Financial Data and Key Metrics Changes - CAE reported record revenue of $4.7 billion, an increase of 10% from the previous year [30] - Adjusted segment operating income reached $732 million, up 33% from $550 million in fiscal 2024 [30] - Free cash flow was $814 million, reflecting disciplined capital management [30] - Adjusted backlog increased to $20.1 billion, up 66%, indicating strong visibility and long-term stability [30] Business Line Data and Key Metrics Changes - Civil aviation revenue was $2.7 billion, up 11%, with adjusted segment operating income of $581.5 million, an increase of 6% [31] - Civil adjusted backlog reached a record $8.8 billion, reinforcing CAE's position as the leading training provider [31] - Defense segment revenue was $2 billion, up 8%, with significant improvements in adjusted segment operating income [34] Market Data and Key Metrics Changes - The global fleet of aircraft is expected to nearly double over the next two decades, with a demand for 300,000 new pilots in the next ten years [31] - Canada is set to reach 2% of GDP on defense spending this year, five years ahead of schedule, with a commitment to 5% by 2030 [34] - NATO is discussing defense spending targets as high as 5% in response to security concerns [34] Company Strategy and Development Direction - CAE aims to focus on long-term strategy, disciplined capital allocation, and creating sustainable value for shareholders [4] - The company is well-positioned to lead in defense and security markets, leveraging government contracts and modernization initiatives [34] - CAE plans to prioritize disciplined capital deployment and reduce leverage while generating strong free cash flow [39] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of customer relationships and the commitment to safety and performance as core values [41] - The fundamentals of civil aviation and defense spending remain strong, providing a solid foundation for future growth [39] - The new CEO emphasized the potential to leverage advanced defense technologies across CAE's portfolio [50] Other Important Information - The company underwent a leadership transition, with Matthew Bromberg appointed as the new president and CEO [6] - The adjusted backlog in defense doubled to $11.3 billion, reflecting strong market momentum [35] Q&A Session Summary Question: Role of the Executive Chair and collaboration with the new CEO - The Executive Chair will focus on long-term strategy and capital allocation while the CEO manages daily operations, ensuring a close working relationship [55][56] Question: Impact of American tariffs on CAE - CAE is well-positioned regarding tariffs, with approximately 70% of work done in-country and key products exempt under USMCA [59][60] Question: Timing of defense opportunities translating into revenue - Revenue from defense contracts is already being realized, although the procurement process can take time [62] Question: Profitability differences between civil and defense segments - Defense contracts often have limitations on profitability due to government regulations, but they provide stable long-term revenue streams [67][69] Question: Credit rating concerns despite stable business - The company has achieved deleveraging targets and is confident that credit agencies will recognize this progress [76][78]

Core Viewpoint - The launch of the "Cloud Wing Action: South Qing Takeoff - Dual Teacher Integration Flight Study" project marks a significant collaboration between Qingdao Aviation Training Center and Nanjing University of Aeronautics and Astronautics, aimed at enhancing the qualifications and competencies of aviation professionals in China [2][3]. Group 1 - The project is a response to the 2025 National Civil Aviation Safety Work Conference, focusing on the construction of a competency system for aviation personnel [2]. - The training program employs an immersive teaching model combining theoretical lectures and simulator practice, covering essential topics such as aircraft theory, airline operations, flight standard procedures, and emergency handling [2]. - The initiative aims to cultivate a "dual teacher" workforce by providing university educators with cutting-edge industry practices and training, thereby enhancing the educational foundation for aviation talent [3]. Group 2 - The collaboration represents an innovative exploration of aviation education models, with the goal of creating a replicable "university-enterprise" cooperative training framework [3]. - Qingdao Aviation Training Center plans to leverage its ICAO TPP membership and advanced course development capabilities to promote a sustainable aviation talent ecosystem and support the globalization of China's aviation technology and service standards [3]. - The project is expected to facilitate customized training programs for countries along the Belt and Road Initiative, showcasing China's aviation vocational training solutions globally [3].

Core Viewpoint - The establishment of the Zhuhai Xiangyi Aviation Technology Co., Ltd. Hebei Branch training base in the Beijing Daxing International Airport Economic Zone (Langfang) marks a significant development in the aviation training industry, contributing to regional economic growth and enhancing pilot training efficiency [1][5]. Group 1: Training Facilities and Equipment - The training base features an Airbus A330 D-level full-motion simulator, which replicates the aircraft's operational logic and flight scenarios, providing realistic training for pilots [4][16]. - The simulator is equipped to handle various training scenarios, including complex weather conditions and system anomalies, thereby improving pilots' emergency response capabilities [4][6]. - Since its operation, the base has trained 150 pilots from China Southern Airlines, accumulating 268 hours of training, with the simulator being used for over 14 hours daily, indicating strong demand [5][6]. Group 2: Regional Development and Collaboration - The training base serves as a key platform for aviation training in North China, targeting pilots from the Beijing-Tianjin-Hebei region, Northeast China, and Northwest China [5][6]. - The base is part of a broader strategy to enhance the aviation training industry in the Langfang Economic Zone, which aims to integrate aviation logistics, manufacturing, and services [6][14]. - The establishment of the base aligns with the coordinated development strategy of the Beijing-Tianjin-Hebei region, showcasing the collaborative efforts in the aviation sector [6][14]. Group 3: Additional Aviation Projects - The Xiamen Airlines and Hebei Airlines operational base in the Langfang Economic Zone has been completed and will begin operations this year, further enhancing the region's aviation capabilities [9][20]. - The operational base covers approximately 90,000 square meters and includes facilities for maintenance, cargo, catering, and training, making it a comprehensive aviation hub [9][11]. - Other aviation training projects, such as the Guanghui Jintong Aviation Training Center, are also under construction, indicating a growing influence of the Langfang Economic Zone in the aviation training sector [14][23].