Canada's CAE Q1 adjusted EPS beats estimates on defense segment strength

CAE

12/08/2026 22:11

Overview
Canada simulation and training provider's fiscal Q1 revenue rose 6.8%, beating analyst expectations
Adjusted EPS for fiscal Q1 was flat yr/yr but beat analyst expectations
Company repurchased 1.1 mln shares for C$39 mln under normal course issuer bid

Outlook
CAE sees fiscal 2027 revenue growing at a low-single digit percentage rate
Company expects fiscal 2027 adjusted segment operating income margin of 14.6% to 15.1%
CAE forecasts fiscal 2027 adjusted EPS of C$1.21 to C$1.28

Result Drivers
CIVIL PROFITABILITY PRESSURE - Civil segment profitability declined due to higher selling, general and administrative expenses, lower simulator sales, and impacts from the Middle East conflict
DEFENSE GROWTH - Defense segment revenue and profitability rose, driven by higher activity and program efficiencies in North America
TRANSFORMATION COSTS - Company-wide restructuring and transformation costs weighed on operating income

Company press release: ID:nPn3pRmfpa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
C$1.17 bln
C$1.13 bln (11 Analysts)
Q1 Adjusted EPS
Beat
C$0.26
C$0.22 (10 Analysts)
Q1 Adjusted Segment Operating Income
 
C$156.60 mln
 
Q1 Operating Income
 
C$86.80 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 1 "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$46.00, about 21.7% above its August 11 closing price of C$37.79
The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 29 three months ago

Reuters Recommended Reads
Aug 11 - Canada's Exchange Income Q2 results beat estimates on aerospace growth, acquisitions
Aug 11 - Air Canada restores annual adjusted EBITDA forecast as fuel-cost clarity improves; Q2 results beat   
Aug 12 - India's Hindustan Aeronautics posts strong quarterly results on project execution, deliveries

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.)