Canada's CAE Q4 revenue beats on defense growth

Cae

21/05/2026 21:21

Overview

Canada simulation and training provider's fiscal Q4 revenue grew 3%, beating analyst expectations

Adjusted EPS for fiscal Q4 beat consensus, despite softer civil aviation training market

Company launched transformation plan targeting C$125 mln to C$150 mln annual savings by fiscal 2030

Outlook

CAE expects fiscal 2027 revenue to grow by a low-single digit percentage

Company sees fiscal 2027 adjusted EPS at C$1.21 to C$1.28

CAE expects ongoing softness in civil aviation training market to affect fiscal 2027 results

Result Drivers

SOFT CIVIL MARKET - CAE said ongoing softness in the civil aviation training market weighed on Civil segment profitability

DEFENSE GROWTH - Defense segment benefited from strong demand and improved backlog conversion, driving revenue and profitability gains

RESTRUCTURING COSTS - Significant restructuring and transformation-related costs reduced operating income in the quarter

Company press release: ID:nPn7bNCBla

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
C$1.33 bln
C$1.29 bln (12 Analysts)
Q4 Adjusted EPS
Beat
C$0.42
C$0.41 (13 Analysts)
Q4 EPS
C$0.23
Q4 Adjusted Operating Income
C$211.80 mln
Q4 Operating Income
C$127.40 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the aerospace & defense peer group is "buy"

Wall Street's median 12-month price target for CAE Inc is C$50.00, about 36.1% above its May 20 closing price of C$36.73

The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 30 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)