$CAE

CAE Inc. (TSX:CAE), a Montreal-based flight simulator and training provider, reported Q1 2027 revenue of $1.17B, up 6.8% YoY, with adjusted EPS flat at $0.26. Defence revenue rose 8.3%, while civil aviation saw margin pressure. The company is undergoing a transformation targeting $200M-$250M in cost savings by 2030. Management maintained guidance and highlighted a strong defence backlog and partnerships.

CAE delivered an Airbus A320 simulator to Aer Lingus in Dublin, the first of three planned simulators. The simulators will support Aer Lingus' Airbus fleet, including A330 and A321XLR models. The A320 simulator was officially opened on August 14, 2026, with the A330 to follow and the A321XLR planned for 2027. Aer Lingus is modernizing its fleet, with IAG reporting 63 aircraft at year-end 2025 and an A321XLR delivery in Q1 2026.

CAE Inc. received a $42.1M contract to supply F-16 training simulators for Morocco. The deal includes simulators, support equipment, and logistics. Work will be done in Texas and Morocco, with completion by 2029. CAE develops simulation and training systems for aviation and defense.

Flight Training Alliance (FTA), a joint venture between Lufthansa Aviation Training and CAE, will deploy a CAE 7000XR full-flight simulator for A220 training at the Airbus Asia Training Centre in Singapore by Q4 2027. This expansion aims to meet growing demand for pilot training in the Asia-Pacific region. FTA and Airbus highlight the strategic importance of this move for the region's aviation growth.

Flight Training Alliance (FTA), Airbus, and Airbus Asia Training Centre (AATC) will establish the first Airbus A220 simulator in the Asia-Pacific region. The CAE 7000XR simulator will be installed in Singapore and operational by Q4 2027. FTA, a joint venture between CAE and Lufthansa, will supply the simulator, while AATC will operate it. This expansion supports the growing A220 fleet in the region and provides local pilot training. AATC, jointly owned by Airbus and Singapore Airlines, currently

United Airlines and CAE completed the first phase of expanding the Denver Flight Training Center, increasing its size to 700,000 square feet. The facility now has 86 training devices and serves 1,600 employees. United plans to use the center for its own training and for partners, with a daily capacity of 860 pilots. The airline is adding new aircraft, including Boeing 787-9s and Airbus A321neos, despite delays in the Boeing 737 Max 10 program. A second phase of expansion is planned for 2027-2030

CAE Inc. reported Q1 2027 revenue of $1.17B, up 6.8% YoY, with adjusted EPS at $0.26. Civil revenue grew 5.6% to $641.6M, while Defense revenue increased 8.3% to $531.8M. Free cash flow improved to $104M from -$134.7M. Operating income fell to $86.8M due to restructuring costs. Management highlighted progress in transformation plans, including cost savings and network rationalization, but noted margin declines in Civil due to Middle East conflicts.

CAE Inc. said the Middle East conflict related to Iran cut adjusted operating income in its civil aviation segment by more than $11 million, about two-thirds of the quarter’s decline. For the quarter ended June 30, adjusted income fell nearly 14% to about $106 million. CAE plans to reduce its simulator footprint by 17% and retire about 25 full-flight simulators. Shares are down ~14% YTD.

RBC said CAE’s fiscal Q1 results support confidence in the company’s transformation plan. RBC upgraded CAE to Outperform from Sector Perform and raised its price target to C$46 from C$36, citing improved outlook. CAE shares were quoted around C$37.48 CAD (+3.39% on the day).

RBC said CAE’s turnaround is gaining traction, citing 64% year-over-year order intake growth, a CA$10.7 billion Defense backlog, and a pipeline above CA$5 billion. RBC upgraded CAE to outperform from sector perform and raised its price target to CA$46 from CA$36, noting near-term margins may remain soft.