company's already significant business momentum, opportunity pipeline, and ability to unlock greater shareholder value, enabling the company to not only deliver a record year financially, but to capably weather a turbulent economic and political landscape. On behalf of the MDA Space Board of Directors and the management team, I want to thank our shareholders for your continued support and confidence. I also want to thank the entire MDA Space team, now more than 4,000 people globally, who day in and day out are helping to shape, secure, and advance space on behalf of us all. I look forward to another year of working together on that mission. With that, we will now move on to the business of the meeting.
Once the formal business items of the meeting are complete, I will invite Michael Greenley to provide his remarks, which will be followed by a general question- and- answer session. The secretary has advised me that the notice calling the meeting to order, together with the form of proxy and management information circular, has been made available to each director of the corporation, the auditor of the corporation, and each intermediary and registered holder of common shares of the corporation of record as of the record date of March 27, 2026, all in accordance with applicable law and the corporation's bylaws. These materials are available on the corporation's investor website and on the corporation's profile page on both SEDAR+ and EDGAR.
Our transfer agent, TSX Trust Company, has attested to the proper mailing of the proxy materials for the meeting, including the form of proxy, the voting instruction form, and the notice and access notice advising that the notice of meeting and management information circular are available online. The scrutineer has provided me with her preliminary report regarding shareholder attendance at today's meeting, which confirms that there are common shares representing 59% of all outstanding common shares of the corporation present at this virtual meeting or represented by proxy. Accordingly, I declare the requisite quorum of shareholders as present, and I declare that the meeting is indeed duly and validly constituted. I direct that proof of mailing and the scrutineer's final report on attendance be annexed to the minutes of this meeting.
At this point, I would like to set out a couple of procedures to ensure orderly conduct, given the virtual format of this meeting. Questions can be submitted by any registered shareholder or duly appointed proxyholder using the Ask a Question button on the virtual meeting platform. When asking a question, please indicate your name, which entity you represent, if any, and confirm that you are a registered shareholder or a duly appointed proxyholder. Questions will be addressed during the question period at the end of the meeting. Note that questions regarding procedural matters or those directly related to any motions before the meeting may be addressed during that part of the meeting. For the purposes of the meeting today, voting in all matters will be conducted by electronic ballot.
I will now take a moment to ask that the balloting be opened to registered shareholders and duly appointed proxyholders. The polls are now open. Registered shareholders and duly appointed proxyholders will be asked to vote on each business item after the presentation of all the business items. However, you may also vote at any point throughout the business portion of the meeting. Once discussions on all items of business have concluded, you will have an additional minute to enter your votes if you haven't already voted by proxy or voted during the course of this meeting, after which time I will declare voting closed in all resolutions. Finally, if you've already voted in advance, please do not vote again during the meeting unless you would like to change your vote.
If you vote again using the online ballot, your online vote during the meeting will revoke your previously submitted proxy. We will now proceed with the formal portion of today's meeting. I've been advised that Stephanie McDonald, Chief People, Culture, and Transformation Officer at MDA Space, and an MDA Space shareholder, that she would be prepared to second each of the motions in respect of the items outlined in the management information circular. Accordingly, unless there are objections, I will take such motions as seconded with no further action required. The first item of business is the presentation of the corporation's consolidated financial statements for the year ended December 31, 2025, and the auditor's report thereon. Copies of such documents have been mailed to the shareholders who requested them and are also available on the corporation's website and on SEDAR.
It is not proposed to read the financial statements into the meeting. Receipt and presentation of the financial statements for the year ended December 31st, 2025, are hereby acknowledged. I direct that the financial statements and the auditor's report thereon be annexed to the minutes of this meeting. We will now proceed with the election of directors. The number of directors to be elected at the meeting has been fixed at seven. I move to nominate those persons specified in the management information circular for election as directors of the corporation to hold office until the next annual meeting of shareholders or until their successors are duly elected or appointed in accordance with the articles and bylaws of the corporation and take such motion as having been seconded by Stephanie McDonald.
The proposed nominees are Yaprak Baltacioglu, Darren Farber, Michael Greenley, Brendan Paddick, Jill Smith, Karl Smith, and Yung Wu. As the corporation did not previously receive timely notice of any further nominations of persons for election as directors of the corporation, as required by the bylaws of MDA Space, I declare the nominations closed. I will now move that each of the seven persons nominated to be elected directors of the corporation to hold office until the next annual general meeting of shareholders or until their successors are duly elected or appointed. I take such motion as having been seconded by Stephanie McDonald. I will now pause for a moment to allow for discussion, and are there any questions on this motion? I don't see or hear anything, thus, there appears to be no need for further discussion at this time.
