Calian Group Ltd. (TSE:CGY)
TSX:CGY
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Calian Group
(TSX:CGY)
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Rating:68Neutral
Price Target:
C$90.00
â–²(23.88% Upside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by steady financial performance with improving profitability but constrained by higher leverage and softer free-cash-flow momentum. Technicals remain supportive due to a strong uptrend, though overbought signals increase near-term risk. Valuation is a headwind given the higher P/E, partially balanced by a positive earnings call with reaffirmed growth/margin guidance and strong backlog.
Positive Factors
Backlog and contract visibility
A $1.4B backlog with $171M of recent signings gives multi-quarter revenue visibility for a services business. This durable contracted work supports predictable staffing, capacity planning and revenue recognition over several quarters, reducing short-term demand risk.
Negative Factors
Rising leverage
Leverage has increased materially versus prior years as acquisitions were funded with debt. Higher indebtedness reduces financial flexibility, raises interest and covenant sensitivity, and constrains capital allocation if cash flow weakens or acquisition earn‑outs become due.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog and contract visibility
A $1.4B backlog with $171M of recent signings gives multi-quarter revenue visibility for a services business. This durable contracted work supports predictable staffing, capacity planning and revenue recognition over several quarters, reducing short-term demand risk.
Read all positive factors
Calian Group (CGY) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$926.59M
Dividend Yield1.98%
Average Volume (3M)18.08K
Price to Earnings (P/E)31.1
Beta (1Y)0.80
Revenue Growth11.71%
EPS Growth76473.68%
CountryCA
Employees4,000
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)2.91
Shares Outstanding11,490,509
10 Day Avg. Volume19,482
30 Day Avg. Volume18,078
Financial Highlights & Ratios
PEG Ratio0.31
Price to Book (P/B)1.79
Price to Sales (P/S)0.74
P/FCF Ratio16.51
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$94.67Price Target Upside30.31% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)4.06
Revenue Forecast (FY)C$875.47M
Calian Group Business Overview & Revenue Model
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 seg...
How the Company Makes Money
Calian makes money primarily by delivering contracted services and solutions to government and commercial customers, earning revenue when it provides labor-based professional services, manages ongoing service programs, and delivers project-based s...
Calian Group Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive tone: strong, record Q1 financial results (12% revenue growth, 28% adjusted EBITDA growth), improved margins and cash generation, meaningful backlog and notable Defense & Space contract wins. Acquisitions are accelerating growth and management reaffirmed midterm targets (10–15% revenue growth, adjusted EBITDA outpacing revenue). Key risks noted were timing uncertainty around Canadian defense opportunities, temporary working capital and debt draws to fund acquisitions, some one‑time offsets to EBITDA and a pause of the buyback program. Overall, the favorable operating and financial momentum and manageable balance sheet profile outweigh these near‑term uncertainties.Positive Updates
Record Q1 Revenue and Organic Growth
Revenue reached $208 million, a record for a first quarter, up 12% year‑over‑year. Organic growth was 6%, marking the second consecutive quarter of positive organic growth and signaling stabilization after prior headwinds.
Negative Updates
Timing Uncertainty in Canadian Defense Opportunity
Management noted that while the direction in Canadian defense spending is positive, the precise timing of opportunities remains difficult to predict, creating near‑term visibility risk for related revenue streams.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Q1 Revenue and Organic Growth
Revenue reached $208 million, a record for a first quarter, up 12% year‑over‑year. Organic growth was 6%, marking the second consecutive quarter of positive organic growth and signaling stabilization after prior headwinds.
