CAE

This article first appeared on GuruFocus. Consolidated Revenue: $1.2 billion, up 6.8% year over year. Adjusted Segment Operating Income: $156.6 million, down 7.5% from $169.3 million in the prior year. Adjusted EPS: $0.26, consistent with the prior year. Free Cash Flow: $104 million generated in Q1, compared to negative $135 million in the prior year. Net Debt: $2.6 billion, with a net debt to adjusted EBITDA ratio of 2.27 times. Civil Revenue: $641.6 million, up 5.6% year over year. Civil Adjusted Segment Operating Income: $106.1 million, down 13.7%, with a margin of 16.5% (down from 20.2%). Civil Training Center Utilization: 72.2%, up from 68.8% in the prior year. Civil Book-to-Sales Ratio: 1.31 times, with new orders worth $838 million. Defense Revenue: $531.8 million, up 8.3% year over year. Defense Adjusted Segment Operating Income: $50.5 million, up 9.1%, with a 9.5% margin. Defense Adjusted Backlog: $10.7 billion. Transformation Program Costs: $48 million incurred in Q1, bringing total spending to $133 million. Warning! GuruFocus has detected 6 Warning Signs with BOM:522205. Is CAE fairly valued? Test your thesis with our free DCF calculator. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Strong free cash flow generation of $104 million in Q1, a significant improvement from negative $135 million in the prior year. Defense segment delivered strong revenue growth of 8.3% and margin expansion to 9.5%, driven by higher profitability and program efficiencies. Civil training center utilization improved to 72.2% from 68.8% year-over-year, reflecting gains in both Commercial and Business Aviation Training. Robust Civil order intake with a book-to-sales ratio of 1.31 times, including a 15-year training agreement with WestJet and a multiyear contract with Turkish Airlines. Expanding Defense pipeline with new partnerships (Leonardo, Saab, TKMS, Shield AI) representing over $5 billion in potential value, positioning CAE for long-term growth. Civil adjusted segment operating income decreased 13.7% year-over-year, with margins down to 16.5% from 20.2%, impacted by Middle East conflict-related costs and lower simulator sales. Higher selling, general and administrative expenses in Defense due to increased bid and proposal activities, which are expected to continue through the year. Transformation program incurred $48 million in expenses in Q1, with total costs expected to reach $200-$250 million, impacting near-term profitability. Civil performance was slightly down year-over-year, with challenges from the Middle East conflict and lower government R&D funding, creating headwinds for the full year. Customer attrition from network rationalization, while minimal at less than 1% of Civil revenue, still poses a risk to revenue retention during the transition. Q: Can you explain the transitory costs in the Civil segment during the quarter, particularly the credit-related charges and transformation-related inefficiencies, and how sustainable these are in the coming quarters?A: Matthew Bromberg (President and CEO) explained that the Civil margin impact is driven two-thirds by the Middle East conflict, which has caused temporary costs as they reroute airline training to other facilities and deal with fuel price disruptions affecting customers. Ryan McLeod (CFO) added that the remaining one-third is related to discrete transformation investments and lower government R&D funding. Both executives view these impacts as temporary and are actively mitigating them. Q: What is the mix of training versus product development in the $5 billion Defense pipeline, and how should we think about product development risk for new mega projects like the Canadian submarine opportunity with TKMS?A: Matthew Bromberg (President and CEO) stated that the partnerships with Leonardo, Saab, and TKMS leverage platform decisions made by Canada and NATO, allowing CAE to do the non-recurring engineering (NRE) once with the OEM and then reproduce training centers globally. This approach minimizes development risk compared to past sovereign-level programs. The mix will be more heavily weighted toward training services and products, as CAE will develop and operate training centers, making the NRE a smaller percentage of overall program value. Q: Regarding the Flightscape strategic review, would the proceeds from a potential transaction be used for share buybacks under the NCIB, or will the NCIB be more programmatic?A: Matthew Bromberg (President and CEO) noted that the strategic review is early but has strong buyer interest. He stated that proceeds would primarily fund the transformation program, which offers a strong return on capital with an average payback of two to three years. Calin Rovinescu (Executive Chairman) added that no decision has been made on reinstating the dividend, but once the company achieves a healthier financial dynamic, all capital allocation options will be assessed. Q: Can you provide an update on pricing improvements for customer contracts and the reception from customers on future renewals at higher prices?A: Matthew Bromberg (President and CEO) acknowledged it is early in the process, noting that airlines are sophisticated buyers facing fuel price and traffic disruptions. CAE is approaching pricing cautiously, starting with aftermarket products and services, then moving to the product side and training network. With 600-700 contracts of varying terms, the company is implementing disciplined pricing tools and expects to see benefits as the year progresses, though it will take time for existing agreements to burn off. Q: How should we think about the Civil revenue outlook for the rest of the year given the strong start, flat to slightly down guidance, and headwinds from the product business and Middle East?A: Matthew Bromberg (President and CEO) explained that the Civil market's long-term growth trajectory remains strong at 4%, but this year faces a light order intake from the prior year, Middle East impacts, and summer seasonality. CAE is being cautious on the outlook due to these moving pieces, but remains well-positioned with product sales and training network to grow over the long term. Q: Has the Middle East conflict created unexpected headwinds that are offset by positives elsewhere, or is the impact not material enough to affect full-year guidance?A: Matthew Bromberg (President and CEO) stated that CAE anticipated at least a half-year impact from the Middle East and is seeing it. The company is mitigating the impact by rerouting training to other parts of its worldwide network, which initially incurs incremental costs but is working. He does not see incremental headwind for the year, though the effects will take another quarter or two to subside. Q: Can you provide more detail on customer retention expectations during the network rationalization, and what factors could cause customers to switch to alternatives?A: Matthew Bromberg (President and CEO) reiterated that CAE expects to retain more than 99% of contracts as it removes 10% of capacity, with attrition of less than 1% of Civil revenue. While alternatives exist from smaller players, no other provider has a network as capable and widespread. The company is maintaining customer intimacy as a top priority, with conversations going well, but must continue to earn trust daily. Q: How should we think about higher bid and proposal costs in the Defense segment for the remainder of 2027, and when might they subside?A: Ryan McLeod (CFO) indicated that bid and proposal costs will continue throughout the balance of the year due to a healthy pipeline of opportunities in this key growth area. Matthew Bromberg (President and CEO) added that CAE is targeting many additional partnerships, leveraging its position as the largest independent Defense training company with strong NATO relationships, and is just getting started in expanding its opportunity set. Q: Can you discuss the Shield AI partnership and how the work will build as the Collaborative Combat Aircraft (CCA) program progresses?A: Matthew Bromberg (President and CEO) explained that Shield AI provides autonomy solutions that need to be trained in synthetic environments and work alongside humans. CAE provides the training ecosystem surrounding the algorithm, helping both the technology and human operators. While the current work is focused on the CCA platform, the partnership could expand beyond it, as CAE has 15 years of experience providing training ecosystems for companies like General Atomics. Q: What portion of the $5 billion Defense pipeline is related to CCA or drone opportunities?A: Matthew Bromberg (President and CEO) clarified that the $5 billion pipeline is driven mostly by the Leonardo M-346, Saab GlobalEye, and TKMS Maritime submarine programs. CCA and drone opportunities represent a very small portion of this estimate, and CAE will provide more detail on other partnership opportunities as they develop. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in CAE Inc? Here are five stocks we like better. CAE maintained its fiscal 2027 outlook after first-quarter revenue rose 6.8% to CAD 1.2 billion and free cash flow improved to CAD 104 million, despite a 7.5% decline in adjusted segment operating income. The company’s transformation plan remains on track, targeting CAD 125 million–CAD 150 million in annual savings by fiscal 2030. CAE has spent CAD 133 million so far and plans to retire 25 commercial simulators while consolidating training centers. Defense outperformed Civil: Defense revenue and adjusted operating income increased 8.3% and 9.1%, respectively, supported by contract activity and efficiencies, while Civil margins fell amid Middle East disruptions, transformation costs and lower simulator sales contributions. The Ecosystem Edge: Joby's Competitive Advantage CAE (NYSE:CAE) reported a first-quarter fiscal 2027 performance that management said was consistent with its full-year outlook, as stronger Defense revenue and free cash flow helped offset pressure on Civil margins from Middle East disruption, transformation-related spending and lower simulator sales contributions. Consolidated revenue increased 6.8% year over year to CAD 1.2 billion in the quarter ended June 30. Adjusted segment operating income declined 7.5% to CAD 156.6 million, while adjusted earnings per share were unchanged at CAD 0.26. The company generated CAD 104 million in free cash flow, compared with negative CAD 135 million a year earlier, under its updated definition that includes all capital and intangible investments. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be VirTra is an Overlooked Profitable National Defense Play Chief Financial Officer Ryan McLeod said the free-cash-flow improvement reflected timing benefits as well as actions to strengthen capital discipline, allocation and performance. CAE ended the quarter with CAD 2.6 billion in net debt and a net-debt-to-adjusted-EBITDA ratio of 2.27x, which McLeod said was in line with its long-term leverage target. The company also repurchased 1.1 million shares for CAD 39 million through its normal course issuer bid. Management reiterated its fiscal 2030 transformation targets, including CAD 125 million to CAD 150 million in structural run-rate savings and CAD 950 million to CAD 1 billion in adjusted segment operating income. The company expects transformation costs of CAD 200 million to CAD 250 million, including roughly CAD 100 million of non-cash charges. → Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand CAE incurred CAD 48 million of transformation expenses in the first quarter, including CAD 12 million of non-cash charges. Cumulative spending on the program has reached CAD 133 million, of which CAD 71 million is non-cash. President and CEO Matthew Bromberg said approximately half of the expected CAD 150 million in savings would come from improved labor productivity, including organizational changes, outsourcing of non-core processes, automation, systems improvements and footprint consolidation. About 30% is expected to come from reduced square footage, while the remaining 20% is expected from operational improvements such as the company’s digital factory initiative and consolidation of its enterprise resource planning systems from five to two. → On Holding's Price Stumble May Be an Opening for a Company Built to Run The company is progressing with plans to retire 25 commercial simulators. McLeod said six simulators have been removed so far, and CAE expects to have removed 13 to 15 by the end of fiscal 2027. The initiative is expected to allow the company to close four to six Civil training centers, including one additional closure by the end of calendar 2026, and reduce approximately 500,000 square feet from the Civil training network. Bromberg said customer discussions indicate that attrition related to the capacity reductions will be less than 1% of Civil revenue, with the company expecting to retain nearly all affected contracts by moving customers to other CAE facilities. Civil revenue rose 5.6% to CAD 641.6 million. However, adjusted segment operating income fell 13.7% to CAD 106.1 million, and margin declined to 16.5% from 20.2% a year earlier. McLeod attributed the decline to higher selling, general and administrative expenses, credit-related charges on financial assets, a lower contribution from simulator sales and lower profitability from Middle East joint ventures. The company also cited spending on transformation initiatives and reduced government R&D funding. Bromberg said roughly two-thirds of the Civil margin impact was related to conditions in the Middle East, where CAE has redirected customer training to other parts of its global network. While the company has retained revenue, moving training activity and, in some cases, instructors has raised costs. Management characterized the impact as temporary and said it does not see additional risk to its full-year outlook. Civil training-center utilization rose to 72.2% from 68.8% in the prior-year period, reflecting improvement in both commercial and business aviation training. Commercial utilization increased in India, Europe and the Americas, partially offset by weaker Middle East activity. Civil booked CAD 838 million in new orders, producing a 1.31x book-to-sales ratio. Among the quarter’s commercial wins, CAE finalized a 15-year training agreement with WestJet. The Alberta Training Centre of Excellence for Aviation and Aerospace is expected to open in 2028 and initially house eight full-flight simulators, with room for expansion. The company also announced a multiyear agreement with Turkish Airlines for five full-flight simulators and two flight-training devices, including options for two additional full-flight simulators. Defense revenue increased 8.3% to CAD 531.8 million, while adjusted segment operating income grew 9.1% to CAD 50.5 million. The segment’s margin was 9.5%. The gains were driven by higher profitability and activity on U.S. and Canadian contracts, as well as efficiencies tied to completion of key program milestones. Those factors were partly offset by higher bid-and-proposal spending as CAE pursues new opportunities. McLeod said elevated bid-and-proposal expenses are expected to continue through most of fiscal 2027. Defense adjusted backlog stood at CAD 10.7 billion. Bromberg said recently announced opportunities with Leonardo, Saab and TKMS represent more than CAD 5 billion of potential pipeline value, though he emphasized that the pipeline includes opportunities at varying proposal and qualification stages and may change in timing and conversion. CAE expanded its collaboration with Leonardo around the M-346 Block 20 training ecosystem. The company signed agreements with Saab related to GlobalEye airborne early warning and control capabilities and Gripen fighter training, simulation and mission support. CAE partnered with TKMS on the Canadian Patrol Submarine Project and potential broader