CAE Inc.'s share price surged after the company reported strong civil and defense performance in its second quarter results.

CAE chief executive Marc Parent told a conference call with financial analysts to discuss the company's latest results that he is confident in the company's improved second-half performance.

The Montreal-based builder of flight and health simulators saw its closing share price increase 18.21 per cent to $28.43 on the TSX.

CAE says net income attributable to equity holders was $44.5 million, or 14 cents per share for the quarter ended Sept. 30, up from $14.0 million or four cents per share in the same quarter last year.

CAE attributes a strong consolidated-level performance in the second quarter to double-digit growth in the civil segment, better results in defence and renewed profitability in healthcare.

"Our financial performance for defence in this quarter improved sequentially, consistent with our expectations," said Parent.

He said the performance is a result of our heightened operational focus despite supply chain challenges, labour shortages and order delays, highlighted in the results of the first quarter, and expects these delays to persist into the coming quarter.

"We are now sustaining higher order intake and replenishing our backlog with new and more profitable defence contracts," said Parent.

The stronger civil performance was mainly due to higher training network utilization and simulator deliveries, said Sonya Branco, chief financial officer of CAE.

The company's backlog also grew to $10.6 billion in the third quarter up from $8.8 billion last year.

CAE reaffirmed its outlook for the fiscal year after reducing the compound growth rate to mid-20 per cent last quarter.

On an adjusted basis, it earned 19 cents per share and $993.2 million in revenue, compared to an average analyst expectation of 17 cents per share and $949 million, according to estimates compiled by financial markets data firm Refinitiv.