Earnings release
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Calian Reports Results for the First Quarter of Fiscal 2026 (All amounts in release are in Canadian dollars) OTTAWA, Ontario, Feb. 12, 2026 -- Calian® Group Ltd. (TSX:CGY), a mission critical solutions company focused on defence, space, healthcare and other strategic critical infrastructure sectors, today released its results for the first quarter ended December 31, 2025. "Building on last quarter's momentum, we opened the year strong with revenue up 12%, including 6% organic growth," said Patrick Houston, Calian CEO. "Growth was fueled by sustained demand in Defence & Space and the impact from recent acquisitions. Adjusted EBITDA1 increased by 28%, significantly outpacing revenue growth, reflecting stronger margins, as well as the successful execution of cost optimization initiatives implemented at the end of last year. As we look ahead, our more focused operating model paired with $1.4 billion in backlog, a strong acquisition pipeline, and solid balance sheet provide a powerful foundation for continued success. Market tailwinds in our core markets positions us to deliver another year of strong performance and create lasting value for our shareholders." Q1-26 Highlights2: • Revenue up 12% to $208 million, including 6% from organic and 6% from acquisitions • Gross margin at 34.1%, up from 31.8% • Adjusted EBITDA1 up 28% to $23 million (margin of 11.0%) • Operating free cash flow1 of $16 million, representing a conversion of 69% • New contract signings of $171 million and ending backlog of $1.4 billion • Completed the acquisition of Canadian-based InField Scientific • Awarded a contract by a leading global space technology company • After quarter end, Calian announced it will mobilize investment to accelerate Canada's C5ISRT defence capabilities Financial Highlights Three months ended (in millions of $, except per share & margins) December 31, 2025 2024 % Revenue 208.0 185.0 12 % Adjusted EBITDA1 22.8 17.8 28 % Adjusted EBITDA %1 11.0% 9.6% 140bps Adjusted Net Profit1 11.8 8.4 40 % Adjusted EPS Diluted1 1.03 0.71 46 % Operating Free Cash Flow1 15.8 13.1 21 % 1 This is a non-GAAP measure. Please refer to the section “Reconciliation of non-GAAP measures to most comparable IFRS measures” at the end of this press release. 2 Highlights are compared to the three-month period ended December 31, 2024. Access the full report on the Calian Financials web page. Register for the conference call on Thursday, February 12, 2026, 8:30 a.m. Eastern Time. First Quarter Results Revenues increased 12%, from $185 million to $208 million. This represents a record high quarterly revenue for the Company. Acquisitive growth was 6% and was generated by the acquisitions of Advanced Medical Solutions completed in May 2025 and Infield Scientific closed in October 2025. Organic growth was 6% and was generated by our defence solutions and to a lesser extent from our Essential Industries segment. Gross profit increased 20.6% to $71 million, driven by revenue growth, changes in revenue mix and contributions from acquisitions. Gross margin stood at 34.1%, up from 31.8% last year. Similarly, adjusted EBITDA1 increased 28% to $23 million, driven by revenue growth, product mix, increased margins and cost optimization initiatives. As a result, adjusted EBITDA1 margin finished at 11.0%, up from 9.6% last year. Net profit was $5.1 million, or $0.44 per diluted share, from a loss of $1.0 million, or $(0.08) per diluted share last year. The increase is primarily related to higher adjusted EBITDA1 and lower mergers and acquisition costs, offset by higher taxes and interest charges. Adjusted net profit1 was $11.8 million, or $1.03 per diluted share, up from $8.4 million, or $0.71 per diluted
