CAE (CAE) Q2 FY2027 earnings review

The company raised its fiscal 2027 adjusted EPS outlook to C$1.28–C$1.35.

CAE Inc. · Q2 FY2027 · Published Nov 12, 2026 · By DeepCell AI · Sources

CAE (CAE) Q2 FY2027 earnings review

Quarter ended September 30, 2026. Figures in Canadian dollars unless noted.

For information only, not investment advice. No rating or price target.

Built with DeepCell / deepcell.net

1 · CAE (CAE) Q2 FY2027 earnings review

The company raised its fiscal 2027 adjusted EPS outlook to C$1.28–C$1.35

  1. 1.Revenue was C$1,204.7M, down 2.6%, as stated
  2. 2.Adjusted EPS was C$0.33, up 17.9% as stated; IFRS EPS was C$0.18
  3. 3.Adjusted segment operating income was C$179.3M, or 14.9% of revenue
  4. 4.Free cash flow was C$179.9M, up 63.8% as stated
  5. 5.Shares were up 2.77% in pre-market at $28.15 as of 8:58 AM EST, not a close

Note: Company figures are in Canadian dollars unless noted. The Nasdaq CAE share price is in U.S. dollars. Pre-market is not a close. Official year-on-year rates in this summary are the variance percentages in the release tables.Source: CAE official Q2 FY2027 press release, Nov 11, 2026, via PR Newswire; Yahoo Finance, Nov 11, 2026; CNBC, Nov 12, 2026 8:58 AM EST

2

2 · Executive summary

Q2 IFRS diluted EPS was C$0.18, below the C$0.26 Yahoo Finance consensus (Nov 11, 2026)

Q2 FY2027 results vs. Yahoo Finance consensus (Nov 11, 2026)

MetricActualConsensusVarianceResult
Q2 revenue (C$)C$1,204.7MC$1,250.0MC$-45.3M / -3.6%Miss
Q2 IFRS diluted EPS (C$)C$0.18C$0.26C$-0.08 / -30.8%Miss

Share price, Nov 11 regular close to Nov 12 pre-market last

CAE Inc. (Nasdaq)Nov 11 closeNov 12 pre-market, 8:58 AM ESTChange ($)Change (%)
CAE$27.39$28.15+$0.76+2.8%

Both prices are from the CNBC quote page. The close is the regular-session last at 4:00 PM EST. The pre-market last is not a close. The pre-market percentage change is a DeepCell calculation from those two prices. CNBC does not state a reason for the move.

Note: The Yahoo Finance EPS estimate of C$0.26 is compared with official IFRS diluted EPS of C$0.18, because Yahoo’s earnings-history actual for the year-ago quarter of C$0.23 matches official IFRS EPS, not adjusted EPS of C$0.28. Official adjusted EPS was C$0.33. Yahoo displays the revenue estimate as 1.25B Canadian dollars (10 analysts).Source: CAE official Q2 FY2027 press release, Nov 11, 2026, via PR Newswire; Yahoo Finance, Nov 11, 2026; CNBC, Nov 12, 2026 8:58 AM EST

3

3 · Q2 results vs. consensus

Fiscal 2027 adjusted EPS outlook was raised to C$1.28–C$1.35

Fiscal 2027 outlook, as of November 11, 2026

MetricCurrent outlookPrevious outlook
RevenueLow-single digit percentage growthLow-single digit percentage growth
Adjusted SOI margin14.9% to 15.4%14.6% to 15.1%
Adjusted EPS (C$)C$1.28 to C$1.35C$1.21 to C$1.28
Cash conversion rate85% to 95%Unchanged

Note: SOI is segment operating income. Outlook is as at November 11, 2026, for the year ending March 31, 2027. Civil revenue is expected to be flat to slightly down and Defense to grow at a mid-single digit rate. There is no third-party consensus shown for the outlook ranges.Source: CAE official Q2 FY2027 press release, Nov 11, 2026, via PR Newswire; analysis of company data

