Calian Group (TSE:CGY) Announces Quarterly Earnings Results

Calian Group (TSE:CGY) announced its quarterly earnings data on Thursday. The company reported C$1.30 earnings per share for the quarter, FiscalAI reports. Calian Group had a net margin of 3.97% and a return on equity of 10.35%. The business had revenue of C$228.70 million for the quarter.

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 Stock Down 1.9%

Shares of Calian Group stock traded down C$1.60 on Friday, hitting C$80.64. 58,540 shares of the company’s stock traded hands, compared to its average volume of 46,653. Calian Group has a 52-week low of C$37.70 and a 52-week high of C$85.16. The company has a quick ratio of 1.20, a current ratio of 1.51 and a debt-to-equity ratio of 63.54. The stock has a market cap of C$920.42 million, a P/E ratio of 35.37, a PEG ratio of 2.50 and a beta of 0.92. The firm’s 50-day moving average is C$74.09 and its 200 day moving average is C$64.85.

Calian Group Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Wednesday, June 10th will be paid a dividend of $0.28 per share. This represents a $1.12 annualized dividend and a dividend yield of 1.4%. The ex-dividend date is Wednesday, May 27th. Calian Group’s dividend payout ratio is 49.12%.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on CGY shares. Acumen Capital upped their price target on shares of Calian Group from C$70.00 to C$85.00 and gave the stock a “buy” rating in a research report on Friday, February 13th. Canadian Imperial Bank of Commerce raised their price objective on Calian Group from C$76.00 to C$90.00 in a report on Friday. Ventum Financial increased 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 report on Tuesday, March 10th. Royal Bank Of Canada increased their price target on Calian Group from C$78.00 to C$90.00 and gave the company an “outperform” rating in a report on Friday. Finally, Canaccord Genuity Group lifted their price objective on shares of Calian Group from C$63.00 to C$80.00 in a research note on Friday, February 13th. Six investment analysts have rated the stock with a Buy rating, According to MarketBeat.com, the stock currently has a consensus rating of “Buy” and a consensus price target of C$84.17.

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.