MDA SPACE PROVIDES UPDATE ON ECHOSTAR CONTRACT
EchoStar (NASDAQ: SATS) has terminated its constellation contract with MDA Space (TSX: MDA) due to a strategic shift following spectrum allocation discussions with the FCC. EchoStar has agreed to sell its AWS-4 and H-block spectrum licenses to SpaceX.
MDA Space emphasizes that the termination is unrelated to their performance and confirms they will receive compensation for all termination costs and fees. The company maintains its $4.6 billion backlog (excluding the EchoStar contract) and reiterates its fiscal 2025 financial outlook. MDA Space continues to pursue opportunities in digital satellite constellations for broadband data and direct-to-device communication satellites.
EchoStar (NASDAQ: SATS) ha risolto il contratto per la costellazione con MDA Space (TSX: MDA) a seguito di un cambio di strategia dopo le discussioni sulla allocazione dello spettro con la FCC. EchoStar ha concordato la vendita delle sue licenze spettro AWS-4 e H-block a SpaceX.
MDA Space sottolinea che la risoluzione non 猫 dovuta a questioni di performance e conferma che ricever脿 il risarcimento per tutti i costi e le penali di recesso. L鈥檃zienda mantiene un backlog da 4,6 miliardi di dollari (escludendo il contratto con EchoStar) e ribadisce le previsioni finanziarie per il fiscale 2025. MDA Space continua a esplorare opportunit脿 per costellazioni satellitari digitali per dati broadband e comunicazioni direct-to-device.
EchoStar (NASDAQ: SATS) ha terminado su contrato de constelaci贸n con MDA Space (TSX: MDA) debido a un cambio estrat茅gico tras las conversaciones sobre la asignaci贸n de espectro con la FCC. EchoStar acord贸 vender sus licencias de espectro AWS-4 y H-block a SpaceX.
MDA Space enfatiza que la terminaci贸n no est谩 relacionada con su desempe帽o y confirma que recibir谩 compensaci贸n por todos los costes y cargos por terminaci贸n. La compa帽铆a mantiene un backlog de 4.600 millones de d贸lares (excluyendo el contrato con EchoStar) y reitera su perspectiva financiera para el ejercicio 2025. MDA Space sigue buscando oportunidades en constelaciones satelitales digitales para datos de banda ancha y comunicaciones direct-to-device.
EchoStar (NASDAQ: SATS)電� FCC鞕�鞚� 欤柬寣靾� 氚办爼 雲检潣 鞚错泟 鞝勲灥鞝� 氚╉枼 鞝勴櫂鞙茧 MDA Space (TSX: MDA)鞕�鞚� 靹彪嫧(旖橃姢韰旊爤鞚挫厴) 瓿勳暯鞚� 頃挫頄堨姷雼堧嫟. EchoStar電� 鞛愳偓鞚� AWS-4 氚� H-敫旊 欤柬寣靾� 霛检澊靹犾姢毳� SpaceX鞐� 毵り皝頃橁赴搿� 頃╈潣頄堨姷雼堧嫟.
MDA Space電� 鞚措矆 頃挫臧� 靹标臣鞕� 氍搓磤頃橂嫟瓿� 臧曥“頃橂┌ 氇摖 頃挫 牍勳毄 氚� 靾橃垬耄岇棎 雽�頃� 氤挫儊鞚� 氚涥矊 霅滊嫟瓿� 頇曥澑頄堨姷雼堧嫟. 須岇偓電� EchoStar 瓿勳暯鞚� 鞝滌櫢頃� 46鞏� 雼煬鞚� 靾橃＜ 鞛旉碃(backlog)毳� 鞙犾頃橁碃 鞛堨溂氅� 2025 須岅硠鞐半弰 鞛 鞝勲鞚� 鞛檿鞚疙枅鞀惦媹雼�. MDA Space電� 甏戨寑鞐� 雿办澊韯办檧 霐旊皵鞚挫姢 歆侅爲 韱奠嫚鞚� 鞙勴暅 霐旍韯� 鞙勳劚 旖橃姢韰旊爤鞚挫厴 旮绊殞毳� 瓿勳啀 氇儔頃橁碃 鞛堨姷雼堧嫟.
EchoStar (NASDAQ: SATS) a r茅sili茅 son contrat de constellation avec MDA Space (TSX: MDA) en raison d鈥檜n changement de strat茅gie suite aux discussions sur l鈥檃ttribution du spectre avec la FCC. EchoStar a accept茅 de c茅der ses licences de spectre AWS-4 et H鈥慴lock 脿 SpaceX.
