CAE Reports Strong Financial Results in Q4 and Full Fiscal Year 2025 with Significant Growth Across Key Metrics

CAE Reports Strong Financial Results in Q4 and Full Fiscal Year 2025

CAE Inc. has announced its financial results for the fourth quarter ended March 31, 2025, showcasing a remarkable recovery and growth trajectory. In the fourth quarter, CAE generated revenues of $1,275.4 million, a significant increase from $1,126.3 million in the same period last year. This represents an impressive year-over-year growth of 13%.

In terms of profitability, the company reported earnings per share (EPS) from continuing operations of $0.42, a substantial improvement from the negative $1.58 reported in the same quarter of the previous year. Furthermore, the adjusted EPS for the fourth quarter stood at $0.47 compared to $0.12 from the previous year, showcasing a dramatic recovery in CAE’s earnings potential.

This strong showing comes after a turbulent period, as CAE recorded an operating income of $239.9 million in Q4, a stark contrast to the operating loss of $533.0 million noted last year, which included significant impairments. Adjusted segment operating income improved as well, reaching $258.8 million from $125.7 million in Q4 of fiscal 2024.

Free cash flow also saw an increase, amounting to $289.4 million—up from $191.1 million a year earlier—illustrating CAE's improved cash generation capabilities. This robust cash flow enabled the company to successfully hit its year-end leverage target while bolstering its balance sheet for future growth.

CAE's annual performance is equally noteworthy, with total revenue for fiscal year 2025 reported at $4.7 billion, up from $4.3 billion the previous year. The annual EPS from continuing operations reached $1.27, reversing the previous year's loss of $1.02. Annual adjusted EPS also saw an increase, standing at $1.21 compared to $0.87 in fiscal 2024.

The company's operating income for the year was $729.2 million, significantly rebounding from an operating loss of $185.4 million in the previous fiscal year. The adjusted backlog also continued to grow, ending the year at $20.1 billion, with adjusted order intake for the fiscal year reaching $7.7 billion, reinforcing CAE's solid market position and long-term growth prospects.

CAE's President and CEO, Marc Parent, expressed pride in the strong execution and operational efficiency demonstrated by the team. He emphasized that disciplined management practices led to impressive free cash flow of $813.9 million for the entire year, corresponding to a cash conversion rate of 211%. This financial performance, he noted, further strengthens CAE's strategic initiatives and allows for sustained investment in future growth.

The Defense segment contributed significantly to CAE's success. Despite industry-wide challenges such as constrained aircraft availability, the business managed to grow its operating income margin to 9.2% in the fourth quarter, nearly doubling its adjusted Defense backlog to $11.3 billion. Meanwhile, in Civil Aviation, strong results were achieved with an adjusted segment margin of 28.6% in Q4, underpinning the growing demand for flight simulation and training solutions.

Looking ahead, CAE anticipates continued growth into fiscal 2026 driven by higher margins and strong free cash flow. The company is strategically positioned to enhance its financial flexibility following the completion of a significant multiyear investment cycle. Plans are in place for further investment in organic growth and simulator capacity to solidify CAE's leadership in training solutions worldwide.

CAE remains focused on leveraging its position in a growing defense market, benefiting from increased budgets across NATO and allied nations. The company’s operations are supported by strong secular trends in both the commercial aviation and defense sectors, driven by an ongoing need for enhanced training and simulation solutions, further bolstered by global aviation industry recovery.

In summary, CAE's financial results for Q4 and the full fiscal year 2025 underscore the effectiveness of their operational strategies, highlighting promising indicators for the upcoming fiscal year. With strong momentum and a robust backlog, CAE is well-positioned for sustained success going forward.