Cae Inc Stock Price, News & Analysis

CAE and Volocopter have announced a strategic partnership to create a pioneering pilot training program for electric vertical takeoff and landing (eVTOL) aircraft. This partnership aims to ensure the safe introduction of eVTOL operations globally, utilizing advanced technologies such as AI and VR. CAE plans to invest up to US$40 million to expand its training network in line with Volocopter's growth. The program responds to an anticipated demand for 60,000 pilots over the next decade, supporting Volocopter's launch of its VoloCity eVTOL aircraft by the 2024 Olympics in Paris.

CAE has released its FY21 Annual Activity and Corporate Social Responsibility report, highlighting significant contributions during COVID-19, including the development of the CAE Air1 ventilator and the rollout of a mobile vaccination app. As the first carbon neutral aerospace company in Canada, CAE expanded its ESG disclosures aligned with the Sustainability Accounting Standards Board. The company administered over 20,000 vaccine doses and is focused on responsible sourcing and diversity initiatives, while also reporting on progress toward five United Nations sustainable development goals.

CAE has completed the acquisition of L3Harris Technologies' Military Training business for US$1.05 billion, following the receipt of all regulatory approvals. The acquisition was partially financed through a private placement that raised C$700 million (approximately US$550 million). Upon closing, 22,400,000 common shares were issued to investors. This strategic move expands CAE's capabilities in defense training, enhancing its position in the market.

CAE has received all necessary regulatory approvals for its acquisition of L3Harris Technologies' Military Training business for US$1.05 billion. This acquisition is set to close on July 2, 2021, and will significantly enhance CAE's position in the global defence and security market, essentially doubling its military training business in the United States. The deal is expected to provide low teens percentage EPS accretion in its first full year post-close and will broaden CAE's capabilities in multi-domain operations.

CAE reported a net loss of $47.2 million ($0.17 per share) for FY2021, down from a net income of $311.4 million in FY2020. Annual revenue decreased 18% to $3.0 billion, and operating income fell 91% to $48.4 million. Fourth quarter revenue was $894.3 million, down 8% year-over-year, with adjusted EPS of $0.22. The company anticipates strong growth in FY2022, focusing on integrating recent acquisitions and leveraging opportunities in Civil, Defence, and Healthcare sectors. Despite a challenging year, CAE aims to improve profitability as the market recovers.

CAE partners with Jaunt Air Mobility to provide certification support for the all-electric vertical take-off and landing (eVTOL) aircraft, the Journey. The agreement includes developing an aircraft systems integration lab in Montreal, aiming for certification initiation in 2023 and expected entry-in-service by early 2027. CAE will leverage its extensive simulation expertise to enhance design and reduce testing time, thereby minimizing risks and managing development costs.

CAE has appointed Mary Lou Maher as a new member of its Board of Directors. Ms. Maher brings over 35 years of experience in finance, risk management, and human resources. Previously, she served as KPMG Canada's Managing Partner for Quality and Risk and Global Head of Inclusion and Diversity. Her achievements include creating KPMG Canada's National Diversity Council and receiving multiple awards for her work in diversity and inclusion. CAE is a leading high-technology company providing solutions across various sectors, with a significant portion of its revenue being recurring.

CAE Inc. announced the closing of its public offering, issuing a total of 10,454,545 common shares at US$27.50 per share, yielding gross proceeds of approximately US$287 million. The offering included an over-allotment option fully exercised by underwriters. Proceeds will primarily fund the acquisition of L3Harris Technologies' Military Training business, with the remainder sourced from previous placements and available liquidities. If the acquisition does not close, funds will be used for general corporate needs. The offering was led by a syndicate including Goldman Sachs and TD Securities.