CAE reports second quarter fiscal 2026 results
CAE (NYSE:CAE) reported second quarter fiscal 2026 results for the period ended Sept 30, 2025: revenue $1,236.6M (+9% YoY), operating income $155.3M (12.6% of revenue, +31% YoY), net income $73.9M (+41% YoY) and EPS $0.23 (+44% YoY). Adjusted EPS was $0.23 vs $0.24 prior year. Net cash from operations was $214.0M and free cash flow was $201.0M (+44% YoY). CAE revised its Civil outlook (annual aSOI margin ~20%) while maintaining Defense guidance (low double‑digit aSOI growth; 8–8.5% margin).
Operational actions: CEO announced a transformation plan and organizational streamlining, including leadership changes and a new SVP, Operations, to improve efficiency and capital discipline.
CAE (NYSE:CAE) ha riportato i risultati del secondo trimestre dell'anno fiscale 2026 per il periodo terminato il 30 settembre 2025: fatturato 1.236,6 milioni di dollari (+9% su base annua), utile operativo 155,3 milioni di dollari (12,6% del fatturato, +31% su base annua), utile netto 73,9 milioni di dollari (+41% su base annua) e EPS 0,23 dollari (+44% su base annua). L'EPS rettificato è stato 0,23 contro 0,24 dell'anno precedente. Il flusso di cassa netto dalle operazioni è stato 214,0 milioni di dollari e il flusso di cassa disponibile è stato 201,0 milioni di dollari (+44% su base annua). CAE ha rivisto le sue previsioni per Civil (margine annuo aSOI ~20%) mantenendo la guidance per Defense (crescita aSOI a doppia cifra bassa; margine 8–8,5%).
Azioni operative: il CEO ha annunciato un piano di trasformazione e di razionalizzazione organizzativa, inclusi cambi di leadership e una nuova SVP, Operations, per migliorare l'efficienza e la disciplina del capitale.
CAE (NYSE:CAE) presentó los resultados del segundo trimestre fiscal 2026 para el periodo terminado el 30 de septiembre de 2025: ingresos 1.236,6 millones de dólares (+9% interanual), ingreso operativo 155,3 millones de dólares (12,6% de los ingresos, +31% interanual), utilidad neta 73,9 millones de dólares (+41% interanual) y EPS 0,23 dólares (+44% interanual). El EPS ajustado fue 0,23 frente a 0,24 del año anterior. El flujo neto de efectivo de las operaciones fue 214,0 millones de dólares y el flujo de caja libre fue 201,0 millones de dólares (+44% interanual). CAE revisó su perspectiva Civil (margen aSOI anual ~20%) mientras mantiene la guía de Defense (crecimiento aSOI de dos cifras bajas; margen 8–8,5%).
Acciones operativas: el CEO anunció un plan de transformación y simplificación organizacional, incluyendo cambios de liderazgo y un nuevo SVP, Operations, para mejorar la eficiencia y la disciplina de capital.
CAE(NYSE:CAE)는 2025년 9월 30일 종료된 회계연도 제2분기 실적을 발표했습니다: 매출 12억 3,660만 달러 (+전년 대비 9%), 영업이익 1억 5,530만 달러 (매출의 12.6%, +전년 대비 31%), 순이익 7,390만 달러 (+전년 대비 41%) 및 주당순이익(EPS) 0.23달러 (+44% 전년 대비). 조정된 EPS는 0.23으로 작년 0.24 대비했습니다. 영업현금흐름은 2.14억 달러이고 자유현금흐름은 2.01억 달러 (+44% 전년 대비). CAE는 Civil의 연간 aSOI 마진을 약 20%로 전망을 수정했고 방위부문 가이드는 유지했습니다(저더블 디지트의 낮은 증가율의 aSOI 성장; 마진 8–8.5%).
운영 조치: CEO가 변혁 계획과 조직 간소화를 발표했고, 리더십 교체와 새로운 SVP, Operations를 포함해 효율성과 자본규율을 개선할 것이라고 밝혔습니다.
CAE (NYSE:CAE) a publié les résultats du deuxième trimestre de l'exercice 2026 pour la période se terminant le 30 septembre 2025 : chiffre d'affaires 1 236,6 M$ (+9% en glissement annuel), résultat opérationnel 155,3 M$ (12,6% du chiffre d'affaires, +31% en glissement annuel), résultat net 73,9 M$ (+41% en glissement annuel) et EPS 0,23$ (+44% en glissement annuel). L'EPS ajusté était de 0,23 contre 0,24 l'année précédente. Le flux de trésorerie net des activités opérationnelles était de 214,0 M$ et le flux de trésorerie disponible de 201,0 M$ (+44% en glissement annuel). CAE a révisé ses perspectives Civil (marge annuelle aSOI d'environ 20%) tout en maintenant les objectifs Defense (croissance aSOI à deux chiffres faibles ; marge 8–8,5%).
Actions opérationnelles : le PDG a annoncé un plan de transformation et de rationalisation organisationnelle, y compris des changements de leadership et un nouvel SVP, Operations, pour améliorer l'efficience et la discipline du capital.
CAE (NYSE:CAE) berichtete die Ergebnisse des zweiten Quartals des Geschäftsjahres 2026 für den Zeitraum bis zum 30. September 2025: Umsatz 1.236,6 Mio. $ (+9% YoY), operatives Ergebnis 155,3 Mio. $ (12,6% des Umsatzes, +31% YoY), Nettoeinkommen 73,9 Mio. $ (+41% YoY) und EPS 0,23 $ (+44% YoY). Das bereinigte EPS betrug 0,23 gegenüber 0,24 im Vorjahr. Der Nettocashflow aus operativer Tätigkeit lag bei 214,0 Mio. $ und der freie Cashflow bei 201,0 Mio. $ (+44% YoY). CAE überarbeitete seine Civil-Prognose (Jahres-aSOI-Marge ca. 20%), während die Defense-Guidance beibehalten wurde (niedrig zweistellige aSOI-Wachstumsrate; Marge 8–8,5%).
Operative Maßnahmen: Der CEO kündigte einen Transformationsplan und eine organisatorische Straffung an, einschließlich Führungswechseln und einem neuen SVP, Operations, um Effizienz und Kapitaldisziplin zu verbessern.
CAE (NYSE:CAE) أعلنت عن نتائج الربع الثاني من السنة المالية 2026 للفترة المنتهية في 30 سبتمبر 2025: الإيرادات 1,236.6 مليون دولار (+9% على أساس سنوي)، صافي الدخل التشغيلي 155.3 مليون دولار (12.6% من الإيرادات، +31% على أساس سنوي)، صافي الربح 73.9 مليون دولار (+41% على أساس سنوي) و ربحية السهم 0.23 دولار (+44% على أساس سنوي). كان EPS المعدل 0.23 مقابل 0.24 في العام السابق. صافي التدفق النقدي من العمليات بلغ 214.0 مليون دولار والتدفق النقدي الحر كان 201.0 مليون دولار (+44% على أساس سنوي). عدّلت CAE توقعاتها لقطاع المدني (هامش aSOI السنوي نحو 20%) مع الاحتفاظ بتوجيهات الدفاع (نمو aSOI بمعدل دوؤدي منخفض؛ الهامش 8–8.5%).
الإجراءات التشغيلية: أعلن الرئيس التنفيذي عن خطة تحول وتبسيط تنظيمي، بما في ذلك تغييرات في القيادة وتعيين نائب رئيس أول جديد للعمليات، بهدف تحسين الكفاءة والانضباط الرأسمالي.