Read all positive updates
Company Guidance
Management reiterated an unchanged fiscal 2026 outlook, targeting 10–15% annual revenue growth over the next several years (consistent with a ~12% historical CAGR) and saying adjusted EBITDA growth should consistently outpace revenue in the mid‑term; for fiscal '26 they expect double‑digit growth in both revenue and adjusted EBITDA versus fiscal '25 and to exit the year with double‑digit margins. They expect about $10M of capital expenditures, working‑capital usage to track with revenue growth, and maintain a dividend policy targeting a 25–30% payout of operating free cash flow; M&A remains the top capital priority (including ~ $5M AMS earn‑out in Q2 and remaining HPT earn‑out payments over the coming quarters). Balance‑sheet guidance/metrics noted net debt of $102M (net‑debt/adjusted EBITDA of 1.2x, well below a 2.5x threshold) and roughly $250M of available liquidity, while Q1 operational metrics called out $7M of cash from operations, $16M of operating free cash flow and ~69% cash conversion of adjusted EBITDA.Calian Group Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 832.10M | 774.11M | 746.61M | 658.58M | 582.17M | 518.40M |
| Gross Profit | 275.95M | 259.29M | 254.01M | 204.21M | 169.23M | 126.74M |
| EBITDA | 99.81M | 80.79M | 70.78M | 59.27M | 56.06M | 37.59M |
| Net Income | 33.05M | 20.56M | 11.18M | 18.89M | 13.60M | 11.15M |
Balance Sheet | ||||||
| Total Assets | 863.17M | 721.50M | 707.92M | 585.72M | 547.16M | 457.97M |
| Cash, Cash Equivalents and Short-Term Investments | 56.35M | 46.10M | 51.79M | 33.73M | 42.65M | 78.61M |
| Total Debt | 211.25M | 174.20M | 129.19M | 74.76M | 26.54M | 17.48M |
| Total Liabilities | 530.68M | 400.22M | 381.17M | 257.35M | 241.98M | 165.61M |
| Stockholders Equity | 332.49M | 321.28M | 326.75M | 328.37M | 305.19M | 292.36M |
Cash Flow | ||||||
| Free Cash Flow | 26.35M | 34.84M | 75.42M | 48.34M | 35.82M | 38.69M |
| Operating Cash Flow | 39.28M | 45.43M | 87.22M | 56.77M | 43.14M | 46.54M |
| Investing Cash Flow | -63.57M | -49.69M | -99.67M | -79.62M | -72.89M | -56.61M |
| Financing Cash Flow | 16.49M | -1.43M | 30.50M | 13.94M | -6.21M | 64.44M |
Calian Group Technical Analysis
Positive
72.65
Price Trends
73.73
Positive
69.97
Positive
60.53
Positive
Market Momentum
1.19
Negative
67.41
Neutral
91.05
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CGY, the sentiment is Positive. The current price of 72.65 is above the 20-day moving average (MA) of 72.01, below the 50-day MA of 73.73, and above the 200-day MA of 60.53, indicating a bullish trend. The MACD of 1.19 indicates Negative momentum. The RSI at 67.41 is Neutral, neither overbought nor oversold. The STOCH value of 91.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CGY.
Calian Group Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$810.12M | 14.01 | 16.00% | 3.02% | 6.54% | 44.56% | |
70 Outperform | C$94.99M | 4.51 | 25.52% | 5.99% | -6.38% | 24.25% | |
68 Neutral | C$926.59M | 31.13 | 10.35% | 1.98% | 11.71% | 76473.68% | |
67 Neutral | C$459.51M | 16.26 | 7.69% | 8.32% | -14.81% | -9.37% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | C$510.20M | 47.87 | 7.12% | 3.43% | 44.38% | -7.06% |
* Industrials Sector Average
TSE:CGY
Calian Group
80.88
41.69
106.38%
TSE:DCM
Data Commun Management
1.69
-0.06
-3.54%
TSE:DXT
Dexterra Group
13.01
4.73
57.07%
TSE:KBL
K-Bro Linen
40.48
6.83
20.30%
TSE:TCL.A
Transcontinental
5.28
2.39
82.76%
Calian Group Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresPrivate Placements and Financing
Calian Expands Credit Facility and Announces Leadership Change in Essential Industries Unit
Positive
Mar 26, 2026
Calian Group has increased the committed capacity under its credit facility by $75 million to $275 million, enhancing its financial flexibility to pursue acquisitions and fund internal investments. The move comes as the company reports a net debt ...
Business Operations and Strategy
Calian VENTURES Partners with Tessellate Robotics on Arctic-Ready Autonomous Navigation
Positive
Mar 11, 2026
Calian Group’s venture arm is partnering with Quebec-based Tessellate Robotics to integrate precision GNSS antennas, resilient PNT technologies and robotic software with Tessellate’s GPS-denied navigation systems for use in Canada̵...
Business Operations and Strategy
Calian, ADGA Team Up on Next-Gen Land Training for Canadian Army
Positive
Feb 26, 2026
Calian Group and ADGA Group Consultants have signed a three-year collaboration agreement to develop next-generation integrated land training and simulation capabilities for the Canadian Army. The partnership aligns their complementary strengths in...
Business Operations and Strategy
Calian and ADGA Join Forces on Next-Generation Land Training for Canadian Army
Positive
Feb 26, 2026
Calian Group and ADGA Group have signed a three-year collaboration agreement to jointly develop next-generation integrated land training and simulation capabilities for the Canadian Army. The partnership aligns their complementary strengths in adv...
Business Operations and StrategyExecutive/Board Changes
Calian Names Veteran Finance Executive Will Majic Acting CFO to Support Next Growth Phase
Positive
Feb 24, 2026
Calian Group has named longtime finance executive Will Majic as acting chief financial officer, elevating him from his role as vice president of finance. A chartered professional accountant who joined Calian in 2017, Majic has helped steer the com...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.