(All amounts in release are in Canadian dollars)
OTTAWA, Ontario, May 14, 2026 (GLOBE NEWSWIRE) -- Calian Group Ltd. (TSX:CGY), a mission critical solutions company focused on defence, space, healthcare and other strategic critical infrastructure sectors, today released its results for the second quarter ended March 31, 2026.
"Our second quarter results mark an important inflection point for Calian as we begin to capture the benefits of strengthening demand across the defence sector," said Patrick Houston, Calian CEO. "Revenue grew 18%, including 12% organic growth, which was achieved through record-setting deliveries and a strong pace of contract signings. This solid top-line performance translated into an 60% increase in adjusted EBITDA1, which significantly outpaced revenue growth and reflects the compounded impact of higher volumes and improved operational leverage.
These results reflect early but tangible momentum in government defence spending and validate the strategic choices we have made to sharpen our operating model. With a $1.5 billion backlog, a robust acquisition pipeline, and a solid balance sheet, we are well-positioned to capture market share, deliver strong full year performance, and create lasting value for shareholders."
Q2-26 Highlights2:
- Revenue up 18% to $229 million, including 12% from organic and 6% from acquisitions
- Gross margin increased to 35.1%, up from 33.4%
- Adjusted EBITDA1 up 60% to $28 million (margin of 12.2% versus 9.0% last year)
- Operating free cash flow1 of $21 million, representing a conversion of 77%
- New contract signings of $321 million, including over $200 million in defence
- Ending backlog of $1.5 billion, including over one billion in defence
- On February 10, 2026 Calian announced the appointment of Will Majic as Acting CFO
- On March 26, 2026, Calian increased its committed credit facility to pursue growth
| Financial Highlights | Three months ended | Six months ended | |||||||||||||||||||||||
| (in millions of $, except per share & margins) | March 31, | March 31, | |||||||||||||||||||||||
| 2026 | 20252 | % | 2026 | 20252 | % | ||||||||||||||||||||
| Revenue | 228.7 | 193.7 | 18 | % | 436.7 | 378.7 | 15 | % | |||||||||||||||||
| Adjusted EBITDA1 | 27.9 | 17.4 | 60 | % | 50.7 | 35.2 | 44 | % | |||||||||||||||||
| Adjusted EBITDA %1 | 12.2 | % | 9.0 | % | 320bps | 11.6 | % | 9.3 | % | 230bps | |||||||||||||||
| Adjusted Net Profit1 | 15.1 | 9.1 | 65 | % | 26.9 | 17.6 | 53 | % | |||||||||||||||||
| Adjusted EPS Diluted1 | 1.30 | 0.77 | 69 | % | 2.33 | 1.47 | 58 | % | |||||||||||||||||
| Operating Free Cash Flow1 | 21.5 | 9.8 | 119 | % | 37.2 | 22.9 | 63 | % | |||||||||||||||||
1 This is a non-GAAP measure. Please refer to the section “Reconciliation of non-GAAP measures to most comparable IFRS measures” at the end of this press release.
2 Highlights are compared to the three-month and six-month periods ended March 31, 2025.
Access the full report on the Calian Financials web page.
Register for the conference call on Thursday, May 14, 2026, 8:30 a.m. Eastern Time.
Second Quarter Results
Revenues increased 18%, from $194 million to $229 million. This represents a record high quarterly revenue for the Company. Acquisitive growth was 6% and was generated by the acquisitions of Advanced Medical Solutions completed in May 2025 and Infield Scientific closed in October 2025. Organic growth was 12% and was generated by both the Defence & Space and Essential Industries segments.
Gross profit increased 24.3% to $80 million, driven by revenue growth, changes in revenue mix and contributions from acquisitions. As a result, gross margin reached 35.1%, up from 33.4% last year. Similarly, adjusted EBITDA1 increased 60% to $28 million, driven by higher gross profit. As a result, adjusted EBITDA1 margin increased to 12.2%, up from 9.0% last year.
Net profit was $6.7 million, or $0.58 per diluted share, compared to $0.3 million, or $0.02 per diluted share last year. The increase is primarily related to higher adjusted EBITDA1 and lower mergers and acquisition costs, partially offset by higher restructuring expenses and taxes. Adjusted net profit1 stood at $15.1 million, or $1.30 per diluted share, up from $9.1 million, or $0.77 per diluted share, last year.
