Company Overview

CAE Inc., together with its subsidiaries, provides training, simulation, and critical operation solutions in Canada, the United States, the United Kingdom, Europe, Asia, Oceania, Africa, and the rest of the Americas. Around the globe, CAE is present where customers need them, with approximately 13,000 employees at around 240 sites and training locations in over 40 countries.

At CAE, the mission is to make the world safer. The company delivers cutting-edge training, simulation, and critical operations solutions to prepare aviation professionals and defence forces for critical moments. For nearly 80 years, CAE has been at the forefront of innovation, consistently setting the standard by delivering excellence in high-fidelity flight simulators and training solutions, while embedding sustainability at the heart of its operations.

Business Segments

CAE Inc. operates through two primary segments: Civil Aviation; and Defense and Security.

- Civil Aviation: This segment offers training solutions for flight, cabin, maintenance, ground personnel, and air traffic controllers across commercial, business, and helicopter aviation. It also provides a range of flight simulation training devices, ab initio pilot training and crew sourcing services, as well as airline operations digital solutions.

- Defense and Security: This segment functions as a training and simulation provider, delivering platform-independent solutions designed to enable and enhance force readiness and security for defense forces, original equipment manufacturers (OEMs), government agencies, and public safety organizations.

Stock Information

CAE Inc. is publicly traded on both the Toronto Stock Exchange (TSX: CAE) and the New York Stock Exchange (NYSE: CAE).

Financial Performance and Market Position

Recent Financial Performance

- Q1 Fiscal 2026 Results (ended June 30, 2025):

- Revenue: $1,098.6 million (up from $1,072.5 million in the previous year)

- Earnings Per Share (EPS): $0.18 (a notable rise from $0.15 last year)

- Operating Income: $133.8 million (a 23% increase)

- Segment Performance: The defense segment showed remarkable growth with an 83% increase in operating income, while the civil aviation segment maintained steady growth.

- Backlog: The adjusted backlog grew by 15% to $19.5 billion, indicating strong future revenue potential.

Market Position and Technology

CAE Inc. is at the forefront of integrating advanced gaming engines into its simulation platforms, significantly enhancing the realism and effectiveness of its training devices. Through these integrations, CAE provides ultra-realistic visuals and motion cues, making simulator sessions nearly indistinguishable from real-world experiences.

The company's business model features a high degree of recurring revenues, driven by the underlying characteristics of its technology-enabled and software-based solutions, as well as regulatory requirements across its diverse markets.

Key Products and Solutions

CAE's flagship products include the CAE 7000XR Series full-flight simulator, the CAE Trax Academy pilot training system, and the CAE Air1 ventilator (developed during the COVID-19 pandemic). In the defense sector, CAE provides comprehensive training systems for military aircraft, naval vessels, and ground forces, including the CAE Medallion-6000 image generator and mission simulators for various military platforms.

Leadership Transition

CAE announced the appointment of Matthew (Matt) Bromberg to succeed Marc Parent as the Company's next President and Chief Executive Officer. This transition will take effect after the 2025 Annual and Special Meeting of Shareholders (AGM) on August 13, 2025.

Growth Outlook and Strategic Initiatives

The Company anticipates Civil's adjusted segment operating income (aSOI) to grow in the mid- to high-single-digit percentage range in fiscal 2026, accompanied by modest expansion in annual aSOI margin. With the Defense foundation now solidified, evidenced by significant margin improvement driven by high-quality execution in the prior fiscal year, management expects low-double-digit percentage annual aSOI growth and an annual aSOI margin in the 8% to 8.5% range in fiscal 2026.

CAE's business is highly cash-generative. Following the completion of a significant multiyear investment cycle, management anticipates strong free cash flow in fiscal 2026. This will be driven by robust operating cash flows, lower investments including CAPEX, and further optimization of non-cash working capital. The Company expects total CAPEX in fiscal 2026 to be modestly lower than fiscal 2025, which totaled $356.2 million.

Sustainability Recognition

In recognition of its broad sustainability leadership, CAE has been honored with two global sustainability awards, including being named one of the World's Most Sustainable Companies of 2025 by TIME magazine.

CAE continues to leverage its global presence and technological expertise to serve critical sectors where safety and precision are paramount, positioning itself as a trusted partner for aviation professionals and defense organizations worldwide.