CAE reports second quarter fiscal 2026 results

Financial Performance - Revenue for the second quarter of fiscal 2026 was $1,236.6 million, a 9% increase from $1,136.6 million in the prior year [8][10] - Earnings per share (EPS) rose to $0.23 from $0.16, reflecting a 44% increase year-over-year [8][10] - Adjusted EPS decreased slightly to $0.23 from $0.24 in the previous year [8][10] - Operating income increased by 31% to $155.3 million, representing 12.6% of revenue, compared to $118.1 million (10.4% of revenue) last year [9][10] Civil Aviation Segment - Civil revenue was $670.0 million, up 5% from $640.7 million in the same quarter last year [12][14] - Operating income for Civil was $108.7 million (16.2% of revenue), compared to $94.7 million (14.8% of revenue) last year [12][14] - Civil signed training solutions contracts valued at $592.8 million during the quarter, including 12 full-flight simulator deliveries [13][14] Defense Segment - Defense revenue increased to $566.6 million from $495.9 million, a 14% rise year-over-year [15][17] - Operating income for Defense was $46.6 million (8.2% of revenue), compared to $23.4 million (4.7% of revenue) last year [15][17] - The adjusted backlog for Defense at the end of the quarter was $11.2 billion, with a strong demand environment reflected in $6.1 billion of pending bids and proposals [16][29] Organizational Changes - CAE announced a transformation plan aimed at enhancing operational efficiency and capital discipline, including a streamlined organizational structure [2][3] - The Chief Operating Officer role will be eliminated, and leadership has been consolidated to improve execution and customer experience [4][5][6] - A new Senior Vice President of Operations position has been created to drive synergies between Civil and Defense businesses [6] Cash Flow and Debt Management - Net cash provided by operating activities was $214.0 million, up from $162.1 million in the prior year [20] - Free cash flow increased to $201.0 million from $140.0 million, a 44% rise year-over-year [20] - Net debt at the end of the quarter was $3,186.5 million, with a net debt-to-adjusted EBITDA ratio of 2.66 times [21]