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share, last year. Liquidity and Capital Resources "In the first quarter, we generated $16 million of operating free cash flow1. We used our cash and a portion of our credit facility to fund capital expenditures of $2 million, acquisitions and earnouts for $18 million and provide a return in shareholders through dividends of $3 million. We ended the quarter with a net debt to adjusted EBITDA1 ratio of 1.2x, preserving significant financial flexibility to fund our growth strategy," concluded Mr. Houston. Calian Mobilizes Investment to accelerate Canada's C5ISRT Defence January 26, 2026, Calian announced a strategic initiative to help accelerate the development and deployment of sovereign C5ISRT capabilities through Calian VENTURES (VENTURES), Canada’s defence innovation orchestrator. As Canada places increasing priority on sovereign defence capability, operational readiness and long-term resilience, Calian will advance technology collaboration and mobilize funding to accelerate capability development across Canada. Funding will be drawn from multiple sources, including capital investment from VENTURES, co-development of new intellectual property from Calian alongside multiple Canadian small to mid-size enterprise (SMEs), contributions from regional investment agencies, and federal programs. Awarded Contract to Deliver QV Band Gateways for Two Geostationary Satellites On November 24, 2025, Calian announced it has been awarded a contract by a leading global space technology company for the design and manufacturing of four Ka/Q/V-band RF gateway ground stations to support the roll-out of services for two state- of-the-art geostationary satellites. The gateways will form the critical ground infrastructure linking the new satellites to terrestrial networks, enabling reliable, secure, high-capacity government communications across a wide geographical area that includes Africa, Europe, and Asia. In support of delivering on the contract, Calian will deliver four 10-metre Ka/Q/V-band gateway antennas along with the radio frequency equipment, and monitoring and control systems in the middle east. Once complete, the satellites will deliver next- generation, sovereign connectivity for secure government communications. Completed the Acquisition of Canadian-based InField Scientific On October 2, 2025, Calian announced the acquisition of InField Scientific Inc., a Quebec-based engineering company internationally recognized in electromagnetic environmental effects (E3). This small, strategic acquisition expands Calian’s defence portfolio enabling the company to deliver end-to-end electromagnetic solutions to expand into new markets, strengthen defence customer impact and support future growth. Quarterly Dividend On February 11, 2026, Calian declared a quarterly dividend of $0.28 per share. The dividend is payable March 11, 2026, to shareholders of record as of February 25, 2026. Dividends paid by the Company are considered “eligible dividend” for tax purposes. About Calian www.calian.com For over 40 years, Calian has delivered mission-critical solutions when failure is not an option. Trusted worldwide, we empower organizations in critical industries to overcome obstacles, manage risks and drive progress. By combining the expertise of our people, proven industry insight, cutting-edge technology, bold innovation, and global reach, we deliver tailored solutions that solve complex challenges. Headquartered in Ottawa, Canada, with over 6,000 people around the world, Calian’s solutions protect lives, strengthen security, foster global connectivity and drive economic progress, making a lasting impact where and when it matters most. Product or service names mentioned herein may be the trademarks of their respective owners. Media inquiries: media@calian.com 613-599-8600 Investor Relations inquiries: ir@calian.com ----------------------------------------------------------------------------- DISCLAIMER Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Such statements are generally accompanied by words such as “intend”, “anticipate”, “believe”, “estimate”, “expect” or similar statements. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price competition; scarce number of qualified professionals; the impact of rapid technological and market change; loss of business
