Q3 2025 CAE Inc Earnings Call Transcript
Key Points
- CAE Inc (CAE) reported a record $410 million in free cash flow for the third quarter.
- The company secured $2.2 billion in new orders, resulting in a record adjusted backlog of $20.3 billion.
- Civil aviation segment saw a 21% year-over-year revenue growth, with a record $8.8 billion total civil adjusted backlog.
- Defense segment achieved a book-to-sales ratio of 1.50 times, contributing to a record $11.5 billion in Defense adjusted backlog.
- Strong cash flow performance with net cash from operating activities reaching $424.6 million, significantly higher than the previous year.
- Some softness in commercial aviation training in the Americas due to ongoing aircraft supply chain challenges.
- Pilot hiring remained modest in the Americas, affecting training center utilization.
- Higher finance expenses due to increased lease liabilities and additional borrowings for the SIMCOM transaction.
- Annual Civil adjusted segment operating income growth is expected to be modestly below previous outlook due to delayed aircraft deliveries.
- Net debt to adjusted EBITDA remains relatively high at 3.36 times, though expected to decrease by fiscal year-end.
Good day, ladies and gentlemen. Welcome to the CAE third-quarter financial results for fiscal year 2025 conference call. (Operator Instructions) The conference is being recorded. (Operator Instructions)
I would now like to turn the conference over to Mr. Andrew Arnovitz. Please go ahead, Mr. Arnovitz.
Good morning, everyone, and thank you for joining us. Before we begin, I'd like to remind you that today's remarks, including management's outlook and answers to questions, contain forward-looking statements. These forward-looking statements represent our expectations as of today, February 14, 2025, and accordingly, are subject to change.
Such statements are based on assumptions that may not materialize and are subject to risks and uncertainties. Actual results may differ materially, and listeners are cautioned not to place undue reliance on these forward-looking statements.
A description of the risks, factors and assumptions that may
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