CAE Reports Solid Q1 FY2026 Results with Strong Defense Growth Amid Civil Aviation Headwinds

CAE
October 08, 2025

CAE Inc. reported its first quarter fiscal year 2026 financial results on August 12, 2025, with consolidated revenue of $1,098.6 million, a 2% increase year-over-year. Adjusted earnings per share remained stable at $0.21 compared to the prior year.

The Defense and Security segment demonstrated robust performance, with adjusted segment operating income surging 45% year-over-year to $40.2 million, achieving an 8.2% margin. This growth was driven by solid program execution and a strategic transition to higher-margin contracts, contributing to an $11.1 billion backlog.

Civil Aviation revenue grew 3% to $607.7 million, but adjusted segment operating income saw a modest 1% increase to $107.6 million, with a slight margin decrease to 17.7%. The segment continues to be impacted by temporary headwinds from pilot hiring pauses and aircraft delivery delays, though a stronger second half of the fiscal year is anticipated. CAE also reported a net debt-to-adjusted EBITDA ratio of 2.75 times, showing continued progress on its deleveraging objectives.

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