$CGY.TO

Calian Group, Cohere, Collaborate to to Bring Sovereign AI to Defence Industry

Calian Group (CGY.TO) is collaborating with AI company Cohere to integrate sovereign artificial intelligence (AI) in defence environments, the company said on Thursday.The collaboration will apply Cohere's secure agentic AI platform, North, within controlled defence environments to assess how AI impacts mission planning, decision support, training effectiveness and operational workflows, a statement said.The initiative will extend opportunities through Calian Ventures, enabling Canadian SMEs and partners to access and evaluate AI capabilities."This collaboration reflects how trusted AI can be integrated into defence environments in a practical and scalable way," said Chris Pogue, president, Defence and Space, Calian. "By combining Cohere's best-in-class AI capabilities with Calian's expertise in operational readiness training and mission support, we are helping organizations improve decision-making, accelerate learning and enhance preparedness for complex operational environments."Calian shares closed up $0.38, to $86.66 on Wednesday on the Toronto Stock Exchange.

Calian Launches ATHORA Platform to Speed-Up Military Operational Readiness and Capability Integration in Canada

Calian Group (CGY.TO) launches ATHORA, a "sovereign system-of-systems interoperability and orchestration" platform developed to speed-up military operational readiness and capability integration across evolving C5ISRT environments, it said on Monday.The company will advance ATHORA in collaboration with the Canadian defence industry, including its foundational partner Evertz Microsystems. ATHORA will lower barriers to integration with an open system-of-systems (SoS) architecture, it said.The platform will provide secure interoperability, operational coordination and decision advantage across land, sea, air, space, cyber and electromagnetic domains, once implemented, it added.Shares of the company closed up 0.3% to $83.44 on Friday on the Toronto Stock Exchange.

CIBC Raises Calian Group's Price Target to C$90.00 From C$76.00

CIBC Capital Markets retained its outperformer rating on the shares of Calian Group (CGY.TO) and raised its price target to C$90.00 from C$76.00 after the company reported its fiscal second-quarter results."Calian was up ~20% today following an FQ2 beat, with revenue 6% above the Street and adj. EBITDA 26% above," said CIBC in the May 14 note.CIBC raised its full-year estimates to reflect the increased 2026 guidance, though it expects a portion of the FQ2 strength was pulled forward from H2.CIBC now expects 13% F2026 revenue growth (vs. 10% prior) and 19% adj. EBITDA growth (16% prior).With FQ2 bookings up 29% Y/Y and organic growth accelerating to 12% from 6% in FQ1, CIBC continues to see Calian as "well positioned" to benefit from defense-spending tailwinds.Canada's focus on defense spending continued to be a tailwind in the quarter, with the government focused on hitting its 2% of GDP target before its March 31 fiscal year end, noted CIBC."Additionally, Calian is seeing good growth in Europe and is investing further for growth," noted CIBC. "Calian is focused on leveraging long-term customer relationships and bidding on larger opportunities as a prime vendor to drive growth."CIBC expects the FQ2 beat was helped by better-than-expected growth in IT & Cyber in what is a "seasonally strong quarter", as well as defence spending ahead of the government's fiscal year end. CIBC expects some pull forward from H2 contributed to the beat, but view the raised full-year guide as a net positive.CIBC is forecasting slower adj. EBITDA growth in H2 vs. a strong H1 as Calian ramps up investments in Europe to continue to capitalize on defence spending tailwinds in the region.CIBC noted, Calian's capital allocation priority remains M&A, with a robust pipeline and multiple discussions underway. It expects Calian to focus on adding capabilities and expanding in Europe.Calian paid out dividends equal to 17% of its operating FCF in H1, below its 20%-25% target, and management noted it will review its dividend level, said CIBC and added that the company will also now execute on share repurchases opportunistically after pausing share repurchases in FQ2."We see Calian as attractively valued at 9x FY2 EBITDA vs. Aerospace & Defence peers at 13x," added CIBC. "We retain our Outperformer rating and raise our price target to $90 (prior $76) as we increase our target multiple on the Defence & Space business to 12x (prior 10x)."Price: $79.84, Change: $-2.40, Percent Change: -2.92%

