Calian Reports Record Results for the Second Quarter of Fiscal 2026

(All amounts in release are in Canadian dollars)

OTTAWA, Ontario, May 14, 2026 (GLOBE NEWSWIRE) -- 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 second quarter ended March 31, 2026.

"Our second quarter results mark an important inflection point for Calian as we begin to capture the benefits of strengthening demand across the defence sector," said Patrick Houston, Calian CEO. "Revenue grew 18%, including 12% organic growth, which was achieved through record-setting deliveries and a strong pace of contract signings. This solid top-line performance translated into an 60% increase in adjusted EBITDA¹, which significantly outpaced revenue growth and reflects the compounded impact of higher volumes and improved operational leverage.

These results reflect early but tangible momentum in government defence spending and validate the strategic choices we have made to sharpen our operating model. With a $1.5 billion backlog, a robust acquisition pipeline, and a solid balance sheet, we are well-positioned to capture market share, deliver strong full year performance, and create lasting value for shareholders."

Q2-26 Highlights²:

Revenue up 18% to $229 million, including 12% from organic and 6% from acquisitions
Gross margin increased to 35.1%, up from 33.4%
Adjusted EBITDA¹ up 60% to $28 million (margin of 12.2% versus 9.0% last year)
Operating free cash flow¹ of $21 million, representing a conversion of 77%
New contract signings of $321 million, including over $200 million in defence
Ending backlog of $1.5 billion, including over one billion in defence
On February 10, 2026 Calian announced the appointment of Will Majic as Acting CFO
On March 26, 2026, Calian increased its committed credit facility to pursue growth


Financial Highlights	Three months ended								Six months ended
(in millions of $, except per share & margins)	March 31,								March 31,
	2026			2025²			%			2026		2025²			%
Revenue		228.7			193.7		18	%		436.7			378.7		15	%
Adjusted EBITDA¹		27.9			17.4		60	%		50.7			35.2		44	%
Adjusted EBITDA %¹		12.2	%		9.0	%	320bps			11.6	%		9.3	%	230bps
Adjusted Net Profit¹		15.1			9.1		65	%		26.9			17.6		53	%
Adjusted EPS Diluted¹		1.30			0.77		69	%		2.33			1.47		58	%
Operating Free Cash Flow¹		21.5			9.8		119	%		37.2			22.9		63	%

¹ _{This is a non-GAAP measure. Please refer to the section “Reconciliation of non-GAAP measures to most comparable IFRS measures” at the end of this press release.}
² _{Highlights are compared to the three-month and six-month periods ended March 31, 2025.}

Access the full report on the Calian Financials web page.
Register for the conference call on Thursday, May 14, 2026, 8:30 a.m. Eastern Time.

Second Quarter Results

Revenues increased 18%, from $194 million to $229 million. This represents a record high quarterly revenue for the Company. Acquisitive growth was 6% and was generated by the acquisitions of Advanced Medical Solutions completed in May 2025 and Infield Scientific closed in October 2025. Organic growth was 12% and was generated by both the Defence & Space and Essential Industries segments.

Gross profit increased 24.3% to $80 million, driven by revenue growth, changes in revenue mix and contributions from acquisitions. As a result, gross margin reached 35.1%, up from 33.4% last year. Similarly, adjusted EBITDA¹ increased 60% to $28 million, driven by higher gross profit. As a result, adjusted EBITDA¹ margin increased to 12.2%, up from 9.0% last year.

Net profit was $6.7 million, or $0.58 per diluted share, compared to $0.3 million, or $0.02 per diluted share last year. The increase is primarily related to higher adjusted EBITDA¹ and lower mergers and acquisition costs, partially offset by higher restructuring expenses and taxes. Adjusted net profit¹ stood at $15.1 million, or $1.30 per diluted share, up from $9.1 million, or $0.77 per diluted share, last year.

