Core Points - CAE Inc. has been recognized as one of the World's Most Sustainable Companies 2025, an award presented by TIME and Statista Inc. [1][2] - The ranking evaluates companies based on over 20 key performance indicators related to sustainability, including compliance with international standards and emissions [2] - CAE's Chief People and Sustainability Officer highlighted the recognition as a reflection of the company's commitment to sustainability and positive global impact [3] Company Overview - CAE focuses on making the world safer by providing training, simulation, and critical operations solutions for aviation professionals and defense forces [4] - The company employs approximately 13,000 people across around 240 sites in over 40 countries, emphasizing innovation and sustainability in its operations [4] - CAE has been a leader in high-fidelity flight simulators and training solutions for nearly 80 years, aiming to enhance safety and mission readiness [4]

Financial Report FISCAL YEAR ENDED MARCH 31, 2025 CAE At CAE, we exist to make the world safer. @CAE_Inc. fm linkedin.com/company/cae Read our Global Annual Activity and Sustainability report. Our Global Annual Activity and Sustainability Report for fiscal year 2025 is available online. This report is a testament to CAE's commitment to transparency and sustainable growth, encapsulating our strategic vision, performance highlights, sustainability practices and achievements. It serves as a single source of in ...

Core Viewpoint - CAE Inc. has received regulatory approval to renew its normal course issuer bid (NCIB) to repurchase up to 16,019,294 common shares, representing approximately 5% of its issued and outstanding shares, from June 10, 2025, to June 9, 2026 [1]. Group 1: NCIB Details - The repurchases will be conducted through the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE), adhering to their respective rules and applicable securities laws [2]. - RBC Dominion Securities Inc. has been designated as CAE's broker for the NCIB, and an automatic repurchase plan agreement (ARPA) has been established to facilitate purchases during regulatory black-out periods [3]. - CAE's average daily trading volume (ADTV) over the last six months was 733,845 shares, allowing for a maximum daily repurchase of 183,461 shares under TSX rules [5]. Group 2: Previous NCIB Performance - Under the previous NCIB, which ran from May 30, 2024, to May 29, 2025, CAE purchased 856,230 shares at an average price of $24.85, totaling $21.3 million [7]. - All shares repurchased under the NCIB will be cancelled, reducing the total number of outstanding shares [6]. Group 3: Strategic Intent - The NCIB is part of CAE's capital allocation strategy, aimed at enhancing shareholder value through share repurchases [8].

Core Viewpoint - CAE Inc. has announced the appointment of Matthew Bromberg as President and CEO, effective August 13, 2025, marking a significant leadership transition for the company [1][3][4] Leadership Changes - Matthew Bromberg will lead CAE's strategic growth and evolution, and he will also be nominated for election to the Board at the upcoming Annual and Special Meeting of Shareholders [1][3] - Calin Rovinescu will serve as Executive Chairman of the Board, while Sophie Brochu will be the Lead Independent Director, emphasizing CAE's commitment to strong governance [2][10] Transition Plan - The transition plan for Mr. Bromberg's appointment has been approved by CAE's Board of Directors and will take effect after the 2025 Annual and Special Meeting of Shareholders [3][10] - Mr. Bromberg will join CAE on June 16, 2025, to work closely with outgoing President and CEO Marc Parent during the transition [3] Leadership Experience - Mr. Bromberg has extensive experience in aerospace and defense, having previously led Global Operations for Northrop Grumman and held senior positions at RTX Corp. and Pratt & Whitney [6][7] - His educational background includes an MBA and a Master of Mechanical Engineering from MIT, along with a Bachelor of Arts in Physics from UC Berkeley [8] Governance and Strategic Focus - Mr. Rovinescu, as Executive Chairman, will collaborate with Mr. Bromberg on strategic initiatives and ensure effective Board functioning [11] - Ms. Brochu's role as Lead Independent Director will enhance CAE's governance practices and oversight [13][14] Company Overview - CAE is a global leader in training solutions for civil aviation and defense, with approximately 13,000 employees across 240 sites in over 40 countries [15] - The company focuses on innovation, operational excellence, and sustainability, aiming to enhance safety and mission readiness in aviation and defense sectors [15]

