Canada’s Role in the Final Frontier—Canadian Space Stocks to Watch

ByDan Kent Published On:

Key takeaways

Canada is a growing space technology hub – With strong government support and a history of innovation, Canadian companies like MDA and Magellan Aerospace are well-positioned in the global space industry.

MDA leads in robotics and satellite tech – The company’s expertise in space robotics (Canadarm) and satellite communications makes it a key player in both government and commercial space projects.

Magellan Aerospace supplies critical space components – As a major aerospace manufacturer, Magellan provides propulsion and structural systems essential for satellites and defense-related space applications.

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As technology advances, humans are dedicating more time and money to space exploration than ever before.

The United States is one of the world’s largest space exploration spenders, dedicating more than $51B in 2024 to space exploration. The next closest country was China, spending a fraction of this amount.

There are arguments on both sides of the spectrum regarding whether or not this is wise spending. Many believe developing satellites and robotics, sending astronauts to space, or building new telescopes to analyze the earth and universe is a waste of capital. Others, however, believe it will pay off immensely in the future.

There is also the element of “space tourism” we have seen recently, with many prolific people, including Amazon’s Jeff Bezos heading into space. Many companies are planning for more extensive development of space tourism when it becomes more economically friendly to send people into space.

If you’ve come to this article, however, you are looking for the best Canadian space stocks to add to your portfolio and gain exposure to this industry over the long term. 

Although we do not have as wide of a selection of publicly traded companies as the United States, a few stocks on the TSX can give an investor exposure to the space industry.

Just know that just like investing in a nuclear energy company that is in the exploration stages, space stocks are extremely volatile right now. Any shift in government policy or investor sentiment can send shares soaring (or tumbling).

Lets dive into the 2 space stocks that are publicly traded here in Canada.

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Satellite and space robotics leader

MDA (TSE:MDA)

MDA is a major player in the global space industry, specializing in satellite systems, Earth observation, and robotics. Best known for developing the Canadarm used on the Space Shuttle and International Space Station, the company continues to innovate in space robotics, communications, and geospatial data. MDA provides satellite technology to governments and private sector clients, helping power everything from telecommunications to national security.

P/E: 43.1

5 Yr Revenue Growth: -%

5 Yr Earnings Growth: -%

5 Yr Dividend Growth: -%

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  • Industry Leader in Space Robotics – MDA has a long track record in robotic space systems, with its technology being used in high-profile NASA and international missions.
  • Expanding Satellite Business – The company is investing heavily in next-generation satellite technology, including its MDA-built satellites that support broadband connectivity worldwide.
  • Strong Government Contracts – MDA benefits from multi-billion-dollar contracts with the Canadian government, NASA, and other space agencies, providing a steady revenue stream.
  • Growing Private Sector Demand – The rise of commercial space companies like SpaceX and Amazon’s Project Kuiper presents new opportunities for MDA’s satellite and communication systems.
  • Defense & Surveillance Applications – MDA’s Earth observation technology is increasingly used for national security, environmental monitoring, and disaster response.
  • Profitability & Growth Potential – Unlike many space startups, MDA is an established, revenue-generating company with a solid financial foundation.
  • Lunar Gateway & Artemis Missions – MDA is involved in NASA’s Artemis program, including developing the Canadarm3 for the Lunar Gateway space station.
  • Satellite Constellation Expansion – The company is ramping up production of satellite technologies, with growing demand for low Earth orbit (LEO) satellites.
  • Space Industry Commercialization – More private companies entering the space industry could boost demand for MDA’s robotics and satellite solutions.
  • Canadian Government Support – Canada has committed to long-term space exploration funding, which could directly benefit MDA’s future projects.
  • Competitive Pressure – The space industry is becoming more crowded, with new players emerging in satellite technology and robotics.
  • Project Delays & Cost Overruns – Large aerospace contracts often face delays or budget increases, which could impact profitability.
  • Reliance on Government Contracts – While MDA has private sector clients, a significant portion of its revenue depends on government funding and contracts.
  • Currency & Geopolitical Risks – Operating in global markets exposes MDA to currency fluctuations and potential trade restrictions.

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Aerospace manufacturing & space components

Magellan Aerospace (TSE:MAL)

Magellan Aerospace is a key supplier of aerospace components, including space-related systems such as satellite propulsion and structural components. The company provides products for both commercial and military aerospace markets, and its expertise in precision manufacturing extends to satellite parts, propulsion systems, and avionics. Magellan has a strong presence in Canada’s space industry and works with major global aerospace firms.

P/E: 20.5

5 Yr Revenue Growth: -1.5%

5 Yr Earnings Growth: -11.8%

5 Yr Dividend Growth: -24.4%

Yield: 0.8%

  • Supplier for Space & Aerospace Giants – Magellan produces key components for companies like Boeing, Airbus, and Lockheed Martin, securing a strong position in the industry.
  • Growing Demand for Satellite Technology – With more satellites being launched than ever before, Magellan’s propulsion and structural components are in high demand.
  • Defense & Military Contracts – The company benefits from military spending, supplying components for fighter jets and defense-related aerospace projects.
  • Consistent Revenue from Long-Term Contracts – Many of Magellan’s deals are long-term supply agreements, providing financial stability.
  • Advanced Manufacturing Capabilities – The company’s expertise in precision aerospace manufacturing gives it a competitive edge in high-tech space components.
  • Potential for Expansion into New Space Markets – As space exploration and satellite networks grow, Magellan could expand its role in supplying critical space infrastructure.
  • Satellite Launch Demand – The rapid growth of LEO satellite networks could drive more demand for Magellan’s propulsion and structural components.
  • Military Space Investment – Governments worldwide are increasing defense spending, which could lead to more contracts for space and aerospace-related systems.
  • Commercial Space Partnerships – Magellan has opportunities to partner with emerging space firms looking for high-quality manufacturing solutions.
  • Supply Chain & Cost Pressures – The aerospace sector has faced supply chain disruptions, and Magellan’s ability to manage costs will be key to its success.
  • Dependence on Aerospace Industry Cycles – The company’s business is closely tied to commercial aviation and military spending, both of which can fluctuate.
  • Supply Chain Disruptions – Delays in materials and manufacturing could impact production timelines and margins.
  • Competition from Larger Aerospace Firms – Larger global aerospace manufacturers could take market share or put pressure on pricing.
  • Slow Adoption of New Space Technologies – If space-related projects take longer to commercialize, Magellan may not see immediate growth in this sector.

Overall, we don’t have a crazy selection of space stocks, but we do have some

When many think of space stocks, they think of large-cap U.S. stock Northrop Grumman (NOC), Virgin Galactic (SPCE), or, even though you can’t invest in it, Elon Musk’s SpaceX.

Unfortunately, smaller budgets and the overall popularity of space exploration in Canada have resulted in most of the established companies being from the United States. To give you an idea of how much smaller Canada’s space budget is, the Canadian Space Agency planned spending of just $421M in 2024. NASA, on the other hand, had a budget of over $25B in 2024.

I have little doubt the space economy is going to continue to grow. Exploration of the Moon, Mars, continued Earth observation and the overall observation of our galaxy and universe has fascinated the human race for centuries and will continue doing so moving forward.

Is there a space ETF?

If you’re looking for a space ETF in Canada, you won’t find one. However, in the United States, there are plenty to choose from. Here are a few:

  • Ark Space Exploration and Innovation (ARKX)
  • SPDR S&P Aerospace & Defense (XAR)
  • iShares U.S. Aerospace and Defense (ITA)
  • Procure Space (UFO)

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