Liquidity and Capital Resources

"In the second quarter, we generated $21 million of operating free cash flow¹, representing a strong conversion rate from adjusted EBITDA¹ of 77%," said Will Majic, Calian Acting CFO. "We used our cash and a portion of our credit facility to fund capital expenditures of $4 million, earn-outs related to past acquisitions for $5 million and provide a return to shareholders through dividends of $3 million. We ended the quarter with a net debt to adjusted EBITDA¹ ratio of 1.2x, preserving significant financial flexibility to fund our growth strategy."

Calian Appoints Will Majic as Acting Chief Financial Officer

On February 23, 2026, Calian announced the appointment of Will Majic as acting Chief Financial Officer, effective immediately. Majic joined Calian in 2017 and currently serves as Vice President, Finance. He previously held the roles of Director of Finance and Controller. During his tenure, Calian has grown from approximately $275 million in annual revenue to more than $750 million. He has led finance due diligence and integration for 19 acquisitions, supported two equity financings totalling $150 million, and played a key role in establishing a $350 million syndicated credit facility. He also led enterprise-wide ERP implementation and enhanced internal controls, reporting standards and cash flow management to support the company’s expanding operations.

Calian Increases its Committed Credit Facility to Pursue Growth

On March 26, 2026, Calian announced that it has exercised the accordion feature under its existing credit facility. Calian has exercised $75 million of its accordion feature, increasing total committed capacity under its credit facility to $275 million. The Company renewed its credit facility on September 29, 2025, for a three-year term, with total capacity of $350 million.

Quarterly Dividend

On May 13, 2026, Calian declared a quarterly dividend of $0.28 per share. The dividend is payable June 10, 2026, to shareholders of record as of May 27, 2026. Dividends paid by the Company are considered “eligible dividend” for tax purposes.

About Calian

www.calian.com

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. 

Product or service names mentioned herein may be the trademarks of their respective owners.

Media inquiries:
media@calian.com
613-599-8600

Investor Relations inquiries:
ir@calian.com

-------------------------------------------------------------
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: info@calian.com

CALIAN GROUP LTD. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION As at March 31, 2026 and September 30, 2025 (Canadian dollars in thousands, except per share data)

	March 31,		September 30,
	2026		2025
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	56,348	$	46,101
Accounts receivable		298,169		171,150
Work in process		18,381		25,028
Inventory		27,851		27,709
Prepaid expenses and other		34,841		22,977
Derivative assets		182		44
Total current assets		435,772		293,009
NON-CURRENT ASSETS
Property, plant and equipment		45,631		45,508
Right of use assets		39,828		39,786
Prepaid expenses		7,551		6,015
Deferred tax asset		1,521		1,614
Investments		4,252		4,252
Acquired intangible assets		97,204		106,833
Goodwill		231,407		224,483
Total non-current assets		427,394		428,491
TOTAL ASSETS	$	863,166	$	721,500
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities	$	224,057	$	133,096
Provisions		3,681		3,458
Unearned contract revenue		49,830		39,646
Lease obligations		6,120		5,819
Contingent earn-out		5,168		16,147
Derivative liabilities		153		53
Total current liabilities		289,009		198,219
NON-CURRENT LIABILITIES
Debt facility		167,250		130,750
Lease obligations		37,882		37,634
Unearned contract revenue		19,730		14,704
Deferred tax liabilities		16,807		18,912
Total non-current liabilities		241,669		202,000
TOTAL LIABILITIES		530,678		400,219

SHAREHOLDERS’ EQUITY
Issued capital		229,359		220,345
Contributed surplus		6,292		7,312
Retained earnings		89,763		84,360
Accumulated other comprehensive income (loss)		7,074		9,264
TOTAL SHAREHOLDERS’ EQUITY		332,488		321,281
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	863,166	$	721,500
Number of common shares issued and outstanding		11,490,510		11,350,168

CALIAN GROUP LTD. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF NET PROFIT For the three months and six months ended March 31, 2026 and 2025 (Canadian dollars in thousands, except per share data)

	Three months ended							Six months ended
	March 31,							March 31,
	2026			2025				2026			2025
Revenue		$	228,701		$	193,667			$	436,700		$	378,714
Cost of revenues			148,364			129,025				285,461			255,271
Gross profit			80,337			64,642				151,239			123,443

