Calian Group (TSE:CGY) Releases Earnings Results

Calian Group (TSE:CGY) issued its earnings results on Thursday. The company reported C$1.30 earnings per share for the quarter, FiscalAI reports. The firm had revenue of C$228.70 million for the quarter. Calian Group had a return on equity of 8.41% and a net margin of 3.34%.

Here are the key takeaways from Calian Group’s conference call:

• Calian said Q2 was a clear inflection point, with revenue up 18% to a record CAD 229 million and adjusted EBITDA up 60%, showing strong operating leverage and improving execution.
• The company booked CAD 321 million of new contracts in the quarter and ended with a CAD 1.5 billion backlog, including more than CAD 1 billion in defense backlog, providing strong visibility into future growth.
• Defense & Space continued to lead performance with 15% revenue growth, driven by technology solutions and broad demand in Canada and Europe, while management highlighted rising defense budgets and stronger procurement activity as a major tailwind.
• Essential Industries posted 25% revenue growth and management expects margin expansion to continue, targeting high single-digit margins in the segment by the end of FY 2026.
• Cash flow from operations was only CAD 1 million due to higher working capital needs, but operating free cash flow rose 119% to CAD 21 million, and the company expects receivables to normalize in coming quarters.

Calian Group Trading Up 20.9%

TSE CGY traded up C$14.24 on Thursday, reaching C$82.24. The company had a trading volume of 217,929 shares, compared to its average volume of 46,525. The firm has a market cap of C$938.69 million, a price-to-earnings ratio of 36.07, a P/E/G ratio of 2.50 and a beta of 0.92. Calian Group has a fifty-two week low of C$37.70 and a fifty-two week high of C$85.16. The business has a 50 day moving average of C$74.20 and a two-hundred day moving average of C$64.51. The company has a debt-to-equity ratio of 64.10, a current ratio of 1.65 and a quick ratio of 1.20.

Calian Group Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, March 11th. Investors of record on Wednesday, March 11th were issued a $0.28 dividend. This represents a $1.12 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date was Wednesday, February 25th. Calian Group’s dividend payout ratio is presently 49.12%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. Canadian Imperial Bank of Commerce raised their target price on Calian Group from C$65.00 to C$76.00 in a report on Friday, February 13th. Canaccord Genuity Group boosted their target price on shares of Calian Group from C$63.00 to C$80.00 in a research note on Friday, February 13th. Ventum Financial boosted their target price on shares of Calian Group from C$84.00 to C$94.00 and gave the stock a “buy” rating in a research note on Tuesday, March 10th. Royal Bank Of Canada boosted their target price on shares of Calian Group from C$58.00 to C$60.00 and gave the stock an “outperform” rating in a research note on Friday, February 13th. Finally, Acumen Capital boosted their target price on shares of Calian Group from C$70.00 to C$85.00 and gave the stock a “buy” rating in a research note on Friday, February 13th. Six investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, Calian Group has an average rating of “Buy” and a consensus target price of C$76.83.

Calian Group Company Profile

Calian Group Ltd operates through four segments namely Advanced Technologies, Health, Learning, and Information Technology. It generates maximum revenue from the Health segment. The company serves health, defence, security, aerospace, engineering, AgTech, and IT industries. Its Health segment includes Clinical Services; Nursing Services; Psychological Services and Medical Property Management. The Advanced Technologies segment includes Engineering Solutions and Services; Nuclear and Environmental Services; Satcom; DOCSIS; Electronics Design and Manufacturing and Agricultural Technology.