Results / Canadian Defense /
CAE's first-quarter revenue rises 6.8% as Defense orders lag sales
Revenue of C$1,173.4 million and C$104.0 million of free cash flow for the quarter ended June 30, 2026, against operating income cut to C$86.8 million by C$48.3 million of restructuring; adjusted backlog was C$19,192.3 million, with C$1,657.7 million of it unfunded orders and options.
CAE reported revenue of C$1,173.4 million for the quarter ended June 30, 2026, the first of its fiscal 2027, up 6.8%, with Civil Aviation at C$641.6 million and Defense and Security at C$531.8 million. Operating income fell to C$86.8 million from C$133.8 million after C$48.3 million of restructuring costs; adjusted segment operating income (non-IFRS) was C$156.6 million. Net income was C$31.0 million, or C$0.10 a share, and adjusted EPS C$0.26, unchanged. Free cash flow was C$104.0 million against an outflow of C$134.7 million a year earlier, and net debt C$2,646.2 million, 2.27 times adjusted EBITDA. The fiscal 2027 outlook was left unchanged [1].
The order book is the part to read. Civil booked C$837.7 million, a book-to-sales ratio of 1.31, but "Defense booked orders for $451.9 million this quarter for a book-to-sales ratio of 0.85 times," 1.01 over twelve months. Adjusted backlog was C$19,192.3 million, of which the Defense portion of C$10,690.0 million comprised C$5,672.9 million obligated, C$3,359.4 million held by joint ventures and C$1,657.7 million of unfunded backlog and options, the last defined as U.S. government orders received "for which funding authorization has not yet been obtained" and options judged at least 80% probable [1][2].
This is the first quarter reported under the Nasdaq listing: CAE said in July that Nasdaq trading would begin on July 23, and the results release carries the Nasdaq symbol in place of the NYSE [3][1]. For a U.S. reader the single number that tests the defense thesis is the Defense book-to-sales ratio, and at 0.85 it says the backlog was consumed faster than it was refilled this quarter; the September U.S. budget year-end is the next date on which the unfunded C$1.66 billion can move.
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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%); Civil C$641.6M (+5.6%); Defense C$531.8M (+8.3%); operating income C$86.8M (7.4%) vs C$133.8M (12.2%), including restructuring costs of C$48.3M; adjusted segment operating income C$156.6M (13.3%) vs C$169.3M (15.4%); net income C$31.0M vs C$57.2M; EPS C$0.10 vs C$0.18; adjusted EPS C$0.26 vs C$0.26; free cash flow C$104.0M vs −C$134.7M; capex C$51.7M; net debt C$2,646.2M, 2.27x adjusted EBITDA; 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; 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%.
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Management's Discussion and Analysis and interim financial statements, first quarter fiscal 2027
Defense backlog at June 30, 2026: obligated C$5,672.9M; joint venture C$3,359.4M; unfunded backlog and options C$1,657.7M; adjusted C$10,690.0M. Unfunded backlog defined 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 uncertainty tied to 'the government's budget cycle, based on a September year-end'; options included when 'at least 80% probable'. 321,395,891 shares at June 30, 2026; cash C$568.7M; long-term debt C$3,214.9M; transformation costs C$132.7M cumulative.
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CAE to transfer U.S. stock exchange listing to Nasdaq
Voluntary transfer from the NYSE to the Nasdaq Global Select Market; Nasdaq trading expected to begin July 23, 2026; symbol CAE on both the TSX and Nasdaq.
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