MDA Space pr茅cise que la r茅siliation n鈥檈st pas li茅e 脿 ses performances et confirme qu鈥檈lle sera indemnis茅e pour tous les co没ts et frais de r茅siliation. La soci茅t茅 conserve un backlog de 4,6 milliards de dollars (excluant le contrat EchoStar) et r茅it猫re ses perspectives financi猫res pour l鈥檈xercice 2025. MDA Space poursuit ses recherches d鈥檕pportunit茅s pour des constellations satellitaires num茅riques destin茅es aux donn茅es haut d茅bit et aux communications direct-to-device.
EchoStar (NASDAQ: SATS) hat seinen Konstellationsvertrag mit MDA Space (TSX: MDA) aufgrund einer strategischen Neuausrichtung nach Gespr盲chen 眉ber Spektrumszuweisungen mit der FCC beendet. EchoStar hat zugestimmt, seine AWS-4- und H-Block-Spektrumlizenzen an SpaceX zu verkaufen.
MDA Space betont, dass die Vertragsbeendigung nicht auf ihre Leistung zur眉ckzuf眉hren ist, und best盲tigt, dass ihnen s盲mtliche K眉ndigungskosten und Geb眉hren entsch盲digt werden. Das Unternehmen beh盲lt einen Auftragsbestand (Backlog) von 4,6 Milliarden US-Dollar (ohne den EchoStar-Vertrag) und bekr盲ftigt seine Finanzprognose f眉r das Gesch盲ftsjahr 2025. MDA Space verfolgt weiterhin Chancen f眉r digitale Satellitenkonstellationen f眉r Breitbanddaten und Direct-to-Device-Kommunikation.
- Company will be compensated for all termination costs and fees
- Strong $4.6 billion backlog provides revenue visibility through 2025
- 2025 financial guidance remains unchanged despite contract termination
- Loss of recently announced EchoStar constellation contract
- Sudden strategic change by major customer affecting business relationship
Insights
EchoStar terminated MDA Space's recent contract due to strategy shift; MDA maintains 2025 outlook with $4.6B backlog excluding EchoStar.
MDA Space has received a termination notice from EchoStar Corporation for their recently announced constellation contract. This development comes just five weeks after the initial August 1 announcement, stemming from EchoStar's strategic pivot following spectrum discussions with the FCC. Notably, EchoStar has agreed to sell its AWS-4 and H-block spectrum licenses to SpaceX, necessitating this contract cancellation.
Despite this setback, MDA emphasizes the termination is unrelated to their performance, products, or services. The company will receive compensation for all termination costs and fees as specified in the contract terms. Most importantly for investors, MDA maintains a substantial $4.6 billion backlog (excluding the terminated EchoStar contract), providing solid revenue visibility through 2025 and beyond.
MDA has reaffirmed its fiscal 2025 financial outlook and guidance issued on August 7, suggesting this termination doesn't materially impact their short-term financial projections. The company continues pursuing opportunities in digital satellite constellations for broadband data and direct-to-device communication satellites with both commercial and government customers worldwide, indicating confidence in their market positioning despite this contract loss.
The contract termination is the result of a sudden change to EchoStar's business strategy and plan in the wake of spectrum allocation discussions with the Federal Communications Commission (FCC) in
This arbitrary development is completely unrelated to MDA Space performance and our products and services. The company will be compensated for all related termination costs and fees as per the EchoStar contract. 聽聽
MDA Space has established a world leading digital satellite offering for communication constellations and continues to focus on the execution of its
Conference Call
MDA Space will host a call and webcast to discuss this contract development on Monday, September 8, 2025 at 9:00 a.m. ET. Interested parties can join the call by dialing 416-945-7677 (
A replay of the conference will be archived on the MDA Space website following the call. Parties may also access a recording of the call which will be available until September 15, 2025, by dialing 1-888-660-6345 and entering the passcode 18416 #.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking information within the meaning of applicable securities legislation, which reflects the company's current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the company's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risk Factors" in the company's Annual Information Form available on SEDAR+ at . MDA Space does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
ABOUT MDA SPACE
Building the space between proven and possible, MDA Space (TSX:MDA) is a trusted mission partner to the global space industry. A robotics, satellite systems and geointelligence pioneer with a 55-year+ story of world firsts and more than 450 missions, MDA Space is a global leader in communications satellites, Earth and space observation, and space exploration and infrastructure. The MDA Space team of more than 3,800 space experts in
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FAQ
Why did EchoStar (NASDAQ: SATS) terminate its contract with MDA Space?
How will the EchoStar contract termination affect MDA Space's 2025 outlook?
What compensation will MDA Space receive for the EchoStar contract termination?
What is MDA Space's current backlog value after the EchoStar contract termination?
When will MDA Space discuss the EchoStar contract termination with investors?
