Today, the scale we bring to the global aviation ecosystem is unmatched. Each year, CAE trains more than 155,000 civil and military pilots across 240 locations in over 40 countries. In recent years, our training business has grown through approximately 50 acquisitions, including joint ventures, and organically, through sustained investment in our global training network. Our customers around the world rely on us daily as their training partner of choice — a responsibility we embrace with great pride.
The company we are today has transformed from the one I joined 20 years ago. We have evolved and grown in meaningful ways. Our culture of creativity and passion for our customers’ missions positions us for continued growth, innovation and relevance in the years ahead. Moreover, the industry’s ongoing recognition of our leadership in sustainability underscores our forward-thinking vision.
For all these reasons, I believe CAE’s future is brighter than ever.
Marc Parent, C.M.
President and Chief Executive Officer
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Positioning CAE for long-term success
On behalf of the leadership team, I am very pleased with CAE’s strong FY25 performance across all key financial and operational metrics. This year was marked by significant revenue growth, strong margins and further improvements in our cash position and leverage ratios, driven by robust cash generation and efficient capital allocation. On the strength of this performance, we are well positioned to achieve our long-term leverage and cash conversion targets in FY26 and to pursue accretive reinvestment opportunities and shareholder returns in the medium term.
Just a year ago, our primary focus was on re-baselining our Defense & Security (D&S) business to set the stage for steady, consistent performance improvements. This year, through discipline and determination, our team delivered on the ambitious goals we set, resulting in the financial recovery we anticipated in D&S. This progress has helped restore stakeholder confidence in the business and reaffirmed its vital contribution to CAE’s overall success. With a very strong year for D&S adjusted order intake1, we look forward to continued growth in revenue, profit and cash flow.
These achievements, combined with the continued strong performance of our Civil Aviation business, give me confidence that, despite current global macroeconomic uncertainty, we are well positioned to continue creating value for all our stakeholders. We have the right strategy, an exceptional leadership team, an unmatched competitive position and a wealth of opportunities ahead.
1 Non-IFRS financial measure, non-IFRS ratio, capital management measure, or supplementary financial measure. Refer to the Appendix for the definitions and reconciliations of these measures to the most directly comparable measure under IFRS.
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Civil Aviation
Continuing to soar as industry leader and trustworthy partner
Our Civil Aviation segment continues to benefit from long-term secular growth trends — most notably, the ongoing rise in global passenger traffic and associated aircraft delivery rates. Combined with the expected wave of mandatory pilot retirements, these trends point to a global demand for nearly 1.5 million aviation professionals by 2034. This includes not only pilots, but also maintenance technicians, cabin crew and air traffic control officers, as outlined in CAE’s recently published Aviation Talent Forecast.
In FY25, despite headwinds including limited aircraft availability, slower-than-expected aircraft delivery ramp-ups, and a related slowdown in U.S. pilot hiring, our Civil Aviation business delivered strong results. We believe this clearly demonstrates the resilience of our business model and the strength of CAE’s global franchise. Even in the face of these challenges, we made significant progress in expanding our global market share and reinforcing our role as the trusted partner for customers worldwide.
This year, we proudly opened state-of-the-art CAE training centres in Athens, Greece; Sydney, Australia; and Savannah, Georgia, in the U.S. We also continued to grow our market share organically
by expanding our commercial aviation training centre capacity and consolidating our ownership in SIMCOM. This move supports our customer Flexjet, one of the world’s leading business aviation fleet operators, and gives CAE greater exposure to the rapidly growing fractional jet and charter market. It also strengthens our position in the large-cabin segment of the business jet market, where both growth and returns have historically been higher.
Additionally, we expanded our presence in adjacent markets, most notably through Flightscape, our airline operations digital solutions business. This year, we secured several long-term customer contracts and positioned the business for future growth through continued investment in new products and features. We also inaugurated our first Air Traffic Services Training Centre on CAE’s Montreal campus, broadening our training portfolio. Under this first-of-its-kind partnership in Canada, CAE instructors deliver initial training for Flight Service Specialists and Air Traffic Controllers using NAV CANADA’s curriculum and courseware. This collaboration is a natural extension of our business and aligns with our core mission to make the world safer.
