Calian Group (CGY) Q4 2024 earnings summary

Executive summary

• Achieved record revenue and adjusted EBITDA for FY24, marking the seventh consecutive year of double-digit growth in both metrics.

• Completed three strategic acquisitions (Decisive, MDA nuclear assets, Mabway), strengthening offerings in IT, nuclear, and defense training sectors.

• International revenues now represent over 30% of total, reflecting a successful globalization strategy.

• Signed milestone partnerships with Microsoft and Walmart, expanding capabilities in cybersecurity, cloud, and healthcare.

• Ended FY24 with a strong balance sheet and robust acquisition pipeline.

Financial highlights

• FY24 revenue grew 13% year-over-year to $747M, with adjusted EBITDA up 30% to $86M (old definition) or $92M (new definition).

• Gross margin reached a record 34%, and adjusted EBITDA margin increased to 11.5% from 10.0%.

• Operating free cash flow rose 29% to $58M, with a 68% conversion rate from adjusted EBITDA.

• Adjusted EPS (diluted) up 26% to $4.33; adjusted EBITDA per diluted share up 27% to $7.13.

• Net debt to adjusted EBITDA at 0.4x, with over $200M in liquidity and $217M in cash availability.

Outlook and guidance

• FY25 revenue guidance: $800–$880M, with adjusted EBITDA guidance of $96–$106M (new definition).

• At midpoint, FY25 guidance implies 12% revenue and 10% adjusted EBITDA growth, with margin at 12%.

• Backlog entering FY25 at $1.17B, with $504M expected to be realized in FY25.

• Guidance excludes potential impact from future acquisitions.

• Strategic plan targets doubling adjusted EBITDA in three years and $1B+ revenue.