Group 1 - CAE is positioned to benefit from the growing demand for training services and hardware in the aerospace and defense sectors [1] - The stock price of CAE has seen an increase since the last report [1] - The Aerospace Forum aims to identify investment opportunities within the aerospace, defense, and airline industries, leveraging data-informed analysis [1] Group 2 - The analyst has a background in aerospace engineering, providing insights into a complex industry with significant growth potential [1] - The investing group offers access to data analytics monitors to support investment decisions [1]

Core Insights - CAE reported revenue of $888.39 million for the quarter ended March 2025, a year-over-year increase of 6.3% [1] - The EPS for the same period was $0.33, compared to $0.09 a year ago, indicating significant growth [1] - Revenue fell short of the Zacks Consensus Estimate of $909.25 million, resulting in a surprise of -2.30% [1] - The company delivered an EPS surprise of +3.13%, with the consensus EPS estimate being $0.32 [1] Financial Performance Metrics - CAE's shares returned +14.5% over the past month, outperforming the Zacks S&P 500 composite's +9.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3] Civil Aviation Training Solutions Metrics - Simulator equivalent unit (SEU) was reported at 298, matching the average estimate by six analysts [4] - FFS deliveries were 15, exceeding the average estimate of 13 by six analysts [4] - Utilization rate was 75%, below the average estimate of 78.4% by five analysts [4] - FFSs in CAE's network totaled 363, slightly below the average estimate of 367 by three analysts [4]

Core Viewpoint - CAE reported quarterly earnings of $0.33 per share, exceeding the Zacks Consensus Estimate of $0.32 per share, and significantly up from $0.09 per share a year ago, indicating strong performance in the civil and military flight simulator sector [1][2]. Group 1: Earnings Performance - The earnings surprise for the recent quarter was 3.13%, following a previous quarter where CAE also exceeded expectations with earnings of $0.21 per share against an estimate of $0.20, resulting in a 5% surprise [1][2]. - Over the last four quarters, CAE has surpassed consensus EPS estimates three times, showcasing consistent earnings strength [2]. Group 2: Revenue Insights - CAE's revenues for the quarter ended March 2025 were reported at $888.39 million, which fell short of the Zacks Consensus Estimate by 2.30%, but showed an increase from $835.47 million in the same quarter last year [2]. - The company has also topped consensus revenue estimates three times over the last four quarters, indicating a positive trend in revenue generation [2]. Group 3: Stock Performance and Outlook - CAE shares have appreciated approximately 4.2% since the beginning of the year, contrasting with a decline of 0.6% in the S&P 500, suggesting strong relative performance [3]. - The future performance of CAE's stock will largely depend on management's commentary during the earnings call and the sustainability of earnings expectations [3][4]. Group 4: Earnings Estimates and Industry Context - The current consensus EPS estimate for the upcoming quarter is $0.18 on revenues of $833.57 million, while for the current fiscal year, the estimate is $0.99 on revenues of $3.55 billion [7]. - The Aerospace - Defense Equipment industry, to which CAE belongs, is currently ranked in the top 8% of over 250 Zacks industries, indicating a favorable industry outlook that could positively influence CAE's stock performance [8].

