Calian Group Stock Earnings Reports

Calian reported a strong start to FY2026 with record Q1 results: revenue of $208M (up 12% YoY, 6% organic) and adjusted EBITDA of $23M (up 28%), driving adjusted EBITDA margin to 11% and gross margin to ~34%. Backlog stands at ~$1.4B with $171M in new signings in the quarter, including two Space antenna contracts >$35M and a >$30M ground-station contract. The company reorganized from four reporting segments into two (Defense & Space ~2/3 of revenue; Essential Industries ~1/3) to align with market demand and accelerate integrated solutions. Defense & Space momentum is driven by European NATO-related activity, growing Canadian defense engagement, and targeted investments (talent, infrastructure, tech). Essential Industries grew ~20% this quarter (supported by AMS and Infield Scientific acquisitions) and returned to modest organic growth. Cash flow from operations was $7M; operating free cash flow was $16M (69% cash conversion). Net debt is $102M (net debt / adjusted EBITDA ~1.2x) with ~ $250M of additional liquidity available from cash, unused facility and accordion. Capital deployment: ~$18M acquisition-related payments, $2M capex, $3M dividends; M&A remains the top capital priority, while the share buyback is temporarily paused. Fiscal 2026 outlook unchanged: targeting midterm annual revenue growth of 10–15% and adjusted EBITDA growth to outpace revenue; expecting double-digit revenue and adjusted EBITDA growth for FY26 vs FY25. Management expects margins to continue improving through the year and to exit at double-digit levels, while remaining disciplined on capital allocation and opportunistic on buybacks.