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 fiscal 2027 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.