Magellan Aerospace (MAL.T), a Canadian designer and manufacturer of aeroengine and aerostructure assemblies and components for aerospace, military and space markets, announced today that it had signed a contract with government of Canada to design, build, launch and operate the Redwing microsatellite.
Directed by the Department of National Defense’s science and technology organization, Defense Research and Development Canada (DRDC), the $15.8 million CAD Redwing contract represents the next generation of spacecraft technology for space domain awareness technology demonstration.
Redwing will perform space object tracking to characterize an increasingly congested orbital environment, observe higher detail on space objects, and provide near-real-time tasking to respond to evolving space events.
Magellan recently announced financial results for Q4 and fiscal 2022 with revenues of $193.11 million CAD for the quarter ending December 31, 2022, an 8.5% increase from the same quarter in 2021. In fiscal 2022, the company brought in $764.58 million, a 11.1% increase YOY.
The fourth quarter registered a $20.77 million net loss compared to a net loss of $5.76 million reported in Q4 2021. For the twelve months ending December 31, 2022, Magellan recorded a net loss of $21.69 million, a 2,120.3% increase from a net loss of $977,000 filed in the previous fiscal period.
Back in October 2022, Magellan was awarded a contract from Sikorsky Aircraft Corporation, a Lockheed Martin company, for low rate initial production of assemblies to support the production of the CH-53K® LRIP configuration helicopter.
Then in November, the company announced the award of a multi-year contract from Lockheed Martin for complex machined titanium components for all three variants of the F-35 aircraft. The multi-million dollar contract would be fulfilled at Magellan’s facility in Kitchener, Ontario.
The company’s latest Redwing contract will help to ensure continued Canadian access to critical space capabilities, such as communications, remote sensing and weather services. It will also provide the Canadian Armed Forces with a platform for experimental characterization of space objects, supporting a critical role within Canada’s space operations community.
Hayden Martin, VP business development, marketing and commercial for Magellan, commented on the Redwing contract, “The Redwing mission will leverage Magellan’s solid heritage in building high-quality space systems, while establishing new spacecraft technologies and mission capabilities. We are very proud to be supporting DRDC and the government of Canada in this exciting endeavour.”
Magellan Aerospace currently trades at $7.99 per share for a market cap of $458.99 million.
