tiprankstipranks
Trending News
More News >
Calian Group Ltd. (TSE:CGY)
TSX:CGY
Canadian Market
Advertisement

Calian Group (CGY) AI Stock Analysis

Compare
126 Followers

Top Page

TSE:CGY

Calian Group

(TSX:CGY)

Rating:66Neutral
Price Target:
C$56.00
▲(7.53% Upside)
Calian Group's overall stock score reflects strong financial performance in revenue growth and cash flow, supported by positive earnings call insights. However, challenges in profitability, valuation concerns, and technical indicators suggest caution. The company's strategic focus on defense and international growth provides a positive outlook, but cost management and ITCS segment issues need addressing.

Calian Group (CGY) vs. iShares MSCI Canada ETF (EWC)

Calian Group Business Overview & Revenue Model

Company DescriptionCalian 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.
How the Company Makes MoneyCalian Group makes money through a multi-faceted revenue model that capitalizes on its diverse service offerings across different sectors. Key revenue streams include contracts with government and defense organizations for healthcare and training services, IT and cyber solutions for protecting digital infrastructure, and engineering services in the advanced technologies sector. The company also benefits from long-term partnerships and contracts with various public and private sector clients, which provide a steady flow of income. Additionally, Calian occasionally engages in strategic acquisitions to expand its capabilities and market reach, further contributing to its earnings.

Calian Group Earnings Call Summary

Earnings Call Date:Aug 13, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Nov 26, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments and challenges. The defense and international segments showed strong growth and increased backlog, contributing positively to the company's outlook. However, the ITCS segment faced significant declines, affecting overall profitability. Despite these challenges, strategic measures and a robust backlog indicate potential for future growth.
Q3-2025 Updates
Positive Updates
Defense Business Growth
Defense revenues reached $373 million, up from $330 million in fiscal '24, marking a 19% increase on a trailing 12-month basis with 12% organic growth.
Significant Backlog Increase
Signed backlog grew by $640 million during the quarter, with a year-to-date contract signing surpassing $1 billion, resulting in a total backlog of $1.5 billion.
International Revenue Growth
44% of total revenues came from international customers in Q3, the highest quarter for international revenues in terms of both revenue dollars and percentage.
Gross Margin Improvement
Gross margin increased to 35% from 33% for the same period last year, marking the 13th consecutive quarter above 30%.
Cash Flow and Capital Efficiency
Cash flow from operations was $25 million, up from $14 million last year, with operating free cash flow at $12 million, representing a 63% conversion from adjusted EBITDA.
Negative Updates
ITCS Segment Decline
ITCS segment revenues decreased by 10%, impacting overall consolidated revenues, with adjusted EBITDA down 5% due to significant downturn in ITCS profitability.
Adjusted EBITDA Margin Decline
Adjusted EBITDA margin decreased to 9.9% from 10.7% for the same period last year.
Management Changes in ITCS
Mike Tremblay, President of the ITCS segment, announced his resignation, indicating organizational challenges in this segment.
Company Guidance
In the Calian Group's third quarter 2025 earnings call, the company reported a mixed performance, with significant growth in its defense sector, which now constitutes 50% of total revenues, up 19% over the trailing 12 months. The defense sector's organic growth was 12%, driven by increased demand in Canada and Europe. During the quarter, Calian's signed backlog increased by $640 million, with year-to-date contract signings exceeding $1 billion, contributing to a total backlog of $1.5 billion. Despite a 10% revenue decline in the ITCS segment, the company's consolidated revenues rose 4% to $192 million, with an adjusted EBITDA decrease of 5% to $19 million. The call highlighted the arrival of Chris Pogue to lead the newly merged Defense and Space business unit and emphasized strategic investments and M&A activities to leverage market opportunities and drive future growth.