- Revenue +9% to $1,236.6M in Q2-2026
- Operating income +31% to $155.3M
- Net cash from operations $214.0M and free cash flow $201.0M (+44% YoY)
- Civil adjusted backlog +27% to $8,477.1M
- Defense adjusted backlog remains > $11.1B with $6.1B bids pending
- Adjusted order intake down 61% YoY to $1,148.6M
- Civil utilization declined to 64% (from 70%) and FFS deliveries down 33%
- Adjusted EPS slipped to $0.23 from prior-year adjusted $0.24
- Adjusted effective tax rate rose to 23% from 18%, pressuring adjusted EPS
Insights
CAE shows revenue, operating income and cash flow gains; Defense strength offsets Civil headwinds while management begins a cost-focused transformation.
CAE reported consolidated revenue of
The business drivers differ by segment. Civil revenue grew to
Management launched a transformation to cut complexity and improve capital discipline, removing the COO role and consolidating Civil and Defence reporting lines, while naming new leaders. Monitor near-term effects on costs and execution, the Civil adjusted segment operating income margin guidance of roughly
• Revenue of
"In my first few months as CEO, I've gained a deep appreciation for CAE's extraordinary people, our strong customer relevancy, our industry-leading technology, and strong market positions," said Matthew Bromberg, CAE's President and CEO. "Combined, this has enabled incredible growth and I see opportunity for significant continued growth. However, it is time to balance growth with asset and operational efficiency. To that end, we have launched a transformation plan to sharpen our portfolio, strengthen capital discipline, and elevate performance, including a focus on cost transformation. These three priorities will guide how we operate, invest, and create long-term value.
With generational defence investments planned in
Both Civil and Defense performed broadly as expected this quarter, and we remain focused on disciplined execution while advancing the transformation that will define our next chapter."
Streamlined organizational structure
As a first step in transformation, CAE announced organizational changes to simplify its structure and strengthen execution.
Nick Leontidis will retire at the end of the calendar year and transition to the role of Special Advisor to the CEO. The Chief Operating Officer role will be eliminated, thereby reducing a management layer and moving CAE to a more streamlined, business-led operating model organized around driving excellence across product and service delivery.
Leadership has also been streamlined with the appointment of Alexandre Prevost as President of Civil Aviation. The decision to consolidate commercial and business aviation training together is intended to accelerate the transformation, and to improve utilization and efficiency on a global scale. This move also establishes a single, integrated civil aviation training services organization designed to enhance customer experience and drive operational excellence. Mr.
In Defense, CAE has taken similar steps to simplify and better align the organization, consolidating into two from three defence organizations. Merrill Stoddard will continue to lead CAE's
As part of its transformation, CAE has also established a new position of Senior Vice President, Operations, to enhance consistency, efficiency, and performance across its products organization and drive greater synergies between its Civil and Defense businesses. Juan Araujo, who will join CAE and assume the role in January, brings more than 25 years of international aerospace and industrial experience, with a proven track record of driving operational excellence across complex global businesses. In this role, Mr. Araujo will oversee the integration of several previously dispersed functional areas into a single, end‑to‑end products team, strengthening execution, accountability, quality, cost and speed to market.
These are early but important steps toward a simpler, more agile CAE — one that's aligned to deliver sustainable value creation.
Consolidated results
Second quarter fiscal 2026 revenue was
Operating income this quarter was
|
Summary of consolidated results |
|
|
|
|
|
|
|
(amounts in millions, except per share amounts) |
|
Q2-2026 |
|
Q2-2025 |
|
Variance % |
|
Revenue |
$ |
1,236.6 |
$ |
1,136.6 |
|
9 % |
|
$ |
155.3 |
$ |
118.1 |
|
31 % |
|
|
Adjusted segment operating income(1) |
$ |
155.3 |
$ |
149.0 |
|
4 % |
|
As a % of revenue(1) |
% |
12.6 |
% |
13.1 |
|
|
|
Net income attributable to equity holders of the Company |
$ |
73.9 |
$ |
52.5 |
|
41 % |
|
Earnings per share (EPS) |
$ |
0.23 |
$ |
0.16 |
|
44 % |
|
Adjusted EPS(1) |
$ |
0.23 |
$ |
0.24 |
|
(4 %) |
|
Adjusted order intake(1) |
$ |
1,148.6 |
$ |
2,955.3 |
|
(61 %) |
|
Adjusted backlog(1) |
$ |
19,637.1 |
$ |
18,041.2 |
|
9 % |
|
(1) This press release includes non-IFRS financial measures, non-IFRS ratios, capital management measures and supplementary financial measures. These measures are not standardized financial measures prescribed under IFRS and therefore should not be confused with, or used as an alternative for, performance measures calculated according to IFRS. Furthermore, these measures should not be compared with similarly titled measures provided or used by other issuers. Refer to the "Non-IFRS and other financial measures" section of this press release for the definitions and a reconciliation of these measures to the most directly comparable measure under IFRS. |
Civil Aviation (Civil)
Second quarter Civil revenue was
During the quarter, Civil signed training solutions contracts valued at
The Civil book-to-sales ratio(1) was 0.88 times for the quarter and 1.22 times for the last 12 months. The Civil adjusted backlog at the end of the quarter was
|
Summary of Civil Aviation results |
||||||
|
(amounts in millions) |
|
Q2-2026 |
|
Q2-2025 |
|
Variance % |
|
Revenue |
$ |
670.0 |
$ |
640.7 |
|
5 % |
|
Operating income |
$ |
108.7 |
$ |
94.7 |
|
15 % |
|
Adjusted segment operating income |
$ |
108.7 |
$ |
115.9 |
|
(6 %) |
|
As a % of revenue |
% |
16.2 |
% |
18.1 |
|
|
|
Adjusted order intake |
$ |
592.8 |
$ |
693.3 |
|
(14 %) |
|
Adjusted backlog |
$ |
8,477.1 |
$ |
6,663.1 |
|
27 % |
|
|
|
|
|
|
|
|
|
Supplementary non-financial information |
|
|
|
|
|
|
|
Simulator equivalent unit |
|
297 |
|
276 |
|
8 % |
|
FFSs in CAE's network |
|
369 |
|
355 |
|
4 % |
|
FFS deliveries |
|
12 |
|
18 |
|
(33 %) |
|
Utilization rate |
% |
64 |
% |
70 |
|
(9 %) |
Defense and Security (Defense)
Second quarter Defense revenue was
Defense booked orders for
|
Summary of Defense and Security results |
||||||
|
(amounts in millions) |
|
Q2-2026 |
|
Q2-2025 |
|
Variance % |
|
Revenue |
$ |
566.6 |
$ |
495.9 |
|
14 % |
|
Operating income |
$ |
46.6 |
$ |
23.4 |
|
99 % |
|
Adjusted segment operating income |
$ |
46.6 |
$ |
33.1 |
|
41 % |
|
As a % of revenue |
% |
8.2 |
% |
6.7 |
|
|
|
Adjusted order intake |
$ |
555.8 |
$ |
2,262.0 |
|
(75 %) |
|
Adjusted backlog |
$ |
11,160.0 |
$ |
11,378.1 |
|
(2 %) |
Additional financial highlights
Net finance expense this quarter was
Income tax expense this quarter amounted to
Net cash provided by operating activities was
Growth and maintenance capital expenditures(1) totaled
Net debt(1) at the end of the quarter was
Adjusted return on capital employed(1) was
During the quarter, CAE repurchased and cancelled a total of 61,900 common shares under its normal course issuer bid (NCIB), at a weighted average price of
|
(1) This press release includes non-IFRS financial measures, non-IFRS ratios, capital management measures and supplementary financial measures. These measures are not standardized financial measures prescribed under IFRS and therefore should not be confused with, or used as an alternative for, performance measures calculated according to IFRS. Furthermore, these measures should not be compared with similarly titled measures provided or used by other issuers. Refer to the "Non-IFRS and other financial measures" section of this press release for the definitions and a reconciliation of these measures to the most directly comparable measure under IFRS. |
Management outlook
Civil
CAE's Civil business continues to benefit from strong and durable fundamentals in a secular growth market for aviation training solutions. The business is underpinned by global regulatory requirements mandating recurrent training — typically every six months — for pilots and crew to maintain certification on each aircraft type. This built‑in regulatory cadence provides a stable, recurring demand base that makes Civil inherently less cyclical.
