Investing.com -- MDA Space Ltd. (TSX:MDA) stock rose 7.7% on Thursday after the company secured a $44.7 million contract from the Canadian government to supply critical components for a new radar imaging satellite.
The contract, awarded by Public Services and Procurement Canada on behalf of the Canadian Space Agency (CSA), covers the procurement and delivery of long lead parts for a RADARSAT Constellation Mission (RCM) replenishment satellite. Additionally, the Canadian government announced its intention to contract MDA Space to build, test, and launch the satellite, with the full mission contract expected to be awarded in 2026.
The agreement is part of Canada’s $1.012 billion RADARSAT+ initiative, a 15-year investment announced in October 2023 to support the country’s satellite Earth observation capabilities. The company has also secured a separate $747,000 contract to deliver a concept study for a next-generation synthetic aperture radar (SAR) satellite system.
MDA Space, which designed and built the currently operating RCM satellites, will leverage its MDA CHORUS™ satellite design for the replenishment satellite. The existing RCM satellites provide maritime surveillance, ecosystem monitoring, and emergency management services to Canadian government departments.
"We are honoured to have been selected by the CSA to support the RCM replenishment satellite project," said Mike Greenley, CEO of MDA Space. "By leveraging the advanced development of the MDA CHORUS™ satellite design for this replenishment satellite, we can offer the CSA a cost-effective and timely solution that ensures continuity of service to meet the evolving needs of Canadian users."
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