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.
CAE Inc. reported a significant 46% drop in net income for its latest quarter, falling to $73.1 million, despite a 4% increase in revenues to $1.33 billion. CEO Matthew Bromberg attributed the profit decline to softer demand for civil aviation training and the impact of the Iran war. The company forecasts low-single-digit revenue growth and adjusted earnings per share between $1.21 and $1.28 for the upcoming fiscal year.
CAE reported a decrease in adjusted net attributable profit for its fiscal fourth quarter to C$84.1 million, despite an increase in revenue to C$1.21 billion. The diluted adjusted EPS also fell to C$0.28 from C$0.30 in the prior year. For fiscal year 2025, CAE expects a mid-teen percentage increase in adjusted segment operating income and has set new 2030 financial targets including mid-to-high single-digit revenue growth and double-digit adjusted EPS growth.
