Calian Group Ltd. is set for a leadership transition as CEO Kevin Ford steps down after a decade at the helm, marking the end of a 15-year tenure with the company. Effective January 1, 2026, Patrick Houston, currently serving as Chief Financial Officer and Chief Development Officer, will assume the role of CEO. Ford’s departure, which he describes as a personal decision, comes amid a broader strategic review and pressure from activist investor Matt Proud, who holds a 5% stake in the company through his firm Plantro Ltd.
Ford, 61, emphasized that his decision to retire was not influenced by Plantro’s campaign but rather a desire to step back after years of leading a publicly traded company. “The energy it takes to run a publicly traded company in today’s world is not insignificant,” he said. “I felt it was a good time for me to take some time, recharge, reflect, spend time with family and friends.”
Proud, however, sees the leadership change as an opportunity for a strategic reset. In a letter to the board obtained by The Globe and Mail, Plantro urged Calian to divest its underperforming IT and cyber solutions (ITCS) division, appoint Plantro representatives to the board, and initiate a strategic review led by independent directors recommended by the activist investor. Proud’s plan calls for a refocus on defence, space, and health markets, along with a divestment of non-core assets to capitalize on Canada’s defence spending surge.
Calian, which operates in defence, technology, health, training, and IT and cyber solutions, is currently conducting its own portfolio review, a process Ford insists was underway before Plantro’s intervention. “Defence, space and health will continue to be a focus for us moving forward,” he said. “As we look at other areas of our business, we will decide how best to either optimize them or maybe look at a different home for them longer term.”
While Ford acknowledged the possibility of divesting certain business units, he maintained that the ITCS division remains integral to Calian’s defence capabilities. “Having a cyber capability is going to be critical to attack the defence market,” he said. The company’s November earnings report is expected to provide further clarity on its strategic direction.
Houston, the incoming CEO, has outlined plans to deepen Calian’s presence in defence, space, and health markets while simplifying the business and redeploying capital from non-core assets. His background in technology, securities, and his role on the board of the Canadian Association of Defence and Security Industries positions him to navigate the company through this transitional phase.
The leadership shift comes at a pivotal moment for Calian, as Canada ramps up defence spending under Prime Minister Mark Carney’s pledge to increase allocations to 2% of GDP this fiscal year and 5% by 2035. This surge in investment presents both challenges and opportunities, particularly as the company weighs the potential divestment of its ITCS division against its strategic importance in the defence sector.
As Calian moves forward, the interplay between internal strategic reviews, activist investor pressure, and the broader geopolitical landscape will shape its trajectory. The company’s ability to adapt and refocus its business could set a precedent for other defence contractors navigating similar pressures in an evolving market.