Calian consolidates business segments in bid to create ‘simpler, stronger’ business model

February 12, 2026

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After years of touting its “four-piston engine,” Calian Group is retooling its corporate structure in a bid to become more efficient as it chases new opportunities in defence, space and other fast-growing market segments. Calian is streamlining its business operations from four segments to two, the Kanata-based firm said in financial documents filed before it announced its first-quarter 2026 earnings on Thursday. The new structure will see Calian reorganized into a defence and space division that will include products and services such as military training, health-care services for armed forces personnel, space technology and cybersecurity services for defence customers; and an essential industries division aimed at commercial customers that will offer health-care technology and services, IT and cybersecurity products, managed services and infrastructure modernization consulting, as well as nuclear and agricultural technology. Previously, the company operated four divisions: advanced technologies such as satellite components; health-care services; training hardware and software aimed largely at military personnel; and IT and cybersecurity solutions. Calian’s decision to revamp its corporate structure comes as the firm is seeing “robust demand” for space and defence technology amid a surge in military spending across NATO countries, new CEO Patrick Houston told analysts during a conference call Thursday morning. “The new structure brings our capabilities together under a simpler, stronger model that reflects how customers think, buy and expect solutions to be delivered,” he said. Houston said the new model will allow Calian’s 6,000 employees to work together more efficiently and develop new products faster as the company seeks to grab a bigger piece of the defence-spending pie. Calian’s new chief executive, who assumed the role after longtime CEO Kevin Ford retired at the end of 2025, said cutting the number of business segments will also give investors “better transparency into how we operate,” calling the move a “deliberate step” in the company’s long-term growth strategy. Calian stock was up more than two per cent to $67.65 on the Toronto Stock Exchange by mid-afternoon. Before Houston spoke, Calian reported a net profit of $5.1 million, or 44 cents per diluted share, for the three-month period ending Dec. 31, compared with a loss of $976,000, or eight cents per diluted share, a year earlier. Adjusted EBITDA rose 28 per cent year-over-year to $23 million. The company’s revenues rose 12 per cent to $208 million, up from $185 million in the last three months of 2024. Space and defence customers accounted for about two-thirds of those revenues, as moves such as Calian’s 2024 acquisition of U.K.-based military simulation company Mabway have bolstered the firm’s presence in Europe. In addition, the Canadian government has pledged to boost military funding by tens of billions of dollars over the next decade. Calian, which has supplied military training, health care and other services to the Canadian Armed Forces for years, hopes to benefit, Houston said. With applications to join the CAF continuing to rise in 2026 following a 55 per cent jump in new recruits last year, Houston said he expects the market for Calian’s military training simulations and other products to remain strong. “The biggest challenge (the Canadian Forces) have right now is getting those people recruited and trained as quickly as possible so they can be operationally ready,” he said. “I think one of the early opportunities for us is to really assist there. I think we’re still pretty early days, but I think in the coming years, if they can sustain this momentum, I think our ability to really be a great partner to the Canadian Armed Forces to train those people and make the soldiers ready to act on behalf of Canada, I think it’s a big opportunity.” Thursday’s earnings call came just days before the Liberal government is expected to announce its new Defence Industrial Strategy, laying out how Canada will spend its defence funding. The government has committed $6 billion over five years to boost Canada’s domestic defence industry by identifying areas where homegrown firms can provide innovative new solutions to the CAF. Houston said the strategy will give Calian a better idea of where to focus its defence-tech spending. “I think it’ll help us target our investments towards places where the Canadian government and Canadian Armed Forces want to see momentum quickly,” he explained. “Really, I think the biggest opportunity for Calian is to move into new areas that use the same solutions and skills that we have … to supplement what we’re doing today, and do that for the next decade.” Meanwhile, Houston said Calian will continue to aggressively pursue M&A opportunities. “We’re spending a lot of time looking at acquisitions both in defence and space and in our essential industries,” he said. “I’m confident that, even in this environment, we can find good assets that we can buy and grow in the future.” In its outlook, Calian said it expects double-digit revenue growth for the remainder of fiscal 2026 and is targeting longer-term growth of 10-15 per cent a year. VP of finance Will Majic also announced that Calian has paused its share repurchasing program and will redirect spending toward “higher priorities.” When a company buys back shares, it reduces its equity base, spreading profits over fewer shares. That increases its return on equity and earnings per share, two key ratios used to determine a company’s financial health and investment rating. Majic cited Calian’s rising share price as a factor in the decision. The company’s stock has jumped nearly 40 per cent on the TSX since last February. – With files from The Canadian Press