Liquidity and Capital Resources
"In the second quarter, we generated $21 million of operating free cash flow1, representing a strong conversion rate from adjusted EBITDA1 of 77%," said Will Majic, Calian Acting CFO. "We used our cash and a portion of our credit facility to fund capital expenditures of $4 million, earn-outs related to past acquisitions for $5 million and provide a return to shareholders through dividends of $3 million. We ended the quarter with a net debt to adjusted EBITDA1 ratio of 1.2x, preserving significant financial flexibility to fund our growth strategy."
Calian Appoints Will Majic as Acting Chief Financial Officer
On February 23, 2026, Calian announced the appointment of Will Majic as acting Chief Financial Officer, effective immediately. Majic joined Calian in 2017 and currently serves as Vice President, Finance. He previously held the roles of Director of Finance and Controller. During his tenure, Calian has grown from approximately $275 million in annual revenue to more than $750 million. He has led finance due diligence and integration for 19 acquisitions, supported two equity financings totalling $150 million, and played a key role in establishing a $350 million syndicated credit facility. He also led enterprise-wide ERP implementation and enhanced internal controls, reporting standards and cash flow management to support the company’s expanding operations.
Calian Increases its Committed Credit Facility to Pursue Growth
On March 26, 2026, Calian announced that it has exercised the accordion feature under its existing credit facility. Calian has exercised $75 million of its accordion feature, increasing total committed capacity under its credit facility to $275 million. The Company renewed its credit facility on September 29, 2025, for a three-year term, with total capacity of $350 million.
Quarterly Dividend
On May 13, 2026, Calian declared a quarterly dividend of $0.28 per share. The dividend is payable June 10, 2026, to shareholders of record as of May 27, 2026. Dividends paid by the Company are considered “eligible dividend” for tax purposes.
About Calian
For over 40 years, Calian has delivered mission-critical solutions when failure is not an option. Trusted worldwide, we empower organizations in critical industries to overcome obstacles, manage risks and drive progress. By combining the expertise of our people, proven industry insight, cutting-edge technology, bold innovation, and global reach, we deliver tailored solutions that solve complex challenges. Headquartered in Ottawa, Canada, with over 6,000 people around the world, Calian’s solutions protect lives, strengthen security, foster global connectivity and drive economic progress, making a lasting impact where and when it matters most.
Product or service names mentioned herein may be the trademarks of their respective owners.
Media inquiries:
media@calian.com
613-599-8600
Investor Relations inquiries:
ir@calian.com
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DISCLAIMER
Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Such statements are generally accompanied by words such as “intend”, “anticipate”, “believe”, “estimate”, “expect” or similar statements. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price competition; scarce number of qualified professionals; the impact of rapid technological and market change; loss of business or credit risk with major customers; technical risks on fixed price projects; general industry and market conditions and growth rates; international growth and global economic conditions, and including currency exchange rate fluctuations; and the impact of consolidations in the business services industry. For additional information with respect to certain of these and other factors, please see the Company’s most recent annual report and other reports filed by Calian with the Ontario Securities Commission. Calian disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. No assurance can be given that actual results, performance or achievement expressed in, or implied by, forward-looking statements within this disclosure will occur, or if they do, that any benefits may be derived from them.