Additional growth is driven by the ongoing need to train new pilots due to fleet expansion and retirements, as well as transition training for existing pilots moving between aircraft platforms. Business aviation training, which represents roughly half of Civil's profitability, continues to see steady demand, supported by record flight activity.
During the first half of the fiscal year, Civil experienced slower-than-usual order activity, with a total of 12 FFS sales and a book-to-sales ratio of 0.86 times. While CAE continues to maintain its leading market share, the first half reflected a decrease in commercial airline pilot hiring activity — down approximately
For the current fiscal year, CAE continues to expect a stronger second half, consistent with usual seasonality and its FFS delivery profile. However, given the slower pace of recovery, Civil adjusted segment operating income (aSOI) is expected to be roughly in line with the prior year, with an annual aSOI margin in the
Commercial aviation continues to be most affected by new aircraft availability, aircraft groundings, and pilot hiring. Despite these near-term dynamics, demand is expected to strengthen over the long term as production and delivery rates increase, grounded aircraft return to service, and pilot retirements continue. Aircraft Original Equipment Manufacturers continue to manage record backlogs. Together, these factors reinforce the long-term trajectory of Civil training demand. The benefits of the underlying market recovery are expected to be more pronounced in fiscal 2027 and beyond.
Defense
Management believes CAE is exceptionally well positioned for long-term growth and enhanced profitability in Defense, supported by an adjusted backlog exceeding
In
Heightened geopolitical tensions, modernization imperatives, and a global shortage of uniformed personnel are driving sustained demand for CAE's training and simulation solutions, as militaries increasingly rely on the company to sustain readiness and mission effectiveness.
In Defense, management is maintaining its outlook of low double-digit annual aSOI growth and an aSOI margin in the range of
Capital expenditures
Management now expects total capital expenditures to be approximately
Other financial outlook items
Management's fiscal 2026 annual outlook remains unchanged for free cash flow, finance expense, tax expense, and capital allocation priorities, including deleveraging and shareholder returns.
Caution concerning outlook
Management's outlook for fiscal 2026 and the above targets and expectations constitute forward-looking statements within the meaning of applicable securities laws, and are based on a number of assumptions, including in relation to prevailing market conditions, macroeconomic and geopolitical factors, supply chains and labor markets. Expectations are also subject to a number of risks and uncertainties and based on assumptions about customer receptivity to CAE's training solutions and operational support solutions as well as material assumptions contained in this press release, quarterly Management's Discussion and Analysis (MD&A) and in CAE's fiscal 2025 MD&A, all available on our website (www.cae.com), SEDAR+ (www.SEDARplus.ca) and EDGAR (www.sec.gov). Please see the sections below entitled: "Caution concerning forward-looking statements", "Material assumptions" and "Material risks".
Detailed information
Readers are strongly advised to view a more detailed discussion of our results by segment in the MD&A and CAE's consolidated financial statements for the quarter ended September 30, 2025, which are available on our website (www.cae.com), SEDAR+ (www.SEDARplus.ca) and EDGAR (www.sec.gov). Holders of CAE's securities may also request a printed copy of the Company's consolidated financial statements and MD&A free of charge by contacting Investor Relations (investor.relations@cae.com).
Conference call Q2 FY2026
Calin Rovinescu, Executive Chairman of the Board; Matthew Bromberg, President and CEO; Nick Leontidis, COO; Constantino Malatesta, interim CFO; and Andrew Arnovitz, Senior Vice President, Investor Relations and Enterprise Risk Management, will conduct an earnings conference call tomorrow at 8:00 a.m. ET. The call is intended for analysts, institutional investors and the media. Participants can listen to the conference by dialing +1-800-990-2777 (Conference ID: 92863). The conference call will also be audio webcast live at www.cae.com.
Caution concerning limitations of summary earnings press release
This summary earnings press release contains limited information meant to assist the reader in assessing CAE's performance, but it is not a suitable source of information for readers who are unfamiliar with CAE and is not in any way a substitute for the Company's financial statements, notes to the financial statements, and MD&A reports.
Caution concerning forward-looking statements
This press release includes forward-looking statements about our activities, events and developments that we expect to or anticipate may occur in the future including, for example, statements about our vision, strategies, market trends and outlook, future revenues, earnings, cash flow growth, profit trends, growth capital spending, expansions and new initiatives, including initiatives that pertain to sustainability matters, financial obligations, available liquidities, expected sales, general economic and political outlook, inflation trends, prospects and trends of an industry, expected annual recurring cost savings from operational excellence programs, our management of the supply chain, estimated addressable markets, demands for CAE's products and services, our access to capital resources, our financial position, the expected accretion in various financial metrics, the expected capital returns to shareholders, our business outlook, business opportunities, objectives, development, plans, growth strategies and other strategic priorities, our competitive and leadership position in our markets, the expansion of our market shares, CAE's ability and preparedness to respond to demand for new technologies, the sustainability of our operations, our ability to retire the Legacy Contracts as expected and to manage and mitigate the risks associated therewith, the impact of the retirement of the Legacy Contracts, and other statements that are not historical facts.
Since forward-looking statements and information relate to future events or future performance and reflect current expectations or beliefs regarding future events, they are typically identified by words such as "anticipate", "believe", "could", "estimate", "expect", "intend", "likely", "may", "plan", "seek", "should", "will", "strategy", "future" or the negative thereof or other variations thereon suggesting future outcomes or statements regarding an outlook. All such statements constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995.
By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties associated with our business which may cause actual results in future periods to differ materially from results indicated in forward-looking statements. While these statements are based on management's expectations and assumptions regarding historical trends, current conditions and expected future developments, as well as other factors that we believe are reasonable and appropriate in the circumstances, readers are cautioned not to place undue reliance on these forward-looking statements as there is a risk that they may not be accurate. The forward‑looking statements contained in this press release describe our expectations as of November 11, 2025 and, accordingly, are subject to change after such date. Except as required by law, we disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. The forward-looking information and statements contained in this press release are expressly qualified by this cautionary statement. In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this press release. While we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements. Except as otherwise indicated by CAE, forward-looking statements do not reflect the potential impact of any special items or of any dispositions, monetizations, mergers, acquisitions, other business combinations or other transactions that may occur after November 11, 2025. The financial impact of these transactions and special items can be complex and depends on the facts particular to each of them. We therefore cannot describe the expected impact in a meaningful way or in the same way we present known risks affecting our business. Forward-looking statements are presented in this press release for the purpose of assisting investors and others in understanding certain key elements of our expected fiscal 2026 financial results and in obtaining a better understanding of our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.
