Business
Calian Reports Record Results for the Third Quarter of Fiscal 2026
Calian Reports Record Results for the Third Quarter of Fiscal
About this update from Calian Group Ltd.
(All amounts in release are in Canadian dollars) OTTAWA, Ontario, Aug. 13, 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 third quarter ended June 30, 2026. "Our third quarter results are a clear demonstration that our renewed and focused strategy on mission-critical solutions is delivering," said Patrick Houston, Calian CEO. "Revenue grew 20%, including 16% organic growth, underpinned primarily by strong and sustained demand for our space and defence offerings. This top-line performance carried through to the bottom line with adjusted EBITDA 1 expanding 35%, significantly outpacing revenue growth once again. Looking ahead, our strategy is clearly in action. With $660 million in contract signings year-to-date, a landmark 15-year extension of our UK defence contract, and a purchase agreement for Galaxy Broadband, we are deliberately sharpening our focus on core growth markets and building a stronger, more focused business," concluded Patrick Houston. Q3-26 Highlights 2 : Revenue up 20% to $230 million, including 16% from organic and 4% from acquisitions Adjusted EBITDA 1 up 35% to $26 million (margin of 11.1% versus 9.9% last year) Operating free cash flow 1 of $18 million, representing a conversion of 69% New contract signings of $168 million Ending backlog of $1.4 billion, including one billion in defence On June 25, 2026 Calian entered definitive agreement to acquire Galaxy Broadband On August 11, 2026, Calian secured a 15-year British Army Training Agreement valued at $296 million Financial Highlights Three months ended Nine months ended (in millions of $, except per share & margins) June 30, June 30, 2026 2025 2 % 2026 2025 2 % Revenue 230.4 192.2 20 % 667.1 570.9 17 % Adjusted EBITDA 1 25.6 19.0 35 % 76.3 54.2 41 % Adjusted EBITDA % 1 11.1 % 9.9 % 120bps 11.4 % 9.5 % 190bps Adjusted Net Profit 1 12.9 9.2 40 % 39.8 26.8 48 % Adjusted EPS Diluted 1 1.10 0.79 39 % 3.42 2.27 51 % Operating Free Cash Flow 1 17.5 12.0 46 % 54.8 34.8 57 % 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 nine-month periods ended June 30, 2026. Access the full report on the Calian Financials web page. Register for the conference call on Thursday, August 13, 2026, 8:30 a.m. Eastern Time. Third Quarter Results Revenues increased 20%, from $192 million to $230 million. This represents a record high quarterly revenue for the Company. Acquisitive growth was 4% and was generated by the acquisitions of Advanced Medical Solutions completed in May 2025 and Infield Scientific closed in October 2025. Organic growth was 16% with contributions from both the Defence & Space and Essential Industries segments. Gross profit increased 17% to $78 million, driven by revenue growth, changes in revenue mix and contributions from acquisitions. Adjusted EBITDA 1 increased 35% to $26 million, driven by the increased revenue leading to higher margins. As a result, adjusted EBITDA 1 margin increased to 11.1%, up from 9.9% last year. Net profit was $5.9 million, or $0.51 per diluted share, compared to $0.6 million, or $0.05 per diluted share last year. The increase in profitability is primarily related to higher adjusted EBITDA 1 , partially offset by higher interest expenses and taxes. Adjusted net profit 1 stood at $12.9 million, or $1.10 per diluted share, up from $9.2 million, or $0.79 per diluted share, last year. "The momentum we're seeing in our business is truly exciting. Year-to-date, we've grown revenue by 17%, with 11% of that coming from organic growth, a testament to the strength of our core operations. Perhaps most striking is that our adjusted EBITDA 1 has already reached $76 million, nearly matching our full-year adjusted EBITDA 1 from last year, and we still have runway ahead of us. We are on pace to deliver a record year, and I couldn't be more proud of what this team has accomplished," said Will Majic, Calian Acting CFO. Liquidity and Capital Resources "In the third quarter, we generated $18 million of operating free cash flow 1 , representing a conversion rate from adjusted EBITDA 1 of 69%," said Will Majic, Calian Acting CFO. "We used our cash on hand mainly to fund capital expenditures of $3 million and provide a return to shareholders through dividends of $3 million. We ended the quarter with a net debt to adjusted EBITDA 1 ratio of 0.9x, providing us with flexibility to act decisively on near-term opportunities." Calian UK Secures CAD$296 Million, 15-year British Army Training Agreement On August 11, 2026, Calian announced that its UK subsidiary, Calian UK, has secured a 15-year agreement with Raytheon UK, the