Selling, general and administrative			48,533			44,477				94,351			82,582
Research and development			3,933			2,771				6,203			5,667
Share-based compensation			1,821			949				2,833			2,040
Profit before under noted items			26,050			16,445				47,852			33,154

Restructuring and other			2,043			372				2,462			1,064
Depreciation and amortization			11,136			11,474				22,141			23,014
Mergers and acquisition costs			977			2,373				1,995			4,693
Profit before interest and income tax expense			11,894			2,226				21,254			4,383

Interest expense			2,212			2,111				4,428			3,894
Income tax expense (recovery)			2,967			(180	)			5,015			1,170
NET PROFIT (LOSS)		$	6,715		$	295			$	11,811		$	(681	)

Net profit (loss) per share:
Basic		$	0.59		$	0.03			$	1.03		$	(0.06	)
Diluted		$	0.58		$	0.02			$	1.03		$	(0.06	)

CALIAN GROUP LTD. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the three months and six months ended March 31, 2026 and 2025 (Canadian dollars in thousands)

	Three months ended						Six months ended
	March 31,						March 31,
		2026			2025			2026			2025
CASH FLOWS GENERATED FROM (USED IN) OPERATING ACTIVITIES
Net profit (loss)	$	6,715		$	295		$	11,811		$	(681	)
Items not affecting cash:
Interest expense		1,705			1,612			3,399			2,907
Changes in fair value related to contingent earn-out		—			558			100			1,116
Lease obligations interest expense		507			499			1,029			987
Income tax expense		2,967			(180	)		5,015			1,170
Share based compensation expense		1,821			949			2,833			2,040
Depreciation and amortization		11,136			11,474			22,141			23,014
Deemed compensation		250			1,470			589			3,033
		25,101			16,677			46,917			33,586
Change in non-cash working capital
Accounts receivable		(124,090	)		(55,935	)		(126,539	)		(56,102	)
Work in process		5,234			668			6,647			900
Prepaid expenses and other		(3,659	)		3,884			(13,875	)		1,146
Inventory		158			2,637			(142	)		(3,605	)
Accounts payable and accrued liabilities		91,185			48,068			90,853			47,210
Unearned contract revenue		11,339			1,092			15,210			2,386
		5,268			17,091			19,071			25,521
Interest paid		(2,212	)		(2,111	)		(4,428	)		(3,894	)
Income tax paid		(2,134	)		(5,120	)		(6,554	)		(7,385	)
		922			9,860			8,089			14,242
CASH FLOWS GENERATED FROM (USED IN) FINANCING ACTIVITIES
Issuance of common shares net of costs		4,104			664			4,480			1,545
Dividends		(3,213	)		(3,292	)		(6,408	)		(6,584	)
Net draw on debt facility		2,500			5,000			36,500			31,000
Payment of lease obligations		(1,508	)		(1,664	)		(3,107	)		(3,106	)
Repurchase of common shares		—			(4,384	)		—			(9,310	)
		1,883			(3,676	)		31,465			13,545
CASH FLOWS USED IN INVESTING ACTIVITIES
Business acquisitions		(5,259	)		(678	)		(23,443	)		(11,893	)
Property, plant and equipment		(3,834	)		(2,396	)		(5,864	)		(3,532	)
		(9,093	)		(3,074	)		(29,307	)		(15,425	)

NET CASH INFLOW	$	(6,288	)	$	3,110		$	10,247		$	12,362
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		62,636			61,040			46,101			51,788
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	56,348		$	64,150		$	56,348		$	64,150

Reconciliation of Non-GAAP Measures to Most Comparable IFRS Measures

These non-GAAP measures are mainly derived from the consolidated financial statements, but do not have a standardized meaning prescribed by IFRS; therefore, others using these terms may calculate them differently. The exclusion of certain items from non-GAAP performance measures does not imply that these are necessarily nonrecurring. From time to time, we may exclude additional items if we believe doing so would result in a more transparent and comparable disclosure. Other entities may define the above measures differently than we do. In those cases, it may be difficult to use similarly named non-GAAP measures of other entities to compare performance of those entities to the Company’s performance.

