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About CAE Inc.
CAE Inc. (NYSE: CAE, TSX: CAE) is a global leader in simulation-based training and operational support solutions, serving critical industries such as civil aviation, defense and security, and healthcare. Founded over 75 years ago, CAE has established itself as a cornerstone in the training ecosystem, leveraging cutting-edge simulation technologies to enhance safety, efficiency, and readiness across its markets. With a workforce of approximately 13,000 employees and a presence in over 240 sites and training locations across 40+ countries, CAE offers unparalleled global reach and expertise.
Core Business Segments
- Civil Aviation: CAE's civil aviation segment provides comprehensive training solutions for commercial, business, and helicopter aviation. The company operates the world's largest network of training centers and boasts the largest installed base of full-flight simulators (FFSs). Services include pilot and crew training, ab initio pilot programs, and flight operations solutions. CAE's simulators are certified to the highest standards, such as Level D qualification, enabling pilots to complete their training entirely in simulators.
- Defense and Security: In the defense sector, CAE delivers scalable, platform-agnostic training systems that enhance force readiness. Its offerings include advanced mission simulators, live training solutions, and operational support for military personnel. CAE's long-term contracts, such as the Future Aircrew Training (FAcT) program for the Royal Canadian Air Force, underscore its role as a trusted partner in global defense.
- Healthcare: CAE's healthcare division focuses on simulation-based training for medical professionals. By providing realistic training environments, CAE helps healthcare providers improve patient outcomes and reduce errors in high-stakes medical scenarios.
Technological Innovation
CAE is at the forefront of technological advancements in simulation and training. Its integration of Epic Games' Unreal Engine into full-flight simulators represents a groundbreaking step in enhancing visual fidelity and realism. This innovation narrows the gap between virtual and physical training environments, improving training efficacy. Additionally, CAE's digital solutions, such as flight operations software, further streamline aviation operations and enhance safety.
Market Position and Competitive Advantages
CAE's global footprint, extensive installed base, and recurring revenue streams from long-term contracts position it as a market leader. The company's commitment to sustainability, including its Science Based Targets initiative (SBTi) approval for emissions reduction, aligns with evolving industry priorities. By embedding sustainability into its operations and leveraging digital transformation, CAE maintains a competitive edge in a rapidly evolving market.
Sustainability and Corporate Responsibility
CAE integrates environmental, social, and governance (ESG) principles into its operations. The company has committed to reducing Scope 1 and 2 emissions by 85.7% and Scope 3 emissions by 32.5% by FY33. Beyond environmental initiatives, CAE actively supports communities through partnerships, donations, and employee-driven volunteering programs.
Conclusion
With its unmatched expertise, global presence, and focus on innovation, CAE Inc. continues to redefine training and operational support across its core markets. Its emphasis on sustainability and digital transformation ensures long-term relevance and value for stakeholders, making it a key player in the simulation and training industry.
CAE will hold an Investor Day on June 7, 2022, in New York, at the Lotte New York Palace. The event will include presentations from senior management, interactive demonstrations, and opportunities for attendees to engage with CAE's leadership. A live webcast of the presentations will also be available.
Prior to this, on June 6, 2022, CAE will offer exclusive tours of its North East Training Centre in Morristown, New Jersey, for investors and media. This event is geared toward capital market professionals.
CAE has announced that Hélène V. Gagnon, the Chief Sustainability Officer, has been awarded the 2022 Report on Business Best Executive Award. This award celebrates excellence among senior executives in Canada. Gagnon was recognized for her leadership in managing CAE’s reputation and relationships globally, particularly in Corporate Social Responsibility. Marc Parent, CAE's President and CEO, praised her transformative leadership since joining the company in 2015. Gagnon has also played a key role in administering COVID-19 vaccines in Quebec through the Industry for Vaccination initiative.
CAE has appointed Patrick M. Shanahan to its Board of Directors, bringing over 30 years of experience in the defense sector. Previously serving as Acting U.S. Secretary of Defense, Shanahan’s expertise in defense policy, strategy, and technology is expected to enhance CAE's alignment with national defense priorities globally. His leadership experience includes the establishment of the Space Force and advancements in cybersecurity and artificial intelligence at the Department of Defense. This appointment aims to strengthen CAE's strategic direction in high-stakes environments.
CAE (NYSE: CAE, TSX: CAE) has partnered with Joby Aviation (NYSE: JOBY) to develop flight simulation training devices for Joby's all-electric aircraft. This collaboration supports the training of pilots for Joby's electric vertical take-off and landing (eVTOL) aircraft, which aims to revolutionize urban air travel. Joby is actively working with the FAA to secure necessary certifications for commercial operations expected to launch in 2024. CAE's CAD$1 billion investment into aviation technologies enhances its role in the eVTOL market.
CAE has announced the suspension of all services and training to Russian airlines and healthcare distributors, responding to the humanitarian crisis in Ukraine. The company has donated C$60,000 to the Red Cross, with total contributions exceeding C$125,000 from CAE and its employees. CAE has no facilities in Russia but previously supported Russian airlines with training and simulator services. The suspension reflects CAE's commitment to humanitarian efforts while maintaining its operational integrity in the global market.
CAE has completed the acquisition of Sabre's Airline Operations portfolio for US$392.5 million, positioning itself as a leader in digital aviation technology. This acquisition enhances CAE's offerings in flight, crew, and airport management solutions, aiming to improve operational efficiency for airlines. CAE anticipates this deal to be accretive to EPS and free cash flow within the first year. The integration of the Airline Operations portfolio further supports CAE's strategy to create a unified digital ecosystem for airline operations, enhancing customer service and reducing operational disruptions.
CAE reported revenue of $848.7 million for Q3 FY2022, a 2% increase from $832.4 million last year. Net income was $26.2 million ($0.08 per share), down 46% from $48.8 million ($0.18 per share) year-over-year. Adjusted EPS was $0.19, a 14% decline. However, adjusted segment operating income rose 16% to $112.7 million, with free cash flow of $282.1 million, up 26%. The company secured $1.377 billion in orders, contributing to a backlog of $9.2 billion. Concerns remain over ongoing pandemic-related disruptions impacting market recovery.
CAE will announce its fiscal year 2022 third quarter results on February 11, 2022, and hold a conference call at 1 p.m. ET. This call will feature key executives including CEO Marc Parent and CFO Sonya Branco, aimed at providing insights into CAE's performance and future outlook. The event will be accessible via a live webcast and archived for later viewing. Notably, CAE's business model features over 60% recurring revenue, indicating financial stability.
CAE will publish its fiscal year 2022 third quarter results on February 11, 2022. The conference call, set for 1 p.m. ET, will include executive insights from Marc Parent, President and CEO, Sonya Branco, CFO, and Andrew Arnovitz, Senior VP, Investor Relations. The call aims to offer analysts and investors a comprehensive overview of the company’s performance and future outlook, emphasizing CAE's leadership in digital immersion solutions across aviation, defense, and healthcare. A live webcast will be available on CAE's website.
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