Shares of Telesat Corp. (TSAT-T) and MDA Space Ltd. (MDA-T) rallied sharply after the Canadian government announced a major agreement with the two firms to establish secure military satellite communications in the Arctic region.
The contract represents a significant boost for Canada's domestic space and defence sector, aimed at strengthening sovereignty and communication capabilities in the north.
According to reports from The Globe and Mail, the deal is projected to create or maintain approximately 2,600 jobs across Canada annually for a period of about seven years.
The market reaction underscores investor appetite for defence-related infrastructure projects, particularly those tied to national security and Arctic expansion.
Both Telesat and MDA are key players in Canada's aerospace industry, with Telesat specializing in satellite communications and MDA focusing on space systems and defence electronics.
This development aligns with broader trends of increased government spending on secure communications and Arctic presence.