Core Insights - CAE Inc. reported strong financial results for Q4 FY2025, with significant improvements in revenue, operating income, and free cash flow, driven by disciplined execution and efficient capital management [3][7][10] - The company achieved a record annual free cash flow of $813.9 million, reflecting a cash conversion rate of 211% [3][10] - CAE's adjusted order intake for the quarter was $1.3 billion, contributing to an adjusted backlog of $20.1 billion, which is a 65% increase from the previous year [3][10] Financial Performance - Q4 FY2025 revenue was $1,275.4 million, a 13% increase from $1,126.3 million in Q4 FY2024 [7][9] - Annual revenue for FY2025 reached $4.7 billion, up 10% from $4.3 billion in FY2024 [8][9] - Q4 FY2025 operating income was $239.9 million, compared to an operating loss of $533.0 million in the same quarter last year [7][10] - Annual operating income for FY2025 was $729.2 million, a significant recovery from an operating loss of $185.4 million in FY2024 [8][9] Segment Performance Civil Aviation - Q4 Civil revenue was $728.4 million, a 4% increase year-over-year, with an adjusted segment operating income margin of 28.6% [12][17] - Annual Civil revenue was $2,709.3 million, an 11% increase from $2,435.8 million in FY2024 [13][17] - Civil adjusted backlog grew nearly 40% to a record $8.8 billion, supported by $3.7 billion in adjusted order intake [4][16] Defense and Security - Q4 Defense revenue was $547.0 million, a 29% increase compared to the same quarter last year, with an adjusted segment operating income margin of 9.2% [18][22] - Annual Defense revenue was $1,998.6 million, an 8% increase from $1,847.0 million in FY2024 [19][22] - The adjusted backlog for Defense reached $11.3 billion, reflecting a robust demand driven by increased defense budgets across NATO and allied nations [20][22] Growth Outlook - The company anticipates continued growth in FY2026, supported by higher margins and strong free cash flow, with expectations of low-double-digit percentage annual adjusted segment operating income growth in Defense [5][32] - In Civil, the outlook remains strong due to regulatory requirements for pilot training and the ongoing need to train new pilots, despite some short-term headwinds [31][32] - CAE's business model is characterized by structural resilience and secular growth trends in both Civil and Defense segments, underpinned by recurring revenue streams [6][32] Capital Management - CAE's net debt at the end of FY2025 was $3,176.7 million, with a net debt-to-adjusted EBITDA ratio of 2.77 times, down from 3.36 times in the previous quarter [27][36] - The company expects to further deleverage its balance sheet, targeting a net debt-to-adjusted EBITDA ratio of 2.5 times by the end of FY2026 [36] - Total capital expenditures for FY2026 are expected to be modestly lower than FY2025, focusing on organic growth investments [35]

Group 1 - CAE is expected to report quarterly earnings of $0.31 per share, reflecting a year-over-year increase of 244.4% [1] - Anticipated revenues for CAE are projected to be $906.71 million, showing an increase of 8.5% compared to the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a reevaluation of initial estimates by analysts [1] Group 2 - Analysts predict that 'Civil Aviation Training Solutions - Simulator equivalent unit (SEU)' will reach 298, up from 279 in the same quarter last year [4] - The estimated 'Civil Aviation Training Solutions - FFS deliveries' is 13, compared to 17 reported in the same quarter last year [4] - The 'Civil Aviation Training Solutions - Utilization rate' is expected to be 78.4%, slightly up from 78% a year ago [5] Group 3 - The consensus for 'Civil Aviation Training Solutions - FFSs in CAE's network' is 367, compared to 343 in the same quarter of the previous year [5] - Over the past month, CAE shares have recorded returns of +11.3%, matching the Zacks S&P 500 composite's change [5] - CAE holds a Zacks Rank 3 (Hold), suggesting its performance will likely align with the overall market in the upcoming period [5]

Core Viewpoint - The market anticipates CAE to report a year-over-year increase in earnings driven by higher revenues for the quarter ended March 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - CAE is expected to post quarterly earnings of $0.31 per share, reflecting a year-over-year increase of +244.4% [3]. - Revenues are projected to reach $906.71 million, marking an 8.5% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. - A positive Earnings ESP of +4.91% suggests analysts have recently become more optimistic about CAE's earnings prospects [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with positive readings being more reliable [6][7]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically shown a nearly 70% chance of delivering a positive surprise [8]. Historical Performance - In the last reported quarter, CAE exceeded the expected earnings of $0.20 per share by delivering $0.21, resulting in a +5% surprise [12]. - Over the past four quarters, CAE has beaten consensus EPS estimates two times [13]. Conclusion - CAE is positioned as a strong candidate for an earnings beat, but investors should consider additional factors influencing stock performance beyond earnings results [16].