Calian · Head Office · 770 Palladium Drive · Ottawa · Ontario · Canada · K2V 1C8
Tel: 613.599.8600 · Fax: 613-592-3664 · General info email: info@calian.com
| CALIAN GROUP LTD. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION As at March 31, 2026 and September 30, 2025 (Canadian dollars in thousands, except per share data) | |||||||
| March 31, | September 30, | ||||||
| 2026 | 2025 | ||||||
| ASSETS | |||||||
| CURRENT ASSETS | |||||||
| Cash and cash equivalents | $ | 56,348 | $ | 46,101 | |||
| Accounts receivable | 298,169 | 171,150 | |||||
| Work in process | 18,381 | 25,028 | |||||
| Inventory | 27,851 | 27,709 | |||||
| Prepaid expenses and other | 34,841 | 22,977 | |||||
| Derivative assets | 182 | 44 | |||||
| Total current assets | 435,772 | 293,009 | |||||
| NON-CURRENT ASSETS | |||||||
| Property, plant and equipment | 45,631 | 45,508 | |||||
| Right of use assets | 39,828 | 39,786 | |||||
| Prepaid expenses | 7,551 | 6,015 | |||||
| Deferred tax asset | 1,521 | 1,614 | |||||
| Investments | 4,252 | 4,252 | |||||
| Acquired intangible assets | 97,204 | 106,833 | |||||
| Goodwill | 231,407 | 224,483 | |||||
| Total non-current assets | 427,394 | 428,491 | |||||
| TOTAL ASSETS | $ | 863,166 | $ | 721,500 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| CURRENT LIABILITIES | |||||||
| Accounts payable and accrued liabilities | $ | 224,057 | $ | 133,096 | |||
| Provisions | 3,681 | 3,458 | |||||
| Unearned contract revenue | 49,830 | 39,646 | |||||
| Lease obligations | 6,120 | 5,819 | |||||
| Contingent earn-out | 5,168 | 16,147 | |||||
| Derivative liabilities | 153 | 53 | |||||
| Total current liabilities | 289,009 | 198,219 | |||||
| NON-CURRENT LIABILITIES | |||||||
| Debt facility | 167,250 | 130,750 | |||||
| Lease obligations | 37,882 | 37,634 | |||||
| Unearned contract revenue | 19,730 | 14,704 | |||||
| Deferred tax liabilities | 16,807 | 18,912 | |||||
| Total non-current liabilities | 241,669 | 202,000 | |||||
| TOTAL LIABILITIES | 530,678 | 400,219 | |||||
| SHAREHOLDERS’ EQUITY | |||||||
| Issued capital | 229,359 | 220,345 | |||||
| Contributed surplus | 6,292 | 7,312 | |||||
| Retained earnings | 89,763 | 84,360 | |||||
| Accumulated other comprehensive income (loss) | 7,074 | 9,264 | |||||
| TOTAL SHAREHOLDERS’ EQUITY | 332,488 | 321,281 | |||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 863,166 | $ | 721,500 | |||
| Number of common shares issued and outstanding | 11,490,510 | 11,350,168 | |||||
| CALIAN GROUP LTD. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF NET PROFIT For the three months and six months ended March 31, 2026 and 2025 (Canadian dollars in thousands, except per share data) | |||||||||||||||||
| Three months ended | Six months ended | ||||||||||||||||
| March 31, | March 31, | ||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| Revenue | $ | 228,701 | $ | 193,667 | $ | 436,700 | $ | 378,714 | |||||||||
| Cost of revenues | 148,364 | 129,025 | 285,461 | 255,271 | |||||||||||||
| Gross profit | 80,337 | 64,642 | 151,239 | 123,443 | |||||||||||||
| Selling, general and administrative | 48,533 | 44,477 | 94,351 | 82,582 | |||||||||||||
| Research and development | 3,933 | 2,771 | 6,203 | 5,667 | |||||||||||||
| Share-based compensation | 1,821 | 949 | 2,833 | 2,040 | |||||||||||||
| Profit before under noted items | 26,050 | 16,445 | 47,852 | 33,154 | |||||||||||||
| Restructuring and other | 2,043 | 372 | 2,462 | 1,064 | |||||||||||||
| Depreciation and amortization | 11,136 | 11,474 | 22,141 | 23,014 | |||||||||||||
| Mergers and acquisition costs | 977 | 2,373 | 1,995 | 4,693 | |||||||||||||
| Profit before interest and income tax expense | 11,894 | 2,226 | 21,254 | 4,383 | |||||||||||||
| Interest expense | 2,212 | 2,111 | 4,428 | 3,894 | |||||||||||||
| Income tax expense (recovery) | 2,967 | (180 | ) | 5,015 | 1,170 | ||||||||||||
| NET PROFIT (LOSS) | $ | 6,715 | $ | 295 | $ | 11,811 | $ | (681 | ) | ||||||||
| Net profit (loss) per share: | |||||||||||||||||
| Basic | $ | 0.59 | $ | 0.03 | $ | 1.03 | $ | (0.06 | ) | ||||||||
| Diluted | $ | 0.58 | $ | 0.02 | $ | 1.03 | $ | (0.06 | ) | ||||||||
| CALIAN GROUP LTD. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the three months and six months ended March 31, 2026 and 2025 (Canadian dollars in thousands) | ||||||||||||||||
