Magellan Share Buyback
Magellan Aerospace Renews Normal Course Issuer Bid to Repurchase 5% of Shares
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Magellan Aerospace Corporation has renewed its normal course issuer bid (NCIB), clearing the way to buy back up to 2,853,953 of its own shares over the next 12 months, according to Financial Post. The buyback window runs from June 15, 2026 through June 14, 2027, and will be funded entirely from the company's existing cash — no new debt required.
The Toronto-listed aerospace company (TSX: MAL) has 57,079,054 common shares outstanding as of June 1, 2026. The approved buyback represents exactly 5% of that total — the maximum allowed under standard TSX rules, National Post reported.
Board Says Stock Price Does Not Reflect True Value
The Board of Directors stated that it believes the NCIB is "an effective use of Magellan's financial resources when the market price of its Shares may not adequately reflect their underlying value," according to Ottawa Sun. In plain terms: the company thinks its stock is cheap and is willing to buy it back at current prices.
MAL shares were trading near $22.92 as of June 9, 2026 — a sharp rise from a volume-weighted average price of just $7.47 in 2024. The company's Q1 2026 net income per share jumped from $0.19 to $0.29 year-over-year, a 52.6% increase, according to analyst data cited by Calgary Sun.
Daily Purchase Limits Keep Buybacks Slow and Steady
Magellan cannot simply flood the market with buy orders. TSX rules cap its daily purchases at 10,475 shares — equal to 25% of its six-month average daily trading volume of 41,902 shares, Stratford Beacon Herald reported. At that pace, hitting the full 2.85 million share target would take years of consistent buying.
Under the previous NCIB, which expires June 12, 2026, Magellan bought back only 59,526 shares at a volume-weighted average price of $15.65 — well under the authorized maximum of 2,856,929 shares. That conservative track record suggests the company treats the NCIB more as a tool of opportunity than an aggressive capital-return program.
Automatic Plan Lets Buying Continue During Blackout Periods
Alongside the NCIB, Magellan renewed its Automatic Share Purchase Plan (ASPP) with a designated broker, according to Fort Saskatchewan Record. An ASPP lets a company keep buying its own shares even during "blackout periods" — windows before earnings releases when executives are legally barred from trading.
This is a significant detail. Without an ASPP, a company effectively goes dark in the market for weeks at a time. With it, Magellan maintains a steady buyback presence throughout the year, providing consistent demand for its shares on the open market, Northern News noted.
Strong Defense Contracts Underpin the Cash Behind the Buyback
Magellan is not spending money it does not have. Q1 2026 revenue hit $285.1 million, up 9.3% from a year earlier. The company is simultaneously paying a quarterly dividend of $0.05 per share and funding defense program work, including components for the F-35 Lightning II, according to Prince George Post.
In February 2026, Magellan signed a Teaming Agreement with TKMS to support heavyweight torpedo production for Canada's Patrol Submarine Project. CEO Phillip C. Underwood has said the company's top priority is "securing new business with a focus on the defense sector." The NCIB signals that, for now, there is enough cash left over to reward shareholders too, The Observer reported.
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