Q4 2025 CAE Inc Earnings Call Transcript
Key Points
- CAE Inc (CAE) delivered an exceptional fourth quarter, generating $289 million in free cash flow and a record $814 million for the full year.
- The company secured $1.3 billion in new orders in the quarter, leading to a record end-of-year adjusted backlog of $20.1 billion, up 65% from last year.
- Civil segment achieved a record adjusted segment operating margin of 28.6% in Q4 and 21.5% for the year, with a 37% increase in backlog to $8.8 billion.
- Defense segment showed significant improvement with an adjusted segment operating income margin of 9.2% in the quarter and a near doubling of the adjusted defense backlog to $11.3 billion.
- CAE Inc (CAE) is well-positioned for long-term growth with strong fundamentals in both commercial and business aviation, supported by a robust order backlog and strategic expansion into new markets like air traffic controller training.
- Ongoing constraints in global aircraft supply and a temporary drop in US pilot hiring have impacted the Civil segment.
- Average training center utilization decreased to 75% in Q4 from 78% the prior year, mainly due to a reduction in pilot hiring in the Americas.
- Net finance expense increased to $56.5 million this quarter, up from $52.4 million in the fourth quarter of last year.
- The effective tax rate increased to 25% this quarter compared to 14% in the fourth quarter last year, impacting net income.
- The company expects modestly lower simulator deliveries in the first half of fiscal 2026 due to ongoing supply chain constraints affecting OEM aircraft output.
Good day, ladies and gentlemen. Welcome to the CAE fourth-quarter and full 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 for fiscal '26 and answers to questions contain forward-looking statements. These forward-looking statements represent our expectations as of today, May 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 affect future results is
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
