Flight simulation and training (civil aviation and defense) / Operating · transformation plan under way / Canadian Defense
CAE Inc.
TSXCAENasdaqCAE
CAE builds full-flight simulators and sells training, in two segments: Civil Aviation, which trains airline and business-jet pilots in its own training centers and sells simulators to operators, and Defense and Security, which supplies training systems and services to armed forces. The company is headquartered at 8585 Côte-de-Liesse in Saint-Laurent, Quebec, and reports in Canadian dollars under IFRS; its fiscal year ends March 31 [6][2]. In the quarter ended June 30, 2026, the first quarter of fiscal 2027, revenue was C$1,173.4 million, up 6.8%, split C$641.6 million Civil and C$531.8 million Defense [1].
The U.S. listing moved during the summer. On July 9, 2026 CAE said it would voluntarily transfer its U.S. listing from the New York Stock Exchange to the Nasdaq Global Select Market, with the last NYSE trading day expected to be July 22 and Nasdaq trading to begin July 23, under the same symbol, CAE, on both the TSX and Nasdaq [5]. The August 12 results release carries the line "(Nasdaq: CAE; TSX: CAE)" [1]. A U.S. reader can therefore hold CAE directly on a U.S. exchange; the figures in the filings are Canadian dollars.
The number most quoted about CAE is its adjusted backlog, C$19,192.3 million at June 30, 2026, and the number most worth reading is how that total is built [1]. CAE's MD&A defines obligated backlog as "the value of our adjusted order intake not yet executed"; joint venture backlog as "the expected value of our share of orders that our joint ventures have received but have not yet executed"; and unfunded backlog as "legally binding Defense and Security orders with the U.S. government that we have received but have not yet executed and for which funding authorization has not yet been obtained," with the uncertainty tied to "the government's budget cycle, based on a September year-end." Options are included "when there is a high probability of being exercised, which we define as at least 80% probable," and multi-award ID/IQ contracts are excluded [2]. At June 30, 2026 the Defense adjusted backlog of C$10,690.0 million was C$5,672.9 million obligated, C$3,359.4 million joint venture and C$1,657.7 million unfunded backlog and options; Civil's C$8,502.3 million was C$7,804.8 million obligated and C$697.5 million joint venture [2].
Fiscal 2026, the year ended March 31, 2026, was the year the company began what it calls a transformation plan under a new chief executive. Revenue was C$4.9 billion (Civil C$2,741.6 million, Defense C$2,172.4 million), operating income C$612.3 million after C$84.4 million of restructuring costs, net income attributable to equity holders C$313.1 million, or C$0.97 a share, and free cash flow (non-IFRS) C$473.8 million. Adjusted order intake fell 35% to C$5,026.2 million and adjusted backlog ended the year at C$19,258.6 million, down 4% [3]. The plan carries C$200 million to C$250 million of expected expenses, mostly in fiscal 2026 and 2027, against targeted annual recurring savings of C$125 million to C$150 million through fiscal 2030; by June 30, 2026 the cumulative cost was C$132.7 million [4][2].
The first quarter of fiscal 2027 showed the shape of the year ahead: operating income of C$86.8 million, down from C$133.8 million, after C$48.3 million of restructuring; adjusted segment operating income (non-IFRS) of C$156.6 million; net income of C$31.0 million, or C$0.10 a share; adjusted EPS (non-IFRS) of C$0.26, unchanged; and free cash flow of C$104.0 million against an outflow of C$134.7 million a year earlier. Net debt was C$2,646.2 million, 2.27 times adjusted EBITDA. Defense booked C$451.9 million of orders for a book-to-sales ratio of 0.85 times in the quarter and 1.01 times over twelve months; Civil booked C$837.7 million, 1.31 times. Management kept its fiscal 2027 outlook: low-single-digit revenue growth, an adjusted segment operating margin of 14.6% to 15.1%, adjusted EPS of C$1.21 to C$1.28 and cash conversion of 85% to 95% [1][2]. On September 21, 2026 CAE USA said the U.S. Air Force had awarded it a "$300 million competitive recompete contract" to continue C-130H aircrew training through December 2035 at five bases; the release does not state the currency [7].
