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1. Company Snapshot

1.a. Company Description

Calian Group Ltd.provides business services and solutions in the areas of health, defense, security, aerospace, engineering, AgTech, and information technology (IT) in Canada, the United States, and Europe.The company's Advanced Technologies segment offers developed products and engineering solutions for the space, communications, nuclear, agriculture, defense, automotive, and government sectors; software and product development, custom manufacturing, full life-cycle support, studies, requirements analysis, project management, multi-discipline engineered system solutions, and training services; communication systems and products for terrestrial and satellite networks; satellite gateways comprising aperture radio frequency antennas, and telemetry tracking and control, as well as software solutions for managing and monitoring networks; engineering and technical services for propulsion, electrical and electronic systems, computer and nuclear systems, naval architecture, and aerospace; and nuclear services to develop waste management and decommissioning solutions.


Its Health segment offers primary care and occupational health services; and clinic management, healthcare practitioner support, and psychological assessment services.The company's Learning segment provides training services and solutions; and consulting services in emergency management, training, and advanced training technologies, as well as Calian MaestroEDE, a tool for collective training exercises for military customers; and Calian ResponseReady, an online platform and simulation tool for emergency management training exercise delivery and evaluation.Its IT segment provides cloud migration, IT development, SAP consulting, and cyber security solutions, as well as IT support services.


The company was formerly known as Calian Technologies Ltd.and changed its name to Calian Group Ltd.in April 2016.


The company was incorporated in 1982 and is headquartered in Ottawa, Canada.

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1.b. Last Insights on CGY

Calian Group Ltd.'s recent performance was negatively impacted by governance concerns and strategic direction uncertainty. Plantro Ltd., a 5% shareholder, expressed concerns over the company's strategy, prompting Calian to announce governance changes, including a co-operation agreement and board renewal. The company also faces pressure to address its defense-oriented strategy. Furthermore, Calian's upcoming Q4 2025 earnings release and conference call may provide insight into its financial health. A $200 million debt facility was recently closed, and an acquisition of InField Scientific was completed to boost electromagnetic capabilities.

1.c. Company Highlights

2. Calian Group's Q1 Earnings: A Strong Start to Fiscal '26

Calian Group reported a robust Q1 with revenue reaching $208 million, a 12% year-over-year increase driven by strong demand across its Defense and Space and Essential Industries segments. Adjusted EBITDA totaled $23 million, a 28% rise that drove margins to 11%. Earnings per share (EPS) came in at $1.03, beating estimates of $0.911. The company's new simplified structure, which reduced its segments from four to two, has improved focus and alignment with market demand. As noted by Patrick Houston, CEO, the company is seeing "robust demand across Defense and Space and Essential Industries segments."

Publication Date: Mar -05

📋 Highlights
  • Record Q1 Revenue & EBITDA: Revenue reached $208M (+12% YoY), adjusted EBITDA hit $23M (+28% YoY), with margins rising to 11%.
  • Segment Restructuring: Shifted from four to two segments (Defense & Space, Essential Industries), enhancing focus and market alignment.
  • Strong Backlog Position: $1.4B in backlog, supporting sustained growth and operational scalability.
  • Contract Momentum: $50M in new contracts during Q1, driven by cybersecurity demand and defense/industrial cybersecurity expansion.
  • Financial Flexibility: Net debt/adjusted EBITDA ratio at 1.2x, with 2026 revenue growth targets of 10-15% (organic and strategic acquisitions).

Segment Performance and Outlook

The Defense and Space segment is expected to drive growth through differentiated solutions, while Essential Industries will focus on margin expansion. The company has a strong backlog of $1.4 billion, providing a solid foundation for continued growth. For fiscal '26, Calian targets annual revenue growth of 10% to 15%, driven by organic expansion and strategic acquisitions. Analysts estimate next year's revenue growth at 6.4%, indicating a potential upside.

Financial Flexibility and Capital Deployment

Calian has ample financial flexibility, with a net debt to adjusted EBITDA ratio of 1.2x. The company's simplified operating structure is expected to improve capital deployment. With a strong track record of executing on its strategy, Calian remains focused on scaling responsibly and creating long-term value.

Valuation and Growth Prospects

Calian's current valuation metrics indicate a price-to-earnings (P/E) ratio of 35.96 and an enterprise value-to-EBITDA (EV/EBITDA) ratio of 12.63. The company's return on invested capital (ROIC) stands at 4.83%, while its return on equity (ROE) is 8.41%. With a dividend yield of 1.33%, Calian offers a relatively stable income stream. As the company continues to execute on its growth strategy, investors will be watching to see if it can sustain its momentum and deliver long-term value creation.

3. NewsRoom

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Calian to Hold Conference Call Following Announcement of Fourth Quarter and FY 2025 Results

Nov -14

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Calian Announces First VENTURES Defence Partnership with TACTIQL

Nov -13

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Calian Group Announces Governance Changes to Support Strategic Operations Following Agreement with Plantro Ltd.