naval and maritime opportunities. The company also announced a partnership with Shield AI involving training, simulation and mission rehearsal capabilities for collaborative combat aircraft and other autonomy-related applications. Executive Chairman Calin Rovinescu said he plans to transition to non-executive chairman effective Jan. 1, 2027. CAE also revised executive incentives, with short-term incentives now centered on free cash flow and adjusted segment operating income margin, and long-term incentives tied to adjusted return on invested capital and adjusted earnings per share. Management made no changes to its fiscal 2027 outlook or fiscal 2030 targets, while cautioning that quarterly results are not expected to progress evenly through the year because of seasonality, particularly in Civil. CAE Inc is a global leader in training and simulation technologies, headquartered in Montréal, Canada. The company specializes in the design and manufacture of high-fidelity flight simulators and training systems for civil aviation, defense and security, and healthcare markets. Leveraging advanced software and hardware integration, CAE delivers comprehensive training solutions that address pilot proficiency, mission readiness and patient safety across a wide range of platforms. In civil aviation, CAE partners with major airlines, aircraft manufacturers and flight schools to provide pilot training services, courseware development and crew scheduling solutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "CAE Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. CAE (TSX:CAE) is back in focus after reporting first quarter 2026 results, with revenue of CA$1,173.4 million and net income of CA$31 million, and reiterating low single digit consolidated revenue growth guidance for 2027. See our latest analysis for CAE. At a share price of CA$38.59, CAE has posted a 9.51% 1 month share price return and an 8.64% 3 month share price return, while its 1 year total shareholder return is 0.42%. This suggests recent momentum has improved even though longer term gains have been modest. If this earnings move has you thinking about what else is gaining attention in the market, it could be a good time to scan 39 robotics and automation stocks CAE now trades at a double digit discount to both analyst targets and one estimate of intrinsic value, even after the recent rebound. Is that a sign the market is too cautious, or a fair response to slower earnings? With CAE trading at CA$38.59 against a narrative fair value of about CA$42.93, the widely followed view sees room between price and fundamentals, rooted in specific growth and margin expectations. Read the complete narrative. Want to see what is built into that fair value for CAE? The narrative leans on measured revenue growth, firmer margins, and a richer future earnings multiple. Result: Fair Value of CA$42.93 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, CAE still carries meaningful risks, including a sizeable CA$3.2b net debt load and execution hurdles related to integrating acquisitions and delivering planned margin improvements. Find out about the key risks to this CAE narrative. With both risks and rewards in view for CAE, it makes sense to study the full picture and move quickly to your own conclusion. To weigh the potential upsides against the concerns that other investors are focused on, take a closer look at the 2 key rewards and 1 important warning sign. If CAE has sharpened your interest, do not stop here. The market offers plenty of other opportunities that might suit your goals just as well. Spot potential value plays early by checking companies that appear mispriced based on fundamentals through the 8 high quality undervalued stocks. Strengthen your focus on financial resilience by reviewing companies in the solid balance sheet and fundamentals stocks screener (12 results). Hunt for underfollowed opportunities that may be off most investors' radar by scanning the screener containing 8 high quality undiscovered gems. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CAE.TO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Revenue of $1,173.4 million vs. $1,098.6 million in prior year, up 6.8% year-over-year EPS of $0.10 vs. $0.18 in prior year and adjusted EPS(1) of $0.26 vs. $0.26 in prior year Free cash flow(1) of $104.0 million and net debt-to-adjusted EBITDA(1) of 2.27x Adjusted order intake(1) of $1,289.6 million and a book-to-sales(1) ratio of 1.10x On track for the transformation targets, including $125 million to $150 million annual transformation run-rate savings(1) by fiscal 2030 Fiscal 2027 outlook unchanged MONTREAL, Aug. 12, 2026 /CNW/ -- (Nasdaq: CAE) (TSX: CAE) - CAE Inc. (CAE or the Company) today reported its financial results for the fiscal first quarter ended June 30, 2026. For more information, please refer to the annex for first quarter fiscal 2027 available at cae.com/investors. "We started fiscal 2027 with solid first quarter performance and continued progress across our transformation workstreams," said Matthew Bromberg, CAE's President and CEO. "Q1 results were aligned with our plans. Civil revenues were up 5.6% year-over-year, though profitability was down, as expected. Strong performance in business aviation and improving utilization trends were offset by higher costs, a lower contribution from Civil products and impacts from the Middle East conflict. Defense delivered another strong quarter with revenues up 8.3% and continued year-over-year adjusted segment operating income margin expansion. During the quarter, we advanced several strategic partnerships with global defence OEMs that meaningfully expand our long-term opportunity set and support our growth ambitions. Additionally, we generated strong cash flow enabling us to further bolster our balance sheet, invest in growth and our transformation and return cash to shareholders. Our fiscal 2027 outlook remains unchanged. Our transformation plan advanced across all three priorities: portfolio, capital discipline and operational performance. Our review of strategic alternatives for Flightscape is progressing well and is generating strong interest. Our Civil training network rationalization is on track to achieve our goals for fiscal 2027 and beyond. This includes closing between 4 and 6 Civil training centers, concentrating revenue across a leaner footprint and cost base. We are focused on maximizing customer retention through this transition, driving meaningful cost savings through improved labor productivity and reducing our global square footage. Supporting these priorities is a continued emphasis on accountability, performance and execution. The executive compensation changes outlined in our proxy circular reinforce that focus by aligning incentives with long-term shareholder value. First quarter results keep us on plan to deliver materially stronger performance and sustained value creation over time, positioning CAE as a growth company operating in attractive end-markets that is poised to generate stronger free cash flow, higher returns on invested capital, expanding margins, and a flexible, resilient capital structure." Consolidated results for Q1 fiscal 2027 First quarter fiscal 2027 revenue was $1,173.4 million, compared to $1,098.6 million in the first quarter last year. First quarter EPS was $0.10 compared to $0.18 last year. Adjusted EPS in the first quarter was $0.26, compared to $0.26 last year. Operating income this quarter was $86.8 million (7.4% of revenue(1)). This compares to $133.8 million (12.2% of revenue) last year. This period's operating income included restructuring costs of $48.3 million. Last year's operating income included executive management transition costs of $14.0 million. First quarter adjusted segment operating income was $156.6 million (13.3% of revenue(1)) compared to $169.3 million (15.4% of revenue) last year. All financial information is in Canadian dollars unless otherwise indicated. Civil Aviation (Civil) First quarter Civil revenue was $641.6 million vs. $607.7 million in the first quarter last year. Operating income was $61.5 million (9.6% of revenue) compared to $99.4 million (16.4% of revenue) in the same quarter last year. Adjusted segment operating income was $106.1 million (16.5% of revenue) compared to $123.0 million (20.2% of revenue) in the first quarter last year. The decrease in adjusted segment operating income was mainly due to higher selling, general and administrative expenses, including credit-related charges on financial assets, a lower contribution from simulator sales and lower profitability in our joint ventures primarily due to impacts in the Middle East. The decrease was partially offset by a higher contribution from business training services, driven by higher utilization. During the quarter, Civil delivered 8 full-flight simulators (FFSs) and first quarter Civil training centre utilization was 72.2%. During the quarter, Civil signed training solutions contracts valued at $837.7 million for a range of long-term commercial and business aviation training agreements, including 6 FFS sales. The Civil book-to-sales ratio(1) was 1.31 times for the quarter and 1.07 times for the last 12 months. The Civil adjusted backlog at the end of the quarter was $8.5 billion. Defense and Security (Defense) First quarter Defense revenue was $531.8 million vs. $490.9 million in the first quarter last year. Operating income was $25.3 million (4.8% of revenue) compared to $34.4 million (7.0% of revenue) in the same quarter last year. Adjusted segment operating income was $50.5 million (9.5% of revenue), compared to $46.3 million (9.4% of revenue) in the first quarter last year. The increase in adjusted segment operating income was mainly due to higher profitability and activity on our contracts in North America, as well as the realization of program efficiencies from the completion of key program milestones, partially offset by higher selling, general and administrative expenses related to increased bid and proposal activity. Defense booked orders for $451.9 million this quarter for a book-to-sales ratio of 0.85 times. The ratio for the last 12 months was 1.01 times. The Defense adjusted backlog, including unfunded contract awards and CAE's interest in joint ventures, at the end of the quarter was $10.7 billion. Additional financial highlights Net finance expense this quarter was $45.5 million, down from $54.6 million in the first quarter last year. The year-over-year decrease was mainly due to lower finance expense on long-term debt due to a decreased level of borrowings during the period. Income tax expense this quarter amounted to $8.7 million, representing an effective tax rate of 21.1%, compared to 24.0% for the first quarter last year. The adjusted effective tax rate(1), which is the income tax rate used to determine adjusted net income(1) and adjusted EPS, was 23.4% this quarter compared to 24.3% in the first quarter of last year. The decrease in the adjusted effective tax rate was mainly attributable to the change in the mix of income from various jurisdictions. Net cash provided by (used in) operating activities was $175.1 million for the quarter, compared to negative $15.3 million in the first quarter last year. Free cash flow(1) was $104.0 million for the quarter compared to negative $134.7 million in the first quarter last year. The increase was mainly due to a higher contribution from non-cash working capital and lower capital expenditures. Capital expenditures(1) totaled $51.7 million this quarter compared to $106.9 million in in the first quarter of fiscal 2026. Net debt(1) at the end of the quarter was $2,646.2 million for a net debt-to-adjusted EBITDA(1) of 2.27 times. This compares to net debt of $2,681.8 million and a net debt-to-adjusted EBITDA of 2.29 times at the end of the preceding quarter. Adjusted return on invested capital(1) was 7.5% this quarter compared to 7.6% last quarter and 7.8% in the first quarter last year. During the quarter, CAE repurchased and cancelled a total of 1,107,279 common shares under its normal course issuer bid (NCIB), at a weighted average price of $35.26 per common share for a total consideration of $39.0 million. Fiscal 2027 outlook Fiscal 2027 is an execution year, defined by actions underway to reshape the business. The total cost of the transformation plan is anticipated to be approximately $200 million to $250 million, with approximately $100 million arising from non-cash charges. Of the total cost, $48 million was incurred in the first quarter of fiscal 2027, bringing the total costs incurred to date to $133 million. The majority of the balance is expected to be incurred in fiscal 2027. The company's fiscal 2027 outlook remains unchanged and continues to exclude divestitures, acquisitions or new joint ventures. In fiscal 2027, management expects consolidated revenue to increase by a low-single digit percentage, with Civil revenue expected to be flat to slightly down and Defense expected to grow at a mid-single digit rate. On a consolidated basis, management expects fiscal 2027 adjusted segment operating income margin(1) to be 14.6% to 15.1%. This outlook reflects the combined effect of continued margin expansion in Defense, temporarily lower profitability in Civil, transformation-related actions, temporary cost inefficiencies associated with network rationalization and relocations, and elevated investment levels intended to support stronger long-term performance, with benefits expected to build progressively over time. In Defense, CAE expects continued growth and increased profitability, supported by strong demand and adjusted backlog conversion. In Civil, performance is expected to remain below prior levels, reflecting ongoing softness in the civil aviation training market, softer demand for products, and the impact of optimization actions currently underway. Ongoing geopolitical uncertainty in the Middle East is affecting CAE's operations and customers in the region. Currently, the Company is experiencing operational and financial impacts associated with the conflict and undertaking mitigation actions, including the redeployment of certain training activities within its global network. Our outlook assumes that our actions continue to be effective and we are able to largely mitigate these impacts for the balance of fiscal year 2027. Intensification of the conflict or a further deterioration in regional conditions, including sustained increases in fuel prices, broader effects on airline activity, customer operations, or supply chains, could result in additional pressure on performance. This outlook is provided as at August 12, 2026, to assist analysts, investors and shareholders in forming their respective views on CAE's expected performance for the fiscal year ending March 31, 2027. This outlook constitutes forward-looking information and is based on multiple estimates and assumptions, including those set out in the "Forward-Looking Statements" section below, and are subject to the risks and uncertainties summarized therein. As such, the reader is cautioned that using this information for other purposes may be inappropriate and these measures are subject to change as conditions evolve and actual results may differ, and such differences may be material. The Company cautions that the assumptions used to prepare the outlook could prove to be incorrect or inaccurate. Caution concerning limitations of summary earnings press release This summary earnings press release contains limited information meant to assist the reader in assessing CAE's performance, but it is not a suitable source of information for readers who are unfamiliar with CAE and is not in any way a substitute for the Company's financial statements, notes to the financial statements, and MD&A reports. Caution concerning forward-looking statements This press release includes forward-looking statements about our activities, events and