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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 Q4 2025 Earnings: A Strong Finish to a Record Year

Calian Group reported a robust Q4 2025, with revenue increasing 12% to $203 million, driven by double-digit growth in Defense Solutions, contributing to a record full-year revenue of $774 million, up 4% year-over-year. The company's adjusted EBITDA for Q4 was $24 million, up 32% year-over-year. However, for the full year, adjusted EBITDA declined 15% due to underperformance in ITCS. The company's EPS came in at $1, beating estimates of $0.906. The company's backlog reached $1.4 billion, with $1 billion in the defense sector, providing a strong foundation for future growth.

Publication Date: Nov -30

📋 Highlights
  • Q4 Revenue Growth: Revenue rose 12% to $203M, driven by 6% organic growth and double-digit Defense Solutions expansion.
  • Adjusted EBITDA Surge: Q4 adjusted EBITDA jumped 32% to $24M, outpacing revenue growth.
  • Backlog Expansion: Total backlog hit $1.4B, with $1B in defense, signaling strong future revenue visibility.
  • Major Contract Win: Secured a $30M+ antenna contract with a global space company, deliverable over 24-28 months.
  • Guidance for FY2026: Targets 10-15% annual revenue growth and double-digit adjusted EBITDA growth, leveraging defense and M&A opportunities.

Segment Performance and Outlook

The company's Defense Solutions segment drove the growth, with double-digit revenue increase. The ITCS business had a soft first half but showed signs of improvement towards the end of the year, entering the new year with a significantly higher backlog than the previous year. The company's guidance assumes mid-single-digit organic growth with some acquisition contribution from AMS and InField. As per the company's President, Patrick Houston, Calian is targeting high-growth vertical markets and has a U.S.-focused subsidiary to target federal defense.

Growth Strategy and M&A Pipeline

Calian has a strong pipeline for M&A and is engaged in multiple discussions, focusing on defense and space. The company has a VENTURES program to engage small and medium enterprises in the defense agenda. The company's target is to achieve annual revenue growth of 10-15% over the next several years, with double-digit growth expected in both revenue and adjusted EBITDA for FY '26. Analysts estimate next year's revenue growth at 10.1%, aligning with the company's targets.

Valuation and Metrics

Calian's current valuation metrics show a 'P/S Ratio' of 0.82 and an 'EV/EBITDA' of 14.72. The company's 'P/E Ratio' is -942.23, largely due to the low earnings in the previous year. The 'Dividend Yield' is 2.07%, providing a relatively stable return to shareholders. The 'Free Cash Flow Yield' is 7.93%, indicating a healthy cash generation capability. With the company's growth prospects and improving profitability, the current valuation appears reasonable.

Defense Spending and Opportunities

The company is optimistic about the Canadian government's increased defense spending and is well-positioned to support various aspects of the new agenda. Calian's defense industrial strategy is being formulated to benefit from the federal government's increased defense spending. The company has a strong relationship with the RCMP and expects growth momentum with them in the next couple of years. The recent antenna contract with a leading global space company exceeds $30 million and will be delivered over 24-28 months, further bolstering the company's prospects.

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: 5.8/10

Value: 5.1

Growth: 4.7

Quality: 6.8

Yield: 6.0

Momentum: 3.5

Volatility: 8.7

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Calian

A-Score: 5.3/10

Value: 6.5

Growth: 5.8

Quality: 3.8

Yield: 4.0

Momentum: 4.5

Volatility: 7.0

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Value: 5.7

Growth: 3.2

Quality: 4.0

Yield: 7.0

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Volatility: 6.0

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Value: 8.6

Growth: 5.4

Quality: 5.6

Yield: 0.0

Momentum: 0.5

Volatility: 6.0

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A-Score: 4.3/10

Value: 6.1

Growth: 5.6

Quality: 5.1

Yield: 0.0

Momentum: 3.0

Volatility: 6.0

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A-Score: 4.0/10

Value: 6.8

Growth: 3.2

Quality: 2.3

Yield: 3.0

Momentum: 3.0

Volatility: 5.7

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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

57.78$

Current Price

57.78$

Potential

-0.00%

Expected Cash-Flows