CAE Reports Q1 FY2026 Revenue Growth, Operating Income Surge, and Leadership Transition

CAE reported Q1 FY2026 revenue of $1,098.6 million, a 2% YoY increase, with operating income surging 23% to $133.8 million. The Civil Aviation segment saw a 3% revenue growth, while the Defense and Security sector reported an 83% increase in operating income. The company's adjusted backlog grew to $19.5 billion, up 15% YoY. Despite near-term challenges, CAE's financial outlook remains stable under incoming CEO Matthew Bromberg.

CAE Inc. (CAE or the Company) reported its financial results for the fiscal first quarter ended June 30, 2025, showcasing robust performance across both Civil Aviation and Defense and Security segments. The company's revenue grew by 2% year-over-year (YoY) to $1,098.6 million, with operating income surging 23% to $133.8 million [1].

The Civil Aviation segment witnessed a 3% revenue increase to $607.7 million. Operating income for the segment rose to $99.4 million, a 11% YoY increase. Adjusted segment operating income grew by 1% to $107.6 million. The Civil adjusted backlog stood at $8.4 billion, reflecting a 27% YoY increase [1].

In the Defense and Security segment, revenue was $490.9 million, a 1% YoY increase. Operating income soared by 83% to $34.4 million, while adjusted segment operating income grew by 45% to $40.2 million. The Defense adjusted backlog increased to $11.1 billion, a 7% YoY rise [1].

Matthew Bromberg, the incoming President and CEO, commented on the company's performance, "This is a fantastic organization with tremendous potential to build on its past successes. As I step into the role, a key focus of mine will be on translating that potential into enhanced shareholder value through a pragmatic approach to improving efficiency, operationalizing opportunities, and driving greater operational excellence in our core businesses" [1].

The company's adjusted backlog grew to $19.5 billion, up 15% YoY, reflecting strong demand and order intake. CAE's free cash flow was negative $36.2 million for the quarter, compared to negative $25.3 million in the first quarter last year. Net debt stood at $3,236.1 million, with a net debt-to-adjusted EBITDA ratio of 2.75 times [1].

Calin Rovinescu, Chairman of CAE, highlighted the company's strategic position, "With a well-balanced portfolio across both civil aviation and defense, CAE is uniquely positioned to benefit from long-term structural tailwinds in both sectors" [1].

References:
[1] https://www.cae.com/media-centre/press-releases/cae-reports-first-quarter-fiscal-2026-results