(All amounts in release are in Canadian dollars)
OTTAWA, August 13, 2025 – Calian® Group Ltd. (TSX:CGY), a mission-critical solutions company focused on defence, space, healthcare and other strategic critical infrastructure sectors, today released its results for the third quarter ended June 30, 2025.
“In the third quarter, our total defence solutions revenue grew by 12%, reflecting strong momentum across Europe and the U.K., as well as early signs of growing investments in Canada,” said Kevin Ford, Calian CEO. “This will be further accelerated by the recent $250 million increase in our health contract with the Department of National Defence. Excluding the ITCS segment, which continues to experience demand headwinds and reduced profitability, we delivered a robust 9% revenue growth and a 10% increase in adjusted EBITDA1. Looking ahead, we remain confident in our trajectory, as evidenced by over $1 billion in new contract signings this year, including $642 million this quarter, bringing our backlog to an all time high of $1.5 billion.”
Q3-25 Highlights:
- Revenue at $192 million
- Gross margin at 34.8%
- Adjusted EBITDA1 of $19 million
- Operating free cash flow1 of $12 million
- New signings of $642 million, bringing year-to-date signings to over $1.0 billion
- Announced a $250 million increase to its Health Care Provider Recruitment (HCPR) contract with the Department of National Defence (DND)
- Achieved 12% year-over-year growth in defence end market solutions
- Completed the acquisition of Advanced Medical Solutions (“AMS”)
- Appointed Chris Pogue as President, Defence & Space
- Repurchased 556,308 shares, or approximately 5% of the public float this year
- The Company intends to renew its NCIB in August 2025, subject to TSX approval
| Financial Highlights | Three months ended June 30, | Nine months ended June 30, | ||||||
|---|---|---|---|---|---|---|---|---|
| (in millions of $, except per share & margins) | ||||||||
| 2025 | 20242 | % | 2025 | 20242 | % | |||
| Revenue | 192.2 | 185.0 | 4 % | 570.9 | 565.4 | 1 % | ||
| Adjusted EBITDA1 | 19.0 | 19.9 | (5) % | 54.2 | 68.4 | (21) % | ||
| Adjusted EBITDA %1 | 9.9 % | 10.7 % | (80) bps | 9.5 % | 12.1 % | (260) bps | ||
| Adjusted Net Profit1 | 11.6 | 12.8 | (9) % | 33.1 | 45.7 | (28) % | ||
| Adjusted EPS Diluted1 | 1.00 | 1.06 | (6) % | 2.81 | 3.81 | (26) % | ||
| Operating Free Cash Flow1 | 12.0 | 15 | (20) % | 34.8 | 53.2 | (34) % | ||
2 Certain comparative figures have been reclassified to align with the current year’s presentation. For more information, please see the selected consolidated financial information section of the management discussion and analysis.
Access the full report on the Calian Financials web page.
Register for the conference call on Wednesday, August 13, 2025, 8:30 a.m. Eastern Time.
Third Quarter Results
Revenues increased 4%, from $185 million to $192 million. Acquisitive growth was 4% and was generated by the acquisitions of Mabway completed last year and Advanced Medical Solutions completed in May. Organic growth was flat as growth in our Defence solutions and the Company’s GNSS products were offset by declines in ITCS. Excluding ITCS, organic growth was 4%.
Gross margin stood at 34.8%, up compared to the same period last year, and represents the 13th quarter above the 30% mark. Adjusted EBITDA1 stood at $19 million, down 5% from $20 million last year. The decline was primarily driven by lower profitability in the ITCS segment. Strategic investments made to re-platform the cyber business and expanded marketing and sales efforts, combined with lower revenues have resulted in reduced adjusted EBITDA1. The remainder of the business combined grew adjusted EBITDA1 by 10%. As a result, adjusted EBITDA1 margin decreased to 9.9%, from 10.7% last year.
Net profit decreased to $0.6 million, or $0.05 per diluted share, from $1.3 million, or $0.11 per diluted share last year. This decrease in profitability is primarily due to investments in our selling capacity, amortization and deemed compensation expenses related to acquisitions. Adjusted net profit1 was $11.6 million, or $1.00 per diluted share, down from $12.8 million, or $1.06 per diluted share last year.
