Cae Inc NYSE:CAE Price, Chart, News & Insight

CAE Edges 0.7% Higher After Hours as Company Raises Fiscal 2027 Earnings Outlook

CAE (NYSE: CAE) shares rose about 0.7% in after-hours trading after the company raised its fiscal 2027 earnings and margin outlook, supported by stronger adjusted profitability, Defense performance and improved cash generation.

Second-quarter revenue declined 2.6% year over year to C$1.20 billion. GAAP EPS fell to C$0.18 from C$0.23, but adjusted EPS increased 17.9% to C$0.33. Adjusted segment operating income rose 1.5% to C$179.3 million, while the adjusted margin improved to 14.9% from 14.3%.

Defense was the strongest part of the quarter. Adjusted segment operating income increased 43.3% to C$75.4 million and margin expanded to 13.6% from 9.3%, despite a 2.5% decline in segment revenue. Defense backlog reached C$11.3 billion.

Civil Aviation remained softer, with revenue down 2.6% to C$652.3 million and adjusted segment operating income falling 16.3% to C$103.9 million. Higher training utilization was offset by lower contributions from simulator sales and other product-related activities.

CAE raised fiscal 2027 adjusted EPS guidance to C$1.28-C$1.35 from C$1.21-C$1.28 and increased its adjusted segment operating margin outlook to 14.9%-15.4% from 14.6%-15.1%. Revenue is still expected to grow at a low-single-digit rate.

Free cash flow jumped 63.8% to C$179.9 million, while net debt-to-adjusted EBITDA improved to 2.16x. CAE also continued its transformation program and expects to sell Flightscape for US$500 million.

The modest 0.7% after-hours gain appears to reflect the improved full-year outlook, stronger Defense margins and cash flow, partly offset by lower consolidated revenue and continued weakness in Civil Aviation profitability.

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European Investor 11-12-26

CAE Plunges 14% as Civil Aviation Margin Collapse and Transformation Costs Alarm Investors

CAE fell a dramatic 14% on Friday after the flight simulation and defense training company reported a fiscal year 2026 that showed significant profitability deterioration in its Civil Aviation segment, elevated restructuring costs and a fiscal 2027 outlook that effectively signals the company is in the early stages of a painful multi-year transformation with limited near-term earnings visibility.

Full-year revenue grew 4% to $4.9 billion, with Defense up a healthy 9% to $2.17 billion and Civil up just 1% to $2.74 billion. The headline revenue growth masked a severe margin compression story. Full-year operating income fell 16% to $612.3 million, annual diluted EPS dropped 24% to $0.97 from $1.27, and adjusted segment operating income margin contracted to 14.5% from 15.5%. Civil aviation adjusted operating margin fell to 18.6% from 21.5% for the full year, and in the fourth quarter specifically, Civil adjusted operating margin collapsed to 20.4% from 28.6% — a 820 basis point deterioration in a single quarter that is difficult to explain away.

The culprits are multiple. Civil training center utilization fell to 70% for the year from 74%, reflecting softness in the aviation training market. Middle East conflict disruptions are directly impacting CAE's regional operations and customers, with the company acknowledging month-by-month financial impacts. Full-flight simulator deliveries fell to 52 from 61 in the prior year. The Civil book-to-sales ratio for the trailing twelve months was just 0.96x — the first time it has dropped below 1x in recent memory, meaning the backlog is shrinking. Fourth quarter restructuring charges of $84.4 million added further pressure.

Defense provided the only genuine bright spot. Revenue grew 9% and adjusted operating income grew 33% to $200.2 million, with margin expanding to 9.2% from 7.5%. The Defense backlog of $10.8 billion provides solid long-term visibility in what is clearly the company's stronger near-term business.

The transformation plan announced in November 2025 is now in full execution mode. CAE plans to remove 10% of its commercial full-flight simulator fleet, relocate and optimize more than a dozen additional simulators, and rationalize its global real estate footprint. Total transformation costs are expected to be $200 million to $250 million, with approximately $100 million in non-cash charges — $84 million already absorbed in fiscal 2026 with the majority of the balance hitting fiscal 2027.

For fiscal 2027, the company guided for low-single digit revenue growth, adjusted operating margin of 14.6% to 15.1% and adjusted EPS of $1.21 to $1.28 under its updated definition — growth of roughly 1% to 7% from fiscal 2026's $1.20 adjusted EPS. The company's outlook explicitly assumes the Middle East conflict winds down in the first half of its fiscal year, a significant assumption given current diplomatic uncertainty. Further deterioration in regional conditions could put even that modest outlook at risk.

The long-term fiscal 2030 targets — $950 million to $1 billion in adjusted operating income and $125 million to $150 million in transformation savings — are genuinely ambitious and theoretically achievable, but they are four years away in a business that is currently experiencing significant margin compression and market softness in its largest segment.

The 14% plunge reflects a market reacting to a company that is simultaneously facing Civil market headwinds, geopolitical disruptions, elevated transformation costs and a multi-year restructuring with limited near-term earnings improvement — a combination that demands a significant de-rating regardless of how compelling the long-term transformation story may eventually prove to be.

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Global Finance News 05-23-26

CAE (NYSE: CAE; TSX: CAE) announced that the FAA and EASA have qualified the world’s first Boeing 777-9 full-flight simulator, located at Boeing’s London-Gatwick training campus.

The certification marks a major milestone in next-generation pilot training and reflects a decade of collaboration between CAE and Boeing. The simulator was developed through joint engineering, testing and validation to ensure high-fidelity performance aligned with the 777-9 aircraft.

