CAE: Pursuing strategic alternatives for Flightscape

研报英文原文证据摘录

CAE: Pursuing strategic alternatives for Flightscape

EQUITY RESEARCH QUICK TAKE

RBC Dominion Securities Inc.

James McGarragle, CFA, CPA (Analyst)

Louis Derlis, CFA (Senior Associate)

May 11, 2026

CAE Inc.

Pursuing strategic alternatives for Flightscape

TSX: CAE | CAD 36.84 | Sector Perform | Price Target CAD 42.00

Sentiment: Neutral

Our view. We view the announcement as neutral, given CAE had pre-disclosed in February that a completed portfolio review

identified non-core assets representing ~8% of revenue, with management explicitly flagging that dispositions typically take 18–

24 months — a timeline this formal launch has now set in motion. We note that software valuations have come down materially

from peak levels, making it unclear what CAE would realize on a Flightscape transaction — a key variable that would ultimately

determine whether proceeds are accretive to the capital allocation thesis. From a capital allocation standpoint, exiting Flightscape,

an SaaS business whose growth profile and valuation framework diverge from CAE's core simulation and training assets, should

improve consolidated margin quality and focus management on the core business, in our view.

What happened? CAE disclosed today that it is formally pursuing strategic alternatives for Flightscape, its cloud-native aviation

SaaS platform, as part of the ongoing portfolio optimization announced under CEO Matthew Bromberg's transformation plan.

Options under consideration include a sale, minority or majority investment, strategic partnership, or other alternatives.

Flightscape operates across the Americas, Europe, and Asia with a team of more than 600 professionals, serving a global airline

customer base through planning, operations control, and decision-support solutions.