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Defense & Security
Exceeding financial targets through solid execution
Just one year ago, our company was intensely focused on the actions needed to re-baseline the D&S business and address lingering challenges from the COVID-19 pandemic, particularly those affecting several previously disclosed ("Legacy Contracts"). These changes were comprehensive, involving talent, processes, and organizational structure. Following the bold decisions required to implement these changes, our D&S segment delivered the expected performance improvements in FY25, with steady margin gains throughout the year and overall profitability exceeding our initial plans and outlook.
During the year, we completed work on three of the eight previously disclosed Legacy Contracts and made significant progress toward closing the remaining five. This progress reflects the effectiveness of our actions and the focus of our revitalized leadership team. We expect continued strong performance in the quarters ahead.
In addition to improved execution and steady performance, D&S secured significant new contracts globally, resulting in a 1.99x book-to-sales ratio1 for the year. Notably, we were selected to support Canada’s Future Aircrew Training program — a 25-year contract, and the largest in CAE’s history — and awarded a major
contract with General Atomics Aeronautical Systems for the Remotely Piloted Aircraft Systems program. Later in the year, we were named a strategic partner by the Government of Canada to collaborate with the Royal Canadian Air Force on the design and co-development of the Future Fighter Lead-in Training program, which will prepare pilots to operate Canada’s next-generation fighter aircraft.
Outside of Canada, other key wins included a successful recompete for the U.S. Army’s Advanced Helicopter Flight Training Support program through 2030 and the deployment of our integrated training solution for the U.S. Army’s High Accuracy Detection and Exploitation Systems program. This solution leverages technology from our Civil segment in a commercialstyle training model tailored for the U.S. Army.
Across NATO and allied nations, rising defence spending signals strong growth prospects and continued demand for the training and support solutions we provide. This growth, combined with our commitment to operational excellence and financial discipline, supports our confidence in sustained financial strength and market leadership.
1 Non-IFRS financial measure, non-IFRS ratio, capital management measure, or supplementary financial measure. Refer to the Appendix for the definitions and reconciliations of these measures to the most directly comparable measure under IFRS.
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Advancing performance and customer experience through technology
Once again, this year, we continued to relentlessly pursue advancing technologies that delight our customers, distinguish CAE’s capabilities in the marketplace, create new revenue streams, and enhance internal performance. As a company, we seek not only to perform exceptionally for our customers each and every day, but more importantly, to set the standard for our industry and all its stakeholders.
This year, we introduced the Unified Task Board, a new and exciting addition to our portfolio of solutions in the Flightscape airline operations software business. This solution integrates data from multiple airline operations control centre systems to streamline critical decision-making and boost operational efficiency during time-critical situations. Additionally, to enhance customer experience, we successfully deployed our CAE Connect solution to over 5,000 business aviation users, which was met with overwhelmingly positive feedback. This award-winning training platform serves as a one-stop shop for customers, where they can reserve their training sessions, access training records and much more.
With our Prodigy visual system, originally launched in D&S, we were the first aviation simulation and training organization in the world to seamlessly integrate a gaming engine into our full-flight simulator ("FFS") image generation. This year, the deployment of this system stretched beyond D&S, with Air Canada becoming the first airline to deploy an FFS with CAE Prodigy enhanced visuals. Furthermore, through our incubation organization, we developed an immersive pilot training application using the Apple Vision Pro. This development effort aims to further enhance the effectiveness and speed of safe pilot training, and will also enable pilots to conduct important training activities from anywhere, at any time.
Leveraging sustainability as a key business driver and differentiator
Our purpose is to make the world safer, and that includes safeguarding a sustainable future through all our actions as an enterprise. As such, sustainability remains central to CAE’s commitment to responsible operations and long-term value creation.
During the year, we made important progress on our decarbonization strategy. Approval received from the Science Based Targets initiative (SBTi) on our decarbonization targets will generate value for the business through better energy and cost efficiency and will also support our customers’ decarbonization efforts. As a part of this strategy, during FY25 we drove enhanced supplier engagement and supported the sustainability journey of our key supply chain partners through multiple initiatives, including, most notably, the CAE Resilient Together program.
