- Adjusted EPS for CAE in the first quarter of fiscal 2025 was C$0.21, meeting last year’s performance and exceeding the estimate of C$0.20.
- The reported EPS of C$0.15 matched last year’s figure.
- Revenue remained stable at C$1.07 billion, but fell short of the estimated C$1.12 billion.
- Civil sector revenue was C$587.6 million, consistent with the previous year, yet below the estimated C$617.1 million.
- Defence sector revenue mirrored last year at C$484.9 million, also under the projected C$504.7 million.
- CAE maintained a backlog of C$16.98 billion, the same as the previous year.
- The Company reported a negative free cash flow of C$36.2 million, demonstrating a 43% year-over-year improvement.
- CAE has achieved its fiscal 2025 leverage target and expects to reach a net debt-to-adjusted EBITDA ratio of 2.5x by fiscal year-end.
- Total capital expenditures for fiscal 2026 are anticipated to be slightly lower compared to the fiscal 2025 total of $356.2 million.
- Chairman Calin Rovinescu stated CAE is positioned to leverage opportunities driven by increased demand in civil aviation and NATO’s defence spending plans, including Canada’s commitment to more than double its spending in the next decade.
- Analysts have rated CAE as 8 buys, 6 holds, and no sells.
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CAE Inc on Smartkarma
On Smartkarma, Value Investors Club recently published a bullish insight on CAE Inc. The research highlights that CAE Inc. is poised to overcome temporary challenges and offers a robust investment opportunity due to anticipated earnings acceleration and multiple normalization. With a leading position in outsourced pilot training and a strong presence in the defense simulator market, CAE is well-positioned for sustained growth and profitability. The report underlines the company’s advantage of high entry barriers and favorable industry trends in Civil Aviation and Defense, making it an attractive option for investors eyeing long-term growth potential. This analysis, though machine-generated, serves as a valuable informational resource for investors seeking insights into CAE Inc.’s prospects.
A look at CAE Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| 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. provides training solutions in various sectors, including civil aviation, defense, and healthcare, utilizing simulation technology. The company’s outlook based on Smartkarma Smart Scores indicates a positive long-term trajectory. With above-average scores in growth and momentum, CAE Inc. is poised for expansion and has shown strong recent performance. Despite a lower score in dividends, the company’s focus on value and resilience suggests a solid foundation for future growth.
The overall outlook for CAE Inc. is promising, with a high score in growth reflecting its potential for expansion in the future. Additionally, the company’s momentum score indicates positive market sentiment and performance. Although the dividend score is lower, CAE Inc.’s focus on value and resilience sets a solid groundwork for sustained success in its diverse training solutions business.
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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