MONTREAL, June 26, 2025 /PRNewswire/ - (NYSE: CAE) (TSX: CAE) - CAE Inc. has been included in the second edition of the World's Most Sustainable Companies 2025. This prestigious award is presented by TIME and Statista Inc., the world-leading statistics portal and industry ranking provider. The award list was announced on June 24th, 2025, and can be viewed on Time.com. The World's Most Sustainable Companies 2025 ranking recognizes leading companies in corporate social responsibility from around the globe. Co ...

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]