Q2 2025 CAE Inc Earnings Call Transcript
Key Points
- CAE Inc (CAE) achieved strong demand for civil and defense market solutions, securing nearly $3 billion in total orders this quarter.
- The company's adjusted backlog reached a record $18 billion, up over 50% compared to the previous year.
- In civil aviation, CAE Inc (CAE) delivered 18 full flight simulators and experienced year-over-year growth in business aviation training and commercial training in Asia Pacific.
- Defense performance showed significant backlog growth and margin enhancements, with a record $11.4 billion in defense adjusted backlog, up approximately 94% year over year.
- The restructuring program was completed, with expected annual run-rate cost savings of approximately $20 million by the end of the next fiscal year.
- OEM aircraft supply disruptions impacted US pilot hiring, leading to lower training demand than expected under normal conditions.
- Commercial aviation training utilization was approximately 3 percentage points lower than last year on average.
- The quarterly adjusted EPS was $0.24, a decrease from $0.26 in the second quarter last year.
- Net finance expense increased to $52.9 million, up from $49.5 million in the preceding quarter and $47.1 million in the second quarter last year.
- Free cash flow decreased to $140 million compared to $147.4 million in the second quarter last year, mainly due to a lower contribution in noncash working capital.
Good day. Ladies and gentlemen, welcome to the CAE second quarter financial results for fiscal year 2025 conference call. (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, November 13, 2024 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 those forward-looking statements.
A description of the risks factors and assumptions that may affect future results is contained in CAE's annual M&A
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