European Investor
12 Nov 2026, 09:07
CAE Edges 0.7% Higher After Hours as Company Raises Fiscal 2027 Earnings Outlook
CAE (NYSE: CAE) shares rose about 0.7% in after-hours trading after the company raised its fiscal 2027 earnings and margin outlook, supported by stronger adjusted profitability, Defense performance and improved cash generation.
Second-quarter revenue declined 2.6% year over year to C$1.20 billion. GAAP EPS fell to C$0.18 from C$0.23, but adjusted EPS increased 17.9% to C$0.33. Adjusted segment operating income rose 1.5% to C$179.3 million, while the adjusted margin improved to 14.9% from 14.3%.
Defense was the strongest part of the quarter. Adjusted segment operating income increased 43.3% to C$75.4 million and margin expanded to 13.6% from 9.3%, despite a 2.5% decline in segment revenue. Defense backlog reached C$11.3 billion.
Civil Aviation remained softer, with revenue down 2.6% to C$652.3 million and adjusted segment operating income falling 16.3% to C$103.9 million. Higher training utilization was offset by lower contributions from simulator sales and other product-related activities.
CAE raised fiscal 2027 adjusted EPS guidance to C$1.28-C$1.35 from C$1.21-C$1.28 and increased its adjusted segment operating margin outlook to 14.9%-15.4% from 14.6%-15.1%. Revenue is still expected to grow at a low-single-digit rate.
Free cash flow jumped 63.8% to C$179.9 million, while net debt-to-adjusted EBITDA improved to 2.16x. CAE also continued its transformation program and expects to sell Flightscape for US$500 million.
The modest 0.7% after-hours gain appears to reflect the improved full-year outlook, stronger Defense margins and cash flow, partly offset by lower consolidated revenue and continued weakness in Civil Aviation profitability.
CAE (NYSE: CAE) shares rose about 0.7% in after-hours trading after the company raised its fiscal 2027 earnings and margin outlook, supported by stronger adjusted profitability, Defense performance and improved cash generation.
Second-quarter revenue declined 2.6% year over year to C$1.20 billion. GAAP EPS fell to C$0.18 from C$0.23, but adjusted EPS increased 17.9% to C$0.33. Adjusted segment operating income rose 1.5% to C$179.3 million, while the adjusted margin improved to 14.9% from 14.3%.
Defense was the strongest part of the quarter. Adjusted segment operating income increased 43.3% to C$75.4 million and margin expanded to 13.6% from 9.3%, despite a 2.5% decline in segment revenue. Defense backlog reached C$11.3 billion.
Civil Aviation remained softer, with revenue down 2.6% to C$652.3 million and adjusted segment operating income falling 16.3% to C$103.9 million. Higher training utilization was offset by lower contributions from simulator sales and other product-related activities.
CAE raised fiscal 2027 adjusted EPS guidance to C$1.28-C$1.35 from C$1.21-C$1.28 and increased its adjusted segment operating margin outlook to 14.9%-15.4% from 14.6%-15.1%. Revenue is still expected to grow at a low-single-digit rate.
Free cash flow jumped 63.8% to C$179.9 million, while net debt-to-adjusted EBITDA improved to 2.16x. CAE also continued its transformation program and expects to sell Flightscape for US$500 million.
The modest 0.7% after-hours gain appears to reflect the improved full-year outlook, stronger Defense margins and cash flow, partly offset by lower consolidated revenue and continued weakness in Civil Aviation profitability.