Management believes that providing certain non-GAAP performance measures, in addition to IFRS measures, provides users of the Company’s financial reports with enhanced understanding of the Company’s results and related trends and increases transparency and clarity into the core results of the business. Adjusted EBITDA excludes items that do not reflect, in our opinion, the Company’s core performance and helps users of our MD&A to better analyze our results, enabling comparability of our results from one period to another.

Adjusted EBITDA

		Three months ended					Six months ended
		March 31,					March 31,
		2026		2025			2026		2025
Net profit (loss)	$	6,715	$	295		$	11,811	$	(681	)
Share-based compensation		1,821		949			2,833		2,040
Restructuring and other		2,043		372			2,462		1,064
Depreciation and amortization		11,136		11,474			22,141		23,014
Mergers and acquisition costs		977		2,373			1,995		4,693
Interest expense		2,212		2,111			4,428		3,894
Income tax expense		2,967		(180	)		5,015		1,170
Adjusted EBITDA	$	27,871	$	17,394		$	50,685	$	35,194
Adjusted EBITDA per share - Basic		2.43		1.48			4.44		3.00
Adjusted EBITDA per share - Diluted	$	2.40	$	1.46		$	4.40	$	2.95

Adjusted Net Profit and Adjusted EPS

		Three months ended						Six months ended
		March 31,						March 31,
		2026			2025			2026			2025
Net profit (loss)	$	6,715		$	295		$	11,811		$	(681	)
Share-based compensation		1,821			949			2,833			2,040
Restructuring and other		2,043			372			2,462			1,064
Mergers and acquisition costs		977			2,373			1,995			4,693
Amortization of intangibles		6,376			7,066			12,760			14,400
		17,932			11,055			31,861			21,516
Income taxes related to above items		(2,842	)		(1,913	)		(5,002	)		(3,966	)
Adjusted net profit		15,090			9,142			26,859			17,550
Weighted average number of common shares basic		11,454,308			11,726,127			11,416,792			11,749,796
Adjusted EPS Basic		1.32			0.78			2.35			1.49
Adjusted EPS Diluted	$	1.30		$	0.77		$	2.33		$	1.47

Operating Free Cash Flow

		Three months ended						Six months ended
		March 31,						March 31,
		2026			2025			2026			2025
Cash flows generated from operating activities (free cash flow)	$	922		$	9,860		$	8,089		$	14,242
Adjustments:
M&A costs included in operating activities		727			345			1,306			544
Change in non-cash working capital		19,833			(414	)		27,846			8,065
Operating free cash flow	$	21,482		$	9,791		$	37,241		$	22,851
Operating free cash flow per share - basic		1.88			0.83			3.26			1.94
Operating free cash flow per share - diluted		1.85			0.82			3.23			1.92
Operating free cash flow conversion		77	%		56	%		73	%		65	%

Net Debt to Adjusted EBITDA

	March 31,		March 31,
		2026		2025
Cash	$	56,348	$	64,150
Debt facility		167,250		120,750
Net debt (net cash)		110,902		56,600
Trailing twelve month adjusted EBITDA		93,910		78,846
Net debt to adjusted EBITDA		1.2		0.7

Operating free cash flow measures the company’s cash profitability after required capital spending when excluding working capital changes. The Company’s ability to convert adjusted EBITDA to operating free cash flow is critical for the long term success of its strategic growth. These measurements better align the reporting of our results and improve comparability against our peers. We believe that securities analysts, investors and other interested parties frequently use non-GAAP measures in the evaluation of issuers. Management also uses non-GAAP measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess our ability to meet our capital expenditure and working capital requirements. Non-GAAP measures should not be considered a substitute for or be considered in isolation from measures prepared in accordance with IFRS. Investors are encouraged to review our financial statements and disclosures in their entirety and are cautioned not to put undue reliance on non-GAAP measures and view them in conjunction with the most comparable IFRS financial measures. The Company has reconciled adjusted profit to the most comparable IFRS financial measure as shown above.

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