Core Viewpoint - Investors are evaluating CAE and Bae Systems PLC to determine which stock offers better value for investment at the current time [1] Group 1: Zacks Rank and Earnings Outlook - CAE has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Bae Systems PLC has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank is based on recent positive revisions to earnings estimates, suggesting CAE has a more favorable earnings trajectory [3] Group 2: Valuation Metrics - CAE's forward P/E ratio is 23.40, compared to Bae Systems PLC's forward P/E of 24.24 [5] - CAE has a PEG ratio of 1.42, while Bae Systems PLC has a PEG ratio of 2.03, indicating CAE may be undervalued relative to its expected EPS growth [5] - CAE's P/B ratio is 2.18, significantly lower than Bae Systems PLC's P/B of 4.68, suggesting a more attractive valuation for CAE [6] Group 3: Overall Value Assessment - Based on various valuation metrics, CAE holds a Value grade of B, while Bae Systems PLC has a Value grade of C, indicating CAE is the superior option for value investors at this time [6][7]

Group 1 - The investment thesis for CAE Inc. is based on its role as a supplier of training services and equipment for pilots, which allows it to benefit from demand cycles for new airplanes and crew training [2] - CAE Inc. also operates in the defense sector, providing training solutions that align with military needs, indicating a diversified revenue stream [2] - The company is positioned in a complex industry with significant growth prospects, driven by data-informed analysis [2] Group 2 - The Aerospace Forum aims to discover investment opportunities within the aerospace, defense, and airline industries, highlighting the potential for growth in these sectors [2] - The analysis provided by the forum is contextualized with developments in the industry, which may impact investment theses [2]

Financial Data and Key Metrics Changes - Consolidated revenues reached $1.22 billion, a 12% increase compared to the same quarter last year [21] - Adjusted segment operating income was $190 million, up 31% from $145.1 million in the previous quarter [21] - Free cash flow was a record $410 million, compared to $190 million in the same quarter last year [24] - Adjusted EPS increased to $0.29 from $0.24 year-over-year [21] - Net finance expense rose to $56.6 million from $52.9 million in the preceding quarter [22] - Net debt position at the end of the quarter was approximately $3.4 billion, with a net debt to adjusted EBITDA ratio of 3.36x [26] Business Line Data and Key Metrics Changes - Civil segment revenue grew 21% year-over-year to $752.6 million, with adjusted segment operating income also increasing by 21% to $250.8 million [27] - Defense revenue remained stable at $470.8 million, while adjusted segment operating income surged 88% to $39.2 million, achieving an 8.3% margin [28] Market Data and Key Metrics Changes - In the Americas, airline passenger traffic grew by 7% year-over-year, but training center utilization decreased due to lower pilot hiring [48] - In Europe and the Middle East, passenger traffic increased by 5%, leading to higher training center utilization [48] Company Strategy and Development Direction - The company is focused on aligning capacity with demand, reflecting a disciplined approach to capital allocation and cash management [44][45] - The investment thesis remains strong, supported by a record backlog of $20 billion and sustained high demand for pilot training [31] - The company is well-positioned in both Civil and Defense markets, with ongoing demand driven by pilot shortages and defense modernization efforts [35][36] Management's Comments on Operating Environment and Future Outlook - The company expects modest annual civil-adjusted segment operating income growth below the previous outlook of approximately 10% due to delays in commercial aircraft deliveries [38] - In Defense, the company anticipates high single-digit percentage revenue growth per year, up from previous low to mid-single-digit expectations [39] - The geopolitical environment is fueling demand for training and simulation solutions, creating substantial growth opportunities [35] Other Important Information - The company appointed four new directors to its board, including Kaylin Rovinescu as the new Chair, as part of a transition towards renewed board leadership [6][9] - The company inaugurated its first air traffic services training center in collaboration with NAV Canada, enhancing its training capabilities [16] Q&A Session Summary Question: CapEx targets reduction - Management indicated that the reduction was a prudent decision to align capacity with demand [44][45] Question: Training utilization trends in different regions - Utilization in the Americas is down slightly due to lower pilot hiring, while Europe and Asia are seeing increases in utilization [48][50] Question: Impact of potential tariffs - Management does not expect a material short-term impact from tariffs but is monitoring the situation closely [54][55] Question: Defense margins and future outlook - Management expressed confidence in maintaining strong margins and highlighted the importance of execution and risk reduction [62][66] Question: Board changes and governance focus - The board changes reflect ongoing renewal and succession planning, with a focus on effective leadership [80][81] Question: FlexJet order implications - The large order from FlexJet is seen as a significant opportunity for the company, necessitating investments in training capacity [84][86] Question: U.S. defense budget impact - Management believes that increasing readiness among U.S. allies will drive demand for training services, despite potential short-term disruptions [90][92] Question: Simulator deliveries and fiscal outlook - Management confirmed that guidance remains unchanged, with expectations for more than 50 simulator deliveries [96][98]

