CEO
The
Parent stressed short-term demand for flight simulators at airlines as they scramble to train pilots as well as longer-term defence needs fuelled by unstable international relations.
"Churn — pilots moving on either from narrow-bodies to wide-bodies or co-pilot to pilot ... anything like that triggers demand for training. And I can tell you there's a lot of unmet demand out there, both in commercial aviation and business aviation," Parent told analysts on a conference call Tuesday.
In a release, he also said the defence sector is in "the early stages of an extended up-cycle, driven by an increased focus on near-peer threats, greater commitments by governments to defence modernization and readiness in context of geopolitical events."
The company added that a fatter profit margin in its defence segment is now expected in the next fiscal year, rather than this year as previously forecasted.
Fallout from upheaval in the
"We see incremental risks in defence related to ... the budgetary issues that we see in
"On the one hand, we are encouraged by the stronger than previously expected performance in the civil segment," he said in a note to investors, adding that the market remains promising in coming years.
"On the other hand, the weak margin performance in defence has been an investor focus for the last two years, so CAE's indication that the market will have to wait even longer to see a positive inflection in margins until sometime in 2025 is a clear disappointment."
Last month, CAE announced a deal to sell its health-care business to
On Tuesday, CAE reported net income attributable to equity holders of
Revenue for the three-month period rose 10 per cent to
On an adjusted basis, CAE earned
This report by The Canadian Press was first published
Companies in this story: (TSX:CAE)
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