Calian Group Financial Statement Overview

Summary
Calian Group shows stability with strong gross margins and effective cash management. However, challenges include low net profitability and declining revenue growth. The balance sheet is strong, but returns on equity are limited.
Income Statement
65
Positive
Calian Group's income statement shows moderate performance. The TTM Gross Profit Margin is healthy at 32.0%, indicating effective cost management. However, the Net Profit Margin is quite low at 0.007%, suggesting limited profitability after expenses. The TTM EBIT Margin stands at 3.7%, and the EBITDA Margin at 7.1%, both indicating moderate operational efficiency. Revenue growth is stable, with a 13.1% growth from 2023 to 2024, but recent TTM data shows a slight decline. Overall, while the company maintains decent margins, the low net profit margin highlights profitability challenges.
Balance Sheet
70
Positive
The balance sheet reflects a stable financial position for Calian Group. The Debt-to-Equity Ratio is 0.51, showing a balanced approach to leveraging debt. The Return on Equity (ROE) is low at 0.015%, indicating limited returns generated from shareholders' equity. The Equity Ratio is robust at 41.5%, suggesting strong capital structure and asset management. Overall, the company maintains a solid equity base, though profitability on equity could improve.
Cash Flow
78
Positive
Calian Group's cash flow statement reveals strong cash management. The Free Cash Flow Growth Rate shows a decline of 49.6% in the latest period, but the Operating Cash Flow to Net Income Ratio is high at 982.4, indicating effective cash generation relative to net income. The Free Cash Flow to Net Income Ratio is also robust at 775.5, underscoring strong cash conversion. Overall, while free cash flow has decreased, the company remains efficient in converting income to cash.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue752.10M746.61M658.58M582.17M518.40M432.32M
Gross Profit254.22M254.01M204.21M169.23M126.74M89.16M
EBITDA50.42M70.78M59.27M56.06M37.59M38.79M
Net Income-659.00K11.18M18.89M13.60M11.15M20.36M
Balance Sheet
Total Assets723.59M707.92M585.72M547.16M457.97M331.05M
Cash, Cash Equivalents and Short-Term Investments56.83M51.79M33.73M42.65M78.61M24.23M
Total Debt184.68M129.19M74.76M26.54M17.48M19.59M
Total Liabilities422.33M381.17M257.35M241.98M165.61M130.65M
Stockholders Equity301.25M326.75M328.37M305.19M292.36M200.41M
Cash Flow
Free Cash Flow48.67M75.42M48.34M35.82M38.69M-8.55M
Operating Cash Flow58.45M87.22M56.77M43.14M46.54M-2.75M
Investing Cash Flow-48.86M-99.67M-79.62M-72.89M-56.61M-35.19M
Financing Cash Flow2.43M30.50M13.94M-6.21M64.44M45.04M

Calian Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price52.08
Price Trends
50DMA
49.93
Positive
100DMA
46.93
Positive
200DMA
46.25
Positive
Market Momentum
MACD
0.63
Negative
RSI
59.18
Neutral
STOCH
67.21
Neutral
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 52.08 is above the 20-day moving average (MA) of 49.53, above the 50-day MA of 49.93, and above the 200-day MA of 46.25, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 59.18 is Neutral, neither overbought nor oversold. The STOCH value of 67.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CGY.

Calian Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
C$1.71B9.619.65%9.40%-2.58%100.21%
72
Outperform
C$587.56M17.5314.80%3.71%-5.62%88.69%
66
Neutral
C$590.91M13,697.30-0.21%2.15%1.44%-103.80%
66
Neutral
C$469.50M20.788.27%3.20%17.75%7.68%
64
Neutral
$10.73B15.747.64%2.01%2.76%-15.10%
63
Neutral
C$644.65M18.387.32%-0.87%117.78%
49
Neutral
C$80.75M11.6917.74%3.40%-8.92%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:CGY
Calian Group
52.16
10.35
24.75%
TSE:DCM
Data Commun Management
1.47
-1.11
-43.02%
TSE:GDI
GDI Integrated
27.24
-8.07
-22.85%
TSE:DXT
Dexterra Group
9.44
3.35
55.01%
TSE:KBL
K-Bro Linen
37.50
2.66
7.63%
TSE:TCL.B
Transcontinental Inc. Class B
20.21
4.88
31.83%