Primary assets & business
- Civil Aviation segment: full-flight simulator manufacturing and pilot training centers; revenue C$641.6M in the quarter ended June 30, 2026 (+5.6%); 8 full-flight simulators delivered; training center utilization 72.2% [1]
- Defense and Security segment: training and simulation for armed forces; revenue C$531.8M in the quarter ended June 30, 2026 (+8.3%); adjusted backlog C$10,690.0M [1][2]
- Defense backlog composition at June 30, 2026: obligated C$5,672.9M; joint venture C$3,359.4M; unfunded backlog and options C$1,657.7M [2]
- Civil backlog composition at June 30, 2026: obligated C$7,804.8M; joint venture C$697.5M [2]
- SkyAlyne joint venture with KF Aerospace, which delivers the Royal Canadian Air Force's Future Aircrew Training program (live flight, simulated and ground school training), per the fiscal 2026 annual report [8]
- U.S. Air Force C-130H Aircrew Training System: prime contractor since 2018; recompete contract announced September 21, 2026 extends the role through December 2035 at Little Rock AFB, Dobbins ARB and three Air National Guard bases [7]
- Sites and training locations in over 40 countries, per company boilerplate [7]
Financial position
| Revenue (latest quarter) | C$1,173.4MUp 6.8% from C$1,098.6M. Civil C$641.6M (C$607.7M); Defense C$531.8M (C$490.9M). First quarter of fiscal 2027. | Quarter ended Jun 30, 2026 [1] |
|---|---|---|
| Operating income (latest quarter) | C$86.8M7.4% of revenue, down from C$133.8M (12.2%); includes restructuring costs of C$48.3M. Adjusted segment operating income (non-IFRS) C$156.6M, 13.3% (C$169.3M, 15.4%). | Quarter ended Jun 30, 2026 [1] |
| Net income (latest quarter) | C$31.0MC$0.10 per share (C$57.2M, C$0.18 a year earlier). Adjusted EPS (non-IFRS) C$0.26, unchanged. | Quarter ended Jun 30, 2026 [1] |
| Free cash flow (latest quarter) | C$104.0MNon-IFRS; an outflow of C$134.7M a year earlier. Capital expenditures C$51.7M (C$106.9M). | Quarter ended Jun 30, 2026 [1] |
| Adjusted backlog | C$19,192.3MCivil C$8,502.3M; Defense C$10,690.0M. Includes obligated, joint venture and unfunded backlog and options as CAE defines them [2]. C$19,258.6M at March 31, 2026 [3]. | Jun 30, 2026 [1] |
| Unfunded backlog and options (Defense) | C$1,657.7MU.S. government orders received but not yet funded, plus options judged at least 80% probable. C$1,731.2M at March 31, 2026 and C$2,050.4M at March 31, 2025 [4]. | Jun 30, 2026 [2] |
| Adjusted order intake (latest quarter) | C$1,289.6MUp 14.9%. Civil C$837.7M, book-to-sales 1.31x; Defense C$451.9M, book-to-sales 0.85x (1.01x over the last twelve months) [2]. | Quarter ended Jun 30, 2026 [1] |
| Net debt | C$2,646.2M2.27x adjusted EBITDA (non-IFRS). Cash and cash equivalents C$568.7M; total long-term debt C$3,214.9M [2]. C$2,681.8M and 2.29x at March 31, 2026 [3]. | Jun 30, 2026 [1] |
| Revenue (fiscal 2026) | C$4.9BCivil C$2,741.6M (+1%); Defense C$2,172.4M (+9%). Operating income C$612.3M (12.5%); adjusted segment operating income C$710.7M (14.5%); net income attributable to equity holders C$313.1M; EPS C$0.97; adjusted EPS C$1.20; free cash flow C$473.8M; restructuring costs C$84.4M. | Year ended Mar 31, 2026 [3] |
| Fiscal 2027 outlook | Adjusted EPS C$1.21–1.28Low-single-digit revenue growth; adjusted segment operating margin 14.6% to 15.1%; cash conversion 85% to 95%; excludes divestitures, acquisitions or new joint ventures. Management's figures [3]. | Aug 12, 2026 (unchanged from May 21, 2026) [1] |
| Market capitalization | Not yet verifiedNot verified against a dated close. |
All figures are in Canadian dollars, CAE's reporting currency, under IFRS. The fiscal year ends March 31; the quarter ended June 30, 2026 is the first quarter of fiscal 2027. Adjusted backlog, adjusted order intake, adjusted segment operating income, adjusted EPS, free cash flow and net debt-to-adjusted EBITDA are management's non-IFRS or supplementary measures as the MD&A defines them. Blank means not yet verified, never zero.
