$CAE.TO

MDA Space Up 3.5% In US Premarket As 49North Awarded C$3.7M Contract

MDA Space (MDA.TO) subsidiary 49North has been awarded a C$3.7 million contract by General Atomics Aeronautical Systems to design, build, integrate and test a Coalition Shared Database (CSD) for Canada's Remotely Piloted Aircraft System (RPAS) program, MDA said Monday.The latest contract award is an addition to 49North's existing $74.4M RPAS contract and further strengthens 49North's role as a member of Team SkyGuardian Canada, alongside GA-ASI, CAE, and L3Harris WESCAMwhich is working to deliver 11 CQ-9B Guardian aircraft to the Royal Canadian Air Force by 2028, it added.The CSD system will reside in the main RPAS Ground Control Centre in Ottawa, with design, build, integration, and testing conducted at 49North's facility in Richmond, British Columbia. Delivery is expected by August 2027, MDA said..

CAE Announces Renewal of Normal Course Issuer Bid

CAE (CAE.TO) received regulatory approval to renew its normal course issuer bid to purchase, for cancellation, up to around 16.07 million of its common shares starting June 10, 2026, and ending June 9, 2027.The maximum number of common shares that may be repurchased under the program represents approximately 5% of the issued and outstanding common shares of CAE, as of May 29, 2026, said the company.Under the normal course issuer bid which expires on June 9, 2026, CAE had received approval from the TSX to purchase up to around 16.02 million common shares. As at May 29, 2026, it had purchased a total of 565,259 common shares thereunder at a volume-weighted average price of $35.4418 per common share, for total consideration of $20.0 million, the company added.The company's shares were last seen up $0.56 at $35.94 on the Toronto Stock Exchange.Price: $35.79, Change: $+0.41, Percent Change: +1.16%

Stifel Canada on Opportunities For CAE Under New Defence Industrial Strategy

This week at CANSEC, Canada's global defense & security trade show, Prime Minister Mark Carney announced the selection of Saab's GlobalEye for Canada's Airborne Early Warning and Control (AEW&C) program, focused on Arctic surveillance.The GlobalEye displaces the Boeing E-7 Wedgetail and L3Harris Aeris X, in favor of a made-in-Canada solution that builds on Bombardier's (BBD-B.TO) Global 6500 aircraft and CAE (CAE.TO, CAE) training systems, writes Stifel Canada's Daryl Young.A formal agreement between Canada and Saab remains under negotiation."Although this announcement had been widely anticipated, we are highly encouraged to see Canada's new "Defence Industrial Strategy" in action, with clear benefits to CAE under its cooperation agreement with Saab. Canada's military re-tooling efforts remain in the early stages, providing a multi-year/decade growth trajectory, while we think PM Carney's strategic relationship building across NATO nations could provide a multiplier effect to Canada's defense champions," Young writes.It is unclear what the dollar figure or direct impact to CAE might be as part of the training/simulation requirements associated with the GlobalEye aircraft, but Young expects it to be material, particularly within the Saab/CAE cooperation agreement which relies on CAE as the preferred training partner, first announced last November.There were no updates at the trade show regarding the pending fighter jet decision between Saab's Gripen-E fighter versus Lockheed's F-35. Canada's submarine procurement program remains another large training opportunity for CAE, Young adds.Stifel Canada has a buy rating on CAE shares and a C$47.00 price target.Near-term, sentiment for CAE stock could improve alongside new defense orders and backlog growth, eventual resolution of the Middle East conflict, removing overhangs associate with commercial airline capacity/pilot hiring concerns, and potential upside from the sale of the Flightscape business.Price: $35.42, Change: $+1.27, Percent Change: +3.72%

CAE Partners With Saab to Boost Canada's Airborne Early Warning and Control Based On The GlobalEye Platform

CAE (CAE.TO, CAE) on Wednesday said it reached a teaming agreement with Saab to support Canada's Airborne Early Warning and Control (AEW&C) program based on the GlobalEye platform.According to the statement, the agreement builds on the worldwide cooperation agreement signed between CAE and Saab last year, which positions CAE as Saab's preferred partner for training and simulation solutions across its AEW&C platforms.As part of this collaboration, CAE will support the development of Canada's future AEW&C capability through its expertise in flight training, mission and rear crew training, enabling fully integrated training solutions. The partnership is designed to strengthen mission effectiveness and operational readiness for the Canadian Armed Forces."CAE's world-class defence expertise will be critical to enabling a high-performance AEW&C capability for Canada," said chief executive Matthew Bromberg. "Building on our longstanding collaboration and trust with Saab, this agreement reflects our shared commitment to delivering innovative, integrated solutions that strengthen operational performance and support Canada's defence priorities."The partnership also includes exploring broader areas of collaboration through mission system support, advanced training, Live, Virtual and Constructive integration and simulation solutions for the Canadian program."GlobalEye delivers cutting-edge multi-domain surveillance, offering long-range detection and advanced situational awareness across air, maritime, and land domains. We value the opportunity to further strengthen our partnership with CAE and to collaborate on the Canadian program, which will also serve as a stepping-stone for future opportunities," said Micael Johansson, CEO of Saab.CAE shares were up $1.33 at last look to $34.17 on Toronto Stock Exchange on Wednesday.Price: $34.18, Change: $+1.34, Percent Change: +4.08%

