CAE Reports Strong Financial Growth in Second Quarter of Fiscal Year 2026
CAE Reports Second Quarter Fiscal 2026 Results
CAE Inc., a leading global provider of training and simulation solutions, has announced its financial results for the second quarter of fiscal year 2026, which ended on September 30, 2025. The company reported significant growth in both revenue and earnings per share (EPS), indicating a robust performance amidst evolving market conditions.
Financial Highlights
For the quarter, CAE's total revenue reached $1,236.6 million, a notable increase from $1,136.6 million reported in the same period last year. Earnings per share surged to $0.23, a substantial rise from $0.16 for the previous year. While the adjusted EPS saw a slight decline to $0.23 from $0.24 year-over-year, the overall financial health of the company remains strong. CAE generated net cash of $214.0 million from operating activities, contrasting with $162.1 million last year, further underscoring its operational efficiency.
Segment Performance
Both CAE’s Civil and Defense segments have shown resilience in a challenging market. The Civil segment reported revenues of $670.0 million, up from $640.7 million, bolstered by strong demand for aviation training and regulatory compliance requirements for pilots. The Defense segment also exhibited robust growth, with revenues increasing to $566.6 million, compared to $495.9 million in the prior year. This reflects a growing demand for CAE’s advanced simulation technologies and training solutions in defense applications.
The company’s adjusted operating income for the Civil segment was $108.7 million, while the Defense segment’s adjusted operating income increased to $46.6 million. These figures highlight the effectiveness of CAE's strategic initiatives to enhance operational performance across both segments.
Transformation Initiatives
In conjunction with these financial results, CAE has announced organizational changes aimed at streamlining its operations and enhancing execution. The company is embarking on a transformation plan that includes simplifying its organizational structure and focusing on operational excellence. Notably, Nick Leontidis, the Chief Operating Officer, will retire at the end of the year, and Alexandre Prevost has been appointed as the President of Civil Aviation to consolidate leadership in training services.
Market Outlook
The future looks promising for CAE as it navigates significant investments in defense across the United States, Canada, and Europe, paired with a strong demand in civil aviation. The company holds an adjusted backlog exceeding $19 billion, indicating considerable opportunities for future growth. Additionally, with a low double-digit growth outlook in Defense, CAE appears well-positioned to leverage market trends and foster long-term investments.
Conclusion
Overall, CAE’s second quarter results signify a strong momentum in its financial performance and a commitment to innovation in training and simulation solutions. With a dedicated focus on operational efficiency and strategic growth, CAE is set to continue delivering value to its stakeholders and customers. As the global aviation and defense sectors demand increasingly sophisticated training and simulation solutions, CAE stands ready to meet these challenges head-on.