Q2 2026 CAE Inc Earnings Call Transcript
Key Points
- CAE Inc (CAE) reported a 9% increase in consolidated revenue to $1.24 billion compared to the same quarter last year.
- The Defense segment showed strong performance with a 14% year-over-year revenue growth and a 41% increase in adjusted segment operating income.
- Net cash from operating activities increased to $214 million, a significant rise from $162.1 million in the previous year.
- The company has initiated a transformation plan focusing on sharpening its portfolio, disciplined capital management, and operational excellence.
- CAE Inc (CAE) maintains a strong market position with a leading share in flight simulation and training, supported by world-class technology and strategic customer relationships.
- Adjusted segment operating income for the Civil segment decreased by 6% year-over-year, with a margin decline to 16.2%.
- Training center utilization dropped to 64%, down from 70% in the prior year, reflecting a seasonal slowdown and lower commercial training utilization.
- The company reported a slight decrease in adjusted EPS to $0.23 from $0.24 in the same quarter last year.
- Net finance expenses increased due to additional financing costs and lease expenses, impacting overall profitability.
- Order activity in the Civil segment was lighter than anticipated, with a book-to-sales ratio of 0.88 times for the quarter, indicating a temporary dip in demand.
Good day, ladies and gentlemen. Welcome to the CAE second-quarter financial results for fiscal year 2026 conference call. The conference is being recorded. (Operator Instructions) I would now like to turn the conference over to Mr. Andrew Arnovitz.
Please go ahead, Mr. Arnovitz.
Good morning, everyone, and thank you for joining us today. Remarks, including management's outlook and answers to questions contain forward-looking statements, which represent our expectations as of today, November 12, 2025, and accordingly, are subject to change. Such statements are based on assumptions that may not materialize and are subject to risks and uncertainties. Actual results may differ materially, and listeners are cautioned not to place undue reliance on these forward-looking statements.
A description of the risks, factors and assumptions that may affect future results is contained in CAE's annual MD&A, and MD&A for the three months ended
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