MONTREAL, May 29, 2024 /PRNewswire/ - (NYSE: CAE) (TSX: CAE) – CAE announced that its SkyAlyne joint venture was today awarded a C$11.2-billion, 25-year contract for Canada's Future Aircrew Training (FAcT) Program. "CAE has proudly worked alongside the Royal Canadian Air Force (RCAF) for more than 75 years to design and deliver training, services, and technologies that support the mission readiness of Canada's aviators," said Marc Parent, CAE's President and Chief Executive Officer. "Today's announcement re ...

Financial Data and Key Metrics Changes - Consolidated revenue increased by 7% to $4.3 billion, with adjusted segment operating income up 2% to $549.7 million and annual adjusted net income stable at $276.8 million or $0.87 per share [1] - Excluding legacy contracts, adjusted segment operating income rose by 19% to $640 million, and annual net adjusted income increased by 29% to $355.3 million or $1.12 per share [1] - Net debt position at the end of the quarter was $2.9 billion, with net debt to adjusted EBITDA at 3.17 times, improving to 2.89 times when excluding legacy contract leverage [3] Business Line Data and Key Metrics Changes - In Defense, revenue was stable at $1.8 billion, but adjusted segment operating income fell by 98% to $0.8 million; excluding legacy contracts, adjusted segment operating income increased by 72% to $91.1 million [51] - Civil revenue for the fourth quarter was up 6% year-over-year to $700.8 million, with adjusted segment operating income up 17% to $191.4 million, achieving a record margin of 27.3% [103] - For the year, Civil revenue increased by 12% to $2.4 billion, and adjusted segment operating income rose by 13% to $548.9 million, resulting in an annual margin of 22.5% [103] Market Data and Key Metrics Changes - The company reported a record backlog of $12.2 billion, with Civil concluding the year with a record adjusted backlog of $6.4 billion [75][76] - The demand for aviation training solutions remains strong, driven by growth in air travel and the need for pilots to stay current with advancing technology and regulations [6] - The Defense sector is entering an extended upcycle, marked by rising budgets across NATO and allied nations, with a focus on defense modernization amid geopolitical tensions [7] Company Strategy and Development Direction - The company is focused on a balanced approach to capital allocation, prioritizing funding for growth, strengthening financial position, and returning capital to shareholders [3] - The strategy includes leveraging synergies between Civil and Defense businesses to enhance execution capabilities and streamline project selection [74][84] - The company expects annual revenue growth in the low to mid-single-digit percentage range for Defense, with margins projected to increase to 6% to 7% [87] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that Defense performance has fallen short of expectations but emphasized that necessary steps have been taken to address past issues and improve future performance [73] - The company is focused on executing contracts and has high visibility on legacy contracts, with expectations to complete them over the next six to eight quarters [46] - Management expressed confidence in the demand environment for Civil business, expecting continued growth driven by strong market fundamentals [116] Other Important Information - The company generated $418 million of free cash flow during the fiscal year, with a cash conversion rate of 151% [81] - Restructuring costs incurred during the quarter amounted to $55 million, related to portfolio shaping actions and integration of AirCentre [79] - The adjusted effective income tax rate for the year was 17%, with expectations for an increase to approximately 25% in fiscal 2025 [101] Q&A Session Summary Question: Can you discuss the visibility into higher margins in the Defense segment for the back half of the year? - Management indicated that they have high visibility on contracts already in the backlog and expect to execute effectively to meet margin targets [112] Question: What does the Defense segment look like in two years? - Management suggested that the Defense segment could either grow larger with better margins or focus on a smaller, more profitable business model [112] Question: How is the company managing working capital investments for fiscal 2025? - Management highlighted a focus on efficiency metrics and expected historical trends to continue, with a target of 100% conversion of net income to free cash flow [38] Question: What are the expectations for debt reduction this fiscal year? - Management stated that they are focused on deleveraging, targeting a leverage ratio of 2 to 2.5 times in line with an investment-grade profile [125]

CAE (CAE) reported $835.47 million in revenue for the quarter ended March 2024, representing a year-overyear decline of 10.1%. EPS of $0.09 for the same period compares to $0.26 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $863.18 million, representing a surprise of -3.21%. The company delivered an EPS surprise of -64.00%, with the consensus EPS estimate being $0.25. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street e ...

When CAE Inc. and its subsidiaries have a long-term intercompany balance receivable from or payable to a foreign operation for which settlement is not planned in the foreseeable future, such item is considered, in substance, a part of the Company's net investment in that foreign operation. Gains or losses arising from the translation of those intercompany balances denominated in foreign currencies are also included in OCI. | --- | --- | --- | |--------------------------------|------------------------------- ...

Consolidated results Financials unchanged from previously disclosed preliminary results MONTREAL, May 27, 2024 /PRNewswire/ - (NYSE: CAE) (TSX: CAE) - CAE Inc. (CAE or the Company) today reported its financial report for the fiscal year ended March 31, 2024. Financial results are unchanged from preliminary data that CAE disclosed on May 21, 2024, including the re-baselining of the Defense & Security business along with Defense & Security impairments and unfavourable contract adjustments related to eight pre ...

MONTREAL, May 27, 2024 /PRNewswire/ - (NYSE: CAE) (TSX: CAE) – CAE Inc. today announced that it has received regulatory approval to proceed with its previously-announced normal course issuer bid ("NCIB") to purchase, for cancellation, up to 15,932,187 of its common shares commencing May 30, 2024 and ending May 29, 2025. The average daily trading volume of CAE's common shares through the facilities of the TSX over the last six completed calendar months was 605,257 ("ADTV"). Accordingly, under the TSX Rules a ...

Analysts on Wall Street project that CAE (CAE) will announce quarterly earnings of $0.25 per share in its forthcoming report, representing a decline of 3.9% year over year. Revenues are projected to reach $863.18 million, declining 7.1% from the same quarter last year. The consensus EPS estimate for the quarter has undergone a downward revision of 4.3% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during ...

MONTREAL, May 23, 2024 /PRNewswire/ - (NYSE: CAE) (TSX: CAE) – CAE will release its fourth quarter and full-year FY2024 financial results on Monday, May 27, 2024, after market close. A conference call will be held on Tuesday, May 28, 2024, at 8 a.m. Eastern Time (ET) to provide analysts and institutional investors with a review of CAE's performance and outlook. Marc Parent, CAE's President and Chief Executive Officer, Nick Leontidis, CAE's Chief Operating Officer, Sonya Branco, CAE's Executive Vice Presiden ...

As a result, CAE's stock price declined over 13% at open on May 22, 2024. BFA is investigating whether CAE and certain of its executives made materially false and/or misleading statements to investors related to the legacy contracts and/or its defense business. Click here https://www.bfalaw.com/cases/cae-inc-investigation for more details. What Can You Do? If you invested in CAE, Inc. you may have legal options and are encouraged to submit your information to the firm. All representation is on a contingency ...

Wall Street expects a year-over-year increase in earnings on higher revenues when CAE (CAE) reports results for the quarter ended March 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 earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move ...