RBC Capital Cuts CAE Price Target to $36.00

RBC Capital Markets cut its price target on the shares of CAE (CAE.TO) by $6.00 to $36.00 and maintained its sector perform rating after the company provided long-term targets that missed investor expectations.While analyst James McGarragle is constructive on CAE's long-term opportunity and views the FY30 targets as achievable, he notes that FY27 will be a transition year, and visibility into the pace of execution is also limited."Without a clearer read on how execution tracks in FY27, we struggle to identify what drives the stock in the near term," he adds.Price: $33.25, Change: $-0.20, Percent Change: -0.60%

CAE Price Target Lowered to $44 at CIBC

CIBC Capital Markets lowered its price target on CAE Inc. (CAE.TO) to $44 from $56.Analyst Krista Friesen maintained an Outperformer rating on shares of the Canadian manufacturer of simulation technologies, modelling technologies and training services to airlines, aircraft manufacturers, and defence customers."There has been significant anticipation around the long-term targets from CAE's new management team, and with those now established, the focus has shifted to execution," Friesen said in a note to clients.

TSX up 98 Points at Midday With Most Sectors Higher

The Toronto Stock Exchange is up 98 points at midday with most sectors higher.The tech sector, up 1.7% is the best performer, followed by telecoms, up 1%.Healthcare, down 0.9%, is the sole declinerIn economics, the focus was on the release of retail sales data for March, and an advance figure for April. TD noted retail sales rose 0.9% month-on-month in March, ahead of the 0.6% gain reported in the advance estimate. In volume terms, sales declined 0.7% m/m, showing higher prices eating into activity. Statistics Canada's advance estimate pointed to a 0.6% m/m increase in April.The inflation effect was expected in March and is going to carry through to April with the CPI showing goods prices rising a cumulative 1.8% (seasonally adjusted) through these two months, noted TD Economics. "The sinking volumes figures suggest consumers are already cutting back, as higher energy prices eat into budgets," the bank said.TD's outlook is that private domestic demand, and particularly consumer demand, will be subdued in the second quarter, largely due to significantly higher energy prices. Provided energy prices begin falling in June, this should provide some relief and help private domestic demand gain traction in the second half of 2026, the bank said. For the Bank of Canada, the current slack in the economy should allow them to look through the initial energy shock and wait for more clarity on how pervasive inflation pressures are becoming, it added.CIBC said overall while headline sales were a little stronger than the consensus forecast and advance estimate, that surprise wasn't large enough to change the underlying message. Namely that inflation-adjusted consumer spending appears to be stalling again following a solid start to the year. "That stall in spending will limit the ability of higher gasoline prices to spread to wider inflationary pressures, enabling the BoC to look through the near-term spike in headline inflation and keep interest rates on hold this year," it added.The issue of the lingering tariffs war with the United States remains and Reuters overnight cited a Pentagon official as saying the U.S. decision to suspend planned biannual defense talks with Canada follows deepening concern that Ottawa is failing to take steps to become a "credible" security partner, including by hiking military spending and completing a review of an F-35 fighter jet acquisition. The Pentagon announced on May 18 it was "pausing" its participation in the U.S.-Canada Permanent Joint Board on Defence, the senior advisory body on North American continental defense established in 1940.In stocks, CAE (CAE.TO) is down 13% today and touched a new 52-week low of $34.16, after it reported its fourth-quarter earnings on Thursday after hours.

CAE Down 1.3% After Hours as Ir Reports Lower Adjusted Profit, Higher Revenue for Fiscal Q4; Issues 2030 Targets

CAE (CAE.TO, CAE) edged down in after-hours New York trading after the company Thursday said its fiscal fourth-quarter revenue rose while adjusted profit fell year-over-year.The aircraft-simulator company's adjusted profit, excluding most one-time items, for the quarter ended March 31 was $136.1 million, or $0.42 per share, down from $149.6 million, or $0.47, a year ago. FactSet expected $0.41 per share.Revenue rose to $1.33 billion from $1.28 billion in the year-ago quarter. FactSet projected $1.29 billion."We delivered solid performance overall in fiscal 2026, notwithstanding a softer civil training market and volatility in the Middle East", Chief Executive Matthew Bromberg said.He added that the company's transformation plan announced in November is "targeting $125 million to $150 million of transformation run-rate savings from these initiatives and others by fiscal 2030, while targeting fiscal 2030 adjusted segment operating income (updated definition) of $950 million to $1 billion and approximately 100% cash conversion (updated definition) over the four-year period".The company's shares were last seen down US$0.34 to US$26.60 after hours. They closed up $0.33 to $37.06 on the Toronto Stock Exchange.