Ownership & capital structure
| Common shares outstanding | 321,395,891Total share capital C$2,400.4M. | Jun 30, 2026 [2] |
|---|---|---|
| Normal course issuer bid | Up to 16,073,033 sharesRenewal announced June 5, 2026. In the quarter ended June 30, 2026 CAE repurchased and cancelled 1,107,279 shares at a weighted average C$35.26, for C$39.0M. | Jun 10, 2026 – Jun 9, 2027 [2] |
| Dividend | Not yet verifiedNo dividend is mentioned in the releases and MD&A reviewed; not verified. | |
| Significant shareholders | Not yet verifiedNot verified; see the management proxy circular filed with the Form 40-F on June 22, 2026 [9]. |
What has to happen next
- Second quarter fiscal 2027 results, for the quarter ending September 30, 2026, against the unchanged outlook of low-single-digit revenue growth and adjusted EPS of C$1.21 to C$1.28 [1].
- Whether the Defense book-to-sales ratio, 0.85x in the June quarter and 1.01x over twelve months, holds above 1.0x, and whether unfunded backlog and options (C$1,657.7M at June 30) convert to obligated backlog after the U.S. government's September year-end [2].
- Transformation plan costs: C$132.7M incurred by June 30, 2026 against C$200M to C$250M expected, and the C$125M to C$150M of annual savings targeted through fiscal 2030 [2][4].
- Fiscal 2030 targets stated with the fiscal 2026 results: C$950M to C$1B of adjusted segment operating income, about 100% cash conversion over four years and net debt of about 2.5x adjusted EBITDA [3].
- Delivery under the U.S. Air Force C-130H recompete contract announced September 21, 2026, which runs through December 2035 [7].
- Progress of the SkyAlyne joint venture on the Royal Canadian Air Force's Future Aircrew Training program [8].
Research checkpoints, not a dated event calendar or a promise of outcomes.
Valuation context
No valuation conclusion is published here. CAE now trades on Nasdaq as well as the TSX, so there is no OTC step and no currency conversion at the point of purchase, but every figure in the filings is Canadian dollars and any multiple must be built on the same basis as the comparison, on the same date [5][1]. Two features of the accounts matter before a multiple is applied. Reported operating income carries restructuring costs (C$84.4M in fiscal 2026, C$48.3M in the June 2026 quarter), so reported and adjusted earnings have diverged and will keep diverging until the plan is complete [3][1]. And the adjusted backlog of C$19,192.3M includes C$3,359.4M of joint venture backlog in Defense and C$697.5M in Civil, which is CAE's share of orders held by equity-accounted ventures rather than consolidated revenue to come, plus C$1,657.7M of unfunded backlog and options [1][2]. A backlog-to-revenue comparison with a U.S. training or defense peer should strip both before it is made.
Mandatory reading
Key risks
- C$1,657.7 million of the Defense backlog at June 30, 2026 is unfunded backlog and options: orders the U.S. government has placed but not yet funded, or options CAE judges at least 80% likely; a budget cycle that slips moves that money out of the quarter it was expected in [2].
