CAE Inc. Raises 2027 Guidance After Mixed Second Quarter

CAE Inc. raised its fiscal 2027 adjusted earnings per share guidance to a range of $1.28 to $1.35, increasing the previous forecast of $1.21 to $1.28. The Montreal-based aviation training and simulation company also increased its adjusted segment operating income margin outlook to between 14.9% and 15.4%.

These updates follow second-quarter results where adjusted EPS of $0.33 exceeded analyst estimates of $0.27. However, the company reported a 2.6% year-over-year revenue decline to $1.2 billion, missing consensus estimates, while net income attributable to shareholders fell 20.7% to $58.6 million.

Segment performance was split, with the Defense segment recording a 43.3% increase in adjusted operating income, while the Civil Aviation segment declined because of lower simulator sales. As part of its strategic shifts, CAE announced an agreement to sell Flightscape to SITA for $500 million, a deal expected to close in the first half of 2027.