CAE Earnings Prediction
The chart below shows how CAE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CAE sees a +0.70% change in stock price 10 days leading up to the earnings, and a -5.03% change 10 days following the report. On the earnings day itself, the stock moves by +0.34%. This data can give you a slight idea of what to expect for the next quarter's release.
CAE Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.14B
4.42%
5.98%
Gross Margin
25.61%
-8.04%
-1.46%
Operating Margin
11.00%
-3.17%
11.00%
Net Margin
4.82%
-14.08%
1.69%
EPS
0.16
-11.11%
6.67%
No Data Available
CAE Earnings Analysis
CAE INC Corporation (CAE.N) Earnings Conference Call
Positive
Record Adjusted Backlog: 1. Record Backlog: CAE secured nearly $3 billion in total orders this quarter, resulting in a record adjusted backlog of $18 billion, which is up over 50% year-over-year.
Civil Revenue Surge: 2. Strong Civil Revenue Growth: Civil segment revenue grew 12% year-over-year to $640.7 million, with a book-to-sales ratio of 1.08, indicating robust demand.
Defense Revenue and Income Growth: 3. Defense Segment Performance: Defense revenue rose 4% to $495.9 million, with adjusted operating income increasing 55% to $33.1 million, achieving a 6.7% margin.
Share Repurchase Impact: 4. Successful Share Repurchase: CAE repurchased and canceled 392,730 common shares at a weighted average price of $24.43, totaling $9.6 million, enhancing shareholder value.
Cost Savings Initiatives: 5. Cost Management Initiatives: The completion of restructuring programs is expected to yield annual run rate cost savings of approximately $20 million, improving free cash flow.
Negative
Declining Adjusted EPS: 1. Declining Adjusted EPS: The adjusted earnings per share (EPS) decreased to $0.24 from $0.26 in the same quarter last year, indicating a decline in profitability.
Rising Net Finance Expenses: 2. Increased Net Finance Expense: Net finance expenses rose to $52.9 million, up from $49.5 million in the previous quarter and $47.1 million in the same quarter last year, reflecting higher costs associated with lease liabilities.
Decline in Free Cash Flow: 3. Lower Free Cash Flow: Free cash flow fell to $140 million compared to $147.4 million in the second quarter of the previous fiscal year, primarily due to a lower contribution from non-cash working capital.
Restructuring and Integration Costs: 4. Restructuring Costs: The company incurred restructuring, integration, and acquisition costs totaling $30.9 million during the quarter, which negatively impacted overall financial performance.
Decline in Operating Cash: 5. Decreased Cash from Operating Activities: Net cash from operating activities decreased to $162.1 million from $180.2 million in the same quarter last year, indicating a decline in operational efficiency.
CAE FAQs
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CAE Earning Call Sentiment
CAE Inc. (CAE) Q2 2025 Earnings Call Transcript
1.0x
00:00
00:00
CAE.N
1.8%Positive
The earnings call summary presents mixed results: strong revenue growth and defense income, but declining EPS and free cash flow. The Q&A reveals optimism in bridging defense margins and civil sector growth, but aircraft supply disruptions pose risks. Share repurchases are a positive, yet high debt levels and restructuring costs are concerns. Despite positive long-term guidance, short-term uncertainties balance the sentiment, leading to a neutral stock price prediction.