4

4 · Fiscal 2027 guidance

Revenue was C$1,204.7M, down 2.6%, as stated, while adjusted EPS rose 17.9% as stated

  1. Key resultsRevenue was C$1,204.7M, down 2.6%, as stated, while adjusted EPS rose 17.9% as stated.

Key figures

C$ M unless notedQ2 FY2026Q2 FY2027YoY, as stated
RevenueC$1,236.6MC$1,204.7M-2.6%
Operating incomeC$155.3MC$114.4M-26.3%
Adjusted segment operating incomeC$176.7MC$179.3M1.5%
Net income to equity holdersC$73.9MC$58.6M-20.7%
Diluted EPS (C$)C$0.23C$0.18-21.7%
Adjusted EPS (C$)C$0.28C$0.3317.9%

Note: Official year-on-year percentages are the variance column in the “Summary of consolidated results” table. Adjusted segment operating income and adjusted EPS are non-IFRS measures as defined in the release.Source: CAE official Q2 FY2027 press release, Nov 11, 2026, via PR Newswire; analysis of company data

5

5 · Q2 key financials

Defense adjusted SOI rose 43.3% as stated; Civil adjusted SOI was down 16.3%, as stated

Segment results

C$ M unless noted, Q2 FY2026 vs Q2 FY2027

C$ M unless notedQ2 FY2026Q2 FY2027YoY, as stated
Civil revenueC$670.0MC$652.3M-2.6%
Civil adjusted SOIC$124.1MC$103.9M-16.3%
Civil adjusted SOI margin18.5%15.9%n.m.
Defense revenueC$566.6MC$552.4M-2.5%
Defense adjusted SOIC$52.6MC$75.4M43.3%
Defense adjusted SOI margin9.3%13.6%n.m.
“Given our performance year-to-date and increased confidence in our ability to execute our second-half plan, we are raising our full-year fiscal 2027 outlook for adjusted EPS and adjusted segment operating income margin.” Matthew Bromberg, President and CEO “Defense delivered another strong quarter, with double-digit year-over-year growth in adjusted segment operating income and continued underlying margin expansion.”

Note: SOI is adjusted segment operating income, a non-IFRS measure. Official year-on-year rates are the variance percentages in the Civil and Defense tables. Margin year-on-year changes are not stated as a single official rate, so n.m. is shown.Source: CAE official Q2 FY2027 press release, Nov 11, 2026, via PR Newswire; analysis of company data

6

6 · Segment results

Adjusted segment operating income was C$179.3M, up 1.5% as stated

Adjusted segment operating income

C$ M, Q2 FY2026 vs Q2 FY2027

v · Q2 FY2026: 177Mv · Q2 FY2027: 179MQ2 FY2026Q2 FY20270M50M100M150M220M177M179M
Adjusted segment operating income was C$179.3 million compared with C$176.7 million a year earlier. Operating income of C$114.4 million included restructuring costs of C$42.6 million.

Note: Adjusted segment operating income was C$179.3 million compared with C$176.7 million a year earlier. Operating income of C$114.4 million included restructuring costs of C$42.6 million.Source: CAE official Q2 FY2027 press release, Nov 11, 2026, via PR Newswire; analysis of company data

7

7 · Adjusted operating income

Civil delivered 11 full-flight simulators and utilization was 65.0%

Civil operating indicators

Q2 FY2026 vs Q2 FY2027

MetricQ2 FY2026Q2 FY2027
Simulator equivalent units321318
Full-flight simulators in the network375373
FFS deliveries1211
Civil training utilization61.9%65.0%
Civil book-to-sales, quarter—C$0.89
Civil book-to-sales, last 12 months—C$1.07
The release states Civil training centre utilization of 65.0% and 11 full-flight simulator deliveries in the quarter. Book-to-sales figures are official supplementary measures.

