CAE Reports Q1 Fiscal 2027 Results Amid Strategic Transformation
CAE Inc. posted revenue of $1.17 billion for the first quarter of fiscal 2027, a 6.8% increase year-over-year, as the company navigates a multi-year restructuring plan. Despite top-line growth, profitability faced pressure from Middle East regional instability and costs associated with its ongoing civil aviation training network rationalization.
The Montreal-based simulation and training firm reported an operating income of $86.8 million, down from $133.8 million in the prior-year period, largely impacted by $48.3 million in restructuring costs. Adjusted earnings per share remained steady at $0.26. CEO Matthew Bromberg noted that while Civil Aviation revenues climbed 5.6% to $641.6 million, bottom-line results were dampened by higher administrative expenses and softer product contributions.
Defense and Security operations provided a buffer, with revenues rising 8.3% to $531.8 million. The company is actively executing a transformation strategy aimed at achieving $125 million to $150 million in annual run-rate savings by fiscal 2030. This includes the consolidation of its global footprint and the closure of 4 to 6 training centers. CAE reaffirmed its fiscal 2027 outlook, anticipating low-single-digit revenue growth and maintaining its focus on balance sheet fortification and debt reduction, with a current net debt-to-adjusted EBITDA ratio of 2.27x.
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