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MONTREAL - CAE Inc. (NYSE:CAE) (TSX:CAE) reported better-than-expected second quarter results on Monday, with shares rising 2.4% following the announcement as the company beat analyst estimates on both earnings and revenue.
The flight simulator manufacturer and training provider posted revenue of Cdn$1.24 billion for the fiscal second quarter ended September 30, 2025, exceeding analyst expectations of Cdn$1.14 billion and representing a 9% increase from Cdn$1.14 billion in the same period last year. Adjusted earnings per share came in at Cdn$0.23, beating the analyst consensus of Cdn$0.20, though slightly below the Cdn$0.24 reported in the prior-year quarter.
The company’s Civil Aviation segment, which includes commercial and business aviation training, saw revenue increase 5% YoY to Cdn$670 million with an operating margin of 16.2%. Meanwhile, the Defense and Security segment delivered stronger growth with revenue up 14% to Cdn$566.6 million and operating income nearly doubling to Cdn$46.6 million.
"In my first few months as CEO, I’ve gained a deep appreciation for CAE’s extraordinary people, our strong customer relevancy, our industry-leading technology, and strong market positions," said Matthew Bromberg, CAE’s President and CEO. "Combined, this has enabled incredible growth and I see opportunity for significant continued growth. However, it is time to balance growth with asset and operational efficiency."
Free cash flow showed significant improvement, reaching Cdn$201 million compared to Cdn$140 million in the same quarter last year, representing a 44% increase. The company delivered 12 full-flight simulators to customers during the quarter, while training center utilization was 64%, down from 70% in the prior year.
CAE also announced organizational changes as part of a transformation plan aimed at simplifying its structure and strengthening execution, including the consolidation of its commercial and business aviation training operations under a single leader.
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