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Here are 1-2 brief analogies for CAE:

• The Boeing for flight simulators and pilot training, essential for preparing the world's commercial pilots.

• The Honeywell for simulation and training technology, equipping critical industries from aviation and defense to healthcare with advanced preparation tools and expertise.

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• Civil Aviation Training: Provides comprehensive flight training solutions for airlines, business jet operators, and individual pilots, encompassing full-flight simulators, training programs, and pilot sourcing.
• Defense & Security Training: Offers advanced simulation products, integrated training services, and operational support to armed forces and security organizations globally.
• Healthcare Simulation: Delivers realistic simulation products and educational platforms to train healthcare professionals, enhancing their skills and improving patient safety.

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• Civil Aviation

  This segment serves airlines, business jet operators, and aircraft manufacturers globally, providing pilot training, flight simulators, and crew sourcing services.

  Examples of public companies that are major customers or partners include:

  • Lufthansa Group (LHA.DE)
  • Southwest Airlines Co. (LUV)
  • Air Canada (AC.TO)
  • Ryanair Holdings plc (RYAAY)
  • The Boeing Company (BA)
  • Airbus SE (AIR.PA)
  • Embraer S.A. (ERJ)

• Defense & Security

  This segment provides simulation and training solutions for military aircraft, naval systems, and land vehicles to national armed forces, governments, and prime defense contractors worldwide.

  While CAE directly contracts with numerous national defense forces (which are not public companies), it also works extensively with major defense contractors. Examples of public companies that are customers or partners include:

  • Lockheed Martin Corporation (LMT)
  • RTX Corporation (RTX) (formerly Raytheon Technologies)
  • BAE Systems plc (BA.L)

• Healthcare

  This segment provides simulation-based medical education and training solutions to hospitals, universities, medical schools, and emergency services.

  Customers in this segment are typically private or non-profit institutions (e.g., Mayo Clinic, Johns Hopkins Medicine, various university hospitals) and do not have public stock symbols.

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Matthew Bromberg, President and Chief Executive Officer

Matthew Bromberg was appointed President and Chief Executive Officer of CAE, effective August 13, 2025. He joined CAE on June 16, 2025, as Incoming President and CEO. Prior to joining CAE, Mr. Bromberg served as Corporate Vice President of Global Operations at Northrop Grumman from 2022 to 2025. He also held various leadership roles at Raytheon Technologies from 2006 to 2017, including President of Pratt & Whitney Military Engines, President of Pratt & Whitney Commercial Aftermarket Operations, and Vice President of United Technologies Corporate Strategy & Development. Earlier in his career, he worked as an Associate Banker in the Investment Banking Division, Mergers and Strategic Advisory from 2000 to 2002.

Constantino Malatesta, Interim Chief Financial Officer

Constantino Malatesta became the interim Chief Financial Officer of CAE following Sonya Branco's departure at the end of August 2025. He joined CAE in 2006 as Manager, Accounting Standards. Since then, he has held several positions, including Director, Finance and Assistant Corporate Controller from 2011 to 2014, Global Head of Finance, CAE Oxford Aviation Academy from 2014 to 2016, and Vice President, Finance and Corporate Controller from 2016 to 2022. Mr. Malatesta is a Chartered Professional Accountant and a U.S. Certified Public Accountant.

Nick Leontidis, Chief Operating Officer

Nick Leontidis was appointed Chief Operating Officer in May 2024. Before this role, he served as CAE's Executive Vice President, Strategy and Business Development. He has held numerous executive positions at CAE Inc. since 2001, including Vice President, Sales and Marketing; Executive Vice President, Simulation Products; Executive Vice President, Civil Aviation Training and Equipment; and Executive Vice President, Customers.

Hélène V. Gagnon, Chief People and Sustainability Officer

Hélène V. Gagnon has been the Senior Vice President of Shareholder Engagement and Chief Sustainability Officer of CAE since 2022. Prior to this, she served as the Senior Vice President, Public Affairs of Global Communications at CAE. Earlier in her career, she was the Vice President of Public Affairs, Communications, Corporate Social Responsibility at Bombardier Aerospace.

Carter Copeland, Chief Strategy and Performance Officer

Carter Copeland has served as Chief Strategy and Performance Officer of CAE since July 2024. Before joining CAE, he was the President and co-founder of Melius Research, an independent research, consulting, and data analytics firm. Previously, he held the position of Managing Director and Senior Analyst covering the Global Aerospace and Defense sector for Barclays PLC, and various roles in the aerospace and defense research practice at Lehman Brothers.

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The key risks to CAE's business include:

1. Operational and Contract Execution Risk (Legacy Defense Contracts): CAE faces significant internal risk from "Legacy Contracts," which are eight firm fixed-price agreements primarily within its Defense segment. These contracts were signed before the COVID-19 pandemic and do not include provisions for cost escalation. As a result, inflationary pressures and supply chain disruptions have led to increased completion costs and consequently, reduced profit margins. CAE has already taken steps to address this, including incurring restructuring costs and recording a goodwill impairment and profit adjustment related to these contracts.
2. Debt Load and Interest Rate Volatility: CAE's debt level is a crucial factor for investors. The company ended fiscal year 2025 with a net debt-to-adjusted EBITDA ratio of 2.77x, and while management aims to deleverage, the current high-interest rate volatility makes the process more expensive, directly affecting the company's profitability. S&P Global has also indicated that CAE's leverage is high for its credit rating, allowing minimal room for underperformance against forecasts.
3. Global Economic Uncertainty and Geopolitical Factors: External economic and geopolitical pressures pose a risk to CAE. The Defense sector's performance is closely tied to government procurement and geopolitical developments, meaning shifts in national defense budgets or international relations could impact its order backlog. Furthermore, the civil aviation industry, which is a significant part of CAE's business, remains susceptible to cyclical and potentially volatile conditions arising from geopolitical, health, and safety risks.

