Calian’s exceptional revenue visibility and structural growth in its primary markets is the most compelling reason to buy this long-term pick. The business is proving its ability to scale efficiently without strictly relying on mergers and acquisitions. The firm is perfectly positioned to capitalize on rising defense budgets and the modernization of military infrastructure while acting as a trusted partner for government and defense agencies.
The stock trades at 18.1 times the company’s forward earnings forecast. That’s a low p/e considering the company continues to win contracts from the Canadian government and more.
CALIAN GROUP (Toronto symbol CGY; calian.com) lets investors tap the Ottawa-based company’s four main operating segments:
Advanced Technologies offers products and engineering services for the space, communications, nuclear, agriculture, defence and government sectors. The Health unit manages a network of more than 1,800 healthcare professionals delivering primary care and occupational health services to public and private-sector clients across Canada. The Learning division provides specialized training services and solutions for the Canadian Armed Forces and others. And Information Technology provides support for delivering complex IT and cybersecurity systems.
The company has just completed the acquisition of Galaxy Broadband Communications from Crown Capital Partners. That firm offers satellite communications and remote connectivity systems. The purchase price was $24 million upfront, with an additional $27.5 million based on performance over the next three years.
Headquartered in Mississauga, Galaxy Broadband aims to deliver secure and resilient communications and connectivity solutions to government, defence, critical infrastructure and remote customers across Canada. For over three decades, the company has been active in low Earth orbit (LEO) satellite deployment, private wireless and multi-orbit connectivity. It supports organizations in some of Canada’s most remote and challenging environments. That includes Northern Canada.
Galaxy should be a good fit for Calian. Its satellite communications and multi-orbit expertise will complement Calian’s existing capabilities and expand its ability to support customers operating in complex and remote environments.
Meanwhile, Calian has just signed a deal to sell its U.S. commercial IT business based in Houston to Trace3, a California-based technology consultancy.
Under the deal, Trace3 will pay about $43 million in cash.
Calian says the move comes as it aims to focus on its opportunities in defence, space and essential industries, including health care and nuclear, in Canada, the U.S., the U.K. and Europe.
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Calian’s expanding demand in its markets continue to power its results
Revenue for the three months ended March 31, 2026, rose 18.1%, to $228.7 million from $193.7 million a year earlier. The gains were driven by 12% internal growth for the Defence & Space and Essential Industries units, along with 6% from acquisitions.
Excluding one-time items, earnings in the quarter jumped 65.9%, to $1.30 a share (or a total of $15.1 million) from $0.77 a share (or $9.1 million). The company sold more high-profit-margin services and was able to cut costs.
Calian ended the quarter with cash of $56.3 million and long-term debt of $167.3 million, representing just 19.9% of its $842.0 million market cap.
Calian continues to benefit from strong demand in defence and space sector, arising from increased government spending in Canada, the U.S. and globally.
Continuing growth in healthcare services also boosts results. Meanwhile, a healthy contract backlog and strong balance sheet will support additional savvy acquisitions.
Calian’s stock now trades at 18.1 times the $4.05 a share it will probably earn for all of fiscal 2026. That’s a low p/e considering the company continues to win contracts from the Canadian government and more. Its share price makes for a dividend yield of 1.5%.
Recommendation in Power Growth Investor: Calian Group is a buy.
