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MONTREAL - CAE Inc . (NYSE:CAE) (TSX:CAE) reported first quarter fiscal 2026 adjusted earnings of C$0.21 per share, slightly exceeding analyst estimates of C$0.20, while revenue of C$1.1 billion came in just below the consensus forecast of C$1.12 billion.
The company’s shares dipped 1% following the results as investors weighed the slight revenue miss against improved profitability.
The aerospace training and simulation provider delivered a 2% YoY revenue increase, with strong Defense segment performance helping to offset challenges in the Civil Aviation division. Operating income jumped 23% to C$133.8 million, while adjusted segment operating income rose 10% to C$147.8 million, representing 13.5% of revenue compared to 12.5% in the same quarter last year.
CAE’s Defense and Security segment was the standout performer, with operating income surging 83% YoY to C$34.4 million and adjusted segment operating income climbing 45% to C$40.2 million. The segment’s adjusted operating margin improved significantly to 8.2% from 5.7% a year earlier.
"CAE delivered a solid first quarter, with double-digit income growth and margin expansion in Defense and continued momentum in Civil," said Calin Rovinescu, Chairman of CAE. "With a well-balanced portfolio across both civil aviation and defence, CAE is uniquely positioned to benefit from long-term structural tailwinds in both sectors."
The company also announced a leadership transition, with Matthew Bromberg set to succeed Marc Parent as President and CEO on August 13, 2025.
Civil Aviation revenue increased 3% to C$607.7 million, though training center utilization declined to 71% from 76% in the prior year. The segment delivered 8 full-flight simulators during the quarter, unchanged from last year.
CAE maintained its outlook for fiscal 2026, expecting Civil’s adjusted segment operating income to grow in the mid-single-digit percentage range, while Defense is projected to deliver low-double-digit percentage annual growth with an operating margin between 8% and 8.5%.
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