Is CAE halal?

What the company does

CAE (Canada) makes flight simulators and runs pilot-training centers for airlines and business jets, plus military pilot-training systems. Revenue comes from simulator sales and training services; defense is about 40%.

What was checked

The AAOIFI standard has four steps: business activity first, then three financial ratios. Fail one and the stock is not halal.

• Business activity

  Activity needs clarification: Aerospace & Defense

• Interest-bearing debt / market cap

  limit 30%

  Interest-bearing debt $2.26B ÷ 36-month average market cap $7.85B = 28.8%

  28.8%

  Pass

• Cash & investments / market cap

  limit 30%

  Cash + interest-bearing securities $400.54M ÷ 36-month average market cap $7.85B = 5.1%

  5.1%

  Pass

• Non-compliant income / total revenue

  limit 5%

  Interest income $8.45M ÷ annual revenue $3.46B (2026) = 0.2%

  0.2%

  Pass

Figures from the company's filings (2026-06-30), USD. Market cap is a 36-month average (the S&P Shariah index approach), so a one-day price move does not flip the verdict. Today's market cap: $7.59B.

For information (AAOIFI 3/1 note): cash + receivables are 14.5% of total assets (2026-06-30). AAOIFI recommends tangible assets of at least one third — this figure does not affect the verdict, and other major screeners do not apply it either.

In the lists

In the S&P 500

Not in the S&P 500

Held by funds

Not held by any tracked fund