Material assumptions
The forward-looking statements set out in this press release are based on certain assumptions including, without limitation: the prevailing market conditions, geopolitical instability including the rapidly evolving trade and tariff environment, the customer receptivity to our training and operational support solutions, the accuracy of our estimates of addressable markets and market opportunity, the realization of anticipated annual recurring cost savings and other intended benefits from restructuring initiatives and operational excellence programs, the ability to respond to anticipated inflationary pressures and our ability to pass along rising costs through increased prices, the actual impact to supply, production levels, and costs from global supply chain logistics challenges, the stability of foreign exchange rates, the ability to hedge exposures to fluctuations in interest rates and foreign exchange rates, the availability of borrowings to be drawn down under, and the utilization, of one or more of our senior credit agreements, our available liquidity from cash and cash equivalents, undrawn amounts on our revolving credit facility, the balance available under our receivable purchase facility, the assumption that our cash flows from operations and continued access to debt funding will be sufficient to meet financial requirements in the foreseeable future, access to expected capital resources within anticipated timeframes, no material financial, operational or competitive consequences from changes in regulations affecting our business, our ability to retain and attract new business, our ability to effectively execute and retire the remaining Legacy Contracts while managing the risks associated therewith, our ability to defend our position in the dispute with the buyer of the CAE Healthcare business, and the realization of the expected strategic, financial and other benefits of the increase of our ownership stake in SIMCOM Aviation Training in the timeframe anticipated. Air travel is a major driver for CAE's business and management relies on analysis from the International Air Transport Association (IATA) to inform its assumptions about the rate and profile of growth in its key civil aviation market. Accordingly, the assumptions outlined in this press release and, consequently, the forward‑looking statements based on such assumptions, may turn out to be inaccurate. For additional information, including with respect to other assumptions underlying the forward-looking statements made in this press release, refer to Section 11 "Business risk and uncertainty" of our MD&A for the year ended March 31, 2025 available on our website (www.cae.com), SEDAR+ (www.SEDARplus.ca) and EDGAR (www.sec.gov).
Material risks
Important risks that could cause actual results or events to differ materially from those expressed in or implied by our forward-looking statements are set out in CAE's MD&A for the fiscal year ended March 31, 2025 and MD&A for the three months ended September 30, 2025, available on our website (www.cae.com), SEDAR+ (www.SEDARplus.ca) and EDGAR (www.sec.gov). Readers are cautioned that any of the disclosed risks could have a material adverse effect on our forward-looking statements. We caution that the disclosed list of risk factors is not exhaustive and other factors could also adversely affect our results.
Non-IFRS and other financial measures
This press release includes non-IFRS financial measures, non-IFRS ratios, capital management measures and supplementary financial measures. These measures are not standardized financial measures prescribed under IFRS and therefore should not be confused with, or used as an alternative for, performance measures calculated according to IFRS. Furthermore, these measures should not be compared with similarly titled measures provided or used by other issuers. Management believes that these measures provide additional insight into our operating performance and trends and facilitate comparisons across reporting periods.
Certain non-IFRS and other financial measures are provided on a consolidated basis and separately for each of our segments (Civil Aviation and Defense and Security) since we analyze their results and performance separately.
Reconciliations and calculations of non-IFRS measures to the most directly comparable measures under IFRS are also set forth below in the section "Reconciliations and Calculations of this press release".
Performance measures
Gross profit margin (or gross profit as a % of revenue)
Gross profit margin is a supplementary financial measure calculated by dividing our gross profit by revenue for a given period. We track it because we believe it provides an enhanced understanding of our operating performance and facilitates the comparison across reporting periods.
Operating income margin (or operating income as a % of revenue)
Operating income margin is a supplementary financial measure calculated by dividing our operating income by revenue for a given period. We track it because we believe it provides an enhanced understanding of our operating performance and facilitates the comparison across reporting periods.
Adjusted segment operating income or loss
Adjusted segment operating income or loss is a non-IFRS financial measure that gives us an indication of the profitability of each segment because it does not include the impact of any items not specifically related to the segment's performance. We calculate adjusted segment operating income by taking operating income and adjusting for restructuring, integration and acquisition costs, and impairments and other gains and losses arising from significant strategic transactions or specific events. Impairments and other gains and losses arising from significant strategic transactions or specific events consist of the executive management transition costs (as described in Section 5.2 of the MD&A for the quarter ended September 30, 2025 and Section 5.6 of the MD&A for the year ended March 31, 2025), the gain on fair value remeasurement of SIMCOM (as described in Note 7 of our consolidated financial statements for the year ended March 31, 2025), the shareholder matters (as described in Section 5.5 of the MD&A for the year ended March 31, 2025), the impairment of goodwill (as described in Note 14 of our consolidated financial statements for the year ended March 31, 2024) and the impairment of technology and other non-financial assets (as described in Note 5 of our consolidated financial statements for the year ended March 31, 2024). We track adjusted segment operating income because we believe it provides an enhanced understanding of our operating performance and facilitates the comparison across reporting periods. Adjusted segment operating income on a consolidated basis is a total of segments measure since it is the profitability measure employed by management for making decisions about allocating resources to segments and assessing segment performance.
Adjusted segment operating income margin (or adjusted segment operating income as a % of revenue)
Adjusted segment operating income margin is a non-IFRS ratio calculated by dividing our adjusted segment operating income by revenue for a given period. We track it because we believe it provides an enhanced understanding of our operating performance and facilitates the comparison across reporting periods.
Adjusted effective tax rate
Adjusted effective tax rate is a supplementary financial measure that represents the effective tax rate on adjusted net income or loss. It is calculated by dividing our income tax expense by our earnings before income taxes, adjusting for the same items used to determine adjusted net income or loss. We track it because we believe it provides an enhanced understanding of the impact of changes in income tax rates and the mix of income on our operating performance and facilitates the comparison across reporting periods.
Adjusted net income or loss
Adjusted net income or loss is a non-IFRS financial measure we use as an alternate view of our operating results. We calculate it by taking our net income attributable to equity holders of the Company from continuing operations and adjusting for restructuring, integration and acquisition costs, and impairments and other gains and losses arising from significant strategic transactions or specific events, after tax, as well as significant one-time tax items. Impairments and other gains and losses arising from significant strategic transactions or specific events consist of the executive management transition costs (as described in Section 5.2 of the MD&A for the quarter ended September 30, 2025 and Section 5.6 of the MD&A for the year ended March 31, 2025), the gain on fair value remeasurement of SIMCOM (as described in Note 7 of our consolidated financial statements for the year ended March 31, 2025), the shareholder matters (as described in Section 5.5 of the MD&A for the year ended March 31, 2025), , the impairment of goodwill (as described in Note 14 of our consolidated financial statements for the year ended March 31, 2024), and the impairment of technology and other non-financial assets (as described in Note 5 of our consolidated financial statements for the year ended March 31, 2024) . We track adjusted net income because we believe it provides an enhanced understanding of our operating performance and facilitates the comparison across reporting periods.
Adjusted earnings or loss per share (EPS)
Adjusted earnings or loss per share is a non-IFRS ratio calculated by dividing adjusted net income or loss by the weighted average number of diluted shares. We track it because we believe it provides an enhanced understanding of our operating performance on a per share basis and facilitates the comparison across reporting periods.
EBITDA and Adjusted EBITDA
EBITDA is a non-IFRS financial measure which comprises net income or loss from continuing operations before income taxes, finance expense – net, depreciation and amortization. Adjusted EBITDA further adjusts for restructuring, integration and acquisition costs, and impairments and other gains and losses arising from significant strategic transactions or specific events. Impairments and other gains and losses arising from significant strategic transactions or specific events consist of the executive management transition costs (as described in Section 5.2 of the MD&A for the quarter ended September 30, 2025 and Section 5.6 of the MD&A for the year ended March 31, 2025), the gain on fair value remeasurement of SIMCOM (as described in Note 7 of our consolidated financial statements for the year ended March 31, 2025), the shareholder matters (as described in Section 5.5 of the MD&A for the year ended March 31, 2025), the impairment of goodwill (as described in Note 14 of our consolidated financial statements for the year ended March 31, 2024) and the impairment of technology and other non-financial assets (as described in Note 5 of our consolidated financial statements for the year ended March 31, 2024). We use EBITDA and adjusted EBITDA to evaluate our operating performance, by eliminating the impact of non-operational or non-cash items.
Free cash flow
Free cash flow is a non-IFRS financial measure that shows us how much cash we have available to invest in growth opportunities, repay debt and meet ongoing financial obligations. We use it as an indicator of our financial strength and liquidity. We calculate it by taking the net cash generated by our continuing operating activities, subtracting maintenance capital expenditures, intangible assets expenditures excluding capitalized development costs, other investing activities not related to growth and dividends paid and adding proceeds from the disposal of property, plant and equipment, dividends received from equity accounted investees and proceeds, net of payments, from equity accounted investees.