With safety at the core of what we do and people as our most important asset, the new role of Chief People and Sustainability
Officer is evolving to maximize our impact by achieving greater synergies across human resources; environment, health and safety; and sustainability. This includes leveraging sustainability as a key driver for attracting and retaining top talent.
Today, more than ever, people are motivated by purpose. Purpose drives passion, passion drives growth and growth drives success. At CAE, our employees are passionate about what they do. Their dedication and innovative spirit help make us the partners of choice for our customers.
CAE’s unique, inclusive culture fuels our success and consistently positions us as a preferred employer, with recognition from multiple leading global and regional organizations — many of these being consecutive honours. In FY25, CAE was listed as Forbes World’s Top Companies for Women, Forbes’ Canada Best Employers and Canada’s Top 100 Employers, among other notable recognition.
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Leading CAE into the future
CEO succession
During this fiscal year, we announced my departure from CAE after more than a decade and a half of service as CEO. Alongside this announcement, CAE initiated a rigorous global selection process overseen by the Board. With the conclusion of this process, I am very pleased to welcome Matthew Bromberg as CAE’s Incoming President and CEO. As of the Annual and Special Meeting of Shareholders (“Meeting”) on August 13, 2025, I will officially pass the leadership torch to him.
I have known Matthew for many years and can personally attest to the reputation he has earned across our industry. While his experience is undoubtedly impressive, what truly stood out to me was how his strengths and values align with the principles that have guided CAE’s success.
Matthew has deep knowledge of what it means to prepare individuals for the moments that matter, and brings with him valuable insights from both the civil aviation and defence sectors. He not only understands our industry, but also the people behind the scenes who help shape it.
I will work alongside Matthew through the summer to ensure a seamless transition. I have no doubt that he will build on what we have accomplished and carry it forward with purpose.
Board renewal and appointments
Impactful changes in our Board composition occurred in FY25. We welcomed incoming directors Patrick Decostre, Ian L. Edwards, Peter Lee, Katherine A. Lehman, Louis Têtu and Calin Rovinescu, the new Board Chairman.
Calin offers a wealth of executive leadership experience and a proven track record of value creation. As the former CEO of longstanding client Air Canada and a steadfast champion of our work, he offers sharp industry acumen and firsthand understanding of the challenges and opportunities ahead. His guidance will be instrumental as we advance our strategy.
Following the upcoming Meeting, two governance roles will be introduced. Subject to their election to the Board, Calin Rovinescu will become Executive Chairman of the Board and Sophie Brochu, an independent Director since 2023, will serve as Lead Independent Director.
As Executive Chairman, Calin will work closely with Matthew in the development and execution of the CAE’s strategic initiatives and will be responsible for the effective functioning of the Board. In her new role, Sophie will ensure CAE retains strong Board governance. She will also preside over executive sessions of the independent Directors.
These appointments reflect CAE’s dedication to strengthening its leadership team to meet the evolving needs of its customers and stakeholders. Together, they will help guide CAE’s strategic priorities, expand its global reach and drive sustainable growth, while following best governance practices.
On behalf of the Board and executive leadership, I extend our thanks to Alan N. MacGibbon for his service and leadership as a director then Board Chair. Also, I share our appreciation to outgoing Directors Michael E. Roach, Andrew J. Stevens, Margaret S. (Peg) Billson, François Olivier and David G. Perkins, for the valuable contributions made during their tenure.
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Entering CAE’s next chapter
In taking stock of how CAE has progressed over the last several years, whether from a scale, capability, or customer perspective, I am encouraged by the possibilities that our future holds. And now more than ever, our corporate strategy is aligned to bring these possibilities to fruition. Our strategic focus on technology, operational excellence, customer centricity, and culture will be the key pillars that guide our actions as CAE enters its next chapter.
I have never been more assured of the strength of this company and the potential of its next generation of leaders. I am fully confident that those entrusted with taking CAE to the next level are well positioned for success and I am excited about the lasting impact this company will have on the world for years to come.
In closing, I offer my sincere thanks to CAE shareholders, employees, leadership, the Board of Directors and to the many partners who put their trust in CAE — and in me. It has been a memorable and rewarding experience, and I am grateful for the extraordinary contributions of everyone who has been part of this journey.
Be it as a citizen, airline passenger, industry advocate, or pilot, I will continue to champion CAE’s mission to make the world safer — a noble purpose that will forever remain close to my heart.