CAE Also Targeting $950M to $1B of Adjusted Segment Operating Income, Under Its Updated Definition, In Fiscal 2030 With a "Strong" Cash Conversion Rate

CAE Cites Plan Targeting $125M to $150M Annual Transformation Run-rate Savings By Fiscal 2030 (Fiscal Year ended March 31, 2030)

CAE Q4 Revenue of $1,326.7M, Diluted EPS of $0.23 and adjusted EPS of $0.42

CIBC Say Aviation Week Data Indicates Business Aviation Utilization Tops Both Prior-Year and Pre-COVID Levels

CIBC Capital Markets on Tuesday said recent Aviation Week data indicates business aviation utilization remains above both prior-year and pre-COVID levels, even as activity increasingly diverges across operators within the fractional segment.At the aggregate level, the backdrop "remains constructive", said CIBC."For the Feb-Apr/26 period, Corporate, Fractional, Charter, and Private individual operator classes all exceeded their utilization levels from both 2025 and 2019," noted CIBC. "Corporate operators, the largest segment with fleets exceeding 21,600 aircraft, recorded just under 1MM flight hours over the three-month period, up 4% Y/Y and 33% above the same period in 2019."Fractional operators were stronger, with activity up 11% Y/Y and 93% above pre-COVID levels, stated CIBC. It noted that, within the category, however, performance is not uniform. NetJets and Flexjet both saw higher flight hours over the period, with NetJets up 11% Y/Y and Flexjet up 12% Y/Y, said CIBC and noted that, in contrast, VistaJet, Flyexclusive, and Wheels Up all reported lower activity, with VistaJet down 9%, Flyexclusive down 4%, and Wheels Up down 46%.According to CIBC, taken together, the data suggests that recent divergence is occurring within a market where overall utilization remains elevated. It further noted that, given that fractional utilization as a group is still growing (+11% Y/Y), gains at the largest operators are offsetting declines elsewhere within the same segment."There are also notable differences in fleet positioning across operators," said CIBC. "NetJets and Flexjet operate fleets across multiple cabin categories, while other operators are more concentrated in narrower segments of the market."CIBC noted, while the utilization data does not isolate fleet mix as a driver, the split highlights that activity is not evenly distributed across the operator base.For Bombardier Inc (BBD-B.TO), CIBC noted, the key takeaway is that the broader demand environment "remains intact". Utilization across both Corporate and Fractional segments continues to run above prior-year and pre-pandemic levels, supporting ongoing aircraft activity across core end markets."Overall, the data points to a market that remains active in aggregate, but where utilization trends are becoming increasingly uneven across operators," added CIBC.Price: $19.63, Change: $+0.85, Percent Change: +4.53%

CAE Pursues Strategic Alternatives for Flightscape

CAE (CAE.TO, CAE) is pursuing strategic alternatives for Flightscape, its aviation software business, as part of its ongoing portfolio optimization and "disciplined approach to capital allocation to drive long-term shareholder value", the company said on Monday.The transaction intends to position Flightscape for its next phase of growth while enabling CAE to "sharpen its focus" on its core simulation and training capabilities and long-term value creation, the company said.The company will "actively assess" a full range of options, including strategic partnerships, minority or majority investment, a sale, or other alternatives that are "determined to be in the best interests" of CAE and its stakeholders, stated the company."Earlier this year, we completed a comprehensive review of our portfolio to ensure our capital, leadership attention and strategic focus are aligned with where CAE can create the most value," said Matthew Bromberg, President and Chief Executive Officer of CAE. "That review reinforced our conviction in Flightscape as a strong, differentiated business that may be better positioned for its next chapter through alternative ownership or partnership structures. This is a deliberate, disciplined step focused on long term value creation-for shareholders, customers, and employees."The company's shares were last seen down $0.69 at $36.20 on the Toronto Stock Exchange.Price: $36.13, Change: $-0.76, Percent Change: -2.06%

Carlyle Group Cited As Being Interested As CAE Evaluates Strategic Alternatives, notes RBC Capital Markets