- Joint venture backlog of C$3,359.4 million in Defense and C$697.5 million in Civil is CAE's share of orders held by ventures it does not consolidate; it supports equity income, not consolidated revenue, and a reader who divides adjusted backlog by revenue will get a longer runway than the consolidated accounts can deliver [2].
- Fiscal 2026 adjusted order intake fell 35% to C$5,026.2 million and adjusted backlog shrank 4%; Defense's book-to-sales was 0.85x in the June 2026 quarter, so the backlog is being consumed faster than it is refilled unless the second half reverses it [3][1].
- The transformation plan is expected to cost C$200 million to C$250 million, mostly in fiscal 2026 and 2027, before the C$125 million to C$150 million of annual savings arrive; reported operating income fell to C$86.8 million in the June quarter while the charges run [4][1].
- Net debt of C$2,646.2 million at 2.27x adjusted EBITDA, with C$592.6 million of long-term debt current at June 30, 2026, leaves less room than the free cash flow line suggests if the savings come later than planned [1][2].
- Civil training demand follows airline hiring and business-jet activity; training center utilization was 72.2% in the June quarter and 70% for fiscal 2026 against 74% the year before, and simulator deliveries fell to 52 from 61 in fiscal 2026 [1][3].
Source documents
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1
CAE reports first quarter fiscal 2027 results
Montreal, August 12, 2026; (Nasdaq: CAE; TSX: CAE). Quarter ended June 30, 2026: revenue C$1,173.4M (+6.8% from C$1,098.6M); Civil C$641.6M (C$607.7M); Defense C$531.8M (C$490.9M); operating income C$86.8M, 7.4% (C$133.8M, 12.2%) including restructuring costs of C$48.3M; adjusted segment operating income C$156.6M, 13.3% (C$169.3M, 15.4%); net income C$31.0M (C$57.2M); EPS C$0.10 (C$0.18); adjusted EPS C$0.26 (C$0.26); free cash flow C$104.0M (−C$134.7M); capex C$51.7M (C$106.9M); net debt C$2,646.2M, 2.27x; adjusted order intake C$1,289.6M (+14.9%); adjusted backlog C$19,192.3M (Civil C$8,502.3M, Defense C$10,690.0M); Civil book-to-sales 1.31x; 'Defense booked orders for $451.9 million this quarter for a book-to-sales ratio of 0.85 times. The ratio for the last 12 months was 1.01 times.'; 8 FFS deliveries; utilization 72.2%; 1,107,279 shares repurchased at C$35.26 (C$39.0M); FY2027 outlook unchanged (low-single-digit revenue growth; adjusted segment operating margin 14.6%–15.1%; adjusted EPS C$1.21–1.28; cash conversion 85%–95%); the chief executive.
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2
Management's Discussion and Analysis and interim financial statements, first quarter fiscal 2027
Definitions of obligated backlog, joint venture backlog, unfunded backlog and options (U.S. government orders not yet funded; September year-end budget cycle; options at least 80% probable; ID/IQ excluded), adjusted backlog, adjusted order intake and book-to-sales ratio. Defense backlog at June 30, 2026: obligated C$5,672.9M (from C$5,732.5M beginning; +C$451.9M orders; −C$531.8M revenue; +C$20.3M adjustments); joint venture C$3,359.4M; unfunded backlog and options C$1,657.7M; adjusted C$10,690.0M (C$11,104.3M a year earlier). Civil: obligated C$7,804.8M; joint venture C$697.5M; adjusted C$8,502.3M. 321,395,891 shares at June 30, 2026, share capital C$2,400.4M. NCIB renewed June 5, 2026 for up to 16,073,033 shares, June 10, 2026 to June 9, 2027. Cash C$568.7M; long-term debt C$3,214.9M (current C$592.6M; non-current C$2,622.3M). Transformation plan: C$200M–250M of expenses, savings C$125M–150M through fiscal 2030; Q1 costs C$48.3M; cumulative C$132.7M.
