Core Insights - Calian Group Ltd. reported a significant turnaround in Q4 2025, with revenues increasing by 12%, attributed to a balanced mix of 6% organic growth and 6% from acquisitions [2][9] - The company achieved a 15% growth in its defence solutions segment, indicating strong performance in its core business areas [2][6] - For the full fiscal year 2025, Calian maintained a double-digit adjusted EBITDA margin of 10.1%, despite a 15% decline in adjusted EBITDA primarily due to the performance of the ITCS segment [3][5] Financial Highlights - Q4 2025 revenues reached $203.2 million, up from $181.2 million in Q4 2024, marking a 12% increase [5][9] - Full year revenues for 2025 totaled $774.1 million, a 4% increase from $746.6 million in 2024 [5][6] - Adjusted EBITDA for Q4 2025 was $24.3 million, a 2% increase year-over-year, with an adjusted EBITDA margin of 11.9% [5][10] - The adjusted net profit for Q4 2025 was $11.5 million, or $1.00 per diluted share, reflecting a 10% increase from $10.5 million, or $0.87 per diluted share, in Q4 2024 [5][11] Operational Developments - The company has a robust backlog of $1.4 billion, which positions it well for growth in fiscal year 2026 [4][12] - Calian launched Calian VENTURES to support the growth of Canadian Defence SMEs and partners, indicating a strategic focus on enhancing its defence capabilities [17] - The acquisition of InField Scientific, completed in October 2025, expands Calian's defence portfolio and enhances its electromagnetic solutions capabilities [15] Debt and Cash Flow - Calian renewed and expanded its debt agreement to a total of $350 million, providing financial flexibility for future investments [16] - Operating free cash flow for Q4 2025 was $17 million, representing a conversion rate of 72% [6][35] - The net debt to adjusted EBITDA ratio stood at 1.1x as of September 30, 2025, indicating a manageable level of debt relative to earnings [36]

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mixed results for Q2 2025, with growth in defense solutions but challenges in the ITCS segment [2][4] - The company has withdrawn its guidance due to economic and geopolitical uncertainties, despite a strong backlog and optimism around defense spending [4][7] Financial Highlights -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]