The Canadian leader in aviation training and simulation technology, CAE Inc, announced on Friday that it has received regulatory approval to renew its normal course issuer bid. Under this program, CAE will repurchase and cancel up to approximately 16.07 million common shares over the next 12 months, representing about 5% of the company's roughly 321.46 million issued and outstanding shares as of May 29, 2026.

This share repurchase initiative is set to commence on June 10, 2026, and will run until June 9, 2027. CAE stated that the program is a key element of its capital allocation strategy, with the board of directors believing that buying back shares is in the company's best interests and an ideal use of funds to enhance shareholder value.

In accordance with Toronto Stock Exchange regulations, CAE may repurchase a maximum of about 236,000 shares on any given trading day. This limit is calculated as 25% of the company's average daily trading volume of 944,000 shares over the past six months. Additionally, CAE is permitted to execute one block purchase per week, which may exceed the daily limit.

To ensure the smooth execution of the buyback plan during blackout periods, CAE has entered into an automatic share purchase plan with TD Securities. This agreement allows a designated broker to conduct share repurchases on CAE's behalf during periods when the company would typically be prohibited from trading due to regulatory restrictions or internal blackout periods.

Under its previous repurchase program, CAE bought back approximately 565,000 common shares at a volume-weighted average price of C$35.44 per share, for a total expenditure of about C$20 million.

CAE is a global leader in aviation training, with operations spanning civil aviation, defense and security, and healthcare training. According to the terms of the buyback plan, all shares purchased will be cancelled.