Calian (CGY) added another 7% on its Q3 results, which beat on ~20% revenue growth and crushed EPS estimates thanks to 120 bps of Y/Y margin expansion…

… that should continue, with management calling for mid-teens and low-20s revenue and EBITDA growth for 2026 - underpinned by a $1.6B backlog that includes its recent $300M+ British Army contract and $24M acquisition of Galaxy.

At sub-1x leverage and $180M of liquidity, there’s likely more tuck-in M&A on the menu. We could see a larger deal too, with the 2.5x threshold notably absent from the Q3 materials (tin foil, but it’s been there since 2024)…

… a heightened sense of urgency around capital deployment from management given the demand backdrop…

❝

… we are trying to prepare ourselves so that we can accelerate the pace, we can find strong ideas that we can deploy capital on, and build more scale that will be rewarded over the longer term.

Patrick Houston (CEO) - CGY Q2’26 call

… and a multiple that allows for equity issuance if needed.

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