Group 1: Director Election Results - CAE announced the election results from its 2025 Annual and Special Meeting of Shareholders, with 13 nominees elected as Directors [1] - Ayman Antoun received the highest approval with 99.92% of votes for, while Patrick M. Shanahan had the lowest approval at 91.82% [1] - The total votes against for the nominees ranged from 0.05% to 8.35%, indicating strong support for most candidates [1] Group 2: Company Overview - CAE focuses on making the world safer by providing training, simulation, and critical operations solutions for aviation and defense [2] - The company employs approximately 13,000 people across around 240 sites and training locations in over 40 countries [2] - CAE has been a leader in innovation for nearly 80 years, emphasizing high-fidelity flight simulators and training solutions while prioritizing sustainability [2]

Core Insights - CAE Inc. reported solid first-quarter results for fiscal 2026, with double-digit income growth and margin expansion in both Defense and Civil sectors, driven by strong demand in civil aviation and increased defense spending across NATO [2][4][6] Financial Performance - First quarter fiscal 2026 revenue was $1,098.6 million, a 2% increase from $1,072.5 million in the same quarter last year [4][6] - Operating income rose to $133.8 million (12.2% of revenue), up 23% from $108.6 million (10.1% of revenue) in the previous year [5][6] - Net income attributable to equity holders was $57.2 million, an 18% increase from $48.3 million in the prior year [6] - Earnings per share (EPS) from continuing operations increased to $0.18, a 20% rise from $0.15 last year [6] Civil Aviation Segment - Civil revenue reached $607.7 million, a 3% increase from $587.6 million in the previous year [7][10] - Operating income for the Civil segment was $99.4 million (16.4% of revenue), compared to $89.8 million (15.3% of revenue) last year [10] - Civil signed training solutions contracts valued at $511.4 million during the quarter, with an adjusted backlog of $8.4 billion [8][10] Defense and Security Segment - Defense revenue was $490.9 million, a slight increase from $484.9 million in the previous year [11][13] - Operating income in the Defense segment improved significantly to $34.4 million (7.0% of revenue), compared to $18.8 million (3.9% of revenue) last year [11][13] - The adjusted backlog for Defense was $11.1 billion, reflecting strong demand driven by rising defense budgets across NATO [12][13] Management Changes - Matthew Bromberg was appointed as the new President and CEO, succeeding Marc Parent, effective after the AGM on August 13, 2025 [2][3] Sustainability Initiatives - CAE maintained stable carbon emissions despite a 10% increase in business activity, demonstrating the effectiveness of its decarbonization strategy [20][21] - The company received recognition for its sustainability efforts, including being named one of the World's Most Sustainable Companies of 2025 by TIME magazine [22] Outlook - The Civil business is expected to benefit from strong fundamentals and regulatory requirements for pilot training, with anticipated mid-single-digit percentage growth in adjusted segment operating income for fiscal 2026 [24][25] - The Defense segment is positioned for long-term growth, with expectations of low-double-digit percentage annual growth in adjusted segment operating income [26][27]

Group 1 - CAE will host its FY2026 Q1 financial results conference call on August 13, 2025, at 8:00 a.m. ET, inviting analysts and institutional investors to attend virtually [1][2] - The conference call will feature key executives including Calin Rovinescu, Marc Parent, and Matthew Bromberg [2][5] - A recording of the conference call will be available on CAE's investor relations website following the event [2][6] Group 2 - CAE's FY2025 Annual Meeting of Shareholders will take place on the same day, August 13, 2025, at 11:00 a.m. ET, both in person and via live webcast [1][5] - The in-person meeting will be held at 1250 René-Lévesque Blvd, Montreal, Quebec [5] - The conference call will also be accessible via telephone for North American participants [3]

Core Viewpoint - CAE Inc. has received regulatory approval to renew its normal course issuer bid (NCIB) to repurchase up to 16,019,294 common shares, representing approximately 5% of its issued and outstanding shares, from June 10, 2025, to June 9, 2026 [1]. Group 1: NCIB Details - The repurchases will be conducted through the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE), adhering to their respective rules and applicable securities laws [2]. - RBC Dominion Securities Inc. has been designated as CAE's broker for the NCIB, and an automatic repurchase plan agreement (ARPA) has been established to facilitate purchases during regulatory black-out periods [3]. - CAE's average daily trading volume (ADTV) over the last six months was 733,845 shares, allowing for a maximum daily repurchase of 183,461 shares under TSX rules [5]. Group 2: Previous NCIB Performance - Under the previous NCIB, which ran from May 30, 2024, to May 29, 2025, CAE purchased 856,230 shares at an average price of $24.85, totaling $21.3 million [7]. - All shares repurchased under the NCIB will be cancelled, reducing the total number of outstanding shares [6]. Group 3: Strategic Intent - The NCIB is part of CAE's capital allocation strategy, aimed at enhancing shareholder value through share repurchases [8].

Core Insights - CAE Inc. reported strong financial results for Q4 FY2025, with significant improvements in revenue, operating income, and free cash flow, driven by disciplined execution and efficient capital management [3][7][10] - The company achieved a record annual free cash flow of $813.9 million, reflecting a cash conversion rate of 211% [3][10] - CAE's adjusted order intake for the quarter was $1.3 billion, contributing to an adjusted backlog of $20.1 billion, which is a 65% increase from the previous year [3][10] Financial Performance - Q4 FY2025 revenue was $1,275.4 million, a 13% increase from $1,126.3 million in Q4 FY2024 [7][9] - Annual revenue for FY2025 reached $4.7 billion, up 10% from $4.3 billion in FY2024 [8][9] - Q4 FY2025 operating income was $239.9 million, compared to an operating loss of $533.0 million in the same quarter last year [7][10] - Annual operating income for FY2025 was $729.2 million, a significant recovery from an operating loss of $185.4 million in FY2024 [8][9] Segment Performance Civil Aviation - Q4 Civil revenue was $728.4 million, a 4% increase year-over-year, with an adjusted segment operating income margin of 28.6% [12][17] - Annual Civil revenue was $2,709.3 million, an 11% increase from $2,435.8 million in FY2024 [13][17] - Civil adjusted backlog grew nearly 40% to a record $8.8 billion, supported by $3.7 billion in adjusted order intake [4][16] Defense and Security - Q4 Defense revenue was $547.0 million, a 29% increase compared to the same quarter last year, with an adjusted segment operating income margin of 9.2% [18][22] - Annual Defense revenue was $1,998.6 million, an 8% increase from $1,847.0 million in FY2024 [19][22] - The adjusted backlog for Defense reached $11.3 billion, reflecting a robust demand driven by increased defense budgets across NATO and allied nations [20][22] Growth Outlook - The company anticipates continued growth in FY2026, supported by higher margins and strong free cash flow, with expectations of low-double-digit percentage annual adjusted segment operating income growth in Defense [5][32] - In Civil, the outlook remains strong due to regulatory requirements for pilot training and the ongoing need to train new pilots, despite some short-term headwinds [31][32] - CAE's business model is characterized by structural resilience and secular growth trends in both Civil and Defense segments, underpinned by recurring revenue streams [6][32] Capital Management - CAE's net debt at the end of FY2025 was $3,176.7 million, with a net debt-to-adjusted EBITDA ratio of 2.77 times, down from 3.36 times in the previous quarter [27][36] - The company expects to further deleverage its balance sheet, targeting a net debt-to-adjusted EBITDA ratio of 2.5 times by the end of FY2026 [36] - Total capital expenditures for FY2026 are expected to be modestly lower than FY2025, focusing on organic growth investments [35]