developments that we expect to or anticipate may occur in the future including, for example, statements about our fiscal 2027 consolidated financial outlook, long-term transformation plan targets to fiscal 2030, transformation costs and savings, vision, strategies, market trends and outlook, future revenues, earnings, cash flow growth, profit trends, growth capital spending, expansions and new initiatives, including initiatives that pertain to sustainability matters, financial obligations, available liquidities, expected sales, general economic and political outlook, inflation trends, prospects and trends of an industry, expected annual recurring cost savings from operational excellence programs, our management of the supply chain, estimated addressable markets, demand for CAE's products and services, our access to capital resources, our financial position, the expected accretion in various financial metrics, the expected capital returns to shareholders, our business outlook, business opportunities, objectives, development, plans, growth strategies and other strategic priorities, our competitive and leadership position in our markets, the expansion of our market shares, CAE's ability and preparedness to respond to demand for new technologies, the sustainability of our operations and other statements that are not historical facts. Since forward-looking statements and information relate to future events or future performance and reflect current expectations or beliefs regarding future events, they are typically identified by words such as "anticipate", "believe", "could", "estimate", "expect", "intend", "likely", "may", "plan", "seek", "should", "will", "strategy", "future" or the negative thereof or other variations thereon suggesting future outcomes or statements regarding an outlook. All such statements constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties associated with our business which may cause actual results in future periods to differ materially from results indicated in forward-looking statements. While these statements are based on management's expectations and assumptions regarding historical trends, current conditions and expected future developments, as well as other factors that we believe are reasonable and appropriate in the circumstances, readers are cautioned not to place undue reliance on these forward-looking statements as there is a risk that they may not be accurate. The forward-looking statements contained in this press release describe our expectations as of August 12, 2026 and, accordingly, are subject to change after such date. Except as required by law, we disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. The forward-looking information and statements contained in this press release are expressly qualified by this cautionary statement. In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this press release. While we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements. Except as otherwise indicated by CAE, forward-looking statements do not reflect the potential impact of any special items or of any dispositions, monetizations, mergers, acquisitions, other business combinations or other transactions that may occur after August 12, 2026. The financial impact of these transactions and special items can be complex and depends on the facts particular to each of them. We therefore cannot describe the expected impact in a meaningful way or in the same way we present known risks affecting our business. Forward-looking statements are presented in this press release for the purpose of assisting investors and others in understanding certain key elements of our expected fiscal 2027 financial results and in obtaining a better understanding of our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. Material assumptions The forward-looking statements set out in this press release are based on certain assumptions including, without limitation: the prevailing market conditions, geopolitical instability including the ongoing military conflicts in the Middle East and the rapidly evolving trade and tariff environment, customer receptivity to our training and operational support solutions, the accuracy of our estimates of addressable markets and market opportunity, the realization of anticipated annual recurring cost savings and other intended benefits from restructuring initiatives, transformation plans or operational excellence programs, the ability to respond to anticipated inflationary pressures and our ability to pass along rising costs through increased prices, the actual impact to supply, production levels, and costs from global supply chain logistics challenges, the stability of foreign exchange rates, the ability to hedge exposures to fluctuations in interest rates and foreign exchange rates, the availability of borrowings to be drawn down under, and the utilization, of one or more of our senior credit agreements, our available liquidity from cash and cash equivalents, undrawn amounts on our revolving credit facility, the balance available under our receivable purchase facility, the assumption that our cash flows from operations and continued access to debt funding will be sufficient to meet financial requirements in the foreseeable future, access to expected capital resources within anticipated timeframes, no material financial, operational or competitive consequences from changes in regulations affecting our business, our ability to retain and attract new business, our ability to effectively execute on the opportunities identified as part of our transformation plan to simplify our structure, sharpen our focus and strengthen execution, and the realization of the expected strategic, financial and other benefits of our multi-year transformation plan in the timeframe anticipated and at expected cost levels. Air travel is a major driver for CAE's business and management relies on analysis from the International Air Transport Association (IATA) to inform its assumptions about the rate and profile of growth in its key civil aviation market. Forward-looking statements relating to the transformation plan targets to fiscal 2030 are also based on the assumptions underlying management's long-term targets disclosed as part of the transformation plan set out in CAE's press release dated May 21, 2026, available on our website (www.cae.com), SEDAR+ (www.SEDARplus.ca) and EDGAR (www.sec.gov). Accordingly, the assumptions outlined in this press release and, consequently, the forward‑looking statements based on such assumptions, may turn out to be inaccurate. For additional information, including with respect to other assumptions underlying the forward-looking statements made in this press release, refer to Section 9 "Business risk and uncertainty" of our MD&A for the year ended March 31, 2026 available on our website (www.cae.com), SEDAR+ (www.SEDARplus.ca) and EDGAR (www.sec.gov). Material risks Important risks that could cause actual results or events to differ materially from those expressed in or implied by our forward-looking statements are set out in CAE's MD&A for the fiscal year ended March 31, 2026 and MD&A for the three months ended June 30, 2026, available on our website (www.cae.com), SEDAR+ (www.SEDARplus.ca) and EDGAR (www.sec.gov). In addition, forward-looking statements relating to the transformation plan targets to fiscal 2030 are subject to the material risks and uncertainties underlying management's long-term targets disclosed as part of the transformation plan set out in CAE's press release dated May 21, 2026, available on our website (www.cae.com), SEDAR+ (www.SEDARplus.ca) and EDGAR (www.sec.gov). Readers are cautioned that any of the disclosed risks could have a material adverse effect on our forward-looking statements. We caution that the disclosed list of risk factors is not exhaustive and other factors could also adversely affect our results. Non-IFRS and other financial measures This press release includes