CAE shareholders elect board of directors with strong approval

MONTREAL - CAE Inc . (NYSE: NYSE:CAE) (TSX: CAE), a global leader in aviation training and technology solutions, announced the election results for its board of directors following its 2024 Annual Meeting of Shareholders. The company confirmed the election of 13 nominees with a significant majority of votes in favor.

The election results showcased strong shareholder confidence, with most nominees receiving over 90% approval. Notably, Sophie Brochu and Patrick Decostre garnered the highest percentage of votes in favor, with 99.59% and 99.49% respectively. The nominee with the lowest approval, Patrick M. Shanahan, still received a majority with 74.65% of votes in favor.

CAE, known for its high-fidelity flight and mission simulators, as well as its training programs powered by digital technologies, has a significant global presence. The company employs approximately 13,000 people across more than 240 sites and training locations in over 40 countries.

CAE emphasizes its commitment to equipping individuals in critical roles with the expertise and solutions to create a safer world, particularly in the fields of aviation, defense, and security.

The newly elected board members are expected to guide CAE as it continues to digitalize the physical world and deploy software-based simulation training and critical operations support solutions. The company also highlighted its dedication to sustainability, embedding environmentally conscious practices in its operations.

In other recent news, CAE Inc. reported its first quarter financial results for fiscal year 2025, exhibiting strong demand in its civil market solutions and an increase in backlog. The company booked $1.2 billion in orders, with a record $17 billion in adjusted backlog, and delivered eight full-flight simulators in the civil sector.

Despite lower utilization in commercial aviation training, CAE remains positive about its long-term outlook, projecting growth in revenue, margins, and a 10% annual adjusted segment operating income growth in fiscal 2025.

Significant changes are underway in the company's executive team, with CFO Sonya Branco stepping down and Constantino Malatesta taking over as interim CFO. The company also reported $422 million in orders and a $10.4 billion adjusted backlog for the defense sector.

CAE anticipates a doubling of in-service commercial jets over the next 20 years and expects easing of narrowbody aircraft supply constraints and resumption of pilot hiring in the second half of the fiscal year.

Despite challenges in the transition to a SaaS model and reduced pilot hiring potentially impacting business aircraft training, CAE maintains high confidence in delivering aircraft and simulators to customers.

InvestingPro Insights

As CAE Inc. ushers in its newly elected board members, shareholders and potential investors might be looking at the company's financial health and market performance to gauge future prospects. According to the latest data from InvestingPro, CAE has a market capitalization of approximately $5.61 billion USD, indicating its significant size and presence in the market. The company's price-to-earnings (P/E) ratio stands at -23.62, reflecting investor sentiment about its earnings potential and market valuation. Notably, the adjusted P/E ratio for the last twelve months as of Q4 2024 is 24.76, which could suggest expectations of improved earnings in the near future.

InvestingPro Tips highlight that while CAE's net income is expected to grow this year, analysts have revised their earnings downwards for the upcoming period, signaling potential challenges ahead. Moreover, CAE's stock price has experienced notable volatility, with a price decrease of over 20% in the last three months. Despite these challenges, analysts predict the company will be profitable this year. For investors seeking more detailed analysis, InvestingPro offers additional tips on CAE's financial health and market performance, providing a comprehensive view of the company's potential.

It's also worth noting that CAE does not currently pay a dividend to shareholders, which might influence investment decisions for those seeking regular income streams. As the company navigates a digital transformation within the aviation training and technology solutions sector, these financial metrics and insights from InvestingPro can help investors make more informed decisions. For a deeper dive into CAE's financials and additional InvestingPro Tips, visit https://www.investing.com/pro/CAE.

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