consortium lead for Omnia Training, to support the British Army's Collective Training Service (ACTS) programme. The agreement, set to start in October 2026 following the conclusion of the current Project NUMIDIAN contract, provides approximately CAD$296 million (£159 million) in contracted base revenue over 15 years, extending one of Calian's largest defence training programs. In addition, it strengthens the company's long-term position supporting allied military readiness across the UK and Europe. Calian Enters Definitive Agreement to Acquire Galaxy Broadband On June 25, 2026, Calian announced that it entered into a definitive purchase agreement with Crown Capital Partners Inc. to acquire Galaxy Broadband Communications, a Canadian leader in satellite communications and remote connectivity solutions. Under the terms of the agreement, Calian will acquire Galaxy for $24 million in upfront consideration, with additional earnout consideration of $27.5 million conditional on performance over the next three years. The transaction is expected to close in Calian’s fourth quarter, subject to customary closing conditions, applicable regulatory approvals and the approval of Crown’s debenture holders. There can be no assurance that the transaction will be completed on the terms described herein, or at all. Normal Course Issuer Bid On August 26, 2025, the TSX accepted Calian's Notice of Intention to make a normal course issuer bid ("NCIB") to purchase for cancellation up to 796,283 common shares during the 12-month period commencing September 1, 2025 and ended August 31, 2026, representing approximately 10% of the public float of its common shares as at August 15, 2025. No repurchases occurred in the three-month and nine-month periods ended June 30, 2026. The Company intends to renew its NCIB in September 2026, subject to TSX approval. Quarterly Dividend On August 12, 2026, Calian declared a quarterly dividend of $0.28 per share. The dividend is payable September 9, 2026, to shareholders of record as of August 26, 2026. Dividends paid by the Company are considered “eligible dividend” for tax purposes. About Calian www.calian.com 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: [email protected] 613-599-8600 Investor Relations inquiries: [email protected] ----------------------------------------------------------------------------- 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: [email protected] CALIAN GROUP LTD. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION As at June 30, 2026 and September 30, 2025 (Canadian dollars in thousands, except per share data) June 30, September 30, 2026 2025 ASSETS CURRENT ASSETS Cash and cash equivalents $ 46,335 $ 46,101 Accounts receivable 209,642 171,150 Work in process 26,348 25,028 Inventory 29,731 27,709 Prepaid expenses and other 23,096 22,977 Derivative assets 29 44 Total current assets 335,181 293,009 NON-CURRENT ASSETS Property, plant and equipment 45,550 45,508 Right of use assets 38,665 39,786 Prepaid expenses 6,538 6,015 Deferred tax asset 1,541 1,614 Investments 5,097 4,252 Acquired intangible assets 90,601 106,833 Goodwill 232,857 224,483 Total non-current assets 420,849 428,491 TOTAL ASSETS $ 756,030 $ 721,500 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable and accrued liabilities $ 136,205 $ 133,096 Provisions 3,415 3,458 Unearned contract revenue 56,736 39,646 Lease obligations 6,204 5,819 Contingent earn-out 5,157 16,147 Derivative liabilities 31 53 Total current liabilities 207,748 198,219 NON-CURRENT LIABILITIES Debt facility 141,250 130,750 Lease obligations 37,091 37,634 Unearned contract revenue 16,649 14,704 Deferred tax liabilities 13,292 18,912 Total non-current liabilities 208,282 202,000 TOTAL LIABILITIES 416,030 400,219 SHAREHOLDERS’ EQUITY Issued capital 230,950 220,345 Contributed surplus 7,732 7,312 Retained earnings 92,482 84,360 Accumulated other comprehensive income (loss) 8,836 9,264 TOTAL SHAREHOLDERS’ EQUITY 340,000 321,281 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 756,030 $ 721,500 Number of common shares issued and outstanding 11,512,163 11,350,168 CALIAN GROUP LTD. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF NET PROFIT For the three months and nine months ended June 30, 2026 and 2025 (Canadian dollars in thousands, except per share data) Three months ended Nine months ended June 30, June 30, 2026 2025 2026 2025 Revenue $ 230,397 $ 192,216 $ 667,098 $ 570,930 Cost of revenues 151,922 125,361 437,383 380,632 Gross profit 78,475 66,855 229,715 190,298 Selling, general and administrative 49,136 44,682 143,487 127,264 Research and development 3,769 3,208 9,972 8,875 Share-based compensation 1,654 1,354 4,487 3,394 Profit before under noted items 23,916 17,611 71,769 50,765 Restructuring and other 790 1,414 3,252 2,478 Depreciation and amortization 11,304 11,635 33,445 34,649 Mergers and acquisition costs 965 1,102 2,960 5,795 Profit before interest and income tax expense 10,857 3,460 32,112 7,843 Interest expense 2,554 1,932 6,982 5,826 Income tax expense 2,362 938 7,377 2,108 NET PROFIT (LOSS) $ 5,941 $ 590 $ 17,753 $ (91 ) Net profit (loss) per share : Basic $ 0.52 $ 0.05 $ 1.55 $ (0.01 ) Diluted $ 0.51 $ 0.05 $ 1.53 $ (0.01 ) CALIAN GROUP LTD. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the three months and nine months ended June 30, 2026 and 2025 (Canadian dollars in thousands) Three months ended Nine months ended June 30, June 30, 2026 2025 2026 2025 CASH FLOWS GENERATED FROM (USED IN) OPERATING ACTIVITIES Net profit (loss) $ 5,941 $ 590 $ 17,753 $ (91 ) Items not affecting cash: Interest expense 2,000 1,406 5,399 4,313 Changes in fair value related to contingent earn-out — (775 ) 100 341 Lease obligations interest expense 554 526 1,583 1,513 Income tax expense 2,362 938 7,377 2,108 Share based compensation expense 1,654 1,354 4,487 3,394 Depreciation and amortization 11,304 11,635 33,445 34,649 Deemed compensation 250 1,334 839 4,367 24,065 17,008 70,983 50,594 Change in non-cash working capital Accounts receivable 88,014 60,453 (38,525 ) 4,351 Work in process (7,967 ) (938 ) (1,320 ) (38 ) Prepaid expenses and other 13,522 2,363 (354 ) 3,509 Inventory (1,880 ) 1,837 (2,022 ) (1,768 ) Accounts payable and accrued liabilities (88,790 ) (41,618 ) 2,063 5,592 Unearned contract revenue 3,824 (8,761 ) 19,034 (6,375 ) 30,788 30,344 49,859 55,865 Interest paid (2,554 ) (1,932 ) (6,982 ) (5,826 ) Income tax paid (4,694 ) (3,626 ) (11,248 ) (11,011 ) 23,540 24,786 31,629 39,028 CASH FLOWS GENERATED FROM (USED IN) FINANCING ACTIVITIES Issuance of common shares net of costs 1,184 490 5,664 2,035 Dividends (3,223 ) (3,183 ) (9,631 ) (9,767 ) Net draw on debt facility (26,000 ) 20,250 10,500 51,250 Payment of lease obligations (1,864 ) (1,619 ) (4,971 ) (4,725 ) Repurchase of common shares — (15,887 ) — (25,197 ) (29,903 ) 51 1,562 13,596 CASH FLOWS USED IN INVESTING ACTIVITIES Investments (845 ) — (845 ) — Business acquisitions (261 ) (27,196 ) (23,704 ) (39,089 ) Property, plant and equipment (2,544 ) (3,778 ) (8,408 ) (7,310 ) (3,650 ) (30,974 ) (32,957 ) (46,399 ) NET CASH INFLOW $ (10,013 ) $ (6,137 ) $ 234 $ 6,225 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 56,348 64,150 46,101 51,788 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 46,335 $ 58,013 $ 46,335 $ 58,013 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 Nine months ended June 30, June 30, 2026 2025 2026 2025 Net profit (loss) $ 5,941 $ 590 $ 17,753 $ (91 ) Share-based compensation 1,654 1,354 4,487 3,394 Restructuring and other 790 1,414 3,252 2,478 Depreciation and amortization 11,304 11,635 33,445 34,649 Mergers and acquisition costs 965 1,102 2,960 5,795 Interest expense 2,554 1,932 6,982 5,826 Income tax expense 2,362 938 7,377 2,108 Adjusted EBITDA $ 25,570 $ 18,965 $ 76,256 $ 54,159 Adjusted EBITDA per share - Basic 2.22 1.65 6.66 4.65 Adjusted EBITDA per share - Diluted $ 2.18 $ 1.63 $ 6.56 $ 4.59 Adjusted Net Profit and Adjusted EPS Three months ended Nine months ended June 30, June 30, 2026 2025 2026 2025 Net profit (loss) $ 5,941 $ 590 $ 17,753 $ (91 ) Share-based compensation 1,654 1,354 4,487 3,394 Restructuring and other 790 1,414 3,252 2,478 Mergers and acquisition costs 965 1,102 2,960 5,795 Amortization of intangibles 6,380 7,128 19,140 21,528 15,730 11,588 47,592 33,104 Income taxes related to above items (2,839 ) (2,362 ) (7,841 ) (6,328 ) Adjusted net profit 12,891 9,226 39,751 26,776 Weighted average number of common shares basic 11,501,364 11,475,347 11,444,983 11,658,313 Adjusted EPS Basic 1.12 0.80 3.47 2.30 Adjusted EPS Diluted $ 1.10 $ 0.79 $ 3.42 $ 2.27 Operating Free Cash Flow Three months ended Nine months ended June 30, June 30, 2026 2025 2026 2025 Cash flows generated from operating activities (free cash flow) $ 23,540 $ 24,786 $ 31,629 $ 39,028 Adjustments: M&A costs included in operating activities 715 543 2,021 1,087 Change in non-cash working capital (6,723 ) (13,336 ) 21,124 (5,271 ) Operating free cash flow $ 17,532 $ 11,993 $ 54,774 $ 34,844 Operating free cash flow per share - basic 1.52 1.05 4.79 2.99 Operating free cash flow per share - diluted 1.50 1.03 4.71 2.95 Operating free cash flow conversion 69 % 63 % 72 % 64 % Net Debt to Adjusted EBITDA June 30, June 30, 2026 2025 Cash $ 46,335 $ 58,013 Debt facility 141,250 141,000 Net debt (net cash) 94,915 82,987 Trailing twelve month adjusted EBITDA 100,515 77,938 Net debt to adjusted EBITDA 0.9 1.1 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.