On behalf of the board and management team, I would like to extend our thanks to Alison Alfers and John Risley for their service, commitment, and dedication to the board, and to my fellow board members that are standing for re-election for their continued insight and guidance as we navigate this exciting and maturing space market. We will now proceed with the appointment of the auditor of the corporation. I move that KPMG LLP be appointed as auditor of the corporation until the next annual general meeting of shareholders or until a successor is appointed and that the board of directors be authorized to fix the auditor's remuneration. I take such motion as having been duly seconded by Stephanie McDonald. I will now pause for a moment to allow for discussion and/or questions on this motion.
I don't see or hear anything, thus, there appears to be no need for further discussion at this time. We will now proceed with approving on an advisory basis a resolution on the MDA Space approach to executive compensation. As this say-on-pay vote is advisory, the results are not binding on the board. However, the board will take the results of the vote into account as appropriate when considering future compensation policies, procedures, and decisions. I will now move to pass a resolution in the form set forth on page 24 of the management information circular, dated March 30th, 2026, that was mailed in connection with this meeting. I take such motion as having been duly seconded by Stephanie McDonald. I will now pause for a moment to allow for discussion and or questions on the motion.
I don't see or hear anything, thus there appears to be no need for further discussion at this time. As I mentioned earlier, voting will be conducted by electronic ballot. As a reminder, if you have already voted in advance, please do not vote again unless you'd like to change your vote. If you vote again using the online ballot, your online vote will revoke your previously submitted proxy. At this point, all registered shareholders and duly appointed proxy holders who have properly logged in with their control numbers and who wish to vote will be able to click on the Voting icon to vote on the motions being brought forth at this meeting. Please register your votes by accessing the voting page and selecting either For, Withhold, or Against buttons next to each matter.
Once the electronic ballot process closes, your votes will be automatically submitted. For the purposes of this process, I will now pause for about a minute. Based on the preliminary scrutineer's report, I can confirm that a sufficient number of votes were received by proxy in advance of the meeting to pass all the resolutions before us today. Accordingly, I'm pleased to announce that each of the motions has been carried and the resolutions passed. I direct that the results of the poll be included with the minutes of this meeting and the final results of the voting be announced in a press release in accordance with the policies of the TSX and the New York Stock Exchange and be filed on SEDAR in Canada and furnished with the SEC in the U.S. via EDGAR. Ladies and gentlemen, thank you.
This concludes the formal business of the meeting. It is now time to move on to MDA Space management presentation. Before we begin with the presentation, Jim Floros, MDA Space's Vice President of Investor Relations, will provide a caution with respect to forward-looking information. Over to you, Jim.
Thank you, Brendan. Today's presentation will contain forward-looking statements, which reflect the company's current expectations regarding future events. These statements are based on our current assumptions and analysis, but actual results and future outcomes may differ materially from these forward-looking statements for a variety of reasons. Please review the cautionary language in the MDA Space Management Discussion and Analysis Annual Information Form and other public filings regarding the various factors, assumptions, and risks that could cause actual results to differ. In addition, during this presentation, we will refer to certain non-IFRS financial measures. Although we believe these measures provide useful supplemental information about our financial performance, these measures do not have any standardized meaning under IFRS, and our approach in calculating these measures may differ from that of other corporate issuers and therefore may not be directly comparable.
Please see the MDA Space Management Discussion and Analysis and other public filings for more information about these measures, including reconciliations to the nearest IFRS measures.
Thank you, Jim. I will now turn the call over to Michael Greenley to deliver his update.
Thank you, Brendan. Good morning, everyone, and thank you for joining us today for the Annual General Meeting of Shareholders. 2025 was another exceptional year, which would not have been possible without the hard work and dedication of a truly talented MDA Space team. They are the reason we are a trusted mission partner to our customers around the world and why we delivered record results for both revenue and adjusted EBITDA. Our teams were focused on executing program deliverables, making significant progress in 2025 and positioning us to achieve key milestones this year. On our two programs with Globalstar, we continue to make substantial progress on these programs, including achieving initial delivery milestones on the initial 17 -satellite LEO constellation and completing the critical design review on the next -generation LEO constellation.
We made significant progress on the Telesat Lightspeed program as we work towards the critical design review milestone and completing the building to expand production at our satellite manufacturing facility in Montreal, positioning us to start ramping up operations this year. The team continued executing on the Canadarm3 contract, which `s erves multiple markets, including space agency and commercial opportunities, as well as working through integration, testing, and validation of MDA CHORUS in anticipation of its expected launch later this year. This past year, we grew revenues more than 50% year-over-year to CAD 1.6 billion and increased adjusted EBITDA almost 50% year-over-year to CAD 324 million.
