Cae Inc (USA) (NYSE: CAE) has reported has reported the net income attributable to equity holders from continuing operations of $65.2 million in the second quarter of FY 18  as compared to $48.3 million last year. Excluding the gain on the divestiture of the Zhuhai Flight Training Centre (ZFTC), the net income in the second quarter is of $58.2 million and earnings per share of $0.22. The analysts were expecting the earnings per share of $0.19. Further, CAE in the second quarter has reported the revenue of $646.0 million compared to $635.5 million in the second quarter last year.

Moreover, the total orders for the second quarter reached $931.4 million, with more than half coming from the Defence customers and has $6.7 billion backlog. In the second quarter of FY 18, the free cash flow from continuing operations has increased to $63.5 million from $27.3 million in the second quarter last year. The increase in free cash flow is mainly on the back of a lower investment in non-cash working capital and an increase in cash provided by continuing operating activities.

Additionally, CAE has declared the dividend of nine cents per share effective from December 29th, 2017 to shareholders of record at the close of business on December 15th, 2017. During the second quarter ended September 30, 2017, CAE has repurchased and canceled a total of 954,100 common shares under the Normal Course Issuer Bid (NCIB), at a weighted average price of $20.84 per common share, for a total consideration of $19.9 million.

For FY 18, CAE expects good growth in the FY18. In Civil, CAE expects to generate low-double-digit percentage segment operating income growth as the segment makes more progress to penetrate the training market with its innovative solutions and maintains its leadership position in FFS sales. In Defence, CAE expects mid to high single-digit percentage growth as it ramps up programs from backlog and continues to win its fair share of opportunities in a stronger defense market. CAE expects Healthcare to resume growth this year, with increased sales coming from its opportunities pipeline and the launch of new products, which it expects to put it on course for long-term, double-digit growth. In addition, CAE expects lower capital intensity in FY18, with total capital expenditures expected to be in the range of $150 million (vs. $222.9 million in fiscal 2017), commensurate with market-led opportunities for accretive investment returns.