Calian Group Ltd T.CGY

Alternate Symbol(s): CLNFF

Industrials

Calian Group Ltd. is a diverse solutions company. The Company is engaged in providing healthcare, communications, learning and cybersecurity products and services. It provides business services and solutions to both industry and government customers in the areas of health, learning, defense, security, aerospace, engineering, and information technology (IT). Its Advanced Technologies segment is a supplier of technical solutions, services and products to the aerospace and defense, satellite, wired and terrestrial wireless, agricultural technology, and nuclear industries. The Health segment delivers healthcare and digital health solutions. The ITCS segment includes on-demand resourcing, IT and cybersecurity consulting, managed services, and software as a service. Its Learning segment provides training as a service, emergency management solutions, and custom training solutions. It also offers a full suite of services from design, installation and teleport services to satellite operations.

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Calian Group Ltd

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Post by retiredcfon May 15, 2024 8:18am

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Post# 36040627

RBC 2

May 14, 2024

Calian Group Ltd.
Q2 above consensus, FY24 guidance increased to reflect recent acquisitions

TSX: CGY | CAD 56.43 | Outperform | Price Target CAD 72.00

Sentiment: Positive

Q2 above consensus. Q2 revenue rose 19% Y/Y to $201MM, above consensus/RBC at $196MM/$197MM. The upside stems from higher than expected acquisitive growth (16% Y/Y vs. RBC at 9%) likely due to stronger performance of the recent Decisive acquisition. Negatively, organic growth was 3%, below RBC at 8%. Due to better than expected margins, adj. EBITDA increased 53% Y/Y to $26MM, above consensus at $22MM (RBC at $21MM). Similarly, adj. EPS was up 62% Y/Y to $1.46, well above consensus at $1.12 (RBC at $1.10).

FY24 guidance increased. Calian increased FY24 guidance to $750-$810MM revenue ($730-790MM prior) and $86-92MM adj. EBITDA ($83-89MM prior). The increase appears to reflect expected contributions from the recent nuclear services acquisition from MDA, as well as the Mabway acquisition completed last week.

Conference call tomorrow at 8:30am ET. The conference call webcast is available here.