CAE (NYSE:CAE) Announces Quarterly Earnings Results

CAE (NYSE:CAE) (TSE:CAE) posted its quarterly earnings data on Wednesday. The aerospace company reported $0.26 EPS 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 company’s revenue was up 6.8% compared to the same quarter last year. During the same period last year, the company earned $0.21 EPS. 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 Trading Up 1.9%

NYSE:CAE traded up $0.51 on Wednesday, hitting $27.68. 953,092 shares of the 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. CAE has a 52 week low of $22.76 and a 52 week high of $34.24. 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’s 50-day moving average price is $25.52 and its 200 day moving average price is $27.13.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on CAE shares. Royal Bank Of Canada reduced their price target on shares of CAE from $42.00 to $36.00 and set a “sector perform” rating on the stock in a research report on Tuesday, May 26th. Jefferies Financial Group restated a “hold” rating and issued a $26.00 price objective on shares of CAE in a research report on Thursday, June 25th. Morgan Stanley lowered shares of CAE from an “equal weight” rating to an “underweight” rating in a research report on Wednesday, July 15th. National Bank Financial reissued an “outperform” rating on shares of CAE in a research note on Friday, May 22nd. Finally, Zacks Research raised shares of CAE from a “strong sell” rating to a “hold” rating in a report on Wednesday, May 13th. Five equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $31.00.

Institutional Investors Weigh In On CAE

Several institutional investors have recently modified their holdings of CAE. Millennium Management LLC bought a new position in CAE in the first quarter valued at approximately $4,170,000. Goldman Sachs Group Inc. boosted its position in shares of CAE by 142.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,709,480 shares of the aerospace company’s stock worth $42,036,000 after purchasing an additional 1,004,820 shares during the last quarter. United Services Automobile Association grew its stake in shares of CAE by 4.5% during the first quarter. United Services Automobile Association now owns 10,822 shares of the aerospace company’s stock worth $265,000 after purchasing an additional 462 shares during the period. Prudential Financial Inc. bought a new stake in CAE in the second quarter valued at about $287,000. Finally, Marshall Wace LLP acquired a new position in CAE in the second quarter valued at about $3,655,000. Institutional investors and hedge funds own 67.36% of the company’s stock.

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.