CAE Inc. (CAE) dropped 14% on its Q4 results, which were broadly in line or slightly above expectations but came with a guide for low-single-digit growth in 2027…

… underpinned by a weak order environment for its civil aviation segment, which should continue through the start of the new year on disruptions from the Middle East.

That’s enough to offset building momentum in the defence business, and could keep a lid on the multiple in the near-term…

… while new management executes on its strategy to reposition the company for long-term growth.

You might be interested in…

About Bullpen: Bullpen Finance Inc. publishes content on Canadian markets and provides paid research coverage of select Canadian issuers. Bullpen is paid in cash by covered issuers, does not accept stock or options, does not hold positions in covered securities, and does not conduct investment banking business. Bullpen and LodeRock Advisors Inc. are affiliated; LodeRock provides investor relations services to issuers, some of whom are covered by Bullpen Research. When a post discusses a covered issuer, a specific disclosure appears at the top of the post. This post is published for general information purposes. It is not personalized investment advice and is not tailored to any individual reader’s circumstances. Bullpen is not a registered investment adviser or dealer. For full disclosures, including analyst certification, jurisdictional statements, and conflict of interest policies, please see our Legal & Disclosures section on our website.