| Three months ended | Six months ended | |||||||||||||||
| March 31, | March 31, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| CASH FLOWS GENERATED FROM (USED IN) OPERATING ACTIVITIES | ||||||||||||||||
| Net profit (loss) | $ | 6,715 | $ | 295 | $ | 11,811 | $ | (681 | ) | |||||||
| Items not affecting cash: | ||||||||||||||||
| Interest expense | 1,705 | 1,612 | 3,399 | 2,907 | ||||||||||||
| Changes in fair value related to contingent earn-out | — | 558 | 100 | 1,116 | ||||||||||||
| Lease obligations interest expense | 507 | 499 | 1,029 | 987 | ||||||||||||
| Income tax expense | 2,967 | (180 | ) | 5,015 | 1,170 | |||||||||||
| Share based compensation expense | 1,821 | 949 | 2,833 | 2,040 | ||||||||||||
| Depreciation and amortization | 11,136 | 11,474 | 22,141 | 23,014 | ||||||||||||
| Deemed compensation | 250 | 1,470 | 589 | 3,033 | ||||||||||||
| 25,101 | 16,677 | 46,917 | 33,586 | |||||||||||||
| Change in non-cash working capital | ||||||||||||||||
| Accounts receivable | (124,090 | ) | (55,935 | ) | (126,539 | ) | (56,102 | ) | ||||||||
| Work in process | 5,234 | 668 | 6,647 | 900 | ||||||||||||
| Prepaid expenses and other | (3,659 | ) | 3,884 | (13,875 | ) | 1,146 | ||||||||||
| Inventory | 158 | 2,637 | (142 | ) | (3,605 | ) | ||||||||||
| Accounts payable and accrued liabilities | 91,185 | 48,068 | 90,853 | 47,210 | ||||||||||||
| Unearned contract revenue | 11,339 | 1,092 | 15,210 | 2,386 | ||||||||||||
| 5,268 | 17,091 | 19,071 | 25,521 | |||||||||||||
| Interest paid | (2,212 | ) | (2,111 | ) | (4,428 | ) | (3,894 | ) | ||||||||
| Income tax paid | (2,134 | ) | (5,120 | ) | (6,554 | ) | (7,385 | ) | ||||||||
| 922 | 9,860 | 8,089 | 14,242 | |||||||||||||
| CASH FLOWS GENERATED FROM (USED IN) FINANCING ACTIVITIES | ||||||||||||||||
| Issuance of common shares net of costs | 4,104 | 664 | 4,480 | 1,545 | ||||||||||||
| Dividends | (3,213 | ) | (3,292 | ) | (6,408 | ) | (6,584 | ) | ||||||||
| Net draw on debt facility | 2,500 | 5,000 | 36,500 | 31,000 | ||||||||||||
| Payment of lease obligations | (1,508 | ) | (1,664 | ) | (3,107 | ) | (3,106 | ) | ||||||||
| Repurchase of common shares | — | (4,384 | ) | — | (9,310 | ) | ||||||||||
| 1,883 | (3,676 | ) | 31,465 | 13,545 | ||||||||||||
| CASH FLOWS USED IN INVESTING ACTIVITIES | ||||||||||||||||
| Business acquisitions | (5,259 | ) | (678 | ) | (23,443 | ) | (11,893 | ) | ||||||||
| Property, plant and equipment | (3,834 | ) | (2,396 | ) | (5,864 | ) | (3,532 | ) | ||||||||
| (9,093 | ) | (3,074 | ) | (29,307 | ) | (15,425 | ) | |||||||||
| NET CASH INFLOW | $ | (6,288 | ) | $ | 3,110 | $ | 10,247 | $ | 12,362 | |||||||
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 62,636 | 61,040 | 46,101 | 51,788 | ||||||||||||
| CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 56,348 | $ | 64,150 | $ | 56,348 | $ | 64,150 | ||||||||
Reconciliation of Non-GAAP Measures to Most Comparable IFRS Measures
These non-GAAP measures are mainly derived from the consolidated financial statements, but do not have a standardized meaning prescribed by IFRS; therefore, others using these terms may calculate them differently. The exclusion of certain items from non-GAAP performance measures does not imply that these are necessarily nonrecurring. From time to time, we may exclude additional items if we believe doing so would result in a more transparent and comparable disclosure. Other entities may define the above measures differently than we do. In those cases, it may be difficult to use similarly named non-GAAP measures of other entities to compare performance of those entities to the Company’s performance.
Management believes that providing certain non-GAAP performance measures, in addition to IFRS measures, provides users of the Company’s financial reports with enhanced understanding of the Company’s results and related trends and increases transparency and clarity into the core results of the business. Adjusted EBITDA excludes items that do not reflect, in our opinion, the Company’s core performance and helps users of our MD&A to better analyze our results, enabling comparability of our results from one period to another.
