Calian Group (CGY) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 revenue of $208 million, up 12% year-over-year, with 6% organic and 6% acquisitive growth, driven by Defence & Space and recent acquisitions.

• Adjusted EBITDA rose 28% to $23 million, with margins reaching 11% for the quarter, reflecting margin expansion and cost optimization.

• Strong demand in Defence & Space and Essential Industries, successful integration of acquisitions, and a simplified operating model fueled growth.

• Backlog ended at $1.4 billion, with $171 million in new contract signings, providing a solid foundation for future growth.

• Net profit was $5.1 million, reversing a prior year loss, and adjusted net profit rose to $11.8 million.

Financial highlights

• Gross margin improved to 34.1% from 31.8% year-over-year.

• Adjusted EBITDA margin reached 11%, up from 9.6% in the prior year.

• Adjusted EPS (diluted) rose to $1.03 from $0.71 year-over-year.

• Operating free cash flow was $16 million, with a 69% conversion rate.

• Net debt at quarter-end was $102 million, with a net debt to adjusted EBITDA ratio of 1.2x.

Outlook and guidance

• Fiscal 2026 outlook unchanged: targeting 10%-15% annual revenue growth and double-digit adjusted EBITDA growth, supported by organic growth and acquisitions.

• Adjusted EBITDA growth expected to consistently outpace revenue growth in the midterm.

• Capital expenditures anticipated at ~$10 million for the year.

• Dividend policy targets 25%-30% payout of operating free cash flow.

• M&A remains the top capital deployment priority, with a robust pipeline and several transactions expected in fiscal 2026.