Liquidity and capital structure measures
Adjusted return on capital employed (ROCE)
Adjusted ROCE is a non-IFRS ratio calculated over a rolling four-quarter period by taking net income attributable to equity holders of the Company from continuing operations adjusting for net finance expense, after tax, restructuring, integration and acquisition costs, and impairments and other gains and losses arising from significant strategic transactions or specific events divided by the average capital employed from continuing operations. Impairments and other gains and losses arising from significant strategic transactions or specific events consist of the executive management transition costs (as described in Section 5.2 of the MD&A for the quarter ended September 30, 2025 and Section 5.6 of the MD&A for the year ended March 31, 2025), the gain on fair value remeasurement of SIMCOM (as described in Note 7 of our consolidated financial statements for the year ended March 31, 2025), the shareholder matters (as described in Section 5.5 of the MD&A for the year ended March 31, 2025), the impairment of goodwill (as described in Note 14 of our consolidated financial statements for the year ended March 31, 2024) and the impairment of technology and other non-financial assets (as described in Note 5 of our consolidated financial statements for the year ended March 31, 2024). We use adjusted ROCE to evaluate the profitability of our invested capital.
Net debt
Net debt is a capital management measure we use to monitor how much debt we have after taking into account cash and cash equivalents. We use it as an indicator of our overall financial position, and calculate it by taking our total long-term debt, including the current portion of long-term debt, and subtracting cash and cash equivalents.
Net debt-to-EBITDA and net debt-to-adjusted EBITDA
Net debt-to-EBITDA and net debt-to-adjusted EBITDA are non-IFRS ratios calculated as net debt divided by the last twelve months EBITDA (or adjusted EBITDA). We use net debt-to-EBITDA and net debt-to-adjusted EBITDA because they reflect our ability to service our debt obligations.
Maintenance and growth capital expenditures
Maintenance capital expenditure is a supplementary financial measure we use to calculate the investment needed to sustain the current level of economic activity. Growth capital expenditure is a supplementary financial measure we use to calculate the investment needed to increase the current level of economic activity. The sum of maintenance capital expenditures and growth capital expenditures represents our total property, plant and equipment expenditures.
Growth measures
Adjusted order intake
Adjusted order intake is a supplementary financial measure that represents the expected value of orders we have received:
- For the Civil Aviation segment, we consider an item part of our adjusted order intake when we have a legally binding commercial agreement with a client that includes enough detail about each party's obligations to form the basis for a contract. Additionally, expected future revenues from customers under short-term and long-term training contracts are included when these customers commit to pay us training fees, or when we reasonably expect the revenue to be generated;
- For the Defense and Security segment, we consider an item part of our adjusted order intake when we have a legally binding commercial agreement with a client that includes enough detail about each party's obligations to form the basis for a contract. Defense and Security contracts are usually executed over a long-term period but some of them must be renewed each year. For this segment, we only include a contract item in adjusted order intake when the customer has authorized the contract item and has received funding for it.
Adjusted backlog
Adjusted backlog is a supplementary financial measure that represents expected future revenues and includes obligated backlog, joint venture backlog and unfunded backlog and options:
- Obligated backlog represents the value of our adjusted order intake not yet executed and is calculated by adding the adjusted order intake of the current period to the balance of the obligated backlog at the end of the previous fiscal year, subtracting the revenue recognized in the current period and adding or subtracting backlog adjustments. If the amount of an order already recognized in a previous fiscal year is modified, the backlog is revised through adjustments;
- Joint venture backlog is obligated backlog that represents the expected value of our share of orders that our joint ventures have received but have not yet executed. Joint venture backlog is determined on the same basis as obligated backlog described above, but excludes any portion of orders that have been directly subcontracted to a CAE subsidiary, which are already reflected in the determination of obligated backlog;
- Unfunded backlog represents legally binding Defense and Security orders with the
U.S. government that we have received but have not yet executed and for which funding authorization has not yet been obtained. The uncertainty relates to the timing of the funding authorization, which is influenced by the government's budget cycle, based on a September year-end. Options are included in adjusted backlog when there is a high probability of being exercised, which we define as at least80% probable, but multi-award indefinite‑delivery/indefinite‑quantity (ID/IQ) contracts are excluded. When an option is exercised, it is considered adjusted order intake in that period, and it is removed from unfunded backlog and options.
Book-to-sales ratio
The book-to-sales ratio is a supplementary financial measure calculated by dividing adjusted order intake by revenue in a given period. We use it to monitor the level of future growth of the business over time.
Supplementary non-financial information definitions
Full-flight simulators (FFSs) in CAE's network
A FFS is a full-size replica of a specific make, model and series of an aircraft cockpit, including a motion system. In our count of FFSs in the network, we generally only include FFSs that are of the highest fidelity and do not include any fixed based training devices, or other lower-level devices, as these are typically used in addition to FFSs in the same approved training programs.
Simulator equivalent unit (SEU)
