04:50 PM EST, 11/11/2025 (MT Newswires) -- CAE (CAE.TO, CAE) was last seen up 4.3% in after-hours New York trade after the company on Tuesday reported higher fiscal second-quarter adjusted earnings and revenue.
The aircraft-simulator company said adjusted operating income, excluding most one-time items, rose to $155.3 million, or $0.23 per share, in the quarter ended Sept.30, up from $149 million, or $0.24 per share, a year ago. FactSet expected $0.20 per share.
Revenue rose to $1.24 billion from $1.14 billion in the year-prior quarter. FactSet expected $1.14 billion.
The company said that while it expects a stronger performance in the second half of the fiscal year, its Civil business is now projected to deliver adjusted segment operating income (aSOI) roughly in line with last year, with annual margins around 20%.
"Commercial aviation continues to be most affected by new aircraft availability, aircraft groundings, and pilot hiring," the company said, adding that Civil results are expected to benefit more meaningfully in fiscal 2027 and beyond.
In its Defense segment, CAE maintained its outlook for low double-digit annual aSOI growth and an aSOI margin between 8% and 8.5% for fiscal 2026.
Chief Operating Officer Nick Leontidis will retire at the end of the calendar year and become special advisor to the chief executive officer. The COO position will be eliminated, the company said.
Alexandre Prevost was appointed president of Civil Aviation, where he will oversee both commercial and business aviation training. In the Defense segment, CAE has simplified its structure by consolidating from three organizations into two.
These changes are part of CAE's transformation plan, aimed at streamlining organizational structure.
CAE shares were last seen up US$1.18 to US$28.60 after hours. They closed up $0.28 to $38.39 on the Toronto Stock Exchange.