Calian Group: Buy, Sell or Hold?

Ventum Capital Markets analyst Rob Goff says Calian Group’s (Calian Group Stock Quote, Chart, News, Analysts, Financials TSX:CGY) sale of Computex and acquisition of Galaxy Broadband sharpen its focus on higher-margin defence and communications opportunities.

In an Aug. 26 update, Goff maintained his “Buy” rating and $106.00 target on Calian.

Calian has signed a definitive agreement to sell Computex, its Houston-based U.S. commercial IT business, to Trace3. The company also completed its acquisition of Galaxy Broadband for about $24-million upfront, plus up to $27.5-million in earnout consideration.

Goff said Calian acquired Computex in 2022 for about 5.7 times EBITDA and is now selling it for about 7.5 times EBITDA, based on upfront cash proceeds of US$31-million.

The analyst estimates the Computex sale will reduce annual revenue and Adjusted EBITDA by about $80-million and $5.7-million, respectively, while Galaxy will add about $24-million of revenue and $4-million of Adjusted EBITDA.

As a result, Goff lowered his fiscal 2027 revenue and Adjusted EBITDA forecasts to $902.9-million and $104.8-million from $958.9-million and $108.9-million.

He said the sale proceeds can be redeployed into organic growth and acquisitions in Calian’s core verticals, where the company has stronger competitive positioning.

“The strength of the recently reported Q2/26 with organic growth estimated at 13% reinforces the case for sustained double-digit growth and a higher valuation,” Goff said.

The analyst said rising Canadian and NATO defence budgets support a realistic path to sustained double-digit organic growth.

Goff also said Calian’s acquisition pipeline remains strong, with management looking to accelerate the pace of deals and maintain flexibility to act quickly.

Calian trades at 8.6 times Goff’s calendar 2027 EV/EBITDA estimate, roughly in line with its five-year average, despite what he called a better spending backdrop. His target implies 11.4 times and 8.8 times calendar 2027 and 2028 EV/EBITDA, respectively.

Goff said Calian’s partnerships and acquisitions, including Galaxy Broadband, should strengthen its ability to pursue larger and more complex defence contracts.

He expects Calian to generate Adjusted EBITDA of $95-million on revenue of $884-million in fiscal 2026.

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