MONTREAL, Nov. 11, 2025 — Leads & Copy — CAE Inc. (NYSE: CAE) (TSX: CAE) reported its financial results for the fiscal second quarter ended September 30, 2025, and announced organizational updates connected with its transformation plan.
Revenue for the quarter was $1,236.6 million compared to $1,136.6 million in the prior year, with earnings per share (EPS) of $0.23 compared to $0.16 in the prior year. Adjusted EPS was $0.23 compared to $0.24 in the prior year. Net cash provided by operating activities was $214.0 million compared to $162.1 million in the prior year, and free cash flow was $201.0 million compared to $140.0 million in the prior year.
The company also announced a revised civil outlook for fiscal 2026, while the defense outlook was maintained. Management is maintaining its outlook of low double-digit annual aSOI growth and an aSOI margin in the range of 8% to 8.5% for fiscal 2026 in Defense. It now expects total capital expenditures to be approximately 10% lower than in fiscal 2025. For the current fiscal year, CAE continues to expect a stronger second half, consistent with usual seasonality and its FFS delivery profile. However, given the slower pace of recovery, Civil adjusted segment operating income (aSOI) is expected to be roughly in line with the prior year, with an annual aSOI margin in the 20% range.
Matthew Bromberg, CAE’s President and CEO, said that during his first few months as CEO, he gained an appreciation for CAE’s extraordinary people, its strong customer relevancy, industry-leading technology and strong market positions.
Bromberg said that combined, this has enabled incredible growth, and he sees an opportunity for significant continued growth; however, he said that it is time to balance growth with asset and operational efficiency.
To that end, CAE has launched a transformation plan to sharpen its portfolio, strengthen capital discipline, and elevate performance, including a focus on cost transformation. Bromberg said that these three priorities will guide how the company operates, invests, and creates long-term value.
CAE announced organizational changes to simplify its structure and strengthen execution as a first step in the transformation.
Nick Leontidis will retire at the end of the calendar year and transition to the role of Special Advisor to the CEO. The Chief Operating Officer role will be eliminated, thereby reducing a management layer and moving CAE to a more streamlined, business-led operating model organized around driving excellence across product and service delivery.
Leadership has also been streamlined with the appointment of Alexandre Prevost as President of Civil Aviation. This move also establishes a single, integrated civil aviation training services organization designed to enhance customer experience and drive operational excellence. Prevost was most recently the Division President, Business Aviation Training.
In Defense, CAE has taken similar steps to simplify and better align the organization, consolidating into two from three defence organizations. Merrill Stoddard will continue to lead CAE’s U.S. defence business, while France Hebert will have responsibility for both Canadian and international defence markets. These changes are designed to sharpen focus and improve coordination across the Defense business.
As part of its transformation, CAE has also established a new position of Senior Vice President, Operations, to enhance consistency, efficiency, and performance across its products organization and drive greater synergies between its Civil and Defense businesses. Juan Araujo, who will join CAE and assume the role in January, will oversee the integration of several previously dispersed functional areas into a single, end‑to‑end products team, strengthening execution, accountability, quality, cost and speed to market.
Second quarter fiscal 2026 revenue for Civil Aviation was $670.0 million compared to $640.7 million in the second quarter last year. Operating income was $108.7 million, 16.2% of revenue, compared to $94.7 million, 14.8% of revenue, in the same quarter last year. During the quarter, Civil delivered 12 full-flight simulators (FFSs) to customers, and second-quarter Civil training center utilization was 64%.
Second quarter Defense revenue was $566.6 million compared to $495.9 million in the second quarter last year. Operating income was $46.6 million, 8.2% of revenue, compared to $23.4 million, 4.7% of revenue, in the same quarter last year. Defense booked orders for $555.8 million this quarter for a book-to-sales ratio of 0.98 times.
Net finance expense this quarter was $56.9 million, up from $54.6 million in the previous quarter and up from $52.9 million in the second quarter last year. Income tax expense this quarter amounted to $22.3 million, representing an effective tax rate of 23%, compared to 16% for the second quarter last year. Net cash provided by operating activities was $214.0 million for the quarter, compared to $162.1 million in the second quarter last year.
Growth and maintenance capital expenditures totaled $87.6 million this quarter. Net debt at the end of the quarter was $3,186.5 million for a net debt-to-adjusted EBITDA of 2.66 times.
At CAE, we exist to make the world safer. We deliver cutting-edge training, simulation, and critical operations solutions to prepare aviation professionals and defence forces for the moments that matter. Every day, we empower pilots, cabin crew, maintenance technicians, airlines, business aviation operators, and defence and security personnel to perform at their best and when the stakes are the highest.
Contacts:
General Media:
Samantha Golinski, Vice President, Public Affairs and Global Communications, +1-438-805-5856, samantha.golinski@cae.com
Investor Relations:
Andrew Arnovitz, Senior Vice President, Investor Relations and Enterprise Risk Management, +1-514-734-5760, andrew.arnovitz@cae.com
