CAE Inc. reported exceptional fourth quarter and full fiscal year 2025 results on May 13, 2025, driven by disciplined execution and efficient capital management. For the full year, revenue reached $4.7 billion, a 10% increase, with adjusted EPS growing 39% to $1.21.
The company generated a record $813.9 million in free cash flow for fiscal year 2025, representing a robust cash conversion rate of 211%. This strong performance enabled CAE to meet its year-end leverage target, with net debt-to-adjusted EBITDA at 2.77 times.
In the fourth quarter, adjusted segment operating income surged 106% to $258.8 million, with a 20.3% margin. The Defense segment achieved a 9.2% adjusted segment operating income margin in Q4 and 7.5% for the full year, nearly doubling its adjusted backlog to $11.3 billion. Civil Aviation delivered a record 28.6% adjusted segment margin in Q4 and 21.5% for the year, with its adjusted backlog growing 37% to $8.8 billion.
For fiscal year 2026, CAE expects continued growth, higher margins, and strong free cash flow, with a target of 2.5x net debt to adjusted EBITDA by year-end and a free cash flow conversion rate of approximately 150% of adjusted net income.
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