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• Disruptive Immersive Training Technologies (XR): The rapid advancement and increasing affordability of virtual reality (VR), augmented reality (AR), and mixed reality (MR) hardware and software pose an emerging threat. If these technologies gain broader regulatory approval and acceptance for a wider range of pilot, defense, and healthcare training modules (e.g., partial task training, mission rehearsal, cockpit familiarization) that previously required expensive full-flight simulators or physical training environments, it could reduce demand for CAE's traditional capital-intensive simulator sales and training center hours. While CAE is integrating XR, the speed of external innovation and potential for disruption from tech-first companies could challenge its established market dominance.
• Increasing Automation and Autonomous Flight Systems in Aviation: The ongoing development and certification of highly automated and autonomous flight systems (e.g., single-pilot operations, autonomous cargo flights, eVTOLs with reduced crew requirements) present a long-term emerging threat. While pilots will remain essential, their roles could fundamentally shift from hands-on flying to supervision, monitoring, and system management. This transition could reduce the overall demand for traditional pilot training and necessitate a significant adaptation of CAE's curriculum and simulator designs, potentially impacting its core civil aviation training market.

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Civil Aviation Training Solutions

Defense & Security

Healthcare

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1. Growth in Civil Aviation Training Solutions and Digital Offerings: CAE anticipates continued strong order intake and a growing backlog in its Civil Aviation segment, particularly for training and flight operations software solutions. Strategic investments, such as increasing its stake in SIMCOM, are expected to strengthen CAE's presence in the business aviation training market and boost recurring revenue. Furthermore, the company's expansion of its digital solutions portfolio with additions like RB Group and the rebranding to Flightscape are aimed at enhancing airline operations and crew management, providing new avenues for revenue growth. An uptick in the volume and profitability from full-flight simulator (FFS) deliveries is also projected to contribute to civil revenue growth.
2. Increased Defense Budgets and Modernization Initiatives: The Defense & Security segment is poised for revenue growth due to a prolonged upcycle in defense spending, driven by increased budgets across NATO and allied nations. Rising geopolitical tensions and a focus on defense modernization are fueling demand for CAE's training and simulation solutions. The global shortage of uniformed personnel is also prompting militaries to partner with CAE for readiness support.
3. Significant Backlog and Large Program Wins in Defense: CAE has secured transformative awards, such as the $1.7 billion subcontract under Canada's Future Aircrew Training (FAcT) program, which will contribute to future revenue. The company has achieved significant backlog growth in its Defense segment, reaching a record $11.4 billion, indicating strong future revenue streams. This growth is supported by robust execution and disciplined program management.
4. Leveraging Digital Immersion and Advanced Technologies: CAE is focusing on digital transformation and investing in advanced technologies like data analytics, artificial intelligence (AI), machine learning, and single synthetic environments. These innovations are being applied to develop digitally immersive solutions for civil aviation and to enhance safety, efficiency, and mission readiness for defense customers, which could drive demand for new products and services.

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Share Repurchases

• CAE renewed its Normal Course Issuer Bid (NCIB) to repurchase up to 16,019,294 common shares (5% of outstanding) from June 10, 2025, to June 9, 2026.
• Under the previous NCIB (May 2024-May 2025), CAE repurchased 856,230 common shares for a total of $21.3 million.
• CAE did not have an NCIB during fiscal years 2023 and 2024, resulting in no share repurchases in those periods.

Share Issuance

• In November 2020, CAE completed a public offering and a concurrent private placement, issuing common shares for aggregate gross proceeds of approximately $495 million.
• In March 2021, CAE issued 10,454,545 shares through a public offering for gross proceeds of approximately US$287 million (CAD$360 million).
• The proceeds from these issuances were primarily used for general corporate purposes, including funding future potential acquisition and growth opportunities and financing a portion of the L3Harris Technologies' Military Training business acquisition.

Inbound Investments

• Caisse de dépôt et placement du Québec (CDPQ) made an investment of approximately $150 million in CAE through a private placement of common shares in November 2020.
• In July 2021, the Government of Canada and the Government of Québec committed a combined investment of C$340 million over five years to support CAE's C$1 billion "Project Resilience" innovation program.

Outbound Investments

• In December 2020, CAE acquired Merlot Aero Limited for US$25 million, plus an earn-out of up to US$10 million, to expand into civil aviation crew management and optimization software.
• In March 2022, CAE concluded the acquisition of Sabre's Airline Operations portfolio (AirCentre) for an enterprise value of US$392.5 million, expanding its flight and crew management and optimization solutions.
• In November 2024, CAE made a US$230 million investment to increase its stake and consolidate ownership of SIMCOM Aviation Training.

Capital Expenditures

• Total capital expenditures for fiscal year 2025 were $356.2 million.
• Total capital expenditures for fiscal year 2024 were $329.8 million.
• For fiscal year 2026, capital expenditures are expected to be modestly lower than fiscal year 2025, with approximately three-quarters focused on organic growth investments in simulator capacity for its global aviation training network, backed by multiyear customer contracts.