Calian on track to hit $1B in annual revenues by fiscal 2026, Kanata firm says

November 28, 2023

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Calian Group’s shares got a slight bump Tuesday as the firm reported double-digit revenue growth for the sixth year in a row and said it remains on track to reach its goal of a billion dollars in annual sales within three years. The Kanata-based company generated revenue of $659 million for the fiscal year ended Sept. 30, a 13 per cent increase from a year ago. Calian is projecting revenues of between $730 million and $790 million for fiscal 2024. CEO Kevin Ford told analysts Tuesday morning the company is gaining momentum as it continues to diversify its four main business segments and adds new capabilities through acquisitions. “I’m excited as we now have a very clear road map toward $1 billion in (annual) revenues,” Ford said. Calian’s share price rose 83 cents to $52.25 on the Toronto Stock Exchange by early Tuesday afternoon. Calian, which delivers a range of products and services from cybersecurity software to satellite components, finished fiscal 2023 on a high note and hasn’t taken its foot off the gas pedal. The company posted double-digit growth in three of its four divisions in the last three months of fiscal 2023 as it generated record quarterly revenues of $176 million. The firm also acquired Hawaii Pacific Teleport, which supplies satellite and fibre-based communications services in the Americas, Asia and Australia. Since then, Calian has agreed to acquire Ottawa-based IT and cybersecurity firm Decisive Group and hired veteran tech executive Michael Tremblay, who will leave his post as head of Invest Ottawa on Thursday, to lead its IT and cyber solutions division effective Dec. 1. “With his vast experience across Ottawa and North America, he will be instrumental in driving results and growth,” Ford said of Tremblay, describing the former Microsoft VP as a “seasoned, empathetic and deliberate leader” who will help Calian tap into new markets. Meanwhile, Ford said the federal Competition Bureau has approved the acquisition of Decisive Group. The deal, which could be worth up to $75 million, is expected to close by the end of this week. Ford lauded the “incredible talent” of Decisive’s 60-plus employees and said their addition will help shore up Calian’s cybersecurity offerings. He also noted the firm has forged relationships with a number of federal government departments and agencies that Calian has yet to penetrate. “Their brand is very strong,” he said. “We’re expecting it to help our government business both short- and long-term.” Calian recorded a net profit of $18.9 million, or $1.61 per diluted share, up from $13.6 million, or $1.19 per diluted share, in the 2022 fiscal year. In the fourth quarter, it turned a profit of $5.1 million, compared with a profit of $1.2 million a year earlier. Chief financial officer Patrick Houston said Calian will continue to pursue an aggressive strategy of growth through acquisitions. He told analysts the firm has a “robust pipeline” of potential M&A transactions in the works and expects to bring more companies under its umbrella before the end of fiscal 2024. “With this guidance, we’re off to a great start to achieve our $1-billion revenue target by the end of fiscal ’26,” Houston added.