CAE Inc

Latest Results (16.11.2025):

For CAE Inc’s Q1-2026 financial results (fiscal first quarter ended June 30, 2025), the company delivered a robust performance with overall revenue growth, significant operating income improvement, and enhanced earnings per share. Both Civil Aviation and Defense segments contributed to these positive outcomes, reflecting strong execution in a dynamic market environment and underpinned by a strategic shift to capitalize on long-term opportunities. The report also outlines key leadership transitions, as the company prepares for its next chapter with the appointment of a new CEO.

Overall Financial Performance

CAE Inc reported total revenue of $1,098.6 million, up by 2% from the previous year, and operating income increased by 23% to $133.8 million—even accounting for transition costs. Earnings per share from continuing operations rose 20% from $0.15 to $0.18, with adjusted EPS remaining stable at $0.21, underscoring improved profitability and margin expansion across the board.

Civil Aviation Highlights

The Civil segment saw revenue increase to $607.7 million (a 3% rise) with operating income growing by 11% to $99.4 million. Despite a slight decline in training centre utilization (from 76% to 71%), the segment continued to secure long-term contracts valued at $511.4 million, supporting a robust adjusted backlog that grew by 27% to $8.4 billion.

Defense and Security Highlights

In the Defense segment, revenue improved marginally to $490.9 million while operating income surged by 83% to $34.4 million, reflecting strong margin expansion. The segment also reported a 45% increase in adjusted segment operating income and secured robust order intake, reinforcing CAE’s position to benefit from sustained defense spending and the strategic reinvestment initiatives among NATO members.

Additional Financial and Strategic Developments

Other notable points include an 18% increase in net income attributable to equity holders and a higher effective tax rate, partly due to varied income mixes. The company’s net cash used in operating activities and free cash flow were impacted by higher investment in working capital, while capital expenditures reached $106.9 million. CAE Inc also announced key leadership changes with Matthew Bromberg set to succeed Marc Parent as CEO, and Calin Rovinescu transitioning to Executive Chairman, highlighting a strategic realignment towards operational excellence and disciplined capital allocation.