CAE Raises Fiscal 2027 Earnings and Margin Outlook

The flight-simulator and defense-training company now expects adjusted earnings per share of C$1.28 to C$1.35, compared with its previous range of C$1.21 to C$1.28. Its forecast for adjusted segment operating income margin rose to 14.9% to 15.4%, from 14.6% to 15.1%.

CAE maintained its expectation for low-single-digit revenue growth. It sees civil-aviation revenue flat to slightly lower and defense-and-security revenue growing at a mid-single-digit rate. “Given our performance year-to-date and increased confidence in our ability to execute our second-half plan, we are raising our full-year fiscal 2027 outlook for adjusted EPS and adjusted segment operating income margin,” Chief Executive Matthew Bromberg said.

For the three months ended Sept. 30, adjusted earnings were C$0.33 a share, above analysts’ estimate of C$0.26. Free cash flow rose 64% to C$179.9 million.

Revenue, however, declined to C$1.2 billion from C$1.24 billion a year earlier, below analysts’ forecast of C$1.25 billion. Net income fell to C$60.7 million from C$76.1 million; earnings per share declined to C$0.18 from C$0.23. Civil-aviation revenue slipped to C$652.3 million from C$670 million, while defense and security revenue decreased to C$552.4 million from C$566.6 million.