Note: The release states Civil training centre utilization of 65.0% and 11 full-flight simulator deliveries in the quarter. Book-to-sales figures are official supplementary measures.Source: CAE official Q2 FY2027 press release, Nov 11, 2026, via PR Newswire; analysis of company data

8

8 · Civil training and deliveries

IFRS diluted EPS was C$0.18; adjusted EPS was C$0.33

IFRS to adjusted net income

C$ M unless noted, Q2 FY2026 vs Q2 FY2027

C$ M unless notedQ2 FY2026Q2 FY2027
Net income to equity holdersC$73.9MC$58.6M
Restructuring, integration and acquisition costs, after tax—C$31.8M
Amortization of acquisition-related intangibles, after taxC$16.3MC$17.0M
Adjusted net incomeC$90.2MC$107.4M
Diluted shares (millions)322.2321.3
Adjusted EPS (C$)C$0.28C$0.33
The reconciliation is the company’s table of adjusted net income and adjusted EPS. Adjusted EPS is a non-IFRS ratio. A year-earlier restructuring after-tax amount is shown as a dash because the release records no such cost in Q2 FY2026.

Note: The reconciliation is the company’s table of adjusted net income and adjusted EPS. Adjusted EPS is a non-IFRS ratio. A year-earlier restructuring after-tax amount is shown as a dash because the release records no such cost in Q2 FY2026.Source: CAE official Q2 FY2027 press release, Nov 11, 2026, via PR Newswire; analysis of company data

9

9 · Reported vs. adjusted EPS

Adjusted SOI margin widened to 14.9% from 14.3%

Margins

C$ M unless noted, Q2 FY2026 vs Q2 FY2027

MetricQ2 FY2026Q2 FY2027
Operating margin12.6%9.5%
Adjusted SOI margin14.3%14.9%
Civil adjusted SOI margin18.5%15.9%
Defense adjusted SOI margin9.3%13.6%
Effective tax rate22.7%13.0%
Adjusted effective tax rate22.9%18.7%
Operating margin and adjusted SOI margin are as stated in the release (9.5% and 14.9% of revenue this quarter). The effective tax rate was 13.0%, and the adjusted effective tax rate was 18.7%.

Note: SOI is segment operating income. Operating margin and adjusted SOI margin are as stated in the release (9.5% and 14.9% of revenue this quarter). The effective tax rate was 13.0%, and the adjusted effective tax rate was 18.7%.Source: CAE official Q2 FY2027 press release, Nov 11, 2026, via PR Newswire; analysis of company data

10

10 · Margin analysis

Free cash flow was C$179.9M, up 63.8% as stated

Free cash flow

C$ M, Q2 FY2026 vs Q2 FY2027

v · Q2 FY2026: 110Mv · Q2 FY2027: 180MQ2 FY2026Q2 FY20270M50M100M150M220M110M180M
The company states the free cash flow increase was mainly due to lower capital expenditures. In the quarter it repurchased 1,908,861 shares at a weighted average price of C$35.12, for C$67.1 million. Year-to-date repurchases through the second quarter were approximately 3.0 million shares for C$106.1 million.

Note: The company states the free cash flow increase was mainly due to lower capital expenditures. In the quarter it repurchased 1,908,861 shares at a weighted average price of C$35.12, for C$67.1 million. Year-to-date repurchases through the second quarter were approximately 3.0 million shares for C$106.1 million.Source: CAE official Q2 FY2027 press release, Nov 11, 2026, via PR Newswire; analysis of company data

11

11 · Cash flow and buybacks

Capital expenditures were C$48.9M, down 55.8%, as stated

Capital spending and cash flow

C$ M unless noted, Q2 FY2026 vs Q2 FY2027

C$ MQ2 FY2026Q2 FY2027YoY, as stated
Capital expendituresC$107.6MC$48.9M-55.8%
Operating cash flowC$214.0MC$215.5Mn.m.
Free cash flowC$109.8MC$179.9M63.8%
The official 0.7% year-on-year change in operating cash flow is not used as a headline rate here. Free cash flow is a non-IFRS measure as defined in the release.