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3
CAE reports fourth quarter and full fiscal year 2026 results and targets significant cost savings and profitability growth as part of transformation plan
Montreal, May 21, 2026; (NYSE: CAE) (TSX: CAE). Fiscal 2026 (year ended March 31, 2026): revenue C$4.9B (+4%); Civil C$2,741.6M (+1%); Defense C$2,172.4M (+9%); Q4 revenue C$1,326.7M; operating income C$612.3M, 12.5% (C$729.2M, 15.5%); adjusted segment operating income C$710.7M, 14.5%; Civil adjusted SOI C$510.5M (18.6%); Defense C$200.2M (9.2%); net income attributable to equity holders C$313.1M (C$405.3M); diluted EPS C$0.97 (C$1.27); adjusted EPS C$1.20 (C$1.21); free cash flow C$473.8M (C$474.9M); cash conversion 123%; net debt C$2,681.8M, 2.29x; adjusted backlog C$19,258.6M (C$20,142.2M), Civil C$8,437.2M, Defense C$10,821.4M; adjusted order intake C$5,026.2M (C$7,703.5M, −35%), Civil C$2,641.8M, Defense C$2,384.4M; book-to-sales Civil 0.96x, Defense 1.10x; 52 FFS deliveries (61); utilization 70% (74%); restructuring costs C$84.4M; transformation plan total cost C$200M–250M (about C$100M non-cash); fiscal 2030 targets: C$125M–150M run-rate savings, C$950M–1B adjusted segment operating income, about 100% cash conversion, net debt about 2.5x; FY2027 outlook as above.
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4
Management's Discussion and Analysis for the year ended March 31, 2026
Defense backlog at March 31, 2026: obligated beginning C$5,563.5M; order intake C$2,384.4M; revenue −C$2,172.4M; adjustments −C$43.0M; obligated end C$5,732.5M; joint venture C$3,357.7M; unfunded backlog and options C$1,731.2M; adjusted C$10,821.4M (fiscal 2025: C$5,563.5M; C$3,681.7M; C$2,050.4M; C$11,295.6M). Civil: obligated end C$7,760.3M; joint venture C$676.9M; adjusted C$8,437.2M. Transformation plan: 'approximately $200 million to $250 million of total expenses ... with the majority to be incurred in fiscal 2026 and fiscal 2027, and realize annual recurring savings of approximately $125 million to $150 million through fiscal 2030.' Operates 'in over 40 countries'.
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5
CAE to transfer U.S. stock exchange listing to Nasdaq
Montreal, July 9, 2026; voluntary transfer from the NYSE to the Nasdaq Global Select Market; last NYSE trading day expected July 22, 2026, Nasdaq trading expected to begin July 23, 2026; TSX listing unaffected; symbol CAE on both.
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6
Form 6-K cover page, August 12, 2026
Principal executive offices: 8585 Cote de Liesse, Saint-Laurent, Quebec, Canada H4T 1G6; exhibits 99.1 press release and 99.2 financial statements and MD&A.
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7
CAE USA awarded $300 million recompete contract to continue U.S. Air Force C-130 Hercules aircrew training
Tampa, Fla.; (Nasdaq: CAE) (TSX: CAE); '$300 million competitive recompete contract' from the U.S. Air Force for C-130H Aircrew Training System through December 2035; prime contractor since 2018; Little Rock AFB, Dobbins ARB, Wyoming, Minneapolis and St. Joseph Air National Guard bases; currency not stated; boilerplate 'sites and training locations in over 40 countries'.
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8
CAE Financial Report 2026 (Form 40-F annual report)
Backlog tables at March 31, 2026 consistent with the annual MD&A; SkyAlyne joint venture with KF Aerospace delivering the Future Aircrew Training program (live flight, simulated and ground school). The document is large; the definitions section was not retrievable in our read and is cited to the Q1 FY2027 MD&A instead.
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9
EDGAR filing index for CAE Inc. (CIK 1173382)
Form 40-F filed June 22, 2026 (accession 0001173382-26-000023, with proxy circular); Form 25 and Form 8-A12B filed July 22, 2026 for the Nasdaq transfer; 6-Ks of May 21, June 5, July 9 and August 12, 2026.
