CAE INC (CAE)

CAE Inc. is a technology company that deploys software-based simulation training and critical operations support solutions. It aims to equip people in critical roles, including pilots, cabin crew, maintenance technicians, airlines, business aviation operators and defence and security forces, with the expertise to perform at their best. The company was incorporated in 1947 as Canadian Aviation Electronics Ltd. and has more than 75 years of history building high-fidelity flight and mission simulators and digitally enabled training programs. Its common shares are listed on the Toronto and New York stock exchanges under the symbol CAE.

CAE reports two segments: Civil Aviation, which was 57% of fiscal 2024 revenue, and Defense & Security, which was 43%. Its offerings include simulators, pilot, cabin crew and maintenance training, and digital flight and crew operations solutions such as AirCentre and the RB Group. For defence customers it provides military training and simulation, including a 25-year, $11.2 billion Future Aircrew Training Program for the Royal Canadian Air Force, awarded to SkyAlyne, a partnership between CAE and KF Aerospace. Its Healthcare business was sold to Madison Industries in February 2024 and is presented as discontinued operations. Growth has come through acquisitions such as the L3Harris military training business, GlobalJet Services, the RB Group and AirCentre, and through partnerships with Boeing, Embraer, Qantas, Akasa Air and others. In fiscal 2024 the company recorded a goodwill impairment and unfavourable contract adjustments tied to eight fixed-price Legacy Contracts in Defense and Security.

Fiscal 2024 consolidated revenue was $4.3 billion, up from $4.0 billion a year earlier. By customer location, the United States accounted for 49% of revenue, Europe 15%, Asia 13%, Canada 11%, the United Kingdom 6%, Oceania and Africa 4%, and the rest of the Americas 2%. Customers include airlines, business aviation operators, and defence and security forces. Management cites air travel as a major driver of the civil aviation business.

CAE has about 13,000 employees at more than 240 sites and training locations in over 40 countries. Its corporate office is at 8585 Chemin Côte-de-Liesse, Saint-Laurent, Quebec, Canada. Its strategy rests on four pillars: efficient growth, technology and market leadership, revolutionizing training and critical operations, and skills and culture. It also runs an R&D investment plan called Project Resilience, backed by partially repayable loans from the Governments of Canada and Quebec. The text mentions competition, components and intellectual property as topics, but the details are not included.