non-IFRS financial measures, non-IFRS ratios, capital management measures and supplementary financial measures. These measures are not standardized financial measures prescribed under IFRS and therefore should not be confused with, or used as an alternative for, performance measures calculated according to IFRS. Furthermore, these measures should not be compared with similarly titled measures provided or used by other issuers. Management believes that these measures provide additional insight into our operating performance and trends and facilitate comparisons across reporting periods. Certain non-IFRS and other financial measures are provided on a consolidated basis and separately for each of our segments (Civil Aviation and Defense and Security) since we analyze their results and performance separately. Reconciliations and calculations of non-IFRS measures to the most directly comparable measures under IFRS are also set forth below in the section "Reconciliations and Calculations of this press release". Changes to non-IFRS measures As announced in May 2026, we revised the composition of certain non-IFRS measures in the first quarter of fiscal 2027: Adjusted segment operating income was revised to exclude the amortization of acquisition-related intangible assets; and Adjusted net income was revised to exclude the amortization of acquisition-related intangible assets; which also impacts the determination of adjusted EPS. In addition, we refined the measurement of simulator utilization rates, full-flight simulators (FFSs) in CAE's network and Simulator equivalent unit (SEU), which are no longer adjusted for factors such as relocations, downtime or storage. Comparative figures have been adjusted to conform to these changes. Performance measures Gross profit margin (or gross profit as a % of revenue)Gross profit margin is a supplementary financial measure calculated by dividing our gross profit by revenue for a given period. We track it because we believe it provides an enhanced understanding of our operating performance and facilitates the comparison across reporting periods. Operating income margin (or operating income as a % of revenue)Operating income margin is a supplementary financial measure calculated by dividing our operating income by revenue for a given period. We track it because we believe it provides an enhanced understanding of our operating performance and facilitates the comparison across reporting periods. Adjusted segment operating income or lossAdjusted segment operating income or loss is a non-IFRS financial measure that gives us an indication of the profitability of each segment because it does not include the impact of any items not specifically related to the segment's performance. We calculate adjusted segment operating income by taking operating income and adjusting for restructuring, integration and acquisition costs, amortization of acquisition-related intangible assets, and impairments and other gains and losses arising from significant strategic transactions or specific events. Impairments and other gains and losses arising from significant strategic transactions or specific events consist of the executive management transition costs (as described in Section 5.4 of the MD&A for the year ended March 31, 2026 and Section 5.6 of the MD&A for the year ended March 31, 2025), the gain on fair value remeasurement of SIMCOM (as described in Note 7 of our consolidated financial statements for the year ended March 31, 2025) and the shareholder matters (as described in Section 5.5 of the MD&A for the year ended March 31, 2025). We track adjusted segment operating income because we believe it provides an enhanced understanding of our operating performance and facilitates the comparison across reporting periods. Adjusted segment operating income on a consolidated basis is a total of segments measure since it is the profitability measure employed by management for making decisions about allocating resources to segments and assessing segment performance. Adjusted segment operating income margin (or adjusted segment operating income as a % of revenue)Adjusted segment operating income margin is a non-IFRS ratio calculated by dividing our adjusted segment operating income by revenue for a given period. We track it because we believe it provides an enhanced understanding of our operating performance and facilitates the comparison across reporting periods. Adjusted effective tax rateAdjusted effective tax rate is a supplementary financial measure that represents the effective tax rate on adjusted net income or loss. It is calculated by dividing our income tax expense by our earnings before income taxes, adjusting for the same items used to determine adjusted net income or loss. We track it because we believe it provides an enhanced understanding of the impact of changes in income tax rates and the mix of income on our operating performance and facilitates the comparison across reporting periods. Adjusted net income or lossAdjusted net income or loss is a non-IFRS financial measure we use as an alternate view of our operating results. We calculate it by taking our net income attributable to equity holders of the Company from continuing operations and adjusting for restructuring, integration and acquisition costs, amortization of acquisition-related intangible assets, and impairments and other gains and losses arising from significant strategic transactions or specific events, after tax, as well as significant one-time tax items. Impairments and other gains and losses arising from significant strategic transactions or specific events consist of the executive management transition costs (as described in Section 5.4 of the MD&A for the year ended March 31, 2026 and Section 5.6 of the MD&A for the year ended March 31, 2025), the gain on fair value remeasurement of SIMCOM (as described in Note 7 of our consolidated financial statements for the year ended March 31, 2025) and the shareholder matters (as described in Section 5.5 of the MD&A for the year ended March 31, 2025). We track adjusted net income because we believe it provides an enhanced understanding of our operating performance and facilitates the comparison across reporting periods. Adjusted earnings or loss per share (EPS)Adjusted earnings or loss per share is a non-IFRS ratio calculated by dividing adjusted net income or loss by the weighted average number of diluted shares. We track it because we believe it provides an enhanced understanding of our operating performance on a per share basis and facilitates the comparison across reporting periods. EBITDA and Adjusted EBITDAEBITDA is a non-IFRS financial measure which comprises net income or loss from continuing operations before income taxes, finance expense – net, depreciation and amortization. Adjusted EBITDA further adjusts for restructuring, integration and acquisition costs, and impairments and other gains and losses arising from significant strategic transactions or specific events. Impairments and other gains and losses arising from significant strategic transactions or specific events consist of the executive management transition costs (as described in Section 5.4 of the MD&A for the year ended March 31, 2026 and Section 5.6 of the MD&A for the year ended March 31, 2025), the gain on fair value remeasurement of SIMCOM (as described in Note 7 of our consolidated financial statements for the year ended March 31, 2025) and the shareholder matters (as described in Section 5.5 of the MD&A for the year ended March 31, 2025). We use EBITDA and adjusted EBITDA to evaluate our operating performance, by eliminating the impact of non-operational or non-cash items. Free cash flowFree cash flow is a non-IFRS financial measure that assesses our ability to generate cash from our ongoing operations after considering ongoing investments required for property, plant and equipment and intangible assets. It demonstrates our ability to generate cash to repay debt