NYSE$CAE

Cae Inc · Q4 2026 earnings

Q4 2026 earnings · · After market close

Briefing

CAE Q4 revenue rises 4% to $1.33B; launches transformation plan targeting $950M–$1B ASOI by FY2030

CAE Inc. reported fourth-quarter fiscal 2026 revenue of $1,326.7 million, up 4% from $1,275.4 million a year ago, with full-year revenue reaching $4.9 billion (+4%). Q4 diluted EPS was $0.23 versus $0.42 prior year; adjusted EPS was $0.42 versus $0.47, reflecting $84.4 million of restructuring costs tied to a transformation plan targeting $125–150 million of annual run-rate savings by fiscal 2030 and adjusted segment operating income of $950 million to $1 billion by that year. Full-year net income attributable to equity holders was $313.1 million (diluted EPS $0.97; adjusted EPS $1.20). Civil Q4 revenue grew 3% to $746.7 million but adjusted segment operating income fell to $152.4 million on softer training demand; Defense revenue rose 6% to $580.0 million with adjusted segment operating income of $59.4 million. Free cash flow was $473.8 million for the year with a 123% cash conversion rate under the updated definition.

  • Q4 revenue was $1,326.7 million (+4% YoY); full-year revenue $4.9 billion with net income of $313.1 million and adjusted EPS of $1.20.
  • Q4 adjusted segment operating income was $211.8 million (16.0% margin) vs $258.8 million (20.3%) prior year, including $84.4 million restructuring costs.
  • Civil Q4 revenue $746.7 million (+3%) but adjusted segment operating income fell 27% to $152.4 million; training centre utilization was 73% and 17 FFSs delivered.
  • Defense Q4 revenue $580.0 million (+6%) with adjusted segment operating income of $59.4 million (+18%); adjusted backlog $10.8 billion.
  • Transformation plan targets $125–150M run-rate savings by FY2030, FY2030 adjusted segment operating income of $950M–$1B, and FY2027 adjusted EPS guidance of $1.21–$1.28.

Headline financials

Total Revenue

C$1.33B

No prior period
EPS (adj)

C$0.42

No prior period
Adjusted segment operating income

C$212M

No prior period
Civil training centre utilization

73.0%

No prior period
Consolidated adjusted backlog

C$19.3B

No prior period
Net debt to adjusted EBITDA

2.29

No prior period
Full-flight simulators delivered

17

No prior period
Free Cash Flow

C$135M

No prior period
Net Income

C$73.1M

No prior period
Operating Income

C$127M

No prior period

Revenue & EPS history

Cae Inc · Revenue · Quarterly

C$1.33B

Q4 2026
Beat estimate in 1 of 1 quarters(100%)
ActualEstimate

Revenue by segment

Cae Inc · C$1.33B total across 2 segments · Q4 2026

  • Civil Aviation
    C$747M—
  • Defense and Security
    C$580M—

Forward guidance

For fiscal 2027, CAE expects low-single-digit consolidated revenue growth, adjusted segment operating income margin of 14.6%–15.1%, adjusted EPS of $1.21–$1.28, and cash conversion of 85%–95%. Long-term FY2030 targets include $950M–$1B adjusted segment operating income and $125–150M transformation run-rate savings.

Tailwinds

  • Defense segment growing with mid-single-digit revenue outlook and margin expansion.
  • Transformation plan aims to remove 10% of commercial FFS fleet and optimize sites for $125–150M savings.
  • Strong FY2026 cash conversion at 123% under updated free cash flow definition.

Headwinds

  • Civil training market softness and Middle East geopolitical impacts pressuring utilization and margins.
  • Q4 operating income down 47% on $84.4M restructuring charges; adjusted segment operating income down 18%.
  • FY2027 outlook assumes Middle East conflict winds down in first half—further deterioration could pressure results.

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