Note: The official 0.7% year-on-year change in operating cash flow is not used as a headline rate here. Free cash flow is a non-IFRS measure as defined in the release.Source: CAE official Q2 FY2027 press release, Nov 11, 2026, via PR Newswire; analysis of company data

12

12 · Capital expenditure

Net debt was C$2,534.6M, or C$2.16 times adjusted EBITDA

Financial position

C$ M unless noted, Mar 31, 2026 vs Sep 30, 2026

C$ M unless notedMar 31, 2026Sep 30, 2026
Cash and cash equivalentsC$552.4MC$570.5M
Total assetsC$11,147.8MC$11,088.3M
Current portion of long-term debtC$252.0MC$534.0M
Long-term debtC$2,982.2MC$2,571.1M
Total equityC$5,388.1MC$5,519.5M
Net debt—C$2,534.6M
Net debt to adjusted EBITDAC$2.66 (year earlier)C$2.16
Net debt of C$2,534.6 million and the 2.16 times net debt-to-adjusted EBITDA ratio are official period-end figures. A year earlier the ratio was 2.66 times. At the end of the preceding quarter, net debt was C$2,646.2 million and the ratio was 2.27 times.

Note: Net debt of C$2,534.6 million and the 2.16 times net debt-to-adjusted EBITDA ratio are official period-end figures. A year earlier the ratio was 2.66 times. At the end of the preceding quarter, net debt was C$2,646.2 million and the ratio was 2.27 times.Source: CAE official Q2 FY2027 press release, Nov 11, 2026, via PR Newswire; analysis of company data

13

13 · Balance sheet and net debt

Transformation costs, the Middle East conflict and a possible U.S. GAAP transition are the main watch items

Indicator
What to watch
Implication
Latest reading
Transformation plan costs and savings
The remaining cost is still to come in fiscal 2027
Annual run-rate savings target is C$125–C$150 million
Costs to date C$175.3M
Geopolitical conditions in the Middle East
The outlook assumes mitigation actions remain effective for the rest of fiscal 2027
An intensification could add pressure on performance
Assumed effective for FY2027
Potential transition to U.S. GAAP
If adopted, it would be applied for the fourth quarter and year ending March 31, 2027, retrospectively
The company is still evaluating the impact
Decision not yet made

Source: CAE official Q2 FY2027 press release, Nov 11, 2026, via PR Newswire; analysis of company data

14

14 · Key risks to guidance

15 · Appendix: Segment detail

16 · Appendix: Profit and margins

Appendix: outlook and capital returns

ClaimEvidenceCalculation
FY2027 adjusted EPS outlookC$1.28 to C$1.35Raised from C$1.21–C$1.28
FY2027 adjusted SOI margin outlook14.9% to 15.4%Raised from 14.6%–15.1%
Share repurchases, year to dateC$106.1MApproximately 3.0 million shares
Expected Flightscape sale proceedsUS$500 million, as statedExpected to close in the first half of calendar 2027

SOI is segment operating income. Source: CAE official Q2 FY2027 press release, Nov 11, 2026, via PR Newswire; analysis of company data

17

17 · Appendix: Guidance and capital

Appendix: transformation costs

ClaimEvidenceCalculation
Transformation costs in the quarterC$42.6MAlso the Q2 restructuring cost
Transformation costs incurred to dateC$175.3MOf a total planned cost of about C$200–C$250 million
Annual run-rate savings targetC$125M to C$150MCompany remains on track, as stated
Investment tax credits in DefenseC$11MIdentified and claimed in the period in respect of prior years

Source: CAE official Q2 FY2027 press release, Nov 11, 2026, via PR Newswire; analysis of company data

18

18 · Appendix: Transformation plan

Appendix: income statement detail

Income statement

C$ M unless notedQ2 FY2026Q2 FY2027YoY
RevenueC$1,236.6MC$1,204.7Mdown 2.6%, as stated
Gross profitC$319.3MC$339.9Mn.m.
Operating incomeC$155.3MC$114.4Mdown 26.3%, as stated
Net income to equity holdersC$73.9MC$58.6Mdown 20.7%, as stated

