CAE reports first quarter fiscal 2026 results

Core Insights - CAE Inc. reported solid first-quarter results for fiscal 2026, with double-digit income growth and margin expansion in both Defense and Civil sectors, driven by strong demand in civil aviation and increased defense spending across NATO [2][4][6] Financial Performance - First quarter fiscal 2026 revenue was $1,098.6 million, a 2% increase from $1,072.5 million in the same quarter last year [4][6] - Operating income rose to $133.8 million (12.2% of revenue), up 23% from $108.6 million (10.1% of revenue) in the previous year [5][6] - Net income attributable to equity holders was $57.2 million, an 18% increase from $48.3 million in the prior year [6] - Earnings per share (EPS) from continuing operations increased to $0.18, a 20% rise from $0.15 last year [6] Civil Aviation Segment - Civil revenue reached $607.7 million, a 3% increase from $587.6 million in the previous year [7][10] - Operating income for the Civil segment was $99.4 million (16.4% of revenue), compared to $89.8 million (15.3% of revenue) last year [10] - Civil signed training solutions contracts valued at $511.4 million during the quarter, with an adjusted backlog of $8.4 billion [8][10] Defense and Security Segment - Defense revenue was $490.9 million, a slight increase from $484.9 million in the previous year [11][13] - Operating income in the Defense segment improved significantly to $34.4 million (7.0% of revenue), compared to $18.8 million (3.9% of revenue) last year [11][13] - The adjusted backlog for Defense was $11.1 billion, reflecting strong demand driven by rising defense budgets across NATO [12][13] Management Changes - Matthew Bromberg was appointed as the new President and CEO, succeeding Marc Parent, effective after the AGM on August 13, 2025 [2][3] Sustainability Initiatives - CAE maintained stable carbon emissions despite a 10% increase in business activity, demonstrating the effectiveness of its decarbonization strategy [20][21] - The company received recognition for its sustainability efforts, including being named one of the World's Most Sustainable Companies of 2025 by TIME magazine [22] Outlook - The Civil business is expected to benefit from strong fundamentals and regulatory requirements for pilot training, with anticipated mid-single-digit percentage growth in adjusted segment operating income for fiscal 2026 [24][25] - The Defense segment is positioned for long-term growth, with expectations of low-double-digit percentage annual growth in adjusted segment operating income [26][27]