Canada’s Defence Investment Agency signed a roughly $1.63 billion deal with Telesat to provide secure Arctic Ka-band military communications and to fund expansion of the Lightspeed satellite network.

Ottawa awarded up to $2.7 billion to Telesat LEO ULC to expand Lightspeed for secure Arctic military comms, spanning a 15-year service period starting in 2028 with two optional five-year extensions.

MDA Space’s backlog is expected to grow by about $474 million in Q3 2026 due to long-lead items already accounted for.

MDA Space highlights its 55-year track record in space, including satellites, robotics, geointelligence, and space infrastructure.

SpaceX will launch the satellites on Falcon 9 rockets, with at least one launch secured and another contingent on a separate services agreement.

MDA will modify spacecraft already in production, and the satellites will be launched on SpaceX Falcon 9 rockets under current and future contracts.

The press release includes forward-looking statements with risks and uncertainties, while noting the contract’s contribution to Canada’s continental-security objectives and allied defense commitments.

Analysts view the award as aligning with expectations, with funding to be milestone-based beginning in Q3.

MDA Space announces a $474 million expansion of the Telesat Lightspeed LEO constellation, increasing funded satellites from 156 to 225 and adding 27 AURORA satellites.

Milestone payments starting in Q3 2026 will fund the additional satellites and 27 more spacecraft, raising MDA Space’s manufacturing order from 198 to 225.

MDA Space will supply the satellites, boosting the total fully funded Lightspeed satellites and increasing the contract value by $474 million.

The Defence Investment Agency, established in late 2025, oversees procurements above $100 million and aims to accelerate defense capability delivery while strengthening Canada’s sovereign industrial base.