SEU is a measure we use to show the total average number of FFSs available to generate earnings during the period. For example, in the case of a 50/50 flight training joint venture, we will report only
Utilization rate
Utilization rate is a measure we use to assess the performance of our Civil simulator training network. While utilization rate does not perfectly correlate to revenue recognized, we track it, together with other measures, because we believe it is an indicator of our operating performance. We calculate it by taking the number of training hours sold on our simulators during the period divided by the practical training capacity available for the same period.
Reconciliations and Calculations
Reconciliation of adjusted segment operating income
|
|
|
Defense |
|
|
||
|
(amounts in millions) |
Civil Aviation |
and Security |
|
Total |
||
|
Three months ended September 30 |
2025 |
2024 |
2025 |
2024 |
2025 |
2024 |
|
Operating income |
$ 108.7 |
$ 94.7 |
$ 46.6 |
$ 23.4 |
$ 155.3 |
$ 118.1 |
|
Restructuring, integration and acquisition costs |
— |
21.2 |
— |
9.7 |
— |
30.9 |
|
Adjusted segment operating income |
$ 108.7 |
$ 115.9 |
$ 46.6 |
$ 33.1 |
$ 155.3 |
$ 149.0 |
Reconciliation of adjusted net income and adjusted EPS
|
|
|
|
|
|
Three months ended |
||
|
|
|
|
September 30 |
||||
|
(amounts in millions, except per share amounts) |
|
|
|
|
2025 |
|
2024 |
|
Net income attributable to equity holders of the Company |
|
$ 73.9 |
|
$ 52.5 |
|||
|
Restructuring, integration and acquisition costs, after tax |
|
|
|
|
— |
|
23.7 |
|
Adjusted net income |
|
|
|
|
$ 73.9 |
|
$ 76.2 |
|
|
|
|
|
|
|
|
|
|
Average number of shares outstanding (diluted) |
|
|
|
|
322.2 |
|
319.1 |
|
|
|
|
|
|
|
|
|
|
Adjusted EPS |
|
|
|
|
$ 0.23 |
|
$ 0.24 |
Calculation of adjusted effective tax rate
|
|
|
|
|
|
|
|
Three months ended |
||
|
|
|
|
|
|
|
|
September 30 |
||
|
(amounts in millions, except effective tax rates) |
|
|
|
|
|
|
2025 |
|
2024 |
|
Earnings before income taxes |
|
|
|
|
|
$ |
98.4 |
$ |
65.2 |
|
Restructuring, integration and acquisition costs |
|
|
|
|
|
|
— |
|
30.9 |
|
Adjusted earnings before income taxes |
|
|
|
|
|
$ |
98.4 |
$ |
96.1 |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
|
|
|
$ |
22.3 |
$ |
10.4 |
|
Tax impact on restructuring, integration and acquisition costs |
|
|
|
|
|
|
— |
|
7.2 |
|
Adjusted income tax expense |
|
|
|
|
|
$ |
22.3 |
$ |
17.6 |
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate |
|
|
|
|
|
% |
23 |
% |
16 |
|
Adjusted effective tax rate |
|
|
|
|
|
% |
23 |
% |
18 |
Reconciliation of free cash flow
|
|
|
|
|
|
|
|
|
Three months ended |
||
|
|
|
|
|
|
|
September 30 |
||||
|
(amounts in millions) |
|
|
|
|
|
|
|
2025 |
|
2024 |
|
Cash provided by operating activities* |
|
|
|
|
|
|
|
$ 186.1 |
|
$ 117.6 |
|
Changes in non-cash working capital |
|
|
|
|
|
|
|
27.9 |
|
44.5 |
|
Net cash provided by operating activities |
|
|
|
|
|
$ 214.0 |
|
$ 162.1 |
||
|
Maintenance capital expenditures |
|
|
|
|
|
|
|
(13.8) |
|
(20.6) |
|
Intangible assets expenditures excluding capitalized development costs |
|
|
|
|
|
(2.6) |
|
(7.7) |
||
|
Proceeds from the disposal of property, plant and equipment |
|
|
|
|
|
— |
|
0.2 |
||
|
Net (payments to) proceeds from equity accounted investees |
|
|
|
|
|
(5.0) |
|
0.3 |
||
|
Dividends received from equity accounted investees |
|
|
|
|
|
|
|
13.9 |
|
6.8 |
|
Other investing activities |
|
|
|
|
|
|
|
(5.5) |
|
(1.1) |
|
Free cash flow |
|
|
|
|
|
|
|
$ 201.0 |
|
$ 140.0 |
|
* before changes in non-cash working capital |
|
|
|
|
|
|
|
|
|
|
Reconciliation of EBITDA, adjusted EBITDA, net debt-to-EBITDA and net debt-to-adjusted EBITDA
|
|
|
|
Last twelve months ended |
||||
|
|
|
|
September 30 |
||||
|
(amounts in millions, except net debt-to-EBITDA ratios) |
|
|
|
|
2025 |
|
2024 |
|
Operating income (loss) |
|
|
|
|
$ 791.6 |
|
$ (184.7) |
|
Depreciation and amortization |
|
|
|
|
444.5 |
|
388.4 |
|
EBITDA |
|
|
|
|
$ 1,236.1 |
|
$ 203.7 |
|
Restructuring, integration and acquisition costs |
|
|
|
|
— |
|
135.0 |
|
Impairments and other gains and losses arising from |
|
|
|
|
|
|
|
|
significant strategic transactions or specific events: |
|
|
|
|
|
|
|
|
Executive management transition costs |
|
|
|
|
22.3 |
|
— |
|
Gain on fair value remeasurement of SIMCOM |
|
|
|
|
(72.6) |
|
— |
|
Shareholder matters |
|
|
|
|
10.6 |
|
— |
|
Impairment of goodwill |
|
|
|
|
— |
|
568.0 |
|
Impairment of technology and other non-financial assets |
|
|
|
|
— |
|
35.7 |
|
Adjusted EBITDA |
|
|
$ 1,196.4 |
|
$ 942.4 |
||
|
|
|
|
|
|
|
|
|
|
Net debt |
|
|
|
|
$ 3,186.5 |
|
$ 3,064.9 |
|
|
|
|
|
|
|
|
|
|
Net debt-to-EBITDA |
|
|
|
|
2.58 |
|
15.05 |
|
Net debt-to-adjusted EBITDA |
|
|
|
|
2.66 |
|
3.25 |
Reconciliation of capital employed and net debt
|
|
|
|
As at September 30 |
As at March 31 |
||
|
(amounts in millions) |
|
|
|
2025 |
|
2025 |
|
Use of capital: |
|
|
|
|
|
|
|
Current assets |
|
|
$ |
2,040.7 |
$ |
2,143.6 |
|
Less: cash and cash equivalents |
|
|
|
(178.7) |
|
(293.7) |
|
Current liabilities |
|
|
|
(2,445.2) |
|
(2,686.5) |
|
Less: current portion of long-term debt |
|
|
|
291.4 |
|
399.0 |
|
Non-cash working capital |
|
|
$ |
(291.8) |
$ |
(437.6) |
|
Property, plant and equipment |
|
|
|
3,051.5 |
|
2,989.5 |
|
Intangible assets |
|
|
|
3,771.7 |
|
3,871.0 |
|
Other long-term assets |
|
|
|
2,224.7 |
|
2,209.7 |
|
Other long-term liabilities |
|
|
|
(409.6) |
|
(479.9) |
|
Capital employed |
|
|
$ |
8,346.5 |
$ |
8,152.7 |
|
Source of capital: |
|
|
|
|
|
|
|
Current portion of long-term debt |
|
|
$ |
291.4 |
$ |
399.0 |
|
Long-term debt |
|
|
|
3,073.8 |
|
3,071.4 |
|
Less: cash and cash equivalents |
|
|
|
(178.7) |
|
(293.7) |
|
Net debt |
|
|
$ |
3,186.5 |
$ |
3,176.7 |
|
Equity attributable to equity holders of the Company |
|
|
|
5,078.7 |
|
4,891.5 |
|
Non-controlling interests |
|
|
|
81.3 |
|
84.5 |
|
Capital employed |
|
|
$ |
8,346.5 |
$ |
8,152.7 |
For non-IFRS and other financial measures monitored by CAE, and a reconciliation of such measures to the most directly comparable measure under IFRS, please refer to Section 9 of CAE's MD&A for the quarter ended September 30, 2025 (which is incorporated by reference into this press release) available on our website (www.cae.com), SEDAR+ (www.SEDARplus.ca) and EDGAR (www.sec.gov).