Adjusted EBITDA
| Three months ended | Six months ended | |||||||||||||
| March 31, | March 31, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Net profit (loss) | $ | 6,715 | $ | 295 | $ | 11,811 | $ | (681 | ) | |||||
| Share-based compensation | 1,821 | 949 | 2,833 | 2,040 | ||||||||||
| Restructuring and other | 2,043 | 372 | 2,462 | 1,064 | ||||||||||
| Depreciation and amortization | 11,136 | 11,474 | 22,141 | 23,014 | ||||||||||
| Mergers and acquisition costs | 977 | 2,373 | 1,995 | 4,693 | ||||||||||
| Interest expense | 2,212 | 2,111 | 4,428 | 3,894 | ||||||||||
| Income tax expense | 2,967 | (180 | ) | 5,015 | 1,170 | |||||||||
| Adjusted EBITDA | $ | 27,871 | $ | 17,394 | $ | 50,685 | $ | 35,194 | ||||||
| Adjusted EBITDA per share - Basic | 2.43 | 1.48 | 4.44 | 3.00 | ||||||||||
| Adjusted EBITDA per share - Diluted | $ | 2.40 | $ | 1.46 | $ | 4.40 | $ | 2.95 | ||||||
Adjusted Net Profit and Adjusted EPS
| Three months ended | Six months ended | |||||||||||||||
| March 31, | March 31, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net profit (loss) | $ | 6,715 | $ | 295 | $ | 11,811 | $ | (681 | ) | |||||||
| Share-based compensation | 1,821 | 949 | 2,833 | 2,040 | ||||||||||||
| Restructuring and other | 2,043 | 372 | 2,462 | 1,064 | ||||||||||||
| Mergers and acquisition costs | 977 | 2,373 | 1,995 | 4,693 | ||||||||||||
| Amortization of intangibles | 6,376 | 7,066 | 12,760 | 14,400 | ||||||||||||
| 17,932 | 11,055 | 31,861 | 21,516 | |||||||||||||
| Income taxes related to above items | (2,842 | ) | (1,913 | ) | (5,002 | ) | (3,966 | ) | ||||||||
| Adjusted net profit | 15,090 | 9,142 | 26,859 | 17,550 | ||||||||||||
| Weighted average number of common shares basic | 11,454,308 | 11,726,127 | 11,416,792 | 11,749,796 | ||||||||||||
| Adjusted EPS Basic | 1.32 | 0.78 | 2.35 | 1.49 | ||||||||||||
| Adjusted EPS Diluted | $ | 1.30 | $ | 0.77 | $ | 2.33 | $ | 1.47 | ||||||||
Operating Free Cash Flow
| Three months ended | Six months ended | |||||||||||||||
| March 31, | March 31, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Cash flows generated from operating activities (free cash flow) | $ | 922 | $ | 9,860 | $ | 8,089 | $ | 14,242 | ||||||||
| Adjustments: | ||||||||||||||||
| M&A costs included in operating activities | 727 | 345 | 1,306 | 544 | ||||||||||||
| Change in non-cash working capital | 19,833 | (414 | ) | 27,846 | 8,065 | |||||||||||
| Operating free cash flow | $ | 21,482 | $ | 9,791 | $ | 37,241 | $ | 22,851 | ||||||||
| Operating free cash flow per share - basic | 1.88 | 0.83 | 3.26 | 1.94 | ||||||||||||
| Operating free cash flow per share - diluted | 1.85 | 0.82 | 3.23 | 1.92 | ||||||||||||
| Operating free cash flow conversion | 77 | % | 56 | % | 73 | % | 65 | % | ||||||||
Net Debt to Adjusted EBITDA
| March 31, | March 31, | ||||||
| 2026 | 2025 | ||||||
| Cash | $ | 56,348 | $ | 64,150 | |||
| Debt facility | 167,250 | 120,750 | |||||
| Net debt (net cash) | 110,902 | 56,600 | |||||
| Trailing twelve month adjusted EBITDA | 93,910 | 78,846 | |||||
| Net debt to adjusted EBITDA | 1.2 | 0.7 | |||||
Operating free cash flow measures the company’s cash profitability after required capital spending when excluding working capital changes. The Company’s ability to convert adjusted EBITDA to operating free cash flow is critical for the long term success of its strategic growth. These measurements better align the reporting of our results and improve comparability against our peers. We believe that securities analysts, investors and other interested parties frequently use non-GAAP measures in the evaluation of issuers. Management also uses non-GAAP measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess our ability to meet our capital expenditure and working capital requirements. Non-GAAP measures should not be considered a substitute for or be considered in isolation from measures prepared in accordance with IFRS. Investors are encouraged to review our financial statements and disclosures in their entirety and are cautioned not to put undue reliance on non-GAAP measures and view them in conjunction with the most comparable IFRS financial measures. The Company has reconciled adjusted profit to the most comparable IFRS financial measure as shown above.
