Calian Reports Results for the Third Quarter

Core Insights - Calian Group Ltd. reported a total revenue of CAD 192.2 million for Q3 2025, reflecting a 4% increase from CAD 185 million in Q3 2024, driven by strong performance in defence solutions and acquisitions [4][7] - The company achieved a 12% year-over-year growth in defence solutions revenue, with significant contributions from Europe, the U.K., and a CAD 250 million increase in its health contract with the Department of National Defence [2][8] - Adjusted EBITDA decreased by 5% to CAD 19 million, primarily due to lower profitability in the ITCS segment, while the remainder of the business saw a 10% increase in adjusted EBITDA [9][10] Financial Highlights - Revenue for the nine months ended June 30, 2025, was CAD 570.9 million, a slight increase of 1% from CAD 565.4 million in the same period last year [4] - Adjusted net profit for Q3 2025 was CAD 11.6 million, down 9% from CAD 12.8 million in Q3 2024, with adjusted EPS diluted at CAD 1.00 compared to CAD 1.06 [4][10] - Operating free cash flow for Q3 2025 was CAD 12 million, representing a 63% conversion rate from adjusted EBITDA [11][32] Strategic Developments - The company signed over CAD 1 billion in new contracts year-to-date, including CAD 642 million in Q3, resulting in a record backlog of CAD 1.5 billion [2][8] - Calian completed the acquisition of Advanced Medical Solutions, enhancing its capabilities in remote and emergency healthcare services [17][18] - Chris Pogue was appointed as President of Defence & Space, aimed at integrating advanced technologies and training solutions for defence and space customers [16] Shareholder Returns - Calian repurchased 556,308 shares, approximately 5% of its public float, and plans to renew its Normal Course Issuer Bid (NCIB) in August 2025 [13][14] - A quarterly dividend of CAD 0.28 per share was declared, payable on September 9, 2025 [19]