Calian Group (CGY) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 revenue of $229 million, up 18% year-over-year, with 12% organic growth and 6% from acquisitions, and record contract awards totaling $321 million, mainly from the Canadian defense sector.

• Adjusted EBITDA rose 60% to $28 million, with margin expanding to 12.2% from 9.0% last year, outpacing revenue growth due to higher volumes and improved execution.

• Backlog reached $1.5 billion, providing strong visibility into future growth.

• Integration across training, space, nuclear, health, manufacturing, IT, and cyber is enabling pursuit of larger, cross-functional opportunities.

• Net profit increased to $6.7 million ($0.58 per diluted share), up from $0.3 million ($0.02 per share) a year ago.

Financial highlights

• Q2 revenue was $229 million, up 18% year-over-year, with 12% organic growth and 6% acquisitive growth from AMS and InField Scientific.

• Gross profit increased 24% to $80 million, with gross margin rising to 35.1% from 33.4% last year.

• Adjusted EBITDA reached $28 million (12.2% margin), up from $17.5 million (9% margin) in Q2 2025.

• Operating free cash flow rose 119% to $21.5 million, with cash conversion at 77% of adjusted EBITDA.

• Net debt stood at $111 million, with a net debt to adjusted EBITDA ratio of 1.2x.

Outlook and guidance

• Fiscal 2026 outlook strengthened, targeting annual revenue growth of 10%-15% and adjusted EBITDA growth in the high teens.

• Full-year revenue and EBITDA growth expected to be supported by defense sector tailwinds and recent acquisitions.

• Capital expenditures projected at $10 million; dividend policy under review, with payout currently below target range.

• M&A remains the top capital deployment priority, with a robust pipeline and significant liquidity for future deals.

• Strong balance sheet and increased credit facility position the company for further growth and market share gains.