- CAE reported an adjusted EPS of C$0.23 for the second quarter, slightly down from C$0.24 year-on-year but surpassing the estimate of C$0.20.
- Total revenue reached C$1.24 billion, marking an 8.8% increase from the previous year and exceeding estimates of C$1.14 billion.
- The Civil sector revenue was C$670.0 million, showing a 4.6% year-on-year rise and outperforming the projected C$636.4 million.
- Defense sector revenue came in at C$566.6 million, up 14% from last year and above the estimated C$508.2 million.
- CAE’s backlog stands at C$19.64 billion, reflecting an 8.8% growth compared to the previous year.
- Free cash flow increased significantly by 44% year-on-year, reaching C$201.0 million.
- CAE anticipates a stronger second half of the fiscal year, aligning with usual seasonality and its Full-Flight Simulator (FFS) delivery schedule.
- The Defense segment is expected to maintain low double-digit annual adjusted segment operating income (aSOI) growth, with a margin of 8% to 8.5% for fiscal year 2026.
- Management now predicts total capital expenditures to be about 10% lower than in fiscal 2025.
- Analyst recommendations include 9 buy ratings, 5 hold ratings, and no sell ratings for CAE.
A look at CAE Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
CAE Inc. is set to experience strong long-term growth based on the Smartkarma Smart Scores. With a high score of 5 for Growth, the company is poised for expansion and development in its industry. Additionally, CAE Inc. shows solid momentum and resilience with scores of 3 in both categories. This indicates that the company has the ability to adapt to market changes and maintain its upward trajectory. While the dividend score is lower at 1, suggesting a lower payout to shareholders, the overall outlook remains positive for CAE Inc.
As a provider of simulation technology and training services for various sectors including civil aviation, defense, and healthcare, CAE Inc. is positioned as a key player in the market. The company’s focus on innovation and integrated training solutions enhances its competitiveness and market positioning. With solid growth prospects and a track record of resilience, CAE Inc. is well-positioned for long-term success in the industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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