CAE (CAE) Q2 2026 earnings summary

Executive summary

• Revenue rose 9% year-over-year to $1.24 billion, with adjusted segment operating income up 4% and EPS at $0.23, slightly below last year’s $0.24.

• Net cash from operating activities increased to $214 million, and free cash flow grew 44% year-over-year to $201 million.

• A comprehensive transformation plan is underway, focusing on portfolio optimization, operational efficiency, and cost transformation to drive long-term shareholder value.

• Leadership changes include the retirement of the COO, consolidation of business segments, and new appointments to streamline operations and improve accountability.

Financial highlights

• Consolidated revenue reached $1.24 billion, up 9% year-over-year; adjusted segment operating income was $155.3 million, up 4%.

• Operating income increased 31% to $155.3 million, with an operating margin of 12.6%.

• Net income attributable to equity holders rose 41% to $73.9 million.

• Adjusted EPS was $0.23, slightly down from $0.24 last year; net finance expense increased to $56.9 million due to acquisition and lease costs.

• Adjusted order intake was $1,148.6 million, with an adjusted backlog of $19.6 billion, up 9% year-over-year.

Outlook and guidance

• Strong free cash flow is expected for the year, with a conversion of adjusted net income of approximately 150%.

• Civil segment performance for the year is expected to be roughly in line with the prior year, with more pronounced recovery benefits anticipated in FY27 and beyond.

• Defense segment maintains a robust outlook, supported by a strong backlog and ongoing modernization programs, with low double-digit annual adjusted segment operating income growth expected.

• Capital expenditures expected to be about 10% lower than fiscal 2025, mainly due to a 25% reduction in Civil capex.

• A detailed transformation blueprint with financial and operational targets will be shared by fiscal year-end.