Consolidated Income Statement
|
(Unaudited) |
|
|
Three months ended September 30 |
|
Six months ended September 30 |
||||
|
(amounts in millions of Canadian dollars, except per share amounts) |
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Revenue |
|
$ |
1,236.6 |
$ |
1,136.6 |
$ |
2,335.2 |
$ |
2,209.1 |
|
Cost of sales |
|
|
917.3 |
|
845.5 |
|
1,707.6 |
|
1,639.3 |
|
Gross profit |
|
$ |
319.3 |
$ |
291.1 |
$ |
627.6 |
$ |
569.8 |
|
Research and development expenses |
|
|
37.0 |
|
37.2 |
|
73.7 |
|
73.1 |
|
Selling, general and administrative expenses |
|
|
148.3 |
|
127.6 |
|
307.7 |
|
261.1 |
|
Other (gains) and losses |
|
|
(5.4) |
|
(2.7) |
|
(5.4) |
|
(3.6) |
|
Share of after-tax profit of equity accounted investees |
|
|
(15.9) |
|
(20.0) |
|
(37.5) |
|
(44.0) |
|
Restructuring, integration and acquisition costs |
|
|
— |
|
30.9 |
|
— |
|
56.5 |
|
Operating income |
|
$ |
155.3 |
$ |
118.1 |
$ |
289.1 |
$ |
226.7 |
|
Finance expense – net |
|
|
56.9 |
|
52.9 |
|
111.5 |
|
102.4 |
|
Earnings before income taxes |
|
$ |
98.4 |
$ |
65.2 |
$ |
177.6 |
$ |
124.3 |
|
Income tax expense |
|
|
22.3 |
|
10.4 |
|
41.3 |
|
18.7 |
|
Net income |
|
$ |
76.1 |
$ |
54.8 |
$ |
136.3 |
$ |
105.6 |
|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
Equity holders of the Company |
|
$ |
73.9 |
$ |
52.5 |
$ |
131.1 |
$ |
100.8 |
|
Non-controlling interests |
|
|
2.2 |
|
2.3 |
|
5.2 |
|
4.8 |
|
Earnings per share attributable to equity holders of the Company |
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
0.23 |
$ |
0.16 |
$ |
0.41 |
$ |
0.32 |
Consolidated Statement of Comprehensive Income
|
(Unaudited) |
|
|
Three months ended September 30 |
|
Six months ended September 30 |
||||
|
(amounts in millions of Canadian dollars) |
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Net income |
|
$ |
76.1 |
$ |
54.8 |
$ |
136.3 |
$ |
105.6 |
|
Items that may be reclassified to net income |
|
|
|
|
|
|
|
|
|
|
Foreign currency exchange differences on translation of foreign operations |
|
$ |
121.5 |
$ |
15.4 |
$ |
(97.3) |
$ |
66.9 |
|
Net (loss) gain on hedges of net investment in foreign operations |
|
|
(48.6) |
|
24.4 |
|
64.3 |
|
5.3 |
|
Reclassification to income of gains on foreign currency exchange differences |
|
|
(2.0) |
|
— |
|
(3.7) |
|
(0.1) |
|
Net (loss) gain on cash flow hedges |
|
|
(12.2) |
|
5.7 |
|
6.6 |
|
(1.1) |
|
Reclassification to income of losses on cash flow hedges |
|
|
6.2 |
|
1.6 |
|
4.9 |
|
4.9 |
|
Income taxes |
|
|
2.0 |
|
(1.1) |
|
(2.7) |
|
(2.1) |
|
|
|
$ |
66.9 |
$ |
46.0 |
$ |
(27.9) |
$ |
73.8 |
|
Items that will never be reclassified to net income |
|
|
|
|
|
|
|
|
|
|
Remeasurement of defined benefit pension plan obligations |
|
$ |
27.3 |
$ |
(56.5) |
$ |
54.0 |
$ |
(54.2) |
|
Income taxes |
|
|
(7.2) |
|
15.0 |
|
(14.3) |
|
14.4 |
|
|
|
$ |
20.1 |
$ |
(41.5) |
$ |
39.7 |
$ |
(39.8) |
|
Other comprehensive income |
|
$ |
87.0 |
$ |
4.5 |
$ |
11.8 |
$ |
34.0 |
|
Total comprehensive income |
|
$ |
163.1 |
$ |
59.3 |
$ |
148.1 |
$ |
139.6 |
|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
Equity holders of the Company |
|
$ |
159.6 |
$ |
56.9 |
$ |
143.6 |
$ |
134.2 |
|
Non-controlling interests |
|
|
3.5 |
|
2.4 |
|
4.5 |
|
5.4 |
Consolidated Statement of Financial Position
|
(Unaudited) |
September 30 |
March 31 |
|||
|
(amounts in millions of Canadian dollars) |
|
|
2025 |
2025 |
|
|
Assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
178.7 |
$ |
293.7 |
|
Accounts receivable |
|
|
598.2 |
|
612.0 |
|
Contract assets |
|
|
509.2 |
|
482.2 |
|
Inventories |
|
|
586.9 |
|
595.0 |
|
Prepayments |
|
|
75.0 |
|
78.2 |
|
Income taxes recoverable |
|
|
73.9 |
|
59.0 |
|
Derivative financial assets |
|
|
18.8 |
|
23.5 |
|
Total current assets |
|
$ |
2,040.7 |
$ |
2,143.6 |
|
Property, plant and equipment |
|
|
3,051.5 |
|
2,989.5 |
|
Right-of-use assets |
|
|
774.3 |
|
788.0 |
|
Intangible assets |
|
|
3,771.7 |
|
3,871.0 |
|
Investment in equity accounted investees |
|
|
576.2 |
|
559.1 |
|
Employee benefits assets |
|
|
28.2 |
|
11.6 |
|
Deferred tax assets |
|
|
159.3 |
|
191.8 |
|
Derivative financial assets |
|
|
1.3 |
|
1.4 |
|
Other non-current assets |
|
|
685.4 |
|
657.8 |
|
Total assets |
|
$ |
11,088.6 |
$ |
11,213.8 |
|
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
1,050.0 |
$ |
1,190.8 |
|
Provisions |
|
|
24.1 |
|
34.5 |
|
Income taxes payable |
|
|
21.6 |
|
18.4 |
|
Contract liabilities |
|
|
1,033.8 |
|
1,001.6 |
|
Current portion of long-term debt |
|
|
291.4 |
|
399.0 |
|
Derivative financial liabilities |
|
|
24.3 |
|
42.2 |
|
Total current liabilities |
|
$ |
2,445.2 |
$ |
2,686.5 |
|
Provisions |
|
|
14.1 |
|
14.3 |
|
Long-term debt |
|
|
3,073.8 |
|
3,071.4 |
|
Employee benefits obligations |
|
|
106.9 |
|
134.1 |
|
Deferred tax liabilities |
|
|
41.7 |
|
40.7 |
|
Derivative financial liabilities |
|
|
13.1 |
|
22.4 |
|
Other non-current liabilities |
|
|
233.8 |
|
268.4 |
|
Total liabilities |
|
$ |
5,928.6 |
$ |
6,237.8 |
|
Equity |
|
|
|
|
|
|
Share capital |
|
$ |
2,347.1 |
$ |
2,327.1 |
|
Contributed surplus |
|
|
95.2 |
|
69.8 |
|
Accumulated other comprehensive income |
|
|
354.6 |
|
381.8 |
|
Retained earnings |
|
|
2,281.8 |
|
2,112.8 |
|
Equity attributable to equity holders of the Company |
|
$ |
5,078.7 |
$ |
4,891.5 |
|
Non-controlling interests |
|
|
81.3 |
|
84.5 |
|
Total equity |
|
$ |
5,160.0 |
$ |
4,976.0 |
|
Total liabilities and equity |
|
$ |
11,088.6 |
$ |
11,213.8 |
Consolidated Statement of Changes in Equity
|
(Unaudited) |
|
Attributable to equity holders of the Company |
|
|
|
|
||||||||||
|
Six months ended September 30, 2025 |
|
|
Common shares |
|
|
Accumulated other |
|
|
|
|
|
|
|
|
||
|
(amounts in millions of Canadian dollars, |
|
Number of |
|
Stated |
Contributed |
comprehensive |
Retained |
|
|
Non-controlling |
|
Total |
||||
|
except number of shares) |
|
shares |
|
value |
|
surplus |
income |
|
earnings |
|
Total |
|
interests |
|
equity |
|
|
Balances as at March 31, 2025 |
|
320,265,108 |
$ |
2,327.1 |
$ |
69.8 |
$ |
381.8 |
$ |
2,112.8 |
$ |
4,891.5 |
$ |
84.5 |
$ |
4,976.0 |
|
Net income |
|
— |
$ |
— |
$ |
— |
$ |
— |
$ |
131.1 |
$ |
131.1 |
$ |
5.2 |
$ |
136.3 |
|
Other comprehensive (loss) income |
|
— |
|
— |
|
— |
|
(27.2) |
|
39.7 |
|
12.5 |
|
(0.7) |
|
11.8 |
|
Total comprehensive (loss) income |
|
— |
$ |
— |
$ |
— |
$ |
(27.2) |
$ |
170.8 |
$ |
143.6 |
$ |
4.5 |
$ |
148.1 |
|
Exercise of stock options |
|
566,866 |
|
20.5 |
|
(3.8) |
|
— |
|
— |
|
16.7 |