Per share (C$)

C$ M unless notedQ2 FY2026Q2 FY2027YoY
Diluted EPS (C$)C$0.23C$0.18down 21.7%, as stated
Adjusted EPS (C$)C$0.28C$0.3317.9% as stated
Free cash flowC$109.8MC$179.9M63.8% as stated
Capital expendituresC$107.6MC$48.9Mdown 55.8%, as stated

Note: n.m. means an official year-on-year percentage is not stated for that line. Official rates are labelled “as stated”. Other year-on-year rates in the model, if shown elsewhere, are DeepCell calculations.Source: CAE official Q2 FY2027 press release, Nov 11, 2026, via PR Newswire; analysis of company data

19

19 · Appendix: Income statement

Appendix: sources

  • Results release, Q2 FY2027 (official company press release, Nov 11, 2026, via PR Newswire) — https://www.prnewswire.com/news-releases/cae-reports-second-quarter-fiscal-2027-results-302936965.html
  • Investor relations page listing the FY27 second-quarter financial report and annex — https://www.cae.com/Investors/
  • Consensus: Yahoo Finance analysis, Nov 11, 2026 after the close — https://finance.yahoo.com/quote/CAE/analysis/
  • Share price: CNBC CAE quote, Nov 11, 2026 regular close $27.39 at 4:00 PM EST and Nov 12 pre-market last $28.15 at 8:58 AM EST — https://www.cnbc.com/quotes/CAE
  • A Form 6-K for these results had not appeared on EDGAR when the page was built. The IR PDFs were listed on the CAE Investors page but could not be retrieved from this environment (HTTP 403). Company figures are in Canadian dollars unless otherwise indicated. The Nasdaq share price is in U.S. dollars. Non-IFRS figures follow the company’s reconciliations.
  • Chart and table values link to the model in the spreadsheet tabs of this file.

Built with DeepCell / deepcell.net

20

20 · Sources

Important disclosures and disclaimer

For information only. This presentation is provided for information only. It is not investment, legal, tax or accounting advice, and it is not an offer, or a solicitation of an offer, to buy or sell any security.

No recommendation. It carries no rating, price target or buy, sell or hold view, and it was prepared without regard to any reader’s investment objectives, financial situation or needs.

Sources and accuracy. Company figures come from CAE Inc.’s official press release dated November 11, 2026, “CAE reports second quarter fiscal 2027 results,” as issued via PR Newswire and described on the company’s investor-relations site. A Form 6-K had not appeared on EDGAR at the time of writing. The FY27 second-quarter financial report and annex PDFs were listed on the IR page but could not be retrieved from this environment. Consensus estimates (Yahoo Finance) and share prices (CNBC) are third-party data, credited on the sources page. We have not independently verified third-party data.

Basis of presentation. Figures are IFRS unless labelled non-IFRS, in Canadian dollars unless otherwise indicated, for the quarters ended September 30, 2026 and 2025. The share price is the Nasdaq CAE quote in U.S. dollars.

Forward-looking statements. Company outlook, transformation targets, the proposed Flightscape sale, the potential U.S. GAAP transition, consensus estimates and the watch items in this deck are forward-looking and may not be achieved. Readers should check the figures against the original release.

Date of analysis. Share prices are the CNBC regular-session close at 4:00 PM EST on November 11, 2026, and the Nov 12 pre-market last at 8:58 AM EST on November 12, 2026. The pre-market last is not a close.

Built with DeepCell / deepcell.net

21

21 · Disclosures

Sources

Not investment advice; no rating or price target.

Built in DeepCell Every figure on these slides opens its formula and its source. See how a review like this is made.

Share this review

Send the link: it opens with the picture below, and every number on the page still opens its formula and source. The picture is free to download and share.

Post on XShare on LinkedIn

More earnings reviews

All earnings reviews