Calian Reports Record-Breaking Q2 Results with 18% Revenue Surge to CAD 229 Million

Deep News05-14

Calian Group, a provider of critical mission solutions, announced its financial results for the second fiscal quarter ended March 31, 2026, on May 14. Driven by a recovery in defense demand, the company achieved record highs across multiple metrics.

Record Quarterly Performance The financial report shows Calian's second-quarter revenue reached CAD 229 million, an 18% increase year-over-year, setting a new historical high for quarterly revenue. Organic growth contributed 12%, while acquisitions contributed 6%. Adjusted earnings per share were CAD 1.30, a significant 69% increase compared to CAD 0.77 in the same period last year.

Adjusted EBITDA was CAD 27.9 million, up 60% year-over-year, with growth significantly outpacing revenue growth. The adjusted EBITDA margin improved from 9.0% to 12.2%, reflecting enhanced operational leverage.

Growth Driven by Defense Business and New Contracts The company's Chief Executive Officer stated that the second-quarter results mark a significant turning point for Calian, with demand in the defense sector beginning to recover. Revenue from the Defense & Aerospace segment grew by 15%, primarily driven by technology solutions and broad-based demand in Canada and Europe.

New contract signings during the quarter amounted to CAD 321 million, with over CAD 200 million originating from the defense sector. The order backlog at quarter-end stood at CAD 1.5 billion, including over CAD 1 billion in defense orders, providing strong visibility for the company's future growth.

Improved Cash Flow and Healthy Financial Position Operating free cash flow reached CAD 21.5 million, a substantial 119% increase year-over-year, representing 77% of adjusted EBITDA. The company ended the period with cash on hand of CAD 56.3 million and net liquidity of CAD 164 million. The net debt to adjusted EBITDA ratio was 1.2x, indicating a robust financial position.

The company anticipates that the positive trend in defense spending will continue, supporting strong growth momentum in the second half of the fiscal year.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment