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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 reported strong first-quarter results for fiscal 2022, with revenue reaching $752.7 million, up 37% from $550.5 million the previous year. The net income attributable to equity holders was $46.4 million ($0.16 per share), recovering from a loss of $110.6 million last year. Adjusted EPS was $0.19. The company concluded a $1.05 billion acquisition of L3Harris' Military Training segment. Despite the challenges of COVID-19, CAE anticipates continued strong growth, particularly in Civil Aviation and Defence, supported by new strategic partnerships and contracts.
CAE (NYSE: CAE, TSX: CAE) invites media, shareholders, and analysts to its virtual 2021 Annual Meeting on August 11, 2021, at 11:00 a.m. ET. Management will review fiscal year 2021 activities and first-quarter financial results for FY2022, ending June 30, 2021. A conference call specific to these results will occur at 1:30 p.m. ET. Key executives, including President Marc Parent and CFO Sonya Branco, will present and answer questions from media and analysts.
CAE will hold its 2021 Annual Meeting of Shareholders virtually on August 11, 2021, at 11:00 a.m. ET, where management will review fiscal year 2021 activities and the Q1 FY2022 results ending June 30, 2021. The Q1 FY2022 financial results will also be announced on the same day, followed by an analysts' conference call at 1:30 p.m. ET. Media inquiries can be directed to CAE's executives after the meeting at 12:00 p.m. ET.
CAE announced a C$1 billion investment over five years under Project Resilience, aiming to enhance innovations in aviation, defense, and healthcare. This initiative will enable CAE to lead in Advanced Air Mobility and develop green aircraft technologies, with a government partnership contributing C$340 million. The project anticipates creating 700 skilled jobs in Canada and 5,000 learning opportunities for students, reinforcing CAE's role in the aerospace sector while promoting sustainability and cutting-edge solutions.
CAE and Volocopter have announced a strategic partnership to create a pioneering pilot training program for electric vertical takeoff and landing (eVTOL) aircraft. This partnership aims to ensure the safe introduction of eVTOL operations globally, utilizing advanced technologies such as AI and VR. CAE plans to invest up to US$40 million to expand its training network in line with Volocopter's growth. The program responds to an anticipated demand for 60,000 pilots over the next decade, supporting Volocopter's launch of its VoloCity eVTOL aircraft by the 2024 Olympics in Paris.
CAE has released its FY21 Annual Activity and Corporate Social Responsibility report, highlighting significant contributions during COVID-19, including the development of the CAE Air1 ventilator and the rollout of a mobile vaccination app. As the first carbon neutral aerospace company in Canada, CAE expanded its ESG disclosures aligned with the Sustainability Accounting Standards Board. The company administered over 20,000 vaccine doses and is focused on responsible sourcing and diversity initiatives, while also reporting on progress toward five United Nations sustainable development goals.
CAE has completed the acquisition of L3Harris Technologies' Military Training business for US$1.05 billion, following the receipt of all regulatory approvals. The acquisition was partially financed through a private placement that raised C$700 million (approximately US$550 million). Upon closing, 22,400,000 common shares were issued to investors. This strategic move expands CAE's capabilities in defense training, enhancing its position in the market.
CAE has received all necessary regulatory approvals for its acquisition of L3Harris Technologies' Military Training business for US$1.05 billion. This acquisition is set to close on July 2, 2021, and will significantly enhance CAE's position in the global defence and security market, essentially doubling its military training business in the United States. The deal is expected to provide low teens percentage EPS accretion in its first full year post-close and will broaden CAE's capabilities in multi-domain operations.
CAE reported a net loss of $47.2 million ($0.17 per share) for FY2021, down from a net income of $311.4 million in FY2020. Annual revenue decreased 18% to $3.0 billion, and operating income fell 91% to $48.4 million. Fourth quarter revenue was $894.3 million, down 8% year-over-year, with adjusted EPS of $0.22. The company anticipates strong growth in FY2022, focusing on integrating recent acquisitions and leveraging opportunities in Civil, Defence, and Healthcare sectors. Despite a challenging year, CAE aims to improve profitability as the market recovers.
CAE partners with Jaunt Air Mobility to provide certification support for the all-electric vertical take-off and landing (eVTOL) aircraft, the Journey. The agreement includes developing an aircraft systems integration lab in Montreal, aiming for certification initiation in 2023 and expected entry-in-service by early 2027. CAE will leverage its extensive simulation expertise to enhance design and reduce testing time, thereby minimizing risks and managing development costs.
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