Nov -11

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The Ottawa International Airport Authority Enhances Security with Calian's Digital Command Centre

Oct -15

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Kevin Ford to Retire After a Decade of Record Growth; Board Appoints Patrick Houston as Incoming CEO Effective January 1, 2026

Oct -07

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Calian Group Acquires Quebec's InField Scientific to Boost Electromagnetic Capabilities

Oct -02

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Calian Acquires Canadian-based InField Scientific Expanding Company’s Electromagnetic Security and Control Capabilities

Oct -02

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Calian Group Expands Debt Agreement, Separately Announces Telesat Contract Expansion

Sep -29

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.22%)

6. Segments

Information Technology and Cyber Solutions

Expected Growth: 9%

Calian Group Ltd.'s Information Technology and Cyber Solutions segment growth is driven by increasing demand for digital transformation, cybersecurity threats, and government investments in IT infrastructure. The company's expertise in cloud, artificial intelligence, and cybersecurity solutions positions it for growth in the rapidly expanding digital economy.

Health

Expected Growth: 7%

Calian Group's 7% growth in Health segment is driven by increasing demand for healthcare services, expansion of government-funded programs, and strategic acquisitions. Additionally, the company's focus on digital health solutions, telehealth, and healthcare analytics contributes to its growth. Furthermore, the aging population and the need for efficient healthcare systems also support the segment's growth.

Advanced Technologies

Expected Growth: 10%

Calian Group's Advanced Technologies segment growth is driven by increasing demand for satellite communications, cybersecurity, and electronic manufacturing services. The company's expertise in these areas, coupled with strategic acquisitions and a strong order backlog, have contributed to its 10% growth. Additionally, investments in research and development, as well as a growing presence in the defense and aerospace industries, have further fueled growth.

Learning

Expected Growth: 6%

Calian Group Ltd.'s 6% growth is driven by its diversified business segments, including Systems Engineering, IT and Cyber Solutions, and Training. Strong demand for digital transformation, cybersecurity, and e-learning solutions contributes to its growth. Additionally, strategic acquisitions, a solid backlog of contracts, and a strong balance sheet provide a foundation for continued expansion.

7. Detailed Products

Advanced Technology Solutions

Calian Group Ltd. provides advanced technology solutions to the Canadian Department of National Defence, including satellite communications, cybersecurity, and electronic warfare.

Health Services

Calian Group Ltd. offers health services, including medical imaging, healthcare technology, and medical staffing solutions.

Learning Solutions

Calian Group Ltd. provides learning solutions, including e-learning, instructor-led training, and training analytics.

IT and Cyber Solutions

Calian Group Ltd. offers IT and cyber solutions, including IT consulting, cybersecurity, and cloud services.

Engineering Services

Calian Group Ltd. provides engineering services, including systems engineering, mechanical engineering, and electrical engineering.

8. Calian Group Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Calian Group Ltd. operates in a niche market with limited substitutes, but there are some alternatives available to customers.

Bargaining Power Of Customers

Calian Group Ltd. has a diverse customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Calian Group Ltd. relies on a few key suppliers, which gives them some bargaining power, but the company's size and reputation also give it some negotiating power.

Threat Of New Entrants

The barriers to entry in Calian Group Ltd.'s industry are relatively high, making it difficult for new entrants to compete.

Intensity Of Rivalry

The industry in which Calian Group Ltd. operates is highly competitive, with several established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 18.54%
Debt Cost 3.95%
Equity Weight 81.46%
Equity Cost 8.57%
WACC 7.72%
Leverage 22.77%

11. Quality Control: Calian Group Ltd. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Cass Information Systems

A-Score: 5.7/10

Value: 5.2

Growth: 4.7

Quality: 6.7

Yield: 6.0

Momentum: 3.0

Volatility: 8.7

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Calian

A-Score: 5.3/10

Value: 4.9

Growth: 6.1

Quality: 4.9

Yield: 4.0

Momentum: 5.5

Volatility: 6.3

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BrightView

A-Score: 4.5/10

Value: 6.2

Growth: 6.4

Quality: 5.2

Yield: 0.0

Momentum: 2.5

Volatility: 6.7

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Value: 4.8

Growth: 3.2

Quality: 4.1

Yield: 5.0

Momentum: 6.0

Volatility: 2.7

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Civeo

A-Score: 4.3/10

Value: 8.4

Growth: 3.2

Quality: 2.3

Yield: 2.0

Momentum: 4.5

Volatility: 5.3

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A-Score: 4.1/10

Value: 6.5

Growth: 5.3

Quality: 5.5

Yield: 0.0

Momentum: 2.0

Volatility: 5.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

70.95$

Current Price

70.95$

Potential

-0.00%

Expected Cash-Flows