Calian Group (CGY) AI Stock Analysis

• Market Cap: C$882.26M
• Dividend Yield: 1.98%
• Average Volume (3M): 18.08K
• Price to Earnings (P/E): 31.0
• Beta (1Y): 1.00
• Revenue Growth: 3.69%
• EPS Growth: 92.38%
• Country: CA
• Employees: 4,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 1.03
• Shares Outstanding: 11,422,365
• 10 Day Avg. Volume: 19,482
• 30 Day Avg. Volume: 18,078
• PEG Ratio: 0.31
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 0.74
• P/FCF Ratio: 16.51
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$82.25
• Price Target Upside: 6.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 4.06
• Revenue Forecast (FY): C$853.37M

• Rating: 66 Neutral
• Price Target: C$91.00 ▲(17.81% Upside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

Overall score reflects solid but not standout financial quality (slower TTM growth, thin net margins, and higher leverage) offset by strong technical momentum and a positive earnings call with reaffirmed double-digit growth and margin-improvement targets. Valuation is a headwind due to a higher P/E and modest yield.

Positive Factors

Large Backlog and New Signings

A $1.4B backlog and meaningful quarterly new signings provide durable revenue visibility across multi-year contracts. This reduces short-term revenue volatility, supports predictable cash flow realization, and underpins medium-term planning for staffing, capex and cross-sell initiatives.

Strength in Defense & Space

Material wins in mission‑critical Defense & Space position the company in high-barrier, long-term markets where technical expertise and reliability matter. Such contracts often yield repeatable revenue, higher customer stickiness and favorable margin mix versus commoditized services.

Positive Cash Generation and Liquidity

Consistent free cash flow growth and ample available liquidity support organic investment, M&A execution and the dividend policy. A net debt/EBITDA around 1.2x provides financial flexibility to pursue accretive acquisitions while maintaining investment in operations and margin improvement plans.

Negative Factors

Rising Leverage Over Time

A material increase in total debt over several years reduces financial resilience. Higher leverage magnifies downside risk if revenue or margins weaken, constrains discretionary investment, and increases sensitivity to interest-cost fluctuations and acquisition-related earnouts.

Thin Bottom‑Line Margins

Low net margins limit retained earnings and the capacity to absorb cost shocks or fund growth from operating profits. With revenue growth slowed to low single digits, margin compression or adverse mix shifts could materially erode profitability and free cash flow over the medium term.

Working‑Capital and Acquisition Cash Strain

Acquisition-driven working capital increases and recent debt draws highlight cash conversion volatility. Ongoing earn‑out obligations and integration costs may pressure near‑term cash flow and require continued leverage or deferred shareholder returns, affecting medium‑term financial flexibility.

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 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 Money

Calian generates revenue through a diverse array of streams. Primarily, the company earns income from its professional services divisions, which include healthcare staffing and IT support services. The healthcare division provides personnel to hospitals and clinics, while the IT sector offers cybersecurity and technology solutions to both public and private entities. Additionally, Calian's engineering and training services contribute significantly to its revenue, with contracts often awarded by government agencies and large corporations. Strategic partnerships with both public sector clients and private industry players also enhance its market reach and profitability. The company's ability to secure long-term contracts and maintain a robust pipeline of projects is crucial for sustaining its earnings.

Calian Group Financial Statement Overview

Summary

Stable profitability and positive cash generation, but TTM growth has slowed to low single digits and net margin remains thin (~2.7%). Leverage has risen materially (debt up to ~206M; D/E ~0.54), and cash-flow conversion/consistency is a watch item despite positive FCF.

Income Statement

TTM (Trailing-Twelve-Months) revenue is ~797M with low-single-digit growth, marking a clear slowdown versus the strong double-digit growth seen in 2021–2024. Profitability is steady at the gross level (mid-30% range), but the business runs on thin bottom-line margins (TTM net margin ~2.7%). EBIT and EBITDA margins are moderate for the space (~4.4% and ~10.4%), supporting consistent earnings power, but overall profit conversion remains a key limitation.

Balance Sheet

The balance sheet is still supported by a solid equity base (~322M) versus total assets (~751M), but leverage has risen meaningfully over time: total debt increased from ~27M (2022) to ~206M (TTM), with debt-to-equity now ~0.54 (up from ~0.09 in 2022). Returns on equity are positive and improving versus 2024 (~6.5% TTM vs ~3.4% in 2024), but the higher debt load reduces financial flexibility if operating conditions soften.

