Q1 2026 CAE Inc Earnings Call Transcript

Aug 13, 2025 / 12:00 PM GMT

Release Date Price: $27.88 (-5.62%)

Transcript

Key Points

Positve

CAE Inc (CAE) reported a solid start to the fiscal year with adjusted earnings per share of $0.21 and secured $1.1 billion in adjusted order intake.
The defense segment showed strong year-over-year growth in adjusted segment operating income and margin expansion due to improved execution and disciplined program management.
The company has a robust defense pipeline with $6 billion of orders pending customer decisions, indicating strong future growth potential.
CAE Inc (CAE) is well-positioned to capitalize on the generational upcycle in defense spending, driven by geopolitical tensions and increased NATO and EU budgets.
The company is focusing on deleveraging its balance sheet, targeting a net debt to adjusted EBITDA ratio of approximately 2.5 times by fiscal year-end, which is expected to enhance shareholder value.

Negative

The civil aviation segment experienced mixed performance, with softness in commercial training and pilot hiring, particularly in the US, leading to lower utilization rates.
Training center utilization decreased to 71% from 76% in the prior year, reflecting short-term softness in commercial training.
Free cash flow was negative $36.2 million, compared to negative $25.3 million in the first quarter last year, due to higher investment in non-cash working capital.
The company faces macroeconomic uncertainty and ongoing aircraft supply constraints, impacting the civil aviation segment's performance.
There is a cautious approach from commercial airlines, particularly in the US, affecting pilot hiring and training demand.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

CAE.TO - CAE Inc
Q1 2026 CAE Inc Earnings Call
Aug 13, 2025 / 12:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good day ladies and gentlemen. Welcome fiscal year 2026 conference call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity for analysts to ask questions. To join the question queue, you may press start then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing start then 0. I would like to turn the conference over to Mr. Andrew Arnovitz. Please go ahead, Mr. Arnowitz.

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Unidentified_2 [2]
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Good morning everyone and thank

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