Calian Group Corporate Events

Business Operations and StrategyFinancial Disclosures
Calian Group Reports Strong Q3 Growth in Defense Sector
Positive
Aug 13, 2025

Calian Group Ltd. reported a 12% increase in defense solutions revenue for the third quarter, driven by strong momentum in Europe and the U.K. and growing investments in Canada. The company announced a $250 million increase in its health contract with the Department of National Defence, contributing to a robust 9% revenue growth excluding the ITCS segment, which faced demand challenges. The quarter also saw new contract signings totaling $642 million, bringing the backlog to a record $1.5 billion. Despite a decline in adjusted EBITDA due to lower ITCS profitability, Calian remains confident in its growth trajectory, supported by strategic acquisitions and a strong cash flow position.

The most recent analyst rating on (TSE:CGY) stock is a Buy with a C$75.00 price target. To see the full list of analyst forecasts on Calian Group stock, see the TSE:CGY Stock Forecast page.

Financial Disclosures
Calian Group to Discuss Q3 FY 2025 Results in Upcoming Conference Call
Neutral
Jul 30, 2025

Calian Group Ltd. announced it will hold a conference call on August 13, 2025, to discuss its third-quarter fiscal year 2025 results, which will be released earlier that day. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (TSE:CGY) stock is a Buy with a C$61.00 price target. To see the full list of analyst forecasts on Calian Group stock, see the TSE:CGY Stock Forecast page.

Business Operations and Strategy
Calian Group Earns Dual Recognition for Excellence and Workplace Culture
Positive
Jul 15, 2025

Calian Group Ltd. has been recognized by TIME Magazine as one of Canada’s Best Companies and by Forbes as one of Canada’s Best Employers for Company Culture. These accolades highlight Calian’s leadership in delivering mission-critical solutions and fostering a supportive workplace culture. The recognition from TIME underscores the company’s commitment to employee satisfaction, revenue growth, and sustainability, while Forbes’ acknowledgment emphasizes Calian’s inclusive and collaborative work environment. These achievements reflect Calian’s dedication to diversity, equity, and inclusion, which are central to its mission of delivering critical outcomes for clients.

The most recent analyst rating on (TSE:CGY) stock is a Buy with a C$75.00 price target. To see the full list of analyst forecasts on Calian Group stock, see the TSE:CGY Stock Forecast page.

Business Operations and Strategy
Calian Secures $250M Contract Amendment to Support Canadian Armed Forces
Positive
Jul 8, 2025

Calian Group Ltd. has announced a $250 million amendment to its Health Care Provider Recruitment contract with Canada’s Department of National Defence, reinforcing its commitment to the Canadian Armed Forces by ensuring the continued delivery of essential health services. This contract amendment consolidates unspent funds from a previous option period with planned funding for the next, contributing to Calian’s $1.6 billion contract backlog, and highlights the company’s ongoing partnership with government and military organizations, bolstering its position as a key player in Canada’s defence sector.

The most recent analyst rating on (TSE:CGY) stock is a Buy with a C$75.00 price target. To see the full list of analyst forecasts on Calian Group stock, see the TSE:CGY Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Calian Group Appoints Chris Pogue as President of Defence & Space
Positive
Jun 24, 2025

Calian Group Ltd. announced the appointment of Chris Pogue as President of Defence & Space, effective July 7, 2025. This strategic move aims to enhance Calian’s next-generation defence and space capabilities by integrating its Advanced Technologies and Learning business units. Pogue, a seasoned leader with over 20 years of experience, is expected to drive innovation and operational excellence, aligning with Calian’s One Calian 2026 strategy to meet growing global demand. His leadership is anticipated to strengthen Calian’s market position and foster collaboration with defence and space partners, ensuring mission success in an era of complex global challenges.

The most recent analyst rating on (TSE:CGY) stock is a Buy with a C$75.00 price target. To see the full list of analyst forecasts on Calian Group stock, see the TSE:CGY Stock Forecast page.

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.Date of analysis: Aug 29, 2025