Canadian flight training company CAE’s defence and security segment has reported a record revenue of C$490.9m ($356.2m) in the first quarter of fiscal 2026 (Q1 FY26).
This marks a modest increase of 1% from the C$484.9m reported in the first quarter of the previous year.
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The segment’s operating income saw a rise of 83%, climbing from C$18.8m to $34.4m year-over-year.
Defence orders booked during the quarter amounted to C$611.4m, resulting in a book-to-sales ratio of 1.25 times, while the ratio for the past 12 months stood at 2.08 times.
The adjusted backlog for the segment, which includes unfunded contract awards and CAE’s interest in joint ventures, was reported at C$11.1bn at quarter-end.
The defence segment’s robust performance is attributed to a strong demand environment with approximately C$6.0bn worth of bids and proposals currently pending.
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By GlobalDataOverall, CAE’s revenue for the first quarter of fiscal 2026 was C$1.09bn, showing a 2% increase from the C$1.07bn reported in the first quarter of last year.
The earnings per share (EPS) for the quarter remained stable at C$0.18 compared to last year, with adjusted EPS holding steady at C$0.21.
Net income attributable to equity holders of the company also experienced growth, reaching C$57.2m in Q1 FY26, an 18% increase from C$48.3m in the prior year’s quarter.
CAE chairman Calin Rovinescu said: “CAE delivered a solid first quarter, with double-digit income growth and margin expansion in defence and continued momentum in civil. We remain on track to capitalise on the significant opportunities ahead, supported by secular demand in civil aviation and the generational reinvestment underway in defence across Nato, including Canada’s plan to more than double its spending over the next decade.”
Looking ahead to fiscal 2026, the company’s management expects low-double-digit percentage annual adjusted segment operating income (aSOI) growth with an annual aSOI margin ranging between 8% to 8.5% for the defence segment.
