CAE Q1 FY2027: Revenue Up 6.8%, FCF Swings to C$104M, Outlook Unchanged
CAE sits 23% above its 52-week low of $22.76.
Summary
CAE reported Q1 FY2027 revenue of C$1,173.4M, up 6.8% YoY, with free cash flow swinging to positive C$104.0M. Adjusted EPS was flat at C$0.26 and the fiscal 2027 outlook remains unchanged.
Key Events · Earnings and Guidance · CAE
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Revenue Up 6.8% YoY
Q1 FY2027 revenue reached C$1,173.4M, driven by 5.6% growth in Civil Aviation and 8.3% growth in Defense and Security.
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Free Cash Flow Swings Positive
Free cash flow was C$104.0M compared to negative C$134.7M in the prior year, driven by higher non-cash working capital and lower capital expenditures.
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Adjusted EPS Flat at C$0.26
Adjusted EPS was C$0.26, unchanged from the prior year, while reported EPS declined to C$0.10 from C$0.18 due to C$48.3M in restructuring costs.
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Balance Sheet Strengthens
Net debt-to-adjusted EBITDA improved to 2.27x from 2.75x, and net debt decreased by C$35.6M to C$2,646.2M.
Analysis · CAE · Manufacturing
A solid first quarter for CAE, with revenue growth of 6.8% and a dramatic free cash flow turnaround from negative C$134.7M to positive C$104.0M. Adjusted EPS was flat at C$0.26, but the company reaffirmed its full-year outlook, signaling confidence in its transformation plan. The balance sheet strengthened with net debt-to-adjusted EBITDA improving to 2.27x. The company also repurchased C$39.0M of shares under its NCIB, returning capital to shareholders.
At the time of this filing, CAE was trading at $27.97 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $8.9B. The 52-week trading range was $22.76 to $34.24. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.