MDA Space Ltd. reported a drop in third-quarter net income despite strong top-line growth driven by its satellite systems division. The company earned $24.4 million in net income for the quarter ended Sept. 30, down from $29.5 million a year earlier. That translates to $0.19 per diluted share, compared with $0.24 per diluted share in the same quarter of 2024.

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However, on an adjusted basis, profitability improved. MDA recorded adjusted earnings of $0.35 per diluted share, up from $0.28 a year ago, reflecting stronger operating performance once non-recurring items are excluded.

Total revenue climbed 45% year over year to $409.8 million, compared with $282.4 million in Q3 2024. The increase was largely driven by exceptional growth in the company’s satellite systems segment, which delivered $283.5 million in revenue—up sharply from $167.6 million a year earlier. This segment continues to benefit from strong commercial and government demand for next-generation satellite technology.

Revenue from robotics and space operations also improved, rising to $78.3 million from $66.5 million last year, supported by ongoing mission services and advanced robotics work. Meanwhile, the geo-intelligence business posted relatively stable results, generating $48.0 million compared with $48.3 million a year ago.

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Despite the dip in net income, MDA’s overall business momentum remains solid. The company ended the quarter with a backlog of $4.4 billion, underscoring sustained customer demand across its major platforms and providing strong visibility for future revenue.

The results highlight a strategic shift toward high-growth segments such as satellite systems, which are playing an increasingly important role in MDA’s long-term expansion and financial performance.