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CAE (CAE) investor relations material

CAE Q3 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2026 earnings summary13 Feb, 2026

Executive summary

  • Revenue increased 2% year-over-year to $1,252.1 million in Q3 FY2026, with net income attributable to equity holders down 35% to $108.9 million and EPS down 36% to $0.34 per share. Adjusted EPS rose 17% to $0.34, reflecting transformation-related expenses and the absence of prior-year one-time gains.

  • Transformation plan underway, including portfolio review, divestiture of non-core assets (~8% of revenue), and optimization of the Civil training network to enhance returns and resilience.

Financial highlights

  • Operating income declined 25% year-over-year to $195.8 million, impacted by the prior year's $72.6 million gain on SIMCOM remeasurement.

  • Adjusted segment operating income rose 3% to $195.8 million, with a margin of 15.6%.

  • Free cash flow was stable at $411.3 million, and net cash from operating activities was $407.6 million.

  • Net debt-to-adjusted EBITDA improved to 2.30x, ahead of the year-end target.

  • Adjusted return on capital employed increased to 7.0% from 5.7% a year ago.

Outlook and guidance

  • Civil adjusted segment operating income for FY2026 expected to decline by mid-single digits, with margin in the 20% range, due to softer market conditions, currency impacts, and accelerated network rationalization.

  • Defense outlook raised to over 20% adjusted segment operating income growth for FY2026, with margin around 8.5%, supported by strong backlog and rising defense budgets.

  • Total capital expenditures expected to be over 10% lower than FY2025, with Civil capex down ~30%.

  • Free cash flow, finance expense, tax expense, and capital allocation priorities unchanged.

Civil network rationalization's capex impact
Defense annual aSOI margin vs Q3 achievement
Post-deleveraging, what are capital allocation priorities?
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Frequently asked questions

CAE Inc. provides training and services to commercial and military organizations worldwide. The company designs, manufactures, and supplies simulation equipment and training solutions; and offers integrated maintenance services, crew sourcing, and professional services in aviation, healthcare education, and industrial manufacturing markets.

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