CAE Inc ( (CAE) ) has released its Q4 earnings. Here is a breakdown of the information CAE Inc presented to its investors.
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CAE Inc., a global leader in training and simulation solutions for civil aviation and defense sectors, has reported strong financial results for the fourth quarter and full fiscal year 2025, showcasing its robust performance across key metrics. The company, headquartered in Montreal, Canada, is renowned for its cutting-edge training technologies and comprehensive solutions that prepare aviation professionals and defense forces worldwide.
In its latest earnings report, CAE Inc. announced a significant increase in revenue and earnings per share (EPS) for both the fourth quarter and the full fiscal year 2025. The company achieved a quarterly revenue of $1,275.4 million, marking a 13% increase from the same period last year, and an annual revenue of $4.7 billion, up 10% from the previous year. The EPS from continuing operations improved dramatically to $0.42 in Q4, compared to a negative $1.58 last year, highlighting a successful turnaround.
Key financial highlights include a remarkable free cash flow of $289.4 million for the quarter and a record $813.9 million for the year, reflecting a robust cash conversion rate of 211%. The company also reported an adjusted order intake of $1.3 billion for the quarter, contributing to a substantial adjusted backlog of $20.1 billion, which is a 65% increase from the previous year. CAE’s Civil Aviation segment achieved a record adjusted segment margin of 28.6% in Q4, while the Defense segment delivered a strong adjusted segment operating income margin of 9.2%.
Looking ahead, CAE Inc. is poised for continued growth in fiscal 2026, with expectations of higher margins and strong free cash flow. The company is well-positioned to capitalize on long-term growth opportunities in both the civil and defense sectors, supported by a robust backlog and increasing demand for its training and simulation solutions. Management anticipates low-double-digit growth in adjusted segment operating income for the Defense segment and mid- to high-single-digit growth for the Civil segment, reflecting the company’s strategic focus and operational strength.
Overall, CAE Inc.’s strong financial performance and strategic initiatives underscore its resilience and capability to navigate market dynamics, positioning it for sustained growth and profitability in the coming years.