CAE (NYSE:CAE) Issues Earnings Results

Key Points

• CAE reported adjusted earnings of $0.26 per share, beating analysts’ $0.17 consensus, while quarterly revenue rose 6.8% year over year. The company updated its fiscal 2027 EPS guidance to $0.87–$0.92.
• Management’s transformation plan targets CAD 125–150 million in annual run-rate savings by fiscal 2030, with Defense and Security seen as a major long-term growth driver; civil aviation demand is currently softer but expected to improve over time.
• Analyst sentiment remains mixed, with CAE carrying a consensus “Hold” rating and an average price target of $31, while management said it is not yet committing to reinstating the dividend.

CAE (NYSE:CAE - Get Free Report) TSE: CAE released its earnings results on Wednesday. The aerospace company reported $0.26 earnings per share for the quarter, topping analysts' consensus estimates of $0.17 by $0.09, Briefing.com reports. CAE had a return on equity of 7.45% and a net margin of 6.36%.The firm's quarterly revenue was up 6.8% on a year-over-year basis. During the same period in the prior year, the business posted $0.21 earnings per share. CAE updated its FY 2027 guidance to 0.870-0.920 EPS.

Here are the key takeaways from CAE's conference call:

• Transformation plan targets CAD 125–150 million in annual run-rate savings by fiscal 2030, supporting management’s ambition to reach CAD 950 million–CAD 1 billion in adjusted segment operating income.
• CAE sees substantial long-term growth potential in Defense and Security, citing rising defense spending among Canada, NATO, and allied nations, along with a sizable order book and expanding pipeline.
• Civil aviation conditions were described as softer in fiscal 2026, but management remains optimistic about long-term demand driven by aircraft deliveries, pilot shortages, and CAE’s global training relationships; the company is rationalizing capacity to improve utilization.
• Management did not commit to reinstating the dividend, saying it will continue assessing the appropriate timing while prioritizing transformation and capital allocation; share buybacks remain the current method of returning capital.
• Shareholders strongly endorsed governance items, with 92.74% approving PwC as auditor and 94.35% supporting the executive compensation approach, while Bruce Ross joined the 13-member board with technology and cybersecurity expertise.

CAE Stock Performance

NYSE:CAE traded up $0.51 during trading hours on Wednesday, hitting $27.68. 953,092 shares of the company traded hands, compared to its average volume of 776,270. The firm has a 50-day moving average of $25.52 and a 200 day moving average of $27.13. The stock has a market capitalization of $8.90 billion, a price-to-earnings ratio of 38.99, a P/E/G ratio of 2.85 and a beta of 1.01. The company has a current ratio of 0.96, a quick ratio of 0.77 and a debt-to-equity ratio of 0.55. CAE has a twelve month low of $22.76 and a twelve month high of $34.24.

Analysts Set New Price Targets

Several research analysts have recently issued reports on the company. Weiss Ratings cut CAE from a "hold (c)" rating to a "hold (c-)" rating in a research note on Thursday, July 23rd. National Bank Financial reiterated an "outperform" rating on shares of CAE in a research report on Friday, May 22nd. Royal Bank Of Canada cut their target price on shares of CAE from $42.00 to $36.00 and set a "sector perform" rating on the stock in a research note on Tuesday, May 26th. Morgan Stanley lowered shares of CAE from an "equal weight" rating to an "underweight" rating in a research report on Wednesday, July 15th. Finally, Wall Street Zen downgraded CAE from a "buy" rating to a "hold" rating in a research note on Saturday, June 20th. Five analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $31.00.

Hedge Funds Weigh In On CAE

Several institutional investors and hedge funds have recently added to or reduced their stakes in CAE. Transamerica Financial Advisors LLC lifted its position in CAE by 170.7% in the fourth quarter. Transamerica Financial Advisors LLC now owns 1,267 shares of the aerospace company's stock worth $39,000 after purchasing an additional 799 shares during the period. Kestra Advisory Services LLC bought a new stake in shares of CAE in the 4th quarter valued at approximately $41,000. CIBC Private Wealth Group LLC bought a new position in shares of CAE during the third quarter valued at $42,000. Brown Brothers Harriman & Co. bought a new stake in shares of CAE in the 4th quarter worth about $47,000. Finally, Syon Capital LLC acquired a new stake in shares of CAE during the 4th quarter worth about $246,000. 67.36% of the stock is currently owned by institutional investors.

CAE Company Profile

CAE Inc is a global leader in training and simulation technologies, headquartered in Montréal, Canada. The company specializes in the design and manufacture of high-fidelity flight simulators and training systems for civil aviation, defense and security, and healthcare markets. Leveraging advanced software and hardware integration, CAE delivers comprehensive training solutions that address pilot proficiency, mission readiness and patient safety across a wide range of platforms.

In civil aviation, CAE partners with major airlines, aircraft manufacturers and flight schools to provide pilot training services, courseware development and crew scheduling solutions.

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