How did CAE's revenue and expenses shift in Q3 2025 compared to previous quarters?

CAE Inc. experienced a significant increase in revenue and a notable rise in expenses in Q3 2025 compared to the previous quarter, Q2 2025. 1. **Revenue Shift**: - CAE's revenue for Q3 2025 was $1,223.4 million. - In Q2 2025, the revenue was $1,094.5 million. - This indicates a substantial increase in revenue, which may be attributed to increased sales or new orders. 2. **Expense Shift**: - The operating income for Q3 2025 was $262.6 million, which includes a net remeasurement gain of $72.6 million. - The adjusted segment operating income was $190.0 million. - In Q2 2025, the operating income was $121.6 million. - This suggests a significant increase in expenses, which could be due to higher operational costs or one-time expenses. 3. **Free Cash Flow and Orders**: - CAE generated a record $410 million in free cash flow in Q3 2025. - New orders amounted to $2.2 billion, and the adjusted backlog reached a record $20 billion. - These figures indicate strong business performance and operational efficiency, which could support the increased revenue and expenses. In conclusion, CAE Inc. saw a substantial rise in both revenue and expenses in Q3 2025 compared to Q2 2025, with revenue increasing from $1,094.5 million to $1,223.4 million, and expenses rising from $121.6 million to $262.6 million. This shift is likely due to increased sales, new orders, and operational efficiency, as evidenced by the record free cash flow and substantial backlog.