An unconfirmed report, via a Betaville "uncooked" alert, is circulating that CAE (CAE.TO, CAE) is working with an adviser to evaluate strategic alternatives for all or part of the business, with Carlyle Group (CG) cited as one interested PE party, RBC Capital Markets noted in a note dated April 27."We view this as neutral, as it is consistent with commentary from management's most recent earnings call (Q3 FY2026, February 13, 2026), where CEO Matt Bromberg explicitly disclosed that CAE had completed a bottom-up portfolio review, identified non-core assets representing near 8% of revenue, and had already engaged advisers on potential transactions -- while cautioning that these transformations typically take 18-24 months," RBC said."With no incremental detail beyond the unconfirmed report, we don't see this as a standalone catalyst, though we note CAE trades at low-teens EV/EBITDA and high-20s P/E, which provides some context for evaluating potential transaction economics alongside any strategic considerations," RBC added.Shares in CAE were down about 0.15% in US premarket trade today amid lower broader stock futures markets.

RBC Maintains CAE's Sector Perform Rating and C$42.00 Price Target Ahead of Fiscal Q4 Results

RBC Capital Markets maintained its sector perform rating and C$42.00 price target on the shares of CAE (CAE.TO, CAE) on Friday.RBC expects CAE's upcoming Fiscal Q4 report to shift attention to the company's long-term growth opportunities. It expects management to outline targets for revenue, margins, CapEx, EPS, and ROIC through FY30.RBC believes secular tailwinds in both Civil and Defense can support 4-5% revenue growth longer-term, with key focus on what level of FCF management's targets imply.RBC's new FY30 forecasts call for ~100% FCF conversion and EPS of $2.21, it added."While we remain Sector Perform into the quarter, we will be looking for colour that gives us increased confidence in execution, which could provide a lift to valuation," said RBC.RBC believes FY27 will "come in well below street estimates," although RBC does not expect this to be a major focus for investors. It expects FY27 to represent a "transitional year" for CAE as it works through the execution phase of its transformation plan."While the strategic initiatives we expect management to lay out could yield meaningful benefits over the medium term, the near-term financial profile will likely reflect the friction of restructuring activities, ongoing market headwinds, and the lag between cost actions and margin realization," added RBC.RBC expects management to lay out a growth framework underpinned by "strong secular tailwinds" in both Civil and Defense that it believes will support revenue growth of 4-5% annually."On the margin front, we expect management to target Civil operating margins of ~25% (vs. ~20% today), reflecting the benefits of network rationalization, improved utilization, and a leaner cost structure; and Defense operating margins of ~11% (vs. ~8.5% today), driven by the continued roll-off of legacy contracts and a higher mix of new, betterpriced programs," said RBC.RBC expects these revenue and margin improvements to drive capital efficiency gains, with CapEx moderating to ~$300MM longer-term as network right-sizing reduces growth capital requirements. RBC expects this to drive EPS of >$2.00 in FY30."We now value CAE off our new F30 EPS estimate of $2.21, applying a 22.5x multiple and discounting back at 8%, which results in our $42 price target," said RBC.Price: $34.50, Change: $-0.27, Percent Change: -0.78%

Stifel Canada on Investor Expectations For CAE

Stifel Canada completed a survey of 26 buy-side investors ahead of CAE (CAE.TO, CAE) releasing its new longer-term transformation-plan targets in May, alongside fiscal fourth-quarter results."Since Matt Bromberg took the helm in August 2025, the company has been teasing out a broad framework for its turn-around plans, but has yet to provide hard targets for growth, margin improvement, ROIC, and FCF," notes analyst Daryl Young, who is maintaining a buy rating and C$50.00 price target on the stock.Stifel's clear takeaway is that investors are "laser focused" on CAE harvesting FCF, with less focus on growth. Young believes capex curtailments alone will likely be sufficient to achieve the low-end of FCF expectations post transformation. He adds that 40% of survey responses indicated expectations for $2.00-$2.50 of FCF/sh post transformation in F2029 (~6% FCF yield to current share price).Price: $35.91, Change: $-0.91, Percent Change: -2.47%

CAE Price Target Cut to $42.00 at RBC

RBC Capital Markets analyst James McGarragle cut his price target on the shares of CAE (CAE.TO) to $42.00 from $46.00 while maintaining his sector-perform rating.McGarragle's fourth-quarter EBITDA estimate has also been cut to $335 million from $348 million to reflect delivery headwinds from commercial OEMs and Middle East training disruptions in the civil segment."We now model FY26E Civil adj. operating income growth of -6.6% (cons. -6%) below guidance of mid-single digit decline." Target multiple has also been trimmed to 12x (from 12.5x) on continued headwinds in Civil, McGarragle added.Price: $38.23, Change: $+0.23, Percent Change: +0.61%