Cash Flow

Cash generation is positive (TTM operating cash flow ~48M; free cash flow ~37M), and free cash flow growth is positive in TTM, but cash flow has been volatile year-to-year (notably higher in 2024 vs lower in 2025). Free cash flow is below net income in the latest period (about 77% of net income), suggesting less efficient cash conversion than ideal. Overall, the company produces cash, but consistency and conversion are the main watch items.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	797.06M	774.11M	746.61M	658.58M	582.17M	518.40M
Gross Profit	271.39M	259.29M	254.01M	204.21M	169.23M	126.74M
EBITDA	87.46M	80.79M	70.78M	59.27M	56.06M	37.59M
Net Income	26.63M	20.56M	11.18M	18.89M	13.60M	11.15M
Balance Sheet
Total Assets	750.51M	721.50M	707.92M	585.72M	547.16M	457.97M
Cash, Cash Equivalents and Short-Term Investments	62.64M	46.10M	51.79M	33.73M	42.65M	78.61M
Total Debt	206.39M	174.20M	129.19M	74.76M	26.54M	17.48M
Total Liabilities	428.52M	400.22M	381.17M	257.35M	241.98M	165.61M
Stockholders Equity	321.99M	321.28M	326.75M	328.37M	305.19M	292.36M
Cash Flow
Free Cash Flow	36.73M	34.84M	75.42M	48.34M	35.82M	38.69M
Operating Cash Flow	48.22M	45.43M	87.22M	56.77M	43.14M	46.54M
Investing Cash Flow	-57.55M	-49.69M	-99.67M	-79.62M	-72.89M	-56.61M
Financing Cash Flow	10.93M	-1.43M	30.50M	13.94M	-6.21M	64.44M

Calian Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 77.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 77.24 is below the 20-day moving average (MA) of 79.40, above the 50-day MA of 69.11, and above the 200-day MA of 54.85, indicating a neutral trend. The MACD of 3.26 indicates Positive momentum. The RSI at 58.37 is Neutral, neither overbought nor oversold. The STOCH value of 23.60 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KBL	71 Outperform	C$446.62M	12.98	8.31%	3.43%	26.29%	-6.47%
TCL.A	67 Neutral	C$1.95B	16.26	8.95%	8.32%	-2.45%	44.20%
CGY	66 Neutral	C$882.26M	30.99	6.36%	1.98%	3.69%	92.38%
DXT	64 Neutral	C$743.96M	17.94	14.45%	3.02%	-0.73%	221.74%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DCM	55 Neutral	C$81.95M	9.79	26.87%	5.99%	-7.01%	―

Calian Group Corporate Events

Calian, ADGA Team Up on Next-Gen Land Training for Canadian Army

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 advanced training, secure systems and operational engineering to address the Canadian Army’s growing need for realistic, digitally enabled training that reflects modern, multi-domain warfare.

The collaboration directly supports Canada’s Defence Industrial Strategy by bolstering sovereign land capability and delivering scalable, interoperable training architectures tied to operational C5ISRT networks. By focusing on synthetic environments, system-agnostic platforms and secure digital infrastructure, the deal is expected to enhance the Army’s ability to “train as it will fight,” improving readiness, resilience and long-term sustainment while reinforcing both firms’ positions in Canada’s defence training ecosystem.

The most recent analyst rating on (TSE:CGY) stock is a Buy with a C$81.00 price target. To see the full list of analyst forecasts on Calian Group stock, see the TSE:CGY Stock Forecast page.

Calian and ADGA Join Forces on Next-Generation Land Training for Canadian Army

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 advanced training, secure digital systems and operational engineering to better address the complexities of modern, multi-domain warfare.

The companies plan to build scalable, system-agnostic synthetic training environments that tightly connect C5ISRT architectures to operational networks, enabling soldiers to train in the same digital conditions they face in theatre. By supporting Canada’s Defence Industrial Strategy and emphasizing secure-by-design infrastructure and cyber resilience, the initiative aims to enhance the Canadian Army’s readiness and sustainment while reinforcing Canada’s sovereign land training capability.

The most recent analyst rating on (TSE:CGY) stock is a Buy with a C$81.00 price target. To see the full list of analyst forecasts on Calian Group stock, see the TSE:CGY Stock Forecast page.

Calian Names Veteran Finance Executive Will Majic Acting CFO to Support Next Growth Phase

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 company’s rapid expansion, including revenue growth from about $275 million to more than $750 million and the execution of 19 acquisitions.

During his tenure, Majic has also supported equity financings totaling $150 million, established a $350 million syndicated credit facility and led an enterprise-wide ERP rollout that strengthened controls and reporting. His appointment signals continuity in Calian’s financial strategy as it pursues further growth in mission-critical markets, reinforcing its capital discipline and operational infrastructure for the next phase of expansion.

The most recent analyst rating on (TSE:CGY) stock is a Buy with a C$81.00 price target. To see the full list of analyst forecasts on Calian Group stock, see the TSE:CGY Stock Forecast page.

Calian Shareholders Re-Elect Board, Name Valerie Sorbie as Chair

Calian shareholders overwhelmingly re-elected the company’s slate of director nominees at the February 12 annual meeting in Ottawa, with each candidate receiving approximately 98% or more of votes cast in favour. Following the vote, the board appointed director Valerie Sorbie as chair, a move that underscores continuity in governance while positioning Calian’s leadership to support its ongoing growth in mission-critical solutions across global markets.

The most recent analyst rating on (TSE:CGY) stock is a Buy with a C$74.00 price target. To see the full list of analyst forecasts on Calian Group stock, see the TSE:CGY Stock Forecast page.