CAE said the qualification reinforces its leadership in advanced flight simulation and will support airline pilot training as the 777-9 enters service.

Source: Company press release.

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WS Investor 02-19-26

CAE reported third-quarter fiscal 2026 revenue of $1.25 billion, up 2% year over year. Earnings per share were $0.34 versus $0.53 last year, while adjusted EPS increased 17% to $0.34. Net debt-to-adjusted EBITDA improved to 2.30x, ahead of the company’s 2.50x fiscal year-end target.

Operating income was $195.8 million (15.6% margin), compared to $262.6 million a year ago, which included a one-time gain. Adjusted segment operating income rose 3% to $195.8 million.

Civil Aviation revenue declined 5% to $717 million, with adjusted operating income of $142 million (19.8% margin), reflecting softer demand and transformation-related actions. Defense revenue increased 14% to $535 million, with operating income rising to $54 million (10.1% margin), marking margin expansion above 10% for the first time in over six years.

Order intake totaled $1.14 billion, with backlog at $19.2 billion. The company said near-term Civil softness is largely offset by stronger Defense performance as transformation initiatives progress.

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Global Finance News 02-14-26

CAE will release its third quarter financial results on Thursday, February 12, 2026, after market close.

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The Investor 01-29-26

CAE announced that Loong Air’s first CAE-built Airbus A320 full-flight simulator is now ready for training at the airline’s new Hangzhou training centre, marking a key milestone in Loong Air’s long-term pilot training strategy. The simulator is the first of three planned A320 full-flight simulators, with two additional units scheduled to be operational in 2026, strengthening CAE’s presence in China’s growing aviation training market.

Source: CAE

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WS Investor 12-14-25

CAE announced that it is expanding the use of CAE Ridge, its advanced 3D visualization tool, to enhance air traffic controller training. Already used in military programs, the technology will now support both civil and defense Air Traffic Services by offering immersive, collaborative 3D scenarios that improve situational awareness and speed up licensing. As airspace grows more complex, CAE Ridge helps trainees build mental models of airports and airspace earlier in the process, bridging the gap between basic tabletop exercises and high-fidelity simulators. The tool also supports pre-simulator preparation, debriefs, CBTA scenario development, and operational reviews.

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European Investor 12-09-25

CAE introduces CBTA-based pilot training to boost safety and prepare crews for next-generation aviation

CAE announced the rollout of Competency-Based Training and Assessment (CBTA) principles across its Business Aviation recurrent training programs, beginning January 2026 with Phase A of the EASA curriculum. Recognized by global regulators such as the FAA, EASA, UK CAA, and Transport Canada, CBTA shifts pilot training toward real-world skills, data-driven evaluation, scenario-based modules, and practical decision-making.

The new program—delivered through CAE’s CORe model—enhances safety by focusing on both technical abilities and crucial non-technical competencies, including teamwork, situational awareness, and judgment. Pilots will receive more personalized feedback, competency-linked assessments, and facilitated debriefings aimed at deeper learning.

Instructor development and CBTA integration have been underway for a year, positioning CAE to standardize this modern training approach across its global network of more than 1,000 business aviation instructors. The company emphasizes that CBTA provides a more effective alternative to traditional task-based training and aligns with ICAO and IATA guidance.

CAE says the adoption of CBTA reflects its commitment to innovation, safety, and mission-ready aviation training as the industry transitions to complex operational environments and next-generation aircraft.

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WS Investor 11-20-25

CAE to Deliver Boeing 737MAX Full-Flight Simulator to Malaysia Airlines’ MAB Academy

CAE (NYSE: CAE; TSX: CAE) announced an agreement to deliver a new Boeing 737MAX full-flight simulator (FFS) to MAB Academy, the training arm of Malaysia Airlines Group (MAG). The simulator, scheduled for deployment in July 2026 at the Academy’s new training facility in Sepang, will enhance pilot training capacity and capabilities.

The agreement was signed during Canadian Prime Minister Mark Carney’s visit to Malaysia for the ASEAN Summit, highlighting growing collaboration between Canadian and Malaysian aviation sectors.

CAE’s Division President Michel Azar-Hmouda emphasized the long-term partnership with Malaysia Airlines, which began in 2008, and the company’s commitment to training excellence and aviation safety. The simulator will use CAE’s Prodigy Image Generator powered by Epic Games’ Unreal Engine, providing photorealistic visuals for immersive pilot training.

Malaysia Airlines Managing Director Datuk Captain Izham Ismail said the investment reflects the airline’s commitment to safety and innovation as it expands its fleet and strengthens its in-house training capabilities.

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The Investor 10-27-25

CAE Named One of the World’s Most Sustainable Companies by TIME

June 26, 2025 – Montreal — CAE Inc. (NYSE: CAE; TSX: CAE) has been recognized on TIME and Statista’s 2025 list of the World’s Most Sustainable Companies. Out of more than 5,000 global firms assessed, only the top 500 were selected based on sustainability performance, emissions, and adherence to global reporting standards.

Hélène V. Gagnon, CAE’s Chief People and Sustainability Officer, said the recognition affirms the company’s commitment to responsible innovation and global impact.

CAE delivers simulation and training solutions to the civil aviation and defense sectors, with 13,000 employees in over 40 countries. The company continues to embed sustainability into its operations, aiming to set new standards in safety and mission readiness.

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WS Investor 06-27-25

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