Calian Group (CGY) Q3 2026 earnings summary

Executive summary

• Achieved record Q3 results with revenue of $230 million, up 20% year-over-year, including 16% organic growth and 4% from acquisitions, and 35% adjusted EBITDA growth, outpacing revenue gains.

• Secured $168 million in new contract signings in Q3, bringing year-to-date total to $660 million and pro forma backlog to nearly $1.6 billion, with $1.3 billion in defense.

• Announced a landmark 15-year, nearly $300 million contract with Raytheon UK for British Army training, with potential for a variable component of similar size.

• Entered agreement to acquire Galaxy Broadband for $24 million upfront, expanding satellite communications and remote connectivity capabilities.

• Continued strategic investments in innovation, including the launch of ATHORA, AI partnerships, and an Arctic maritime security consortium.

Financial highlights

• Q3 revenue reached $230 million, a 20% increase year-over-year, with 16% organic and 4% acquisitive growth.

• Q3 gross profit rose 17% to $78 million; adjusted EBITDA increased 35% to $25.6 million, with margin improving to 11.1% from 9.9% last year.

• Operating free cash flow grew 46% year-over-year to $17.5 million in Q3, with a 69% cash conversion rate.

• Year-to-date, revenue up 17%, organic growth at 11%, and adjusted EBITDA up 41%.

• Adjusted net profit for Q3 was $12.9 million, up from $9.2 million in Q3-25; adjusted EPS (basic) was $1.12.

Outlook and guidance

• Fiscal 2026 outlook raised: targeting mid-teens revenue growth and low 20% range adjusted EBITDA growth.

• Long-term annual revenue growth target remains 10%-15%, with a 12% CAGR over the past decade.

• Investments in Europe and Canada to accelerate in Q4 and into fiscal 2027; CapEx expected slightly above $10 million.

• Working capital usage to track revenue growth, finishing the year in the $15–17 million range.

• Management expects continued momentum, aiming for a record year with further growth in core markets.