Calian Group is combining two of its existing business units into a new division focused on defence and space in a bid to “simplify” its corporate structure and capitalize on surging demand for products such as satellite services and military training. The Kanata-based company, which trades on the Toronto Stock Exchange, currently splits its business […]
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Calian Group is combining two of its existing business units into a new division focused on defence and space in a bid to “simplify” its corporate structure and capitalize on surging demand for products such as satellite services and military training.
The Kanata-based company, which trades on the Toronto Stock Exchange, currently splits its business lines into four segments: advanced technologies, health, learning, and IT and cyber solutions.
Calian said Tuesday it is revamping that structure to highlight its growing expertise in space and defence technology.
The company is merging its advanced technologies segment – which specializes in products such as high-precision global navigation satellite systems for military and commercial customers – and its learning division, which provides services such as military training exercises aimed at mimicking real-life battle conditions, into a new unit called defence and space.
Veteran defence and security executive Chris Pogue is joining the company as president of the new division effective July 7.
Pogue most recently served as president and CEO of Thales Canada. The retired Royal Canadian Air Force officer also held key roles at leading defence firms such as MDA and General Dynamics in a management career that spans more than two decades.
The reorganization comes amid a renewed focus on defence and security in Canada and other Western nations as the conflict between Russia and Ukraine grinds on, global trade tensions rise and the U.S.’s commitment to European defence appears to be wavering.
“I’m thrilled to join Calian at such a pivotal time – for the company, and for Canada and its allies – as we face increasingly complex global uncertainty and opportunities,” Pogue said in a news release on Tuesday.
“Bringing together the subject matter experts and leading-edge solutions from Advanced Technologies and Learning allows us to harness our collective strengths, co-innovate with our space and defence partners, and deliver the reliability and precision mission success demands.”
In an interview with Techopia on Tuesday, Calian chief executive Kevin Ford said even many of the company's biggest and longest-standing defence and space customers, including the Canadian Armed Forces, aren’t aware of the wide range of products and services it offers.
Restructuring the organization to reflect its expertise in defence and space technology is “the first step” in changing the market’s perception of Calian, he explained, calling it a “clear market signal” that the business intends to become an even bigger force in those segments.
“We’re still not recognized as a company that does work in space and defence, to be honest,” Ford said. “We keep talking to the world about how we’re organized, not what we do for customers and what customers are important to us.”
'Space brand is not that strong'
Ford said Pogue is “almost uniquely positioned to help take this company to another level globally in the defence and space marketplace” thanks to his experience as a former air force pilot who logged more than 3,500 hours on the C-130 Hercules and then as a C-suite leader.
“He’s excited about coming to a Canadian-based company that can put its footprint not only in Canada, but on a global scale,” Ford said.
“I think our space brand is not that strong even though we’ve been in space for 60 years. So No. 1, I think it’s just going to help us show up with confidence in the sense that we are a defence and space business.
“If you talk to militaries today and space companies, they’re all looking for companies that can support them across multiple domains,” including military operational readiness and space capabilities, Ford added.
“We are uniquely positioned to help. There’s no company like Calian that brings all of that to the table. The diversity is crazy sometimes, but it’s a strength for us.”
Calian is coming off a rough second quarter that saw its revenues drop four per cent year-over-year amid a slowdown in federal government spending and fallout from the global trade war.
But the two components of the new division continue to gain momentum. Advanced technologies and learning combined for revenues of $90 million in the three-month period ending March 31, up from about $79 million a year earlier.
Ford said Calian the new division has a strong foundation, describing the company as a “global expert” in military training and touting its track record of innovation in products such as cutting-edge GNSS antennas.
But the company needs to simplify its marketing and focus on being known as a “mission-critical solutions company,” he explained.
“Customers trust us when they need solutions that can’t fail. We tell people about our four divisions and you know, it’s like, ‘Ah, stop it.’ We’re just going to talk about (we’re a) mission-critical solutions company. Give us your biggest challenge and we’ll take care of it. I’m excited about getting that branding out there.
“I think if we unlock that story, this is a massive growth opportunity for Calian.”
