Calian Group Ltd. (TSE:CGY)
TSX:CGY
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Calian Group
(TSX:CGY)
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Rating:66Neutral
Price Target:
C$91.00
▲(26.23% Upside)
Action:DowngradedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Calian Group (CGY) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$827.71M
Dividend Yield1.98%
Average Volume (3M)18.08K
Price to Earnings (P/E)31.0
Beta (1Y)0.93
Revenue Growth3.69%
EPS Growth92.38%
CountryCA
Employees4,000
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)1.03
Shares Outstanding11,481,674
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$82.25Price Target Upside14.09% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)4.06
Revenue Forecast (FY)C$853.37M
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 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 hos...
Calian Group Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 19, 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
64
Positive
Balance Sheet
58
Neutral
Cash Flow
55
Neutral
| 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
Negative
72.09
Price Trends
73.59
Negative
64.67
Positive
57.22
Positive
Market Momentum
-0.80
Positive
41.60
Neutral
52.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CGY, the sentiment is Negative. The current price of 72.09 is below the 20-day moving average (MA) of 75.54, below the 50-day MA of 73.59, and above the 200-day MA of 57.22, indicating a neutral trend. The MACD of -0.80 indicates Positive momentum. The RSI at 41.60 is Neutral, neither overbought nor oversold. The STOCH value of 52.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | C$469.51M | 16.26 | 7.69% | 8.32% | -2.45% | 44.20% | |
66 Neutral | C$827.71M | 30.99 | 6.36% | 1.98% | 3.69% | 92.38% | |
64 Neutral | C$725.24M | 17.94 | 14.45% | 3.02% | -0.73% | 221.74% | |
64 Neutral | C$447.31M | 23.08 | 7.09% | 3.43% | 26.29% | -6.47% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | C$89.07M | 9.79 | 26.87% | 5.99% | -7.01% | ― |
* Industrials Sector Average
TSE:CGY
Calian Group
73.56
30.40
70.43%
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Calian Group Corporate Events
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...
Executive/Board ChangesShareholder Meetings
Calian Shareholders Re-Elect Board, Name Valerie Sorbie as Chair
Positive
Feb 12, 2026
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 boar...
Business Operations and StrategyDividendsFinancial Disclosures
Calian Delivers Record Q1 Revenue and Margin Gains as Defence Demand Builds
Positive
Feb 12, 2026
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 De...
Business Operations and StrategyDividendsFinancial Disclosures
Calian Delivers Record Q1 Revenue and Margin Gains as Defence and Space Drive Growth
Positive
Feb 12, 2026
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 Spac...
Business Operations and Strategy
Calian’s SatService Wins German Defence Deal for Advanced Q/V-Band SATCOM Station
Positive
Feb 10, 2026
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 satell...
Financial Disclosures
Calian Sets Feb. 12 Conference Call to Discuss Q1 FY2026 Results
Neutral
Jan 29, 2026
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 an...
Business Operations and StrategyPrivate Placements and Financing
Calian Deploys $100 Million to Build National C5ISRT Defence Innovation Network
Positive
Jan 26, 2026
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, Intel...
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.