|
— |
|
16.7 |
|
Settlement of equity-settled awards |
|
817 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
Repurchase and cancellation of common shares |
|
(61,900) |
|
(0.5) |
|
— |
|
— |
|
(1.8) |
|
(2.3) |
|
— |
|
(2.3) |
|
Equity-settled share-based payments expense, after tax |
|
— |
|
— |
|
29.2 |
|
— |
|
— |
|
29.2 |
|
— |
|
29.2 |
|
Transactions with non-controlling interests |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(7.7) |
|
(7.7) |
|
Balances as at September 30, 2025 |
|
320,770,891 |
$ |
2,347.1 |
$ |
95.2 |
$ |
354.6 |
$ |
2,281.8 |
$ |
5,078.7 |
$ |
81.3 |
$ |
5,160.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to equity holders of the Company |
|
|
|
|
||||||||||
|
Six months ended September 30, 2024 |
|
Common shares |
|
|
Accumulated other |
|
|
|
|
|
|
|
|
|||
|
(amounts in millions of Canadian dollars, |
|
Number of |
|
Stated |
Contributed |
comprehensive |
Retained |
|
|
Non-controlling |
|
Total |
||||
|
except number of shares) |
|
shares |
|
value |
|
surplus |
income |
|
earnings |
|
Total |
|
interests |
|
equity |
|
|
Balances as at March 31, 2024 |
|
318,312,233 |
$ |
2,252.9 |
$ |
55.4 |
$ |
154.0 |
$ |
1,762.6 |
$ |
4,224.9 |
$ |
77.7 |
$ |
4,302.6 |
|
Net income |
|
— |
$ |
— |
$ |
— |
$ |
— |
$ |
100.8 |
$ |
100.8 |
$ |
4.8 |
$ |
105.6 |
|
Other comprehensive income (loss) |
|
— |
|
— |
|
— |
|
73.2 |
|
(39.8) |
|
33.4 |
|
0.6 |
|
34.0 |
|
Total comprehensive income |
|
— |
$ |
— |
$ |
— |
$ |
73.2 |
$ |
61.0 |
$ |
134.2 |
$ |
5.4 |
$ |
139.6 |
|
Exercise of stock options |
|
1,092,050 |
|
27.3 |
|
(3.5) |
|
— |
|
— |
|
23.8 |
|
— |
|
23.8 |
|
Settlement of equity-settled awards |
|
42,086 |
|
1.2 |
|
(1.2) |
|
— |
|
— |
|
— |
|
— |
|
— |
|
Repurchase and cancellation of common shares |
|
(856,230) |
|
(6.1) |
|
— |
|
— |
|
(15.2) |
|
(21.3) |
|
— |
|
(21.3) |
|
Equity-settled share-based payments expense, after tax |
|
— |
|
— |
|
20.6 |
|
— |
|
— |
|
20.6 |
|
— |
|
20.6 |
|
Transactions with non-controlling interests |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(1.1) |
|
(1.1) |
|
Balances as at September 30, 2024 |
|
318,590,139 |
$ |
2,275.3 |
$ |
71.3 |
$ |
227.2 |
$ |
1,808.4 |
$ |
4,382.2 |
$ |
82.0 |
$ |
4,464.2 |
Consolidated Statement of Cash Flows
|
(Unaudited) |
|
|
|
Six months ended |
||
|
(amounts in millions of Canadian dollars) |
|
|
|
2025 |
|
2024 |
|
Operating activities |
|
|
|
|
|
|
|
Net income |
|
|
$ |
136.3 |
$ |
105.6 |
|
Adjustments for: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
227.7 |
|
197.9 |
|
Share of after-tax profit of equity accounted investees |
|
|
|
(37.5) |
|
(44.0) |
|
Deferred income taxes |
|
|
|
21.8 |
|
(8.0) |
|
Investment tax credits |
|
|
|
(10.2) |
|
(8.7) |
|
Equity-settled share-based payments expense |
|
|
|
26.0 |
|
20.6 |
|
Defined benefit pension plans |
|
|
|
9.9 |
|
17.2 |
|
Other non-current liabilities |
|
|
|
— |
|
(4.7) |
|
Derivative financial assets and liabilities – net |
|
|
|
4.3 |
|
(13.6) |
|
Other |
|
|
|
(3.0) |
|
(17.5) |
|
Changes in non-cash working capital |
|
|
|
(176.6) |
|
(95.6) |
|
Net cash provided by operating activities |
|
|
$ |
198.7 |
$ |
149.2 |
|
Investing activities |
|
|
|
|
|
|
|
Property, plant and equipment expenditures |
|
|
$ |
(194.5) |
$ |
(149.6) |
|
Proceeds from disposal of property, plant and equipment |
|
|
|
5.1 |
|
1.9 |
|
Intangible assets expenditures |
|
|
|
(42.4) |
|
(53.0) |
|
Net (payments to) proceeds from equity accounted investees |
|
|
|
(18.1) |
|
0.4 |
|
Dividends received from equity accounted investees |
|
|
|
34.0 |
|
17.3 |
|
Other |
|
|
|
(8.9) |
|
(0.8) |
|
Net cash used in investing activities |
|
|
$ |
(224.8) |
$ |
(183.8) |
|
Financing activities |
|
|
|
|
|
|
|
Net proceeds from borrowing under revolving credit facilities |
|
|
$ |
70.4 |
$ |
87.0 |
|
Proceeds from long-term debt |
|
|
|
82.5 |
|
19.5 |
|
Repayment of long-term debt |
|
|
|
(220.6) |
|
(36.3) |
|
Repayment of lease liabilities |
|
|
|
(33.5) |
|
(27.7) |
|
Net proceeds from the issuance of common shares |
|
|
|
16.7 |
|
23.8 |
|
Repurchase and cancellation of common shares |
|
|
|
(2.3) |
|
(21.3) |
|
Other |
|
|
|
(1.3) |
|
— |
|
Net cash (used in) provided by financing activities |
|
|
$ |
(88.1) |
$ |
45.0 |
|
Effect of foreign currency exchange differences on cash and cash equivalents |
|
|
$ |
(0.8) |
$ |
9.2 |
|
Net (decrease) increase in cash and cash equivalents |
|
|
$ |
(115.0) |
$ |
19.6 |
|
Cash and cash equivalents, beginning of period |
|
|
|
293.7 |
|
160.1 |
|
Cash and cash equivalents, end of period |
|
|
$ |
178.7 |
$ |
179.7 |
ABOUT CAE
At CAE, we exist to make the world safer. We deliver cutting-edge training, simulation, and critical operations solutions to prepare aviation professionals and defence forces for the moments that matter. Every day, we empower pilots, cabin crew, maintenance technicians, airlines, business aviation operators, and defence and security personnel to perform at their best and when the stakes are the highest. Around the globe, we're everywhere customers need us to be with approximately 13,000 employees at around 240 sites and training locations in over 40 countries. For nearly 80 years, CAE has been at the forefront of innovation, consistently seeking to set the standard by delivering excellence in high-fidelity flight simulators and training solutions, while embedding sustainability at the heart of everything we do. By harnessing technology and enhancing human performance, we strive to be the trusted partner in advancing safety and mission readiness—today and tomorrow.
Read our FY25 Global Annual Activity and Sustainability Report
Contacts
General Media:
Samantha Golinski, Vice President, Public Affairs and Global Communications, +1-438-805-5856, samantha.golinski@cae.com
Investor Relations:
Andrew Arnovitz, Senior Vice President, Investor Relations and Enterprise Risk Management, +1-514-734-5760, andrew.arnovitz@cae.com
View original content:https://www.prnewswire.com/news-releases/cae-reports-second-quarter-fiscal-2026-results-302612144.html
SOURCE CAE Inc.
FAQ
What were CAE's Q2 fiscal 2026 revenue and EPS (Nov 11, 2025)?
How did CAE's Civil segment perform in Q2 2026 and what is the Civil outlook?
What guidance did CAE give for its Defense segment for fiscal 2026?
How did CAE's cash flow and leverage change in Q2 2026?
What organizational changes did CAE announce on Nov 11, 2025 and why?
What drove the year-over-year decline in CAE's adjusted order intake in Q2 2026?
