CAE raises annual earnings forecast despite quarterly profit drop
The Montreal flight simulator maker increased its adjusted earnings outlook after reporting a 20.7 per cent drop in quarterly net income.
MONTREAL · CAE Inc. is raising its earnings outlook for the fiscal year despite reporting a drop in quarterly profits. The Montreal-based flight simulator manufacturer says it is increasing its adjusted earnings forecast to between $1.28 and $1.35 per share, up from a previous range of $1.21 to $1.28 per share. For the three months ended Sept. 30, net income attributable to shareholders fell 20.7 per cent to $58.6 million from $73.9 million in the same period a year earlier. Second-quarter revenues slipped 2.6 per cent year-over-year to $1.20 billion from $1.24 billion.
On an adjusted basis, CAE says its earnings rose to 33 cents per share from 28 cents per share the year before. CEO Matthew Bromberg says the company remains focused on continuing its year-old transformation plan, which aims to drastically reduce the manufacturer's global footprint by the end of the year. "The company remains focused on continuing its year-old transformation plan, which aims to drastically reduce the manufacturer's global footprint by the end of the year," said Bromberg. The company's improved annual forecast comes as it navigates a quarter of lower reported profits. The 20.7 per cent decline in net income reflects the challenging comparison to the prior year's results. Revenue also decreased from $1.24 billion in last year's second quarter to $1.20 billion.
Bromberg's comments indicate the ongoing transformation plan remains a central priority. The plan, now one year old, targets a significant reduction in the company's global operational footprint by the end of the current calendar year. The adjusted earnings per share of 33 cents represents an increase from the 28 cents reported for the same quarter last year. This adjusted figure forms the basis for the company's upward revision to its full-year guidance.
The financial results were reported for the period ending Sept. 30. The company is headquartered in Montreal. The report was first published on Nov. 11, 2026.
With files from The Canadian Press, Narcity and Toronto Star