CAE Targets $150 Million Annual Savings Through Transformation Plan
The company reported full-year fiscal 2026 revenue of $4.9 billion as it initiates a restructuring effort to reach specific 2030 profitability targets
CAE Inc. (CAE), a provider of training and simulation solutions for aviation and defense, reported full-year fiscal 2026 revenue of $4.9 billion. The company is executing a transformation plan designed to achieve annual run-rate savings between $125 million and $150 million by fiscal 2030.
For the fourth quarter ended March 31, 2026, revenue was $1,326.7 million, up from $1,275.4 million in the prior-year period. Diluted earnings per share for the quarter were $0.23, compared to $0.42 last year, while adjusted earnings per share were $0.42 compared to $0.47. Operating income for the quarter fell to $127.4 million from $239.9 million a year earlier, impacted by $84.4 million in restructuring costs.
The company is managing divergent trajectories across its primary segments. The Defense and Security segment saw annual revenue rise 9% to $2,172.4 million, with annual adjusted segment operating income increasing 33% to $200.2 million. In contrast, the Civil Aviation segment experienced a 12% decline in annual adjusted segment operating income, which fell to $510.5 million. Civil adjusted backlog also decreased 5% to $8.4 billion by the end of the year.
Management attributed the civil segment's performance to ongoing softness in the aviation training market and softer product demand. Additionally, geopolitical uncertainty in the Middle East has caused month-by-month operational and financial impacts, leading the company to redeploy certain training activities within its global network.
CAE expects fiscal 2027 to be a year of execution focused on rationalizing its commercial training network, consolidating its global real estate footprint, and evaluating strategic alternatives for non-core businesses, including a review of the Flightscape business. The total cost of the transformation plan is estimated at $200 million to $250 million, with approximately $100 million consisting of non-cash charges.
For fiscal 2027, the company forecasts low-single digit percentage revenue growth, with Defense expected to grow at a mid-single digit rate while Civil revenue remains flat to slightly down. The company targets an adjusted segment operating income margin between 14.6% and 15.1% for the year.
Looking toward fiscal 2030, the company targets adjusted segment operating income between $950 million and $1 billion. CAE intends to maintain an investment-grade credit profile with a target net debt-to-adjusted EBITDA ratio of approximately 2.5x.