To be found TSX stocks that could soar in 2026, Canadians need to look for two things at once: a real tailwind and a company that can turn that tailwind into steady cash flow. The tailwind could come from government spending, industry backlogs, long-term contracts, demographics or the adoption of technology that continues to evolve even as the economy slows.
From there, you look for evidence in the numbers, such as rising revenues, improving margins, growing backlogs, and a balance sheet that can finance growth without continued dilution. Finally, you want a valuation that still leaves room for upside potential, because even the best story can disappoint if you pay too much. So let’s take a look at one of the best TSX stocks for investors to consider.
MDA
MDA space (TSX:MDA) is in a good place, selling picks and shovels for the space economy. It builds satellites and robotics, and runs a growing space services business, which can translate into multi-year programs rather than one-time sales. It also has a Canadian advantage, as it often works with governments and large prime contractors where relationships, track record and reliability matter. That gives it the opportunity to unite through long purchasing cycles that don’t change direction overnight.
The past year has seen the conversation around the MDA space shift from hype to budgets and delivery. The question of defense and national security remained front and center, while broadband and Earth observation continued to grow as practical needs, not science fiction dreams. For a TSX stock like MDA, the real “news” that investors should be looking at is its contract momentum, the strength of its backlog, and whether it continues to convert that backlog into revenue without margin surprises. If the TSX stock continues to pile and execute gains, the market usually rewards that kind of visibility.
Revenue support
In terms of earnings, the clean way to chart MDA is to focus on three numbers from the latest report: revenue, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), and backlog. In the third quarter of 2025, it reported revenue of $409.8 million and adjusted EBITDA of $82.8 million, compared to $282.4 million and $55.5 million a year earlier. This shows that both growth and profitability have moved in the right direction. It also ended the quarter with a backlog of $4.4 billion, which is the forward engine supporting the “up in 2026” narrative, signaling multi-year earnings visibility if execution remains tight.
Looking ahead, MDA’s advantage lies in scaling up production, delivering programs on time and expanding recurring services that remove clutter. Management reaffirmed full-year 2025 revenue guidance of $1.57 billion to $1.63 billion, implying approximately 48% year-over-year growth at the midpoint, in addition to full-year adjusted EBITDA guidance of $305 million to $320 million and adjusted EBITDA margin of 19% to 20%.
In terms of valuation, TSX stock recently traded with an enterprise value of around $5 billion. Using that enterprise value at a rolling EBITDA of about $209.9 million, it implies an EV-to-EBITDA ratio of about 24 times. Therefore, the market is already pricing in meaningful execution. The risk remains high as project delays, cost overruns or a customer postponing a major program could hit a quarter hard, even if the long-term demand picture remains intact.
In short
If you want a TSX stock set up for 2026 and beyond, this TSX stock gives you solid ways to win. MDA provides a runway for growth with contract visibility, where strong execution can justify higher valuations over time. The smartest move is to focus on the specific numbers that prove this quarter, and then let the market catch up in its own time.
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