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Global Annual Activity and Sustainability Report Overview
At CAE, we exist to make the world safer.
Our cutting-edge training, simulation, and critical operations solutions empower pilots, airlines, defence and security forces to perform at their best every day and when the stakes are the highest.
We equip those in critical roles with the skills and expertise needed to move our world forward safely. We provide digitally immersive training and operational support solutions to two markets globally:
Civil Aviation
Including commercial airlines, regional airlines, business aircraft operators, civil helicopter operators, aircraft manufacturers, thirdparty training centres, flight training organizations, air navigation service providers, maintenance, repair and overhaul organizations and aircraft finance leasing companies.
Our mission
We deliver cutting-edge training, simulation, and critical operations solutions to prepare aviation professionals and defence forces for the moments that matter.
Defense & Security
Including defence forces, original equipment manufacturers (OEMs), government agencies and public safety organizations worldwide.
Our vision
To be the trusted partner in advancing safety and mission readiness, defining the standard of excellence in training and critical operations by harnessing technology and enhancing human performance.
We are a proud partner of choice for those operating in the most complex environments.
Roots in innovation
When Ken Patrick, a former Royal Canadian Air Force officer, founded CAE in 1947, his goal was to “… take advantage of a war-trained team that was extremely innovative and very technology intensive.” By the mid-1950s, we were already creating our first flight simulators. One innovation led to another and, by 1982, we had developed a flight simulator so realistic that training on real aircraft was no longer necessary.
The rest is history.
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Worldwide presence
Corporate # Civil Aviation # Defense & Security
≈ 240 locations
≈ 13,000 employees
40 + countries
One CAE.
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FY25 Corporate financial highlights
$4.7 billion
Annual revenue
$20.1 billion
1 Adjusted backlog
$7.7 billion
1 Adjusted order intake
$896.5 million
Net cash provided by operating activities
$813.9 million
1 Annual free cash flow
$729.2 million
Operating income
$732.0 million
1 Annual adjusted segment operating income (SOI)
$1.27
Basic and diluted EPS
$1.21
1 Adjusted earnings per share (EPS)
1 Non-IFRS financial measure, non-IFRS ratio, capital management measure, or supplementary financial measure. Refer to the Appendix for the definitions and reconciliations of these measures to the most directly comparable measure under IFRS.
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Our strategic pillars
Efficient growth
Our business features a high degree of recurring revenues due to the underlying characteristics of our technology-enabled solutions and regulatory requirements across our markets. We seek to maximize the benefits of our strong competitive position to deliver premium growth and profitability through a focus on operational rigour, cost optimization, capital efficiency and a disciplined approach to pursuing both organic and inorganic growth.
Technology and market leadership
We have a rich and long-dated history of customer centricity, innovation and delivering state-of-the-art technology solutions that define the forefront of the industries in which we operate. As a result, we constantly seek new ways to enhance the performance of our customers by fostering a culture of continuous improvement and innovation. This drives technology leadership, deeper customer partnerships and new customer development, enabling us to capitalize on the ample headroom in our large, growing addressable markets. Furthermore, our technologies are deployed with a focus on integrated sustainability.
Revolutionizing training and critical operations
We are a global leader in the application of training, digital immersion, critical operations and modelling and simulation technologies. We seek to use data-driven applications and advanced analytics to produce measurable and demonstrated outcomes in our markets. The efficacy of our technology solutions enables customized, collaborative and multidomain offerings.
Skills & culture
Our core values are innovation, integrity, empowerment, excellence and One CAE. We employ these values across a diverse global team to drive a unique social impact. We seek to create an employee experience and environment that values teamwork, professional growth and engagement. As a result, our employees across the globe share a passion to prepare our customers for the moments that matter.
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CAE
Advancing safety and sustainability in our industry
Sustainability is embedded in our culture and drives our priorities, decisions and actions at the outset. It is integral to CAE’s values and to how our organization makes a difference in the world.
Our sustainability strategy is grounded in our core purpose to make the world safer, and this starts with our business lines.
Civil Aviation is the global partner of choice of aviation professionals, airlines, air traffic controllers, business aircraft operators and aircraft manufacturers. Civil Aviation contributes to moving safety and