Liquidity and Capital Resources
“In the third quarter we generated $12 million in operating free cash flow1, representing a 63% conversion rate from adjusted EBITDA1,” said Patrick Houston, Calian CFO. “We used our cash and a portion of our credit facility to fund capital expenditures of $4 million as well as acquisitions and earnouts of $27 million. We also provided a return to shareholders in the form of dividends for $3 million and share buybacks for $16 million. We ended the quarter with a net debt to adjusted EBITDA1 ratio of 1.1x, leaving us considerable capital to pursue growth initiatives.” concluded Mr. Houston.
Normal Course Issuer Bid
In the three-month period ended June 30, 2025, the Company repurchased 361,058 shares for cancellation in consideration of $15.9 million. For the nine-month period ended June 30, 2025, the Company repurchased 556,308 shares for cancellation in consideration of $25.2 million. For the remainder of the fiscal year, the Company plans on accelerating its share buybacks by combining daily repurchases with block trades. Its intention is to repurchase up to 6% of the Company’s public float as defined at the time of the NCIB announcement on August 16, 2024.
The Company intends to renew its NCIB in August 2025, subject to TSX approval.
Announced a $250 million increase to its HCPR contract with DND
On July 8, 2025, Calian announced a $250 million increase to its Health Care Provider Recruitment (HCPR) contract with the Department of National Defence (DND). This amendment reinforces Calian’s commitment to the Canadian Armed Forces (CAF) and its members ensuring the continued delivery of essential health services to support their operational readiness and well-being. Since 2005, Calian’s work under the Health Support Services Contract and since 2018, the Health Care Provider Recruitment (HCPR)— has delivered physicians, nurses, dentists and mental health professionals to CAF clinics across Canada and remains foundational to the health and preparedness of those who serve. The award contributes to Calian’s total contract backlog of $1.5 billion, two thirds of which is related to its defence business, supporting defence customers in Canada and internationally. This increase reflects the ongoing partnership between Calian and government and military organizations, as well as the continued trust in its services.
Appointed Chris Pogue as President, Defence & Space
On June 24, 2025, Calian announced that Chris Pogue will join the company as President, Defence & Space, effective July 7, 2025. In this newly created role, Pogue will lead a high-performance organization that brings together Calian’s Advanced Technologies and Learning business units—leveraging the synergies of its communications and manufacturing solutions alongside its immersive training and simulation expertise to accelerate mission success for defence and space customers alike.
Completed the Acquisition of Advanced Medical Solutions
On May 14, 2025, Calian acquired Advanced Medical Solutions (AMS), a leading provider of remote and emergency healthcare services in Northern Canada. Headquartered in Yellowknife, Northwest Territories (NWT), AMS is a Canadian-owned company that specializes in the delivery of 24/7/365 operational and medical support across Canada’s northern regions, including the NWT, Yukon, Nunavut and parts of Canada’s northern provinces. Founded in 1995, the company employs over 300 frontline medical personnel who deliver well-rounded, full-spectrum healthcare services through six distinct divisions.
About Calian
For over 40 years, Calian has delivered mission-critical solutions when failure is not an option. Trusted worldwide, we empower organizations in critical industries to overcome obstacles, manage risks and drive progress. By combining the expertise of our people, proven industry insight, cutting-edge technology, bold innovation and global reach, we deliver tailored solutions that solve complex challenges. Headquartered in Ottawa, Canada, with over 6,000 people around the world, Calian’s solutions protect lives, strengthen security, foster global connectivity and drive economic progress, making a lasting impact where and when it matters most.
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DISCLAIMER
Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Such statements are generally accompanied by words such as “intend”, “anticipate”, “believe”, “estimate”, “expect” or similar statements. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price competition; scarce number of qualified professionals; the impact of rapid technological and market change; loss of business or credit risk with major customers; technical risks on fixed price projects; general industry and market conditions and growth rates; international growth and global economic conditions, and including currency exchange rate fluctuations; and the impact of consolidations in the business services industry. For additional information with respect to certain of these and other factors, please see the Company’s most recent annual report and other reports filed by Calian with the Ontario Securities Commission. Calian disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. No assurance can be given that actual results, performance or achievement expressed in, or implied by, forward-looking statements within this disclosure will occur, or if they do, that any benefits may be derived from them.
Calian · Head Office · 770 Palladium Drive · Ottawa · Ontario · Canada · K2V 1C8
Tel: 613.599.8600 · Fax: 613-592-3664 · General info email: [email protected]