Calian Delivers Record Q1 Revenue and Margin Gains as Defence Demand Builds

Calian opened fiscal 2026 with record first-quarter revenue of $208 million, up 12% year over year, driven evenly by 6% organic growth and 6% from recent acquisitions including Advanced Medical Solutions and InField Scientific. Strong demand in Defence & Space and higher-margin product mix lifted gross margin to 34.1% and boosted adjusted EBITDA by 28% to $23 million, while net profit swung to $5.1 million from a loss a year earlier.

Operating free cash flow rose to $16 million, supporting $18 million in acquisition spending, $2 million in capex and $3 million in dividends, leaving net debt at 1.2 times adjusted EBITDA and maintaining balance sheet flexibility. With $171 million in new contract signings, a $1.4 billion backlog and a new initiative to accelerate Canadian C5ISRT defence capabilities through its Calian VENTURES arm, the company signaled continued growth ambitions and a strengthening position in defence and critical infrastructure markets.

The most recent analyst rating on (TSE:CGY) stock is a Buy with a C$74.00 price target. To see the full list of analyst forecasts on Calian Group stock, see the TSE:CGY Stock Forecast page.

Calian Delivers Record Q1 Revenue and Margin Gains as Defence and Space Drive Growth

Calian Group opened fiscal 2026 with record quarterly revenue of $208 million, up 12% year over year, driven equally by 6% organic growth and 6% from acquisitions such as Advanced Medical Solutions and InField Scientific. Strength in Defence & Space and Essential Industries, alongside a richer product mix, lifted gross margin to 34.1% and pushed adjusted EBITDA up 28% to $23 million, expanding margins and turning last year’s net loss into a $5.1 million profit.

Operating free cash flow rose to $15.8 million, enabling $2 million in capex, $18 million for acquisitions and earnouts, and $3 million in dividends, while keeping net debt to adjusted EBITDA at 1.2x and preserving balance-sheet flexibility. With $171 million in new contract signings, a $1.4 billion backlog and a new initiative via Calian Ventures to accelerate Canadian C5ISRT defence capabilities, the company is reinforcing its position in defence and space and signaling continued investment-led growth for shareholders and domestic defence stakeholders.

The most recent analyst rating on (TSE:CGY) stock is a Buy with a C$74.00 price target. To see the full list of analyst forecasts on Calian Group stock, see the TSE:CGY Stock Forecast page.

Calian’s SatService Wins German Defence Deal for Advanced Q/V-Band SATCOM Station

SatService GmbH, a Calian subsidiary and European satellite ground systems provider, has secured a contract from Germany’s Federal Ministry of Defence, represented by the Bundeswehr University Munich, to supply a full-service Q/V-band satellite ground station. The system will feature a high-performance 4-metre antenna operating in the Q/V-band for geostationary orbit applications, a capability not currently available at the university.

The new ground station will support scientific research and modern military SATCOM, giving trainee officers secure, high-throughput satellite connectivity and hands-on exposure to geostationary operations and their benefits. The project underscores Germany and the EU’s broader investment in sovereign satellite communications across multiple frequency bands, reinforcing Calian’s and SatService’s positioning as key technology partners in advanced, secure SATCOM infrastructure for defence and research stakeholders.

The most recent analyst rating on (TSE:CGY) stock is a Buy with a C$74.00 price target. To see the full list of analyst forecasts on Calian Group stock, see the TSE:CGY Stock Forecast page.

Calian Sets Feb. 12 Conference Call to Discuss Q1 FY2026 Results

Calian Group Ltd. will release its financial results for the first quarter of fiscal 2026, covering the period ended December 30, 2025, before markets open on February 12, 2026, followed by an 8:30 a.m. Eastern Time conference call for analysts and media via webcast on the company’s investor website. The event, which will include a replay accessible online shortly after the call, underscores Calian’s ongoing engagement with the financial community and provides stakeholders with an opportunity to assess the company’s performance and outlook in its key defence, space, healthcare and critical infrastructure markets.

The most recent analyst rating on (TSE:CGY) stock is a Buy with a C$92.50 price target. To see the full list of analyst forecasts on Calian Group stock, see the TSE:CGY Stock Forecast page.

Calian Deploys $100 Million to Build National C5ISRT Defence Innovation Network

Calian Group, through its Calian VENTURES arm, is mobilizing an initial $100 million from multiple funding sources to accelerate the development and deployment of sovereign Canadian C5ISRT (Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, Reconnaissance and Targeting) capabilities. The initiative will establish a national network of regional development labs that bring together SMEs, the Canadian Armed Forces, NATO, government, academia and industry partners to test, validate and scale interoperable defence technologies, with the goal of strengthening Arctic sovereignty, enhancing national security and modernizing the Canadian Armed Forces. By providing shared infrastructure, technical expertise and integration pathways, Calian aims to position itself as a central orchestrator of Canada’s defence innovation ecosystem and to help build the Canadian defence industrial base while ensuring sovereign control over critical defence data and systems.

The most recent analyst rating on (TSE:CGY) stock is a Buy with a C$65.00 price target. To see the full list of analyst forecasts on Calian Group stock, see the TSE:CGY Stock Forecast page.