- CAE’s adjusted earnings per share (EPS) for the fourth quarter surpassed estimates, reaching C$0.47 compared to C$0.12 in the previous year.
- EPS stood at C$0.42 with revenue matching the estimate at C$1.28 billion, showing a 13% year-over-year increase.
- Revenue from the Civil sector was C$728.4 million, a 3.9% rise year-over-year, though slightly below the estimated C$760.3 million.
- Defense revenue saw a significant 29% year-over-year growth, amounting to C$547.0 million, exceeding the estimate of C$530.4 million.
- The company’s backlog reached C$20.14 billion, with free cash flow increasing by 51% year-over-year to C$289.4 million.
- CAE has balanced its capital allocation priorities and pursued investments for growth.
- The company projects a modest decrease in total capital expenditures for fiscal 2026 compared to C$356.2 million in fiscal 2025.
- Solid performance in Defense led to a significant improvement in margins, indicating a stable foundation.
- Management anticipates annual aSOI growth in the low-double-digit percentage range and an aSOI margin between 8% and 8.5% for fiscal 2026.
- CAE aims to achieve a net debt-to-adjusted EBITDA ratio of 2.5x by the end of the fiscal year.
- The company’s strong performance is attributed to disciplined execution and efficient capital management.
- Defense segment delivered a 9.2% adjusted segment operating income margin in the quarter, reaching 7.5% for the full year.
- Despite challenges in the Civil sector, such as limited aircraft availability and reduced U.S. pilot hiring, results remained robust.
- CAE expects continued growth, margin expansion, and strong free cash flow in fiscal 2026.
- The company received 7 buy recommendations, 7 hold recommendations, and 0 sell recommendations from analysts.
CAE Inc on Smartkarma
CAE Inc has been receiving positive analyst coverage on Smartkarma from Value Investors Club. In a recent report titled “Cae Inc (CAE.) – Thursday, Nov 14, 2024“, analysts highlighted the company’s potential for earnings acceleration and multiple normalization despite facing temporary challenges. They emphasized CAE’s dominant position in outsourced pilot training and strong market share in defense simulators, indicating continued growth and profitability. With high barriers to entry and favorable market trends in Civil Aviation and Defense, CAE presents an attractive opportunity for long-term investors. The report, originally published on Value Investors Club, provides valuable insights for those looking to capitalize on CAE’s growth prospects.
A look at CAE Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.6 |
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, the training solutions provider, seems to be in a solid position for the long term based on its Smartkarma Smart Scores. While the company scores average in terms of value and growth potential, it shines in resilience and momentum. A high resilience score indicates that CAE Inc is well-equipped to handle economic downturns and industry challenges, offering a sense of stability for investors. Furthermore, with a strong momentum score, CAE Inc appears to be gaining positive traction and could see continued growth in the future.
CAE Inc, known for its simulation technology and training services, received a mixed bag of scores from Smartkarma. Despite a low dividend score, the company’s strengths in resilience and momentum paint a promising picture. With a commitment to providing training solutions across various sectors, including civil aviation, defense, and healthcare, CAE Inc‘s overall outlook seems optimistic for the long term.
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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