obligations, make strategic investments and return cash to shareholders through either dividends or share repurchases. We use it as an indicator of our financial strength and liquidity. We calculate it by taking the net cash generated by our continuing operating activities, subtracting property, plant and equipment expenditures, intangible assets expenditures and other investing activities and adding proceeds from the disposal of property, plant and equipment, dividends received from equity accounted investees and proceeds, net of payments, from equity accounted investees. Cash conversion rateCash conversion rate is a non-IFRS ratio calculated by dividing free cash flow by adjusted net income. We use it to assess our performance in cash flow generation and as a basis for evaluating our capitalization structure. Liquidity and capital structure measures Invested capitalInvested capital is a non-IFRS financial measure we use to evaluate and monitor how much we are investing in our business: For the Company as a whole, we take total assets (not including cash and cash equivalents), and subtract total liabilities (not including long-term debt and the current portion of long-term debt); For each segment, we take the total assets (not including cash and cash equivalents, tax accounts, employee benefits assets and other non-operating assets), and subtract total liabilities (not including tax accounts, long-term debt and the current portion of long‑term debt, royalty obligations, employee benefit obligations and other non-operating liabilities). Adjusted return on invested capital (ROIC)Adjusted ROIC is a non-IFRS ratio calculated over a rolling four-quarter period by taking adjusted net operating income after tax, divided by the average invested capital from continuing operations. Adjusted net operating income after tax is calculated by taking adjusted net income and further adjusting for finance expense – net, after tax, and amortization of acquisition-related intangible assets, after tax. We use adjusted ROIC to evaluate the profitability of our invested capital. Net debtNet debt is a capital management measure we use to monitor how much debt we have after taking into account cash and cash equivalents. We use it as an indicator of our overall financial position, and calculate it by taking our total long-term debt, including the current portion of long-term debt, and subtracting cash and cash equivalents. Net debt-to-EBITDA and net debt-to-adjusted EBITDANet debt-to-EBITDA and net debt-to-adjusted EBITDA are non-IFRS ratios calculated as net debt divided by the last twelve months EBITDA (or adjusted EBITDA). We use net debt-to-EBITDA and net debt-to-adjusted EBITDA because they reflect our ability to service our debt obligations. Growth measures Adjusted order intakeAdjusted order intake is a supplementary financial measure that represents the expected value of orders we have received: For the Civil Aviation segment, we consider an item part of our adjusted order intake when we have a legally binding commercial agreement with a client that includes enough detail about each party's obligations to form the basis for a contract. Additionally, expected future revenues from customers under short-term and long-term training contracts are included when these customers commit to pay us training fees, or when we reasonably expect the revenue to be generated; For the Defense and Security segment, we consider an item part of our adjusted order intake when we have a legally binding commercial agreement with a client that includes enough detail about each party's obligations to form the basis for a contract. Defense and Security contracts are usually executed over a long-term period but some of them must be renewed each year. For this segment, we only include a contract item in adjusted order intake when the customer has authorized the contract item and has received funding for it. Adjusted backlogAdjusted backlog is a supplementary financial measure that represents expected future revenues and includes obligated backlog, joint venture backlog and unfunded backlog and options: Obligated backlog represents the value of our adjusted order intake not yet executed and is calculated by adding the adjusted order intake of the current period to the balance of the obligated backlog at the end of the previous fiscal year, subtracting the revenue recognized in the current period and adding or subtracting backlog adjustments. If the amount of an order already recognized in a previous fiscal year is modified, the backlog is revised through adjustments; Joint venture backlog is obligated backlog that represents the expected value of our share of orders that our joint ventures have received but have not yet executed. Joint venture backlog is determined on the same basis as obligated backlog described above, but excludes any portion of orders that have been directly subcontracted to a CAE subsidiary, which are already reflected in the determination of obligated backlog; Unfunded backlog represents legally binding Defense and Security orders with the U.S. government that we have received but have not yet executed and for which funding authorization has not yet been obtained. The uncertainty relates to the timing of the funding authorization, which is influenced by the government's budget cycle, based on a September year-end. Options are included in adjusted backlog when there is a high probability of being exercised, which we define as at least 80% probable, but multi-award indefinite-delivery/indefinite-quantity (ID/IQ) contracts are excluded. When an option is exercised, it is considered adjusted order intake in that period, and it is removed from unfunded backlog and options. Book-to-sales ratioThe book-to-sales ratio is a supplementary financial measure calculated by dividing adjusted order intake by revenue in a given period. We use it to monitor the level of future growth of the business over time. Supplementary non-financial information definitions Full-flight simulators (FFSs) in CAE's networkA FFS is a full-size replica of a specific make, model and series of an aircraft cockpit, including a motion system. In our count of FFSs in the network, we generally only include FFSs that are of the highest fidelity and do not include any fixed based training devices, or other lower-level devices, as these are typically used in addition to FFSs in the same approved training programs. Simulator equivalent unit (SEU)SEU is a measure we use to show the total average number of FFSs available to generate earnings during the period. For example, in the case of a 50/50 flight training joint venture, we will report only 50% of the FFSs under this joint venture as a SEU. Utilization rateUtilization rate is a measure we use to assess the performance of our Civil simulator training network. While utilization rate does not perfectly correlate to revenue recognized, we track it, together with other measures, because we believe it is an indicator of our operating performance. We calculate it by taking the number of training hours sold on our simulators during the period divided by the practical training capacity available for the same period. Forward-looking financial measures Transformation run-rate savingsTransformation run-rate savings is a supplementary financial measure we use to show the targeted total cost savings from the activities and initiatives associated with our transformation plan and their anticipated contribution to adjusted segment operating income. We use it to track and measure the success of our transformation plan. Reconciliations and CalculationsReconciliation of adjusted segment operating income Reconciliation of adjusted net income and adjusted EPS Calculation of adjusted effective tax rate Reconciliation of free cash flow Reconciliation of EBITDA, adjusted EBITDA, net debt-to-EBITDA and net debt-to-adjusted EBITDA Reconciliation of invested capital Calculation of adjusted ROIC For non-IFRS