CAE Inc
TSX:CAE

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CAE Inc
TSX:CAE
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Price: 38.96 CAD 0.08% Market Closed
Market Cap: 12.5B CAD

CAE Inc
Investor Relations

In the global landscape of training and simulation, CAE Inc. stands out as a particularly influential player, rooted in Montreal, Canada. The company's journey began in 1947, and over the years, they have crafted a unique niche, primarily focusing on flight simulation systems and pilot training. Initially garnering attention in the aviation sector, CAE honed its expertise in designing cutting-edge flight simulators, helping airlines and defense sectors to train pilots in a controlled, cost-effective manner. This capability became increasingly crucial as the demand for skilled pilots surged, driven by the rapid expansion of the commercial aviation industry and military needs. By pioneering innovations in virtual and augmented reality technologies, CAE transitioned these simulations into highly immersive experiences, enhancing pilot training effectiveness and safety.

As the company expanded its horizons, it diversified its portfolio beyond aviation—taking strides into healthcare and defense training. In healthcare, CAE introduced simulation-based products that aid medical professionals in honing their skills without risking patient safety, filling a critical gap in medical education. Meanwhile, in defense, their integrated training solutions support military operations worldwide, underscoring CAE's role in enhancing operational readiness and effectiveness. Financially, the company derives revenue chiefly through long-term contracts with airlines, defense organizations, and healthcare institutions, positioning itself strategically in markets where training delivery remains indispensable. This model ensures a stable stream of income, backed by both their innovative technologies and unwavering commitment to enhancing training efficiency across sectoral boundaries.

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CAE
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Last Earnings Call
Fiscal Period
Q2 2026
Call Date
Nov 12, 2025
AI Summary
Q2 2026

Revenue Growth: CAE reported Q2 consolidated revenue of $1.24 billion, up 9% year-over-year.

Mixed Profitability: Adjusted segment operating income rose 4% to $155.3 million, but adjusted EPS slipped to $0.23 from $0.24 last year.

Free Cash Flow Surge: Free cash flow increased by 44% to $201 million, as the company focused on cash generation and efficiency.

Capital Expenditure Cut: Management reduced CapEx guidance by about 10% year-over-year, with a 25% reduction in Civil spending, reflecting both market conditions and a push for capital discipline.

Transformation Plan: New CEO Matthew Bromberg outlined an organizational overhaul focused on portfolio optimization, stricter capital discipline, and operational efficiency.

Civil Softness: Civil segment showed 5% revenue growth but lower operating income and utilization, citing seasonality and slow pilot hiring; full-year Civil performance expected to be roughly flat.

Defense Strength: Defense revenue rose 14% and operating income grew 41%, with margin expansion from new, higher-value contracts.

Backlog and Outlook: Civil and Defense backlogs reached $8.5 billion and $11.2 billion, respectively, with management expecting a more pronounced market recovery in fiscal 2027 and beyond.

Key Financials
Revenue
$1.24 billion
Adjusted Segment Operating Income
$155.3 million
Adjusted EPS
$0.23
Net Finance Expense
$56.9 million
Income Tax Expense
$22.3 million
Net Cash from Operating Activities
$214 million
Free Cash Flow
$201 million
Capital Expenditures
$87.6 million
Net Debt
$3.2 billion
Net Debt to Adjusted EBITDA
2.66x
Civil Revenue
$670 million
Civil Adjusted Segment Operating Income
$108.7 million
Civil Margin
16.2%
Civil Training Center Utilization
64%
Full-Flight Simulators Delivered (Civil)
12
Defense Revenue
$566.6 million
Defense Adjusted Segment Operating Income
$46.6 million
Defense Margin
8.2%
Civil Adjusted Order Intake
$593 million
Civil Book-to-Sales Ratio (Quarter)
0.88x
Civil Book-to-Sales Ratio (Trailing 12 Months)
1.22x
Civil Adjusted Backlog
$8.5 billion
Defense Adjusted Order Intake
$556 million
Defense Book-to-Sales Ratio (Quarter)
0.98x
Defense Book-to-Sales Ratio (Trailing 12 Months)
1.19x
Defense Adjusted Backlog
$11.2 billion
Defense Pipeline (Orders Pending)
$6.1 billion
Earnings Call Recording
Other Earnings Calls

Management

Mr. Marc Parent CM
President, CEO & Director
No Bio Available
Ms. Abha Dogra
Chief Technology & Product Officer
No Bio Available
Mr. Carter Copeland
Senior Vice President of Global Strategy
No Bio Available
Mr. Andrew Arnovitz
Senior VP of Investor Relations & Enterprise Risk Management
No Bio Available
Mr. Bob Lockett
Chief People Officer
No Bio Available
Ms. Helene V. Gagnon
Chief Sustainability Officer & Senior VP of Stakeholder Engagement
No Bio Available
Mr. Pascal Grenier
Division President of Flight Solutions & Global Operations
No Bio Available
Mr. Jason Goodfriend
Interim President and COO of Defense & Security of USA
No Bio Available

Contacts

Address
QUEBEC
Saint-Laurent
8585 Ch de la Cote-de-Liesse
Contacts
+15143416780.0
www.cae.com