Calian Group (CGY) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 revenue of $203 million, the highest in company history, with 6% organic growth and the second highest adjusted EBITDA, marking a return to positive organic growth year-over-year.

• Defence solutions drove growth, representing 50% of consolidated revenues, with 15-17% year-over-year growth and strong international expansion, especially in Europe.

• Signed $122 million in contracts in Q4, totaling over $1.1 billion for the year, including major ground system and antenna projects.

• Strategic acquisitions (AMS, Infield Scientific) and operational realignment supported long-term growth, with a focus on defense, space, and essential industries.

• Leadership transition announced, with Patrick Houston becoming CEO in January 2026.

Financial highlights

• Q4 revenues increased 12% year-over-year to $203 million; full-year revenues up 4% to $774 million, a new record.

• Q4 adjusted EBITDA rose to $24.3 million (margin 11.9%); full-year adjusted EBITDA margin was 10.1%, with a 15% decline due to ITCS underperformance but a 32% increase excluding ITCS.

• Q4 gross margin was 34%, marking the 14th consecutive quarter above 30%.

• Operating free cash flow for FY25 was $52 million, with a 67% conversion from adjusted EBITDA.

• Repurchased 5% of shares outstanding and deployed $89 million in capital, including acquisitions, dividends, buybacks, and capex.

Outlook and guidance

• Targeting annual revenue growth of 10-15% over the next several years, driven by organic growth and acquisitions.

• Expecting double-digit revenue and adjusted EBITDA growth in FY2026, at the low end of the long-term target range.

• No formal guidance issued for FY2026; focus on long-term growth indicators and a $1.4 billion backlog.

• Mid-single digit organic growth expected for FY2026, with additional contributions from recent acquisitions.