Calian Group Price Targets Raised at RBC, Desjardins

Analysts at RBC Capital Markets and Desjardins raised their price targets on Calian Group Ltd. (CGY.TO) to $90 from $78, and to $90 from $83, respectively.RBC analyst Paul Treiber maintained an Outperform rating on shares of the Canadian diverse products and services company following its quarterly results.The stock rose $14.24, or 20.9%, to $82.24 on the Toronto Stock Exchange."Calian reported a solid quarter, with revenue, adj. EBITDA, and adj. EPS all above RBC/consensus," Treiber said in a note to clients."Organic growth strengthened and bookings were strong, primarily due to increasing demand from defence customers, along with a recovery in US commercial," the analyst said.We believe acquisitions in the defence segment are potential catalysts for the stock," Treiber said.Desjardins analyst Benoit Poirier maintained a Buy rating on Calian."This quarter marked an important inflection in CGY's defence business after months of newsflow and questions we are now actually starting to see tangible execution/bookings from increased budgets/ spending in both Canada and Europe," Poirier said in a note to clients."...With the stock now trading at a premium to its five-year average, potential acquisitions will become even more accretive," the analyst said.

Correction: Calian Group Up 11% On Improved Q2 Net Profit, Revenue

(Correcting second paragraph to show the results were "For Q2". A corrected version follows)Calian Group (CGY.TO) was at last look up 11% in early Thursday trade after reporting higher net profit and revenue in the second quarter as the company begins to "capture the benefits of strengthening demand across the defence sector".For Q2, net profit was C$6.7 million, or $0.58 per diluted share, compared to $0.3 million, or $0.02 per diluted share in the corresponding year-ago quarter. The increase is primarily related to higher adjusted EBITDA and lower mergers and acquisition costs, partially offset by higher restructuring expenses and taxes, said the company.Second quarter adjusted net profit was $15.1 million, or $1.30 per diluted share, up from $9.1 million, or $0.77 per diluted share, in the year-ago quarter.Second quarter revenue was a record $228.7 million, compared to $193.7 million in the year-ago quarter. The consensus estimates compiled by FactSet for Sales was $215.7 million.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.On May 13, 2026, the company declared a quarterly dividend of $0.28 per share, unchanged from the prior quarter. The dividend is payable June 10, 2026, to shareholders of record as of May 27, 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 Chief Executive Officer.He added: "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 EBITDA, 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."Price: $75.90, Change: $+7.90, Percent Change: +11.62%

Calian Group Up 11% On Improved Q2 Net Profit, Revenue

Calian Group (CGY.TO) was at last look up 11% in early Thursday trade after reporting higher net profit and revenue in the second quarter as the company begins to "capture the benefits of strengthening demand across the defence sector".For Q1, second quarter net profit was C$6.7 million, or $0.58 per diluted share, compared to $0.3 million, or $0.02 per diluted share in the corresponding year-ago quarter. The increase is primarily related to higher adjusted EBITDA and lower mergers and acquisition costs, partially offset by higher restructuring expenses and taxes, said the company.Second quarter adjusted net profit was $15.1 million, or $1.30 per diluted share, up from $9.1 million, or $0.77 per diluted share, in the year-ago quarter.Second quarter revenue was a record $228.7 million, compared to $193.7 million in the year-ago quarter. The consensus estimates compiled by FactSet for Sales was $215.7 million.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.On May 13, 2026, the company declared a quarterly dividend of $0.28 per share, unchanged from the prior quarter. The dividend is payable June 10, 2026, to shareholders of record as of May 27, 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 Chief Executive Officer.He added: "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 EBITDA, 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."Price: $77.23, Change: $+9.23, Percent Change: +13.57%

