CAE (NYSE:CAE) Issues Earnings Results

CAE (NYSE:CAE) (TSE:CAE) announced its quarterly earnings data on Wednesday. The aerospace company reported $0.26 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.17 by $0.09, Briefing.com reports. CAE had a net margin of 6.36% and a return on equity of 7.45%. The business’s revenue was up 6.8% on a year-over-year basis. During the same quarter last year, the company 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 Up 1.9%

CAE stock traded up $0.51 during midday trading on Wednesday, hitting $27.68. 953,092 shares of the company’s stock were exchanged, compared to its average volume of 776,270. The company has a debt-to-equity ratio of 0.55, a quick ratio of 0.77 and a current ratio of 0.96. The company has a market cap of $8.90 billion, a PE ratio of 38.99, a P/E/G ratio of 2.85 and a beta of 1.01. The firm has a 50-day moving average of $25.52 and a two-hundred day moving average of $27.13. CAE has a 12 month low of $22.76 and a 12 month high of $34.24.

Hedge Funds Weigh In On CAE

A number of large investors have recently bought and sold shares of the business. Transamerica Financial Advisors LLC boosted its holdings in shares of CAE by 170.7% in the 4th quarter. Transamerica Financial Advisors LLC now owns 1,267 shares of the aerospace company’s stock valued at $39,000 after buying an additional 799 shares in the last quarter. Kestra Advisory Services LLC bought a new position in shares of CAE during the 4th quarter worth approximately $41,000. CIBC Private Wealth Group LLC purchased a new stake in CAE during the third quarter valued at approximately $42,000. Brown Brothers Harriman & Co. acquired a new stake in CAE in the fourth quarter valued at approximately $47,000. Finally, Syon Capital LLC purchased a new position in CAE in the fourth quarter worth $246,000. Institutional investors own 67.36% of the company’s stock.

Wall Street Analysts Forecast Growth

CAE has been the topic of several recent research reports. Jefferies Financial Group restated a “hold” rating and set a $26.00 target price on shares of CAE in a research report on Thursday, June 25th. Morgan Stanley lowered CAE from an “equal weight” rating to an “underweight” rating in a research report on Wednesday, July 15th. 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 restated an “outperform” rating on shares of CAE in a research report on Friday, May 22nd. Finally, Royal Bank Of Canada dropped their target price on CAE from $42.00 to $36.00 and set a “sector perform” rating for the company in a report on Tuesday, May 26th. Five research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, CAE presently has a consensus rating of “Hold” and an average price target of $31.00.

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.