The earnings call reflected a balance of positive and negative aspects. While CAE experienced strong revenue growth and a significant increase in free cash flow, challenges in the Civil segment and a decline in adjusted EPS were notable concerns. The initiation of a transformation plan suggests a proactive approach to addressing these issues.
Company Guidance
During the CAE second quarter fiscal year 2026 conference call, key financial metrics and strategic initiatives were discussed. The company reported consolidated revenue of $1.24 billion, a 9% increase from the previous year, with an adjusted segment operating income of $155.3 million, up 4%. However, adjusted EPS slightly decreased to $0.23 from $0.24. Despite a net finance expense increase to $56.9 million, free cash flow surged by 44% to $201 million. The company also announced a 10% reduction in capital expenditures, primarily in Civil, expecting a 25% decrease in Civil spending. The Defense segment saw a 14% revenue growth, with a significant contribution from the F-16 program. CAE's transformation plan focuses on sharpening its portfolio, disciplined capital management, and operational excellence to enhance shareholder returns. Looking forward, the company expects to reach a net debt to adjusted EBITDA ratio of 2.5x by year-end, while maintaining a robust order backlog and exploring opportunities in Canada's defense sector.
Revenue Growth
Consolidated revenue of $1.24 billion was 9% higher compared to the second quarter last year.
Defense Segment Performance
Defense revenue grew 14% year-over-year to $566.6 million, and adjusted segment operating income increased 41% to $46.6 million.
Free Cash Flow Increase
Free cash flow increased by 44% to $201 million compared to $140 million in the second quarter last year.
Backlog Growth
Civil adjusted backlog of $8.5 billion was up 27% from last year, and Defense adjusted backlog was $11.2 billion.
Transformation Plan Initiation
The company announced a transformation plan focusing on portfolio sharpening, capital discipline, and performance improvement.
CAE (TSE:CAE) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
TSE:CAE Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Nov 11, 2025
C$38.39
C$38.41
+0.05%
Aug 12, 2025
C$40.80
C$38.43
-5.81%
May 13, 2025
C$36.17
C$34.36
-5.00%
Feb 13, 2025
C$33.37
C$37.99
+13.84%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does CAE Inc (TSE:CAE) report earnings?
CAE Inc (TSE:CAE) is schdueled to report earning on Feb 06, 2026, TBA (Confirmed).
What is CAE Inc (TSE:CAE) earnings time?
CAE Inc (TSE:CAE) earnings time is at Feb 06, 2026, TBA (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.