Earnings Flash (CGY.TO) Calian Group Posts Q2 Adjusted EPS Diluted C$1.30 per Share, Vs $0.77

Earnings Flash (CGY.TO) Calian Group Reports Q2 Revenue C$228.7M, Up 18%

Calian Group Signs Over $200 Million in Q2 Canadian Defence Contracts

Calian Group (CGY.TO) signed over $200 million in new, renewed and extended contracts to support the Canadian defence industry in the second quarter of fiscal year 2026, said the company on Tuesday."The contracts come as Canada crosses the two per cent GDP defence spending threshold and the Canadian Armed Forces (CAF) achieving its highest recruitment levels in over 30 years," added the company. "Demand for mission-critical solutions continues to grow across training, health services and operational support-driving new contract awards, extensions and program expansions."

Calian Says Signed Over $200M in Q2 Canadian Defence Contracts

RBC Provides its Canadian Technology Q1/CY26 Preview

RBC Capital Markets provided a first-quarter earnings preview for stocks in its Canadian Technology coverage universe on Friday.The S&P/TSX Info-Tech sub-sector had its "worst start to the year" since 2022, due to the continued downward re-rating of software stocks on concerns regarding AI disruption, noted RBC.While RBC expects Q1 results to be "largely in line" with consensus and believes the "magnitude of the pullback in software valuations is an overreaction," it believes sentiment is unlikely to materially change in the short term.Even though RBC anticipates "slightly improved organic growth" for the average stock in its coverage this quarter, the market appears "risk-averse and may largely ignore positive surprises and disproportionately penalize negative surprises," in light of the market sensitivity regarding AI disruption and uncertainty regarding the macro environment, said RBC.Among its covered stocks, RBC believes the "best-positioned stocks" for calendar Q1 results are Celestica (CLS.TO), Shopify (SHOP.TO), Constellation Software (CSU.TO), and Kinaxis (KXS.TO).RBC believes Celestica will report Q1 earnings above consensus and increase FY26 guidance, given hyperscaler capex continues to increase, along with strong network switch and AI server demand, against Celestica's historically conservative outlook, added RBC."Given the strong 36% YTD rally in Celestica's shares, Q1 results may not be a catalyst for the stock," said RBC. "Even so, we believe Celestica's strong growth momentum, ongoing margin expansion, and mix shift to more structurally attractive segments of the market are likely to help sustain Celestica's valuation to remain above peers and toward the high end of its historical range."For Shopify, RBC expects "solid" Q1 results and Q2 guidance slightly above consensus estimates.U.S. e-commerce spending strengthened through Q1, noted RBC which it believes implies revenue growth accelerates sequentially, with Q1 revenue and adj. EPS likely slightly above consensus."While the valuation of Shopify's shares has re-rated down with the YTD pullback in software stocks, Shopify's fundamentals remain solid, in our view, and we expect strong growth to drive shareholder returns over the long term," said RBC.RBC expects Constellation's shares to modestly rally following Q1 results."With the stock trading near multi-year valuation lows, we see investor sentiment improving, given Q1 slightly ahead of consensus, TTM free cashflow up 25%, and annualized Q1 capital deployed on acquisitions likely tracking to a new record," said RBC. "We see Constellation's valuation as compelling, compared to our forecast for a 17% adj. EBITDA CAGR over the next 3 years."RBC believes Kinaxis's shares may "slightly rally" following Q1 results. It expects Kinaxis to report "solid" Q1 results, slightly above consensus, with continued growth re-acceleration and likely healthy bookings."With Kinaxis seeing reaccelerating growth, but trading at discounted valuation levels, we see compelling risk-reward on the shares," added RBC. "Moreover, ramping share buybacks may provide a floor for the stock."Price: $565.60, Change: $+28.12, Percent Change: +5.23%