Our ability to deliver this level of performance, while also maintaining a solid adjusted EBITDA margin of approximately 20%, provides us with the flexibility to continue investing in our business to achieve our longer-term growth objectives. We have built a track record of consistently delivering profitable revenue growth. Between 2020 and 2025, our backlog grew seven times to CAD 4 billion, underpinning a revenue growth CAGR of 32% over this time period, exceeding our stated goal of 20%-30%. Our robust backlog provides visibility for continued growth in 2026, and our CAD 40 billion pipeline provides confidence that we can maintain profitable revenue growth for years to come. Our pipeline consists of cumulative opportunities over the next five years and includes CAD 10 billion of opportunities that either government customers have downselected MDA Space for or follow-on opportunities with existing customers.
These opportunities are distributed between government and defense and also commercial customers and balanced between opportunities here in Canada and the U.S., with growing opportunities within Europe and other parts of the world, including Southeast Asia. Our CAD 40 billion pipeline is driven by favorable industry dynamics. The space economy is estimated to have grown to $626 billion U.S. last year according to Novaspace, Space Economy Report, and is forecasted to surpass $1.8 trillion U.S. by 2035 according to World Economic Forum projections. This growth is driven by a number of factors, including a tenfold reduction in launch costs over the past 10 years, combined with more powerful satellite technologies supporting a record 329 launch attempts in 2025.
Demand for space-enabled global connectivity, which is expected to result in more than 40,000 satellites launched over a decade, starting in 2025. Renewed interest in space exploration that is expected to increase the number of missions by 185% over the next decade to 855%, sorry, with a significant emphasis on establishing a sustained presence on the moon. In addition, as Brendan mentioned, space is increasingly being positioned as a mission-critical and essential military domain complementing the traditional fields of air, land, and sea. We have observed defense spending on space by the world's leading powers surge to unprecedented levels as space has become critical to safeguarding national interests in an evolving geopolitical environment. In particular, the U.S. dedicated $175 billion to its Golden Dome space defense architecture.
Germany pledged EUR 35 billion for next-generation satellite and space situational awareness capabilities. Here at home, Canada confirmed that space will be a core element of its current 2% of GDP NATO defense spending commitment, with plans to increase this budget to 5% of GDP by FY 2035-2036. At 5% of GDP, this would translate to approximately CAD 155 billion in total spending per Canada each year, an increase of CAD 90 billion compared to FY 2025-2026. We have demonstrated that MDA Space is in a strong position to participate in defense opportunities through our strategic partnership with the government of Canada's Department of National Defense and Telesat to develop and deliver military satellite communication capabilities in the Arctic.
A CAD 5 billion plus program of record, through a contract award on behalf of the Canadian Space Agency to procure long-lead parts for the RADARSAT Constellation Mission replenishment satellite, part of the government's CAD 1 billion RADARSAT+ initiative. We have also received an IDIQ contract from the U.S. Missile Defense Agency related to the SHIELD program and established a memorandum of understanding with Hanwha Systems to explore opportunities to collaborate on the development of Korea's sovereign K-LEO defense constellation. In addition, we continue to enhance our product offerings. We recently announced a new space control platform, MDA MIDNIGHT, ideally timed to deliver the capabilities needed by defense departments to protect critical space infrastructure. MDA MIDNIGHT will leverage decades of MDA Space robotics and mission heritage with more recent product and manufacturing investments, enabling us to quickly respond and deliver this capability.
To support increasing demand for sovereign defense capabilities across land, air, maritime, and joint domains, earlier this year, we announced 49North, a dedicated defense organization exclusively focused on delivering secure, multi-domain C4ISR and mission-critical capabilities for Canada's national defense priorities outside the space domain, leveraging our deep mission experience and complex defense capabilities that have supported Canadian and Allied operations for decades. In summary, we see compelling opportunities across our end markets and are confident that MDA Space is well-positioned to capitalize. Before I hand it back to Brendan, I want to once again thank the entire MDA Space team for their passion and commitment towards executing on our current contracts and delivering on our growth strategy. Over to you, Brendan.
Thanks, Mike. Certainly a lot to be excited about for anybody that's related to MDA Space. It's now time to hear from our shareholders. As I indicated at the beginning of the meeting, any shareholder or proxy holder who would like to ask a question may use the Ask a Question button feature on the virtual interface in order to do so. We will answer as many questions as time permits. A reminder, when asking your question, please state your name and the entity you represent, if any. Please limit your questions to topics relating to today's subject matter. For each question we answer, we will summarize the question and state the name of the person who asked such question and, if applicable, the entity that each such person represents. Similar questions will be combined into one question just to avoid repetition.
Jim, do we have any questions thus far?
Brendan, it appears that there are no questions.
Okay. I'll pause for 30 seconds or so in case someone would like to type in any final question. Jim, any questions coming in?
Brendan, there are no further questions at this time.
Thank you, Jim. We are now concluding the question- and- answer session of the meeting, which concludes our annual general meeting of shareholders of MDA Space. Thank you all for your attendance and interest. We're excited to build upon the company's great legacy. We look forward to seeing you at next year's annual general meeting, and goodbye for now.
Thank you all for attending today's meeting. You may now disconnect.