CAE Inc ( (CAE) ) has released its Q3 earnings. Here is a breakdown of the information CAE Inc presented to its investors.
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CAE Inc., a leading provider in simulation training and critical operations support solutions for civil aviation and defense sectors, has reported its third-quarter fiscal 2025 results, showcasing significant growth and strategic expansions. The company, headquartered in Montreal, Canada, operates globally with approximately 13,000 employees across more than 240 sites.
In the latest financial results, CAE Inc. announced a revenue increase to $1,223.4 million from $1,094.5 million in the previous year, with earnings per share (EPS) from continuing operations rising significantly to $0.53 from $0.18. The company also achieved a record free cash flow of $409.8 million and a record adjusted order intake of $2.2 billion, contributing to a robust $20.3 billion adjusted backlog.
Key highlights of the quarter include a standout performance in its Civil Aviation sector, which reported a revenue increase of 21% to $752.6 million and operating income of $223.4 million. This was bolstered by strategic moves such as increasing its stake in SIMCOM and securing a $500 million extension of its training agreement with FlexJet. In the Defense sector, CAE maintained steady revenue while significantly enhancing its operating income and backlog, reflecting strong execution and margin improvements.
Looking ahead, CAE’s management remains optimistic about achieving its three-year EPS growth target in the low- to mid-teens percentage range. The company anticipates continued strong free cash flow for fiscal 2025 and is poised to maintain its solid financial position with ongoing deleveraging efforts. Despite some near-term headwinds in civil aviation due to OEM supply issues, CAE’s strategic expansions and market positioning are expected to drive long-term growth and profitability in both its Civil and Defense segments.
