CAE Q3 Earnings Call Highlights

1 month ago 24

MarketBeat

Fri, February 13, 2026 astatine 9:27 AM CST 8 min read

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CAE posted a "solid" Q3 with consolidated gross of CAD 1.25 billion (+2% YoY), adjusted conception operating income of CAD 195.8 million (+3%), adjusted EPS of CAD 0.34, beardown operating currency travel (CAD 407.6 million), and nett indebtedness reduced to astir $2.8 billion (net debt/EBITDA ~2.3x).
Segments diverged: civilian was softer (civil gross down 5% to CAD 717.2 million, grooming utilization 71%) and CAE present expects a full‑year mid‑single‑digit% diminution successful adjusted conception operating income, portion defence outperformed (revenue +14% to CAD 534.9 million) and guidance for defence adjusted operating income was raised to >20% YoY growth.
Management launched a multi‑year translation centered connected portfolio sharpening, capital discipline and performance improvement, including exploring divestitures of ~8% of revenue successful non‑core assets, rationalizing astir 10% of commercialized simulators implicit 12–24 months, lowering CapEx, and moving ~80 finance/HR processes into a GenAI‑enabled shared‑services model.
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CAE (NYSE:CAE) executives told investors the institution delivered what they characterized arsenic a “solid” 3rd 4th for fiscal 2026, with spot successful defence offsetting softer-than-expected enactment successful civilian aviation, portion absorption precocious a multi-phase translation program focused connected portfolio sharpening, tighter superior discipline, and operational show improvement.

Interim CFO Constantino Malatesta said third-quarter consolidated gross roseate 2% twelvemonth implicit twelvemonth to CAD 1.25 billion. Adjusted Segment Operating Income accrued 3% to CAD 195.8 million, and adjusted net per stock were CAD 0.34, up from CAD 0.29 a twelvemonth earlier.

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CAE recorded CAD 7.3 million of transformation-related expenses successful the quarter, chiefly successful SG&A. Malatesta said those costs were included successful adjusted results and reduced adjusted EPS by astir CAD 0.02.

Net concern disbursal fell to CAD 54.1 million from CAD 56.6 million, which absorption attributed chiefly to little indebtedness borrowings, partially offset by higher expenses connected lease liabilities. Income taxation disbursal was CAD 29.6 million, translating to a 21% effectual taxation complaint connected some a statutory and adjusted basis; the institution reiterated it expects an effectual taxation complaint “run rate” of astir 25% going forward.

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