and other financial measures monitored by CAE, and a reconciliation of such measures to the most directly comparable measure under IFRS, please refer to Section 9 of CAE's MD&A for the quarter ended June 30, 2026 (which is incorporated by reference into this press release) available on our website (www.cae.com), SEDAR+ (www.SEDARplus.ca) and EDGAR (www.sec.gov). Consolidated Income Statement Consolidated Statement of Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Changes in Equity Consolidated Statement of Cash Flows ABOUT CAE At CAE, we exist to make the world safer. We deliver cutting-edge training, simulation, and critical operations solutions to prepare aviation professionals and defence forces for the moments that matter. Every day, we empower pilots, cabin crew, maintenance technicians, airlines, business aviation operators, and defence and security personnel to perform at their best and when the stakes are the highest. Around the globe, we're everywhere customers need us to be with sites and training locations in over 40 countries. For nearly 80 years, CAE has been at the forefront of innovation, consistently seeking to set the standard by delivering excellence in high-fidelity flight simulators and training solutions, while embedding sustainability at the heart of everything we do. By harnessing technology and enhancing human performance, we strive to be the trusted partner in advancing safety and mission readiness—today and tomorrow. Read our FY26 Global Annual Activity and Sustainability Report Contacts General Media:Samantha Golinski, Senior Vice President, Communications, +1-438-805-5856, [email protected] Investor Relations:Andrew Arnovitz, Chief Strategy Officer, +1-514-734-5760, [email protected] View original content:https://www.prnewswire.com/news-releases/cae-reports-first-quarter-fiscal-2027-results-302850155.html View original content: http://www.newswire.ca/en/releases/archive/August2026/12/c0200.html

CAE (CAE) came out with quarterly earnings of $0.19 per share, beating the Zacks Consensus Estimate of $0.17 per share. This compares to earnings of $0.15 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +11.77%. A quarter ago, it was expected that this civil and military flight simulator company would post earnings of $0.3 per share when it actually produced earnings of $0.31, delivering a surprise of +3.33%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. CAE, which belongs to the Zacks Aerospace - Defense Equipment industry, posted revenues of $847.64 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.62%. This compares to year-ago revenues of $793.98 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. CAE shares have lost about 10.7% since the beginning of the year versus the S&P 500's gain of 12.9%. While CAE has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for CAE was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.19 on $896.98 million in revenues for the coming quarter and $0.87 on $3.56 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Aerospace - Defense Equipment is currently in the top 21% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Innovative Solutions and Support, Inc. (ISSC), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 13. This company is expected to post quarterly earnings of $0.24 per share in its upcoming report, which represents a year-over-year change of +71.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Innovative Solutions and Support, Inc.'s revenues are expected to be $24.4 million, up 1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CAE Inc (CAE) : Free Stock Analysis Report Innovative Solutions and Support, Inc. (ISSC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street analysts forecast that CAE (CAE) will report quarterly earnings of $0.17 per share in its upcoming release, pointing to a year-over-year increase of 13.3%. It is anticipated that revenues will amount to $821.35 million, exhibiting an increase of 3.4% compared to the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe. Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock. While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective. Given this perspective, it's time to examine the average forecasts of specific CAE metrics that are routinely monitored and predicted by Wall Street analysts. The consensus estimate for 'Civil Aviation - Simulator equivalent unit (SEU)' stands at 297 . The estimate is in contrast to the year-ago figure of 298 . Analysts forecast 'Civil Aviation - FFS deliveries' to reach 8 . The estimate compares to the year-ago value of 8 . The consensus among analysts is that 'Civil Aviation - Utilization rate' will reach 71.1%. The estimate compares to the year-ago value of 71.0%. The combined assessment of analysts suggests that 'Civil Aviation - FFSs in CAE's network' will likely reach 367 . Compared to the present estimate, the company reported 367 in the same quarter last year. View all Key Company Metrics for CAE here>>> CAE shares have witnessed a change of +3.7% in the past month, in contrast to the Zacks S&P 500 composite's +2.3% move. With a Zacks Rank #4 (Sell), CAE is expected underperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> . Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CAE Inc (CAE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The market expects CAE (CAE) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 12, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This civil and military flight simulator company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of +13.3%. Revenues are expected to be $821.35 million, up 3.5% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.05% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For CAE, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -4.86%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that CAE will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that CAE would post earnings of $0.3 per share when it actually produced earnings of $0.31, delivering a surprise of +3.33%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. CAE doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CAE Inc (CAE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Woodward (WWD) came out with quarterly earnings of $2.52 per share, beating the Zacks Consensus Estimate of $2.39 per share. This compares to earnings of $1.76 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.44%. A quarter ago, it was expected that this maker of cockpit controls and other equipment for the defense and aerospace markets would post earnings of $2 per share when it actually produced earnings of $2.27, delivering a surprise of +13.5%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Woodward, which belongs to the Zacks Aerospace - Defense Equipment industry, posted revenues of $1.11 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.42%. This compares to year-ago revenues of $915.45 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Woodward shares have added about 35.8% since the beginning of the year versus the S&P 500's gain of 8.5%. While Woodward has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Woodward was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.47 on $1.12 billion in revenues for the coming quarter and $9.34 on $4.32 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Aerospace - Defense Equipment is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, CAE (CAE), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This civil and military flight simulator company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of +13.3%. The consensus EPS estimate for the quarter has been revised 0.6% lower over the last 30 days to the current level. CAE's revenues are expected to be $821.35 million, up 3.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Woodward, Inc. (WWD) : Free Stock Analysis Report CAE Inc (CAE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research