For the quarter ended December 2024, CAE (CAE) reported revenue of $874.42 million, up 8.8% over the same period last year. EPS came in at $0.21, compared to $0.18 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $818.69 million, representing a surprise of +6.81%. The company delivered an EPS surprise of +5.00%, with the consensus EPS estimate being $0.20.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expec ...

CAE (CAE) came out with quarterly earnings of $0.21 per share, beating the Zacks Consensus Estimate of $0.20 per share. This compares to earnings of $0.18 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5%. A quarter ago, it was expected that this civil and military flight simulator company would post earnings of $0.13 per share when it actually produced earnings of $0.18, delivering a surprise of 38.46%.Over the last four qua ...

| (amounts in millions, except per share amounts, adjusted ROCE and book-to-sales ratio) | | Q3-2025 | | Q3-2024 | | Variance $ | Variance % | | --- | --- | --- | --- | --- | --- | --- | --- | | Performance | | | | | | | | | Revenue | $ | 1,223.4 | $ | 1,094.5 | $ | 128.9 | 12 % | | Operating income | $ | 262.6 | $ | 121.6 | $ | 141.0 | 116 % | | 1 Adjusted segment operating income | $ | 190.0 | $ | 145.1 | $ | 44.9 | 31 % | | Net income attributable to equity holders of the Company | $ | 168.6 | $ | 56.5 | ...

MONTREAL, Feb. 13, 2025 /PRNewswire/ - (NYSE: CAE) (TSX: CAE) - CAE Inc. ("CAE" or "the Company") today announced the appointment of four new directors to its Board of Directors, including Calin Rovinescu as Chair of the Board. The other three appointments are Peter Lee, Katherine A. Lehman and Louis Têtu.  These changes, which will take effect on February 14, followed consultations with the Company's stakeholders that focused on the Board's ongoing review of its composition, and a transition towards renewe ...

Revenue of $1,223.4 million vs. $1,094.5 million in prior year Earnings per share (EPS) from continuing operations of $0.53 vs. $0.18 in prior year Adjusted EPS(1) of $0.29 vs. $0.24 in prior year Operating income of $262.6 million vs. $121.6 million in prior year Adjusted segment operating income(1) of $190.0 million vs. $145.1 million in prior year Free cash flow(1) of record $409.8 million vs. $190.0 million in prior year Adjusted order intake(1) of $2.2 billion for a record $20.3 billion adjusted backl ...

Core Insights - CAE has been selected as a strategic partner by the Government of Canada to co-develop the Future Fighter Lead-in Training (FFLIT) program for the Royal Canadian Air Force (RCAF) [1][2] - The FFLIT program aims to enhance the training of pilots for Canada's advanced CF-35A fighters, utilizing cutting-edge technology and innovative training methods [2][4] - This partnership emphasizes CAE's role as a leader in training and innovation, contributing to the modernization of the Canadian Armed Forces [3][4] Company Overview - CAE is recognized as one of Canada's largest defense contractors and a global leader in flight training and simulation, with over 75 years of experience supporting the RCAF [4][6] - The company operates a network of 240 sites across 40 countries, providing training solutions for both civil aviation and military sectors [6][8] - CAE's commitment to sustainability and innovation is reflected in its advanced training programs and digital technologies [8] Recent Developments - In May 2024, CAE's joint venture, SkyAlyne, was awarded a C$11.2 billion contract for the Future Aircrew Training (FAcT) Program, consolidating aircrew training operations [5] - Following this, CAE signed a C$1.7 billion sub-contract in October 2024 to provide modern pilot training for the RCAF [5]

Wall Street expects a year-over-year increase in earnings on higher revenues when CAE (CAE) reports results for the quarter ended December 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 13. On the ...