Calian Reports Results for the Second Quarter

Core Insights - Calian Group Ltd. reported mixed results for Q2 2025, with growth in defense solutions but challenges in the ITCS segment [2][4] - The company has withdrawn its guidance due to economic and geopolitical uncertainties, despite a strong backlog and optimism around defense spending [4][7] Financial Highlights - Revenue decreased by 4% year-over-year to $194 million, with a slight organic growth decline of 8% primarily in the ITCS segment [8][24] - Adjusted EBITDA fell by 36% to $17 million, with an adjusted EBITDA margin of 9.0%, down from 13.5% in the previous year [9][31] - Adjusted net profit decreased by 42% to $11.1 million, with adjusted EPS diluted at $0.93, down from $1.58 [10][31] Operational Performance - The defense solutions segment grew by 13%, reflecting increased global security needs [2][7] - The company achieved strong signings of $248 million during the quarter [7] - Operating free cash flow was reported at $10 million, representing a 56% conversion rate from adjusted EBITDA [12][32] Strategic Developments - Calian completed the acquisition of Advanced Medical Solutions (AMS), enhancing its healthcare service capabilities in Northern Canada [18][19] - The company plans to repurchase up to 6% of its public float in FY25 as part of its normal course issuer bid [14][7] Leadership Changes - Major-General (Ret.) Roch Pelletier was appointed as the new Regional Vice President for Global Defence & Security, aimed at driving growth in the defense sector [15] - Eric Demirian was appointed to the Board of Directors, bringing extensive experience from various public and private companies [16]