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or credit risk with major customers; technical risks on fixed price projects; general industry and market conditions and growth rates; international growth and global economic conditions, and including currency exchange rate fluctuations; and the impact of consolidations in the business services industry. For additional information with respect to certain of these and other factors, please see the Company’s most recent annual report and other reports filed by Calian with the Ontario Securities Commission. Calian disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. No assurance can be given that actual results, performance or achievement expressed in, or implied by, forward-looking statements within this disclosure will occur, or if they do, that any benefits may be derived from them. Calian · Head Office · 770 Palladium Drive · Ottawa · Ontario · Canada · K2V 1C8 Tel: 613.599.8600 · Fax: 613-592-3664 · General info email: info@calian.com CALIAN GROUP LTD. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION As at December 31, 2025 and September 30, 2025 (Canadian dollars in thousands, except per share data) December 31, September 30, 2025 2025 ASSETS CURRENT ASSETS Cash and cash equivalents $ 62,636 $ 46,101 Accounts receivable 175,002 171,150 Work in process 23,615 25,028 Inventory 28,009 27,709 Prepaid expenses and other 32,573 22,977 Derivative assets 186 44 Total current assets 322,021 293,009 NON-CURRENT ASSETS Property, plant and equipment 44,980 45,508 Right of use assets 37,718 39,786 Prepaid expenses 5,813 6,015 Deferred tax asset 1,598 1,614 Investments 4,252 4,252 Acquired intangible assets 103,649 106,833 Goodwill 230,481 224,483 Total non-current assets 428,491 428,491 TOTAL ASSETS $ 750,512 $ 721,500 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable and accrued liabilities $ 131,755 $ 133,096 Provisions 3,138 3,458 Unearned contract revenue 44,290 39,646 Lease obligations 5,671 5,819 Contingent earn-out 10,177 16,147 Derivative liabilities 272 53 Total current liabilities 195,303 198,219 NON-CURRENT LIABILITIES Debt facility 164,750 130,750 Lease obligations 35,972 37,634 Unearned contract revenue 13,931 14,704 Deferred tax liabilities 18,563 18,912 Total non-current liabilities 233,216 202,000 TOTAL LIABILITIES 428,519 400,219 SHAREHOLDERS’ EQUITY Issued capital 224,472 220,345 Contributed surplus 5,322 7,312 Retained earnings 86,262 84,360 Accumulated other comprehensive income (loss) 5,937 9,264 TOTAL SHAREHOLDERS’ EQUITY 321,993 321,281
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 750,512 $ 721,500 Number of common shares issued and outstanding 11,414,163 11,350,168 CALIAN GROUP LTD. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF NET PROFIT For the three months ended December 31, 2025 and 2024 (Canadian dollars in thousands, except per share data) Three months ended December 31, 2025 2024 Revenue $ 208,000 $ 185,047 Cost of revenues 137,097 126,246 Gross profit 70,903 58,801 Selling, general and administrative 45,818 38,105 Research and development 2,270 2,896 Share-based compensation 1,012 1,091 Profit before under noted items 21,803 16,709 Restructuring expense 419 692 Depreciation and amortization 11,005 11,540 Mergers and acquisition costs 1,018 2,320 Profit before interest and income tax expense 9,361 2,157 Interest expense 2,216 1,783 Income tax expense 2,048 1,350 NET PROFIT (LOSS) $ 5,097 $ (976) Net profit (loss) per share: Basic $ 0.45 $ (0.08) Diluted $ 0.44 $ (0.08) CALIAN GROUP LTD. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the three months ended December 31, 2025 and 2024 (Canadian dollars in thousands) Three months ended December 31, 2025 2024 CASH FLOWS GENERATED FROM (USED IN) OPERATING ACTIVITIES Net profit (loss) $ 5,097 $ (976) Items not affecting cash: Interest expense 1,694 1,295 Changes in fair value related to contingent earn-out 100 558 Lease obligations interest expense 522 488 Income tax expense 2,048 1,350 Share based compensation expense 1,012 1,091 Depreciation and amortization 11,005 11,540 Deemed compensation 339 1,563 21,817 16,909 Change in non-cash working capital Accounts receivable (2,449) (167) Work in process 1,413 232 Prepaid expenses and other (10,217) (2,739) Inventory (300) (6,241) Accounts payable and accrued liabilities (332) (858) Unearned contract revenue 3,871 1,294
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13,803 8,430 Interest paid (2,216) (1,783) Income tax paid (4,420) (2,265) 7,167 4,382 CASH FLOWS GENERATED FROM (USED IN) FINANCING ACTIVITIES Issuance of common shares net of costs 376 881 Dividends (3,195) (3,292) Net draw on debt facility 34,000 26,000 Payment of lease obligations (1,599) (1,442) Repurchase of common shares — (4,926) 29,582 17,221 CASH FLOWS USED IN INVESTING ACTIVITIES Business acquisitions (18,184) (11,215) Property, plant and equipment (2,030) (1,136) (20,214) (12,351) NET CASH INFLOW $ 16,535 $ 9,252 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 46,101 51,788 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 62,636 $ 61,040 Reconciliation of Non-GAAP Measures to Most Comparable IFRS Measures These non-GAAP measures are mainly derived from the consolidated financial statements, but do not have a standardized meaning prescribed by IFRS; therefore, others using these terms may calculate them differently. The exclusion of certain items from non-GAAP performance measures does not imply that these are necessarily nonrecurring. From time to time, we may exclude additional items if we believe doing so would result in a more transparent and comparable disclosure. Other entities may define the above measures differently than we do. In those cases, it may be difficult to use similarly named non- GAAP measures of other entities to compare performance of those entities to the Company’s performance. Management believes that providing certain non-GAAP performance measures, in addition to IFRS measures, provides users of the Company’s financial reports with enhanced understanding of the Company’s results and related trends and increases transparency and clarity into the core results of the business. Adjusted EBITDA excludes items that do not reflect, in our opinion, the Company’s core performance and helps users of our MD&A to better analyze our results, enabling comparability of our results from one period to another. Adjusted EBITDA Three months ended December 31, 2025 2024 Net profit (loss) $ 5,097 $ (976) Share-based compensation 1,012 1,091 Restructuring expense 419 692 Depreciation and amortization 11,005 11,540 Mergers and acquisition costs 1,018 2,320 Interest expense 2,216 1,783 Income tax expense 2,048 1,350 Adjusted EBITDA $ 22,815 $ 17,800 Adjusted EBITDA per share - Basic 2.00 1.51 Adjusted EBITDA per share - Diluted $ 1.99 $ 7.68 Adjusted Net Profit and Adjusted EPS Three months ended December 31, 2025 2024 Net profit (loss) $ 5,097 $ (976) Share-based compensation 1,012 1,091 Restructuring expense 419 692 Mergers and acquisition costs 1,018 2,320 Amortization of intangibles 6,384 7,334 13,930 10,461
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Income taxes related to above items (2,160) (2,053) Adjusted net profit 11,770 8,408 Weighted average number of common shares basic 11,379,277 11,773,465 Adjusted EPS Basic 1.03 0.71 Adjusted EPS Diluted $ 1.03 $ 0.71 Operating Free Cash Flow Three months ended December 31, 2025 2024 Cash flows generated from operating activities (free cash flow) $ 7,167 $ 4,382 Adjustments: M&A costs included in operating activities 579 199 Change in non-cash working capital 8,014 8,479 Operating free cash flow $ 15,760 $ 13,060 Operating free cash flow per share - basic 1.38 6.10 Operating free cash flow per share - diluted 1.38 6.02 Operating free cash flow conversion 69% 73% Net Debt to Adjusted EBITDA December 31, December 31, 2025 2024 Cash $ 62,636 $ 61,040 Debt facility 164,750 115,750 Net debt (net cash) 102,114 54,710 Trailing twelve month adjusted EBITDA 83,433 88,602 Net debt to adjusted EBITDA 1.2 0.6 Operating free cash flow measures the company’s cash profitability after required capital spending when excluding working capital changes. The Company’s ability to convert adjusted EBITDA to operating free cash flow is critical for the long term success of its strategic growth. These measurements better align the reporting of our results and improve comparability against our peers. We believe that securities analysts, investors and other interested parties frequently use non-GAAP measures in the evaluation of issuers. Management also uses non-GAAP measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess our ability to meet our capital expenditure and working capital requirements. Non-GAAP measures should not be considered a substitute for or be considered in isolation from measures prepared in accordance with IFRS. Investors are encouraged to review our financial statements and disclosures in their entirety and are cautioned not to put undue reliance on non-GAAP measures and view them in conjunction with the most comparable IFRS financial measures. The Company has reconciled adjusted profit to the most comparable IFRS financial measure as shown above.