Fresh off of two acquisitions and a pivot by the Canadian government for defence solutions, Calian Group reported increased revenues in Q1 2026 and a $1.4 billion backlog, as the company prepares to execute on a new strategic investment.
A call to investors Thursday (Feb. 12) also highlighted new contract signings of $171 million and a November 2025 contract by a “leading global space technology company” to design and manufacture four Ka/Q/V-band RF gateway ground stations for two geostationary satellites.
“Momentum behind our defense and solutions continues to build, driven by sustained activity in Europe and rising demand in Canada,” CEO Patrick Houston said in the call. “These market signals and early winds make it clear that investing now is critical to ensuring we capture expanding opportunities in this fast-moving environment. Our space solutions are also experiencing renewed momentum.”
He added the company’s momentum also came from moving from four segments to two, which “brings our capability together under a simpler, stronger model that reflects how customers think, buy, and expect solutions to be delivered. It’s designed to integrate the essential elements in one place: technology expertise, delivery, and customer insights. By aligning these strengths, we can develop integrated solutions faster, collaborate more effectively, and scale our impact.”
Space, he said, is key to the strategy as defence organizations worldwide ask for speed, dual-use technologies and commercialization opportunities. Speaking directly to Calian’s ground business, he added: “One of the most important shifts we’re seeing is the growing role of ground infrastructure, and the ability to deliver seamless connectivity – no matter the constellation.”
“As data volumes increase in constellations expands,” Houston continued, “operators are scaling local ground station networks … More broadly, the industry is maturing rapidly. Satellites, ground systems and software are becoming more tightly integrated amid intensifying geopolitical and commercial competition.”
But the big momentum this quarter came from the new strategy, and the closure of its acquisitions. In late January, Calian announced strategic investment to develop and deploy C5ISRT capabilities, meaning Command, Control, Computing, Communications, Cyber, Intelligence, Surveillance, Reconnaissance and Targeting. Calian will fund this initiative through federal programs, contributions from regional investment agencies, new intellectual property (in part with other companies) and capital investment from VENTURES (Calian’s defence innovation arm).
Houston, in response to an analyst question, said Calian is looking for a few things in the long-awaited industrial strategy for defence that the government is expected to release this year. He said key to success would be making sure that increased defence spending will affect the “broader industry in Canada” as well as GDP growth. He also said he is looking forward to learning which technologies and solutions will be deemed sovereign priorities, to help “target our investments” and for the country at large to create a differentiated position. When asked about Calian’s manufacturing capabilities and acquisition pipeline in relation to the strategy, he said the company is prepared to “flex” as it receives market signals.
Quarterly revenues increased 12% to $208 million, which is a record high for Calian. Half of that was generated from the acquisitions of Advanced Medical Solutions in May 2025 and Infield Scientific in October 2025. The other half was due to organic growth, mostly by defence solutions.
Gross profit increased nearly 21% to $71 million, due to revenue growth, changes in how revenue was generated, and the acquisitions. Gross margin also increased slightly (roughly 34% in 2026, versus 32% in 2025), and EBITDA grew 28% to $23 million.
Calian also generated a net profit of $5.1 million in Q1 2026, representing $0.44 per diluted shared. In Q1 2025 it lost $1 million, or -$0.08 per share. The company said the higher adjusted EBITDA and lower merger and acquisition costs than expected helped contribute to the profit.
The company reported $16 million of operating free cash flow in Q1, which (along with a credit facility) went towards capital expenditures for $2 million, acquisitions and earnouts for $18 million, and dividends of $3 million for shareholders. Net debt to adjusted EBITDA was a ratio of 1.2x at the end of the quarter, which the company said is a good indication of its ability to pursue growth.
Q1 2026 highlights
Total Revenue: Increased 12% to a record $208 million.
Gross Profit: Rose nearly 21% to reach $71 million.
Gross Margin: Improved to approximately 34%, up from 32% in the previous year.
Net Profit: Generated $5.1 million ($0.44 per diluted share), a significant turnaround from the $1 million loss in Q1 2025.
EBITDA: Grew 28% to reach $23 million.
Backlog: Reached a substantial $1.4 billion.
New Contracts: Signed $171 million in new deals during the quarter.