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Calian Group: Buy, Sell or Hold?

Calian Group (Calian Group Stock Quote, Chart, News, Analysts, Financials TSX:CGY) has signed a strategic partnership with Ukrainian defence technology company SkyFall to develop and deliver unmanned systems training programs for Canada, the United Kingdom, NATO members and allied forces.

Ventum Capital Markets analyst Rob Goff said the deal adds specialized drone expertise to Calian’s defence training platform.

In a Sept. 16 update, Goff maintained his “Buy” rating and $106.00 target on Calian.

SkyFall Academy is certified by Ukraine’s Ministry of Defence and has trained more than 30,000 Ukrainian military personnel over the past three years.

Goff said that gives Calian access to operational knowledge developed through Ukraine’s experience with drone technology and countermeasures.

“Calian can leverage its established relationships and training infrastructure across the Canadian Armed Forces, British Army, NATO and other allied forces to introduce the specialized unmanned systems training capability,” Goff said.

The analyst said the partnership could support incremental international defence training opportunities as allied militaries increase their focus on drone-enabled operations.

Goff said further defence contract wins and acquisitions remain potential catalysts for a valuation re-rating.

He said Calian has roughly $65-million of pro forma cash and more than $200-million of available debt capacity for acquisitions after the planned sale of Computex, its U.S. commercial IT business.

Goff said Calian’s SkyFall partnership, Raytheon partnership, Canadian Arctic Maritime Security Consortium work and Galaxy Broadband acquisition all strengthen its ability to pursue larger defence contracts.

Calian trades at 9.3 times Goff’s calendar 2027 EV/EBITDA estimate, roughly in line with its five-year average despite a stronger defence spending backdrop.

Goff expects Calian to generate Adjusted EBITDA of $95-million on revenue of $884-million in fiscal 2026, improving to Adjusted EBITDA of $105-million on revenue of $903-million in fiscal 2027.

 

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Nick Waddell

Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.

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