Shares of MDA Space (MDA.TO) jumped on Thursday as the Brampton, Ont.-based satellite and communications firm announced a new contract from the U.S. Missile Defense Agency. In a news release, MDA says it has struck a fixed date and quantity contract for America’s Scalable Homeland Innovative Enterprise Layered Defense (SHIELD) program.
Launched in 2025, the US$1.15 billion SHIELD contracting program aims to modernize U.S. defences across land, sea, air, space, and cyberspace. This includes the U.S. “Golden Dome” missile defence strategy.
The company did not announce a dollar value for the contract, which “positions MDA Space to bid on future tasks and services that support the expansive U.S. defence initiative.”
“As a long-time trusted mission partner to space and defence organizations worldwide, MDA Space is committed to delivering mission-critical solutions and strategic operational capabilities,” MDA Space CEO Mike Greenley stated in the release.
“Our selection for the Missile Defense Agency SHIELD [contract] is a recognition of the technology, talent and expertise MDA Space offers to meet defence, security and sovereignty requirements.”
MDA shares rose as much as 8.5 per cent in Toronto at the start of Thursday’s trading session.
On Wednesday, U.S. President Donald Trump suggested the U.S. military budget for 2027 should be significantly higher than what has been approved by congressional lawmakers.
Shares of America’s largest defence companies, including Lockheed Martin (LMT) and General Dynamics (GD) jumped in after-hours trading, following Trump’s remarks on his Truth Social online media platform. Those stocks gained about seven per cent and five per cent, respectively, on Thursday.
Back in Canada, MDA Space is seen as a beneficiary of Ottawa’s plan to hike military spending. The company manufactures a host of satellite systems, as well as robotic applications for shuttles and space stations, including the famous Canadarm.
Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on X @jefflagerquist.