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  5. CAE: Thoughts on earnings for each of these companies, each of which are likely to benefit from upcoming increased defense spending. [CAE Inc.]
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Q: Thoughts on earnings for each of these companies, each of which are likely to benefit from upcoming increased defense spending. Which one are you most positive on and why. Which are you more bearish on and why? Ratings for each Management 1-10.
Asked by Michael on August 15, 2025
5i Research Answer:

EIF and CGY comments have been posted. 

EIF is a bit different here as it is more income focused. But momentum is very solid, the dividend payout is low and we like it and CAE best. CAE has a very strong market share position and a decent moat. 

MAL's quarter missed estimates across all metrics. The stock has had a big run and this will take some of the glow off. It is also more expensive than CGY.

CAE EPS beat estimates by 4%, and sales missed by 2%. Civil aviation was weaker than expected but the defense segment has very good potential. Some of the miss was not really the company's fault: related to supply chain issues and uncertainty over tariffs/economy. Some other recent comments are here