Canada's CAE beats Q3 adjusted EPS estimates

Cae

12/02/2026 21:19

Overview

Canada simulation firm's fiscal Q3 revenue rose slightly, meeting analyst expectations

Adjusted EPS for fiscal Q3 beat analyst expectations

Company undergoing transformation with divestitures and Civil training network optimization

Outlook

Company expects Civil adjusted segment operating income to decline mid-single digit percentage

CAE anticipates Defense adjusted segment operating income growth of over 20% for fiscal 2026

Capital expenditures expected to be more than 10% lower than fiscal 2025

Result Drivers

CIVIL SEGMENT CHALLENGES - Civil segment revenue and order intake declined due to softer market conditions and currency impacts

DEFENSE SEGMENT GROWTH - Defense segment showed improved performance with increased revenue and operating income, driven by strong demand and backlog

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Meet
C$1.25 bln
C$1.25 bln (9 Analysts)
Q3 Adjusted EPS
Beat
C$0.34
C$0.30 (10 Analysts)
Q3 EPS
C$0.34
Q3 Adjusted Operating Income
C$195.80 mln
Q3 Operating Income
C$195.80 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the aerospace & defense peer group is "buy"

Wall Street's median 12-month price target for CAE Inc is C$50.00, about 16.7% above its February 11 closing price of C$42.83

The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 27 three months ago

Press Release: ID:nCNWzHp27a

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)