Look for Calian Group to make a mark in 2027, this analyst says

Ventum analyst Rob Goff maintained a “Buy” rating and C$94.00 target on Calian Group (Calian Group Stock Quote, Chart, News, Analysts, Financials TSX:CGY) in a May 15 update, saying a stronger-than-expected second quarter may support both forecast and valuation upgrades.

Calian reported Q2 fiscal 2026 revenue of $229-million, gross profit of $80.3-million and Adjusted EBITDA of $27.9-million, ahead of Goff’s estimates of $214-million, $72.9-million and $21.5-million. Consensus was $216-million, $73.4-million and $22.2-million.

Goff said organic growth of 12% and backlog of about $1.5-billion, including more than $1-billion in defence, reflect accelerating Canadian defence contract activity. Calian secured $321-million in new contract signings during the quarter, including more than $200-million tied to Canadian defence programs.

“We look beyond what are likely to be modest positive F2026 revisions and remain more focused on F2027, where we see greater upside potential as accelerating defence spending supports double-digit revenue growth and prior efficiency initiatives drive margin expansion,” Goff said.

Goff raised his fiscal 2026 forecast to revenue of $875-million and Adjusted EBITDA of $93.0-million, up from $857-million and $91.0-million previously. He said the quarter’s 35% gross margin and 60% EBITDA growth reflected a better product mix, higher volumes and seasonal IT strength.

“We see secular tailwinds and ongoing pipeline strength support shareholder leverage to both forecast and valuation upgrades,” Goff said.

Goff expects Calian to generate Adjusted EBITDA of $93-million on revenue of $875-million in fiscal 2026, improving to $106-million on revenue of $945-million in fiscal 2027.

-30-