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Calian Group
(TSX:CGY)
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Rating:69Neutral
Price Target:
C$92.00
▲(18.79% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by mixed financial quality (improving profitability but weak cash conversion and rising leverage) balanced by a strong and upbeat earnings call with raised growth/EBITDA guidance and major contract/backlog momentum. Technicals are constructive with price above major moving averages, while valuation is a headwind due to the higher P/E and modest yield.
Positive Factors
Contract Backlog Visibility
The sizable backlog and long-duration defense awards provide multi-year revenue visibility, reduce dependence on near-term contract wins, and support sustained utilization of Calian’s specialized workforce and delivery capabilities.
Negative Factors
Weak Cash Conversion
Low operating cash conversion suggests that reported profits are being absorbed by working capital or other timing factors. Persistently weaker cash generation would limit funding flexibility for acquisitions, investment, debt reduction, and shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Contract Backlog Visibility
The sizable backlog and long-duration defense awards provide multi-year revenue visibility, reduce dependence on near-term contract wins, and support sustained utilization of Calian’s specialized workforce and delivery capabilities.
Read all positive factors
Calian Group (CGY) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$914.55M
Dividend Yield1.41%
Average Volume (3M)51.27K
Price to Earnings (P/E)23.5
Beta (1Y)0.88
Revenue Growth15.72%
EPS GrowthN/A
CountryCA
Employees6,000
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)3.38
Shares Outstanding11,518,313
10 Day Avg. Volume48,197
30 Day Avg. Volume51,274
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$104.60Price Target Upside35.05% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)4.15
Revenue Forecast (FY)C$888.14M
Calian Group Business Overview & Revenue Model
Company Description
Calian Group Ltd., an Ottawa, Canada-based company founded in 1982, offers a broad spectrum of business services and solutions across Canada, the United States, and Europe. Its operations span vital sectors including health, defense, security, aer...
How the Company Makes Money
Calian makes money primarily by delivering contracted services and project-based solutions to government and commercial customers. Its revenue model is largely service-led and includes: (1) recurring and multi-year service contracts where Calian s...
Calian Group Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 30, 2026
Earnings Call Sentiment Positive
The call presented strong operational and financial momentum: record quarterly revenue (+20% to $230M), outsized adjusted EBITDA growth (+35%), robust cash generation (operating FCF +46%), large multi-year contract wins (15-year Raytheon U.K. ~ $300M base) and a growing pro forma backlog (~$1.6B). Management also detailed strategic M&A (Galaxy Broadband), product/platform investments (ATHORA, AI cooperation), and raised fiscal '26 guidance. Key near-term risks are working capital build and timing-driven receivables, the sustainability of Q3's timing-related organic growth, and planned investment ramps that may pressure margins before benefits accrue. On balance, positives materially outweigh the manageable short-term challenges.Positive Updates
Record Quarterly Revenue Growth
Q3 revenue grew 20% year-over-year to a record $230 million, driven by strong execution across Defense & Space and Essential Industries; organic growth in the quarter was 16%.
Negative Updates
Working Capital and Accounts Receivable Increase
Cash flow from operations in Q3 was $24 million versus $25 million a year ago; the slight decline was driven by higher working capital needs, specifically increased accounts receivable and extended DSO due to rapid demand and timing dynamics.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Quarterly Revenue Growth
Q3 revenue grew 20% year-over-year to a record $230 million, driven by strong execution across Defense & Space and Essential Industries; organic growth in the quarter was 16%.
Read all positive updates
Company Guidance
Calian guided fiscal 2026 revenue growth in the mid‑teens and adjusted EBITDA growth in the low‑20% range, within a long‑term revenue target of 10–15% (12% revenue CAGR over the past decade) and a longer‑term organic target around mid‑single digits; they expect working capital usage to finish the year at $15–17M, CapEx slightly north of $10M, will close Galaxy Broadband for a $24M upfront payment (bringing upfront capital deployed this year to ~ $35M, or ~ $50M including earn‑outs), will maintain the dividend policy and renew the NCIB, and intend to deploy capital more actively over the next 12 months—all while preserving balance‑sheet flexibility with $141M drawn on debt, $95M net debt (net debt/adjusted EBITDA 0.9x) and a pro‑forma backlog approaching $1.6B (≈$1.3B in defense) after YTD signings of $660M (Q3 signings $168M); recent Q3 results that underpin the outlook included $230M revenue (+20% y/y; 16% organic, ~4% acquisitive), $26M adjusted EBITDA (+35%, 11.1% margin), and operating free cash flow of $18M (cash conversion 69%; YTD $55M, 72% conversion).Calian Group Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 870.28M | 774.11M | 746.61M | 658.58M | 582.17M | 518.40M |
| Gross Profit | 276.26M | 259.29M | 254.01M | 204.21M | 169.23M | 126.74M |
| EBITDA | 105.61M | 80.79M | 70.78M | 59.27M | 56.06M | 37.59M |
| Net Income | 38.40M | 20.56M | 11.18M | 18.89M | 13.60M | 11.15M |
Balance Sheet | ||||||
| Total Assets | 756.03M | 721.50M | 707.92M | 585.72M | 547.16M | 457.97M |
| Cash, Cash Equivalents and Short-Term Investments | 46.34M | 46.10M | 51.79M | 33.73M | 42.65M | 78.61M |
| Total Debt | 184.54M | 174.20M | 129.19M | 74.76M | 26.54M | 17.48M |
| Total Liabilities | 416.03M | 400.22M | 381.17M | 257.35M | 241.98M | 165.61M |
| Stockholders Equity | 340.00M | 321.28M | 326.75M | 328.37M | 305.19M | 292.36M |
Cash Flow | ||||||
| Free Cash Flow | 26.34M | 34.84M | 75.42M | 48.34M | 35.82M | 38.69M |
| Operating Cash Flow | 38.03M | 45.43M | 87.22M | 56.77M | 43.14M | 46.54M |
| Investing Cash Flow | -36.24M | -49.69M | -99.67M | -79.62M | -72.89M | -56.61M |
| Financing Cash Flow | -13.47M | -1.43M | 30.50M | 13.94M | -6.21M | 64.44M |
Calian Group Technical Analysis
Positive
77.45
Price Trends
79.79
Negative
79.24
Positive
72.65
Positive
Market Momentum
-0.49
Negative
52.43
Neutral
83.82
Negative
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 77.45 is below the 20-day moving average (MA) of 78.40, below the 50-day MA of 79.79, and above the 200-day MA of 72.65, indicating a neutral trend. The MACD of -0.49 indicates Negative momentum. The RSI at 52.43 is Neutral, neither overbought nor oversold. The STOCH value of 83.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | C$534.77M | 25.02 | 7.89% | 2.86% | 46.60% | -4.27% | |
69 Neutral | C$914.55M | 23.52 | 11.67% | 1.41% | 15.72% | ― | |
67 Neutral | C$872.79M | 19.42 | 15.18% | 2.90% | 8.97% | 27.62% | |
64 Neutral | C$150.16M | 30.57 | 10.60% | 4.17% | -4.58% | -36.77% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | C$455.45M | 1.21 | 29.10% | 421.81% | -43.09% | 91.71% |
* Industrials Sector Average
TSE:CGY
Calian Group
79.51
28.87
57.00%
TSE:DCM
Data Commun Management
2.40
0.99
70.70%
TSE:DXT
Dexterra Group
13.79
4.73
52.14%
TSE:KBL
K-Bro Linen
42.03
5.78
15.95%
TSE:TCL.A
Transcontinental
4.86
2.09
75.64%
Calian Group Corporate Events
Business Operations and Strategy
Calian UK Wins CAD$296 Million, 15-Year British Army Training Contract
Positive
Aug 11, 2026
Calian UK, a subsidiary of Calian Group, has secured a 15-year agreement worth approximately CAD$296 million with Raytheon UK, the lead for the Omnia Training consortium, to support the British Army’s Collective Training Service programme. T...
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.