CAE profits drop as Iran war takes a toll on demand for pilot training

CAE Inc. said it received regulatory approval to renew its normal course issuer bid to repurchase up to 16,073,033 common shares for cancellation from June 10, 2026 to June 9, 2027. The cap is about 5% of shares outstanding as of May 29, 2026 (321,460,674). TD Securities will act as broker; purchases may also occur via an automatic repurchase plan.

A Globe and Mail research roundup by Scott Barlow says BMO analyst Tom Callaghan views Canadian seniors housing as an attractive entry after recent weakness. He cites ~4% average declines in Chartwell, Extendicare and Sienna over three weeks. Separately, Scotiabank expects defence spending under Carney’s strategy to drive $180B procurement and $290B infrastructure over 10 years. TD economist Robert Both outlines USMCA review scenarios for July 1.

Canadian stocks fell for a second day as U.S.-Iran peace talks stayed unresolved, keeping investors cautious. The S&P/TSX Composite ended at 34,412.05, down 0.70%. Iran state TV cited a draft MoU framework, but the White House called it false. Energy and materials led declines; energy fell 2.36%.

CAE (NYSE: CAE, TSX: CAE) said it signed a Canada-specific teaming agreement with Saab to support Canada’s Airborne Early Warning and Control (AEW&C) program based on Saab’s GlobalEye platform. CAE will provide flight and mission/crew training and integrated simulation solutions, building on a prior worldwide cooperation deal. The companies also plan to explore mission system support and LVC integration.

On May 26, analysts adjusted price targets across multiple stocks. Royal Bank raised AutoCanada to C$23. JPMorgan cut Array Digital Infrastructure to $54 and Amentum to $31, but raised Analog Devices to $450. Other changes included BofA lifting Ciena to $660 and Cisco to $135, and Stifel trimming CAE to C$47.

The ongoing Iran war is significantly impacting CAE Inc.'s financial performance, leading the flight simulator maker to scale back its global operations to cut costs. CEO Matthew Bromberg reported a 46% drop in fourth-quarter profit, attributing it to reduced airline flight schedules and pilot training in the conflict zone, as well as soaring jet fuel costs. As part of a "reset year," CAE plans to remove 10% of its commercial flight simulators and shut down four to six training centers to reduce its global footprint by 300,000 square feet.