Why Is CAE (TSX:CAE) Gaining Attention in the S&P/TSX Index?

Highlights

• CAE earned recognition in TIME's World's Most Sustainable Companies 2026 list.
• Fiscal 2026 revenue reached approximately CAD 4.9 billion across civil aviation and defence operations.
• The company renewed its normal course issuer bid covering up to sixteen million common shares.

CAE strengthens aviation simulation and defence training operations while reporting CAD 4.9 billion fiscal 2026 revenue within the S&P/TSX Composite Index.

CAE operates in the aerospace simulation and training sector, delivering flight simulation, pilot training, defence training and healthcare simulation solutions across numerous international markets. As a constituent of the S&P/TSX Composite Index, CAE (TSX:CAE) continued expanding its presence during fiscal 2026 through commercial aviation services, defence programmes and advanced simulation technologies. Recent developments included recognition among TIME's World's Most Sustainable Companies 2026 together with regulatory approval for a renewed normal course issuer bid, reflecting continued activity across multiple areas of the business.

Fiscal 2026 Performance

Fiscal 2026 represented another active year across the company's civil aviation and defence operations. Annual revenue reached approximately CAD 4.9 billion, supported by demand for pilot training, simulator manufacturing and defence mission training.

Civil Aviation remained the largest operating segment, serving commercial airlines, regional carriers, business aviation operators and helicopter customers. Training centres located across North America, Europe, Asia-Pacific, the Middle East and other regions delivered simulator-based instruction for pilots, cabin crew and maintenance personnel.

The Defence and Security business continued providing training systems and simulation technologies for military organizations worldwide. Products and services include mission simulators, intelligence training, digital battlefield environments and integrated operational readiness programmes designed for air, land and maritime applications.

The combination of commercial aviation and defence activities provides operational diversity across different customer groups while supporting long-term demand for advanced simulation technologies.

Sustainability Recognition

During June 2026, CAE was included in TIME's World's Most Sustainable Companies 2026 list. The recognition reflected environmental, social and governance initiatives implemented throughout the organization together with operational practices supporting responsible business activities.

Simulation technology contributes to aviation sustainability by reducing the number of aircraft required for certain training activities. High-fidelity simulators enable pilots to complete substantial portions of qualification, recurrent instruction and emergency procedure training without operating aircraft continuously throughout the learning process.

The company also continues implementing sustainability initiatives across manufacturing facilities, training centres and administrative operations while supporting environmental reporting and responsible resource management.

Recognition by TIME highlighted the company's position among international organizations emphasizing sustainable operating practices across industrial activities. Within the S&P/TSX Composite Index, CAE remains one of Canada's established Industrial Stocks serving both commercial and government customers.

Civil Aviation Operations

Commercial aviation remains a major focus across CAE's business. The company operates one of the world's largest civil aviation training networks, offering simulator instruction, aircraft type-rating programmes and recurrent training for pilots across numerous aircraft platforms.

Global airline fleet expansion, aircraft deliveries and workforce development continue supporting demand for professional aviation training. Airlines require qualified pilots, instructors and technical personnel to maintain operations as passenger traffic and fleet utilization evolve.

CAE also designs and manufactures full-flight simulators certified for multiple aircraft manufacturers. These simulators reproduce aircraft systems, flight characteristics and emergency scenarios while supporting regulatory training requirements for commercial aviation operators.

Recent collaboration involving Joby Aviation illustrates the company's participation in emerging aviation technologies. CAE is providing simulator expertise supporting pilot preparation for electric air taxi operations, expanding its presence into new areas of aviation training.

Defence and Advanced Training

Defence programmes remain another important component of the company's operations. Military organizations use CAE simulation systems for pilot instruction, mission rehearsal, tactical exercises and operational readiness across air, naval and ground environments.

Training platforms integrate digital technologies, synthetic environments and advanced software that allow personnel to practise complex operational scenarios in controlled settings. These systems are used for aircraft, helicopters, remotely piloted platforms and other defence applications.

The company also supports long-term service agreements that include simulator maintenance, instructor support and technical services across numerous international locations.

Capital Management Activities

During June 2026, regulatory approval was received for a renewed normal course issuer bid covering up to sixteen million common shares. The programme forms part of the company's capital management framework and is conducted in accordance with applicable exchange requirements.

Alongside ongoing business activities, CAE continues reviewing selected business operations to enhance organizational efficiency and maintain focus on core aviation and defence simulation capabilities. These initiatives accompany continued investment in simulation technology, digital training solutions and global customer support.

Global Presence and Technology

Operations extend across more than 40 countries through training centres, manufacturing facilities and service locations. Customers include commercial airlines, business aviation operators, aircraft manufacturers, defence organizations and government agencies.

Technology remains central to the company's activities. Advanced visual systems, artificial intelligence applications, data analytics and digital simulation software continue enhancing the realism and effectiveness of training programmes. These technologies support improved learning environments while expanding the capabilities of modern flight simulators and defence training systems.

Healthcare simulation also remains part of the broader business, supplying medical education institutions with simulation equipment and learning solutions designed for clinical training.

As aviation and defence organizations continue modernizing training methods, simulation technology remains an important component of workforce development across commercial and military environments. CAE (TSX:CAE) continues supporting these activities through an extensive global network, advanced simulator manufacturing capabilities and specialized training services. Activity during fiscal 2026, including sustainability recognition, operational expansion and continued technology development, reinforced the company's role within the S&P/TSX Composite Index. The combination of commercial aviation, defence simulation and digital training solutions continues to define the international presence of CAE.