CAE Stock Gains After Naming Aerospace Veteran Bromberg As CEO: Retail Sits On The Fence
Synopsis
The aircraft simulator maker also named former Air Canada CEO Calin Rovinescu as the board's executive chairman
U.S.-listed shares of CAE Inc. (CAE) gained 2.7% in extended trading on Monday after rising 4.5% in the regular session after naming former Northrop Grumman executive Matthew Bromberg as CEO.
Bromberg, an aerospace industry veteran, would replace long-term CEO Marc Parent as the chief executive effective Aug. 13.
The aircraft simulator maker also named former Air Canada CEO Calin Rovinescu as Executive Chairman of the board.
“These are exciting times for CAE, with strong secular growth tailwinds across all its markets. CAE is already a recognized global leader in training solutions for civil aviation and defence and security,” Bromberg said in a statement.
Before his stint at Northrop Grumman, Bromberg had led the military engines unit of RTX and the commercial aftermarket operations at engine maker Pratt & Whitney.
Bromberg takes charge at a time when the company’s civil aviation segment’s growth is tepid, as supply chain delays and production issues have caused delays in new aircraft deliveries over the past few years.
Additionally, several U.S. carriers curtailed capacity in the second quarter due to a slowdown in demand amid uncertain tariff policies.
Browning West, which owns a stake of more than 4%, anticipates that CAE would be able to double its profit over the next three to four years, according to a Bloomberg News report. The investment firm had been urging for a change in direction for the company.
Browning’s chief investment officer, Usman Nabi, reportedly stated that mistakes in capital allocation have harmed CAE, as it produced excessive equipment for the number of aircraft deliveries and new pilots.
In May, the company projected modestly lower simulator deliveries during the fiscal year.
Retail sentiment on Stocktwits was in the ‘neutral’ (50/100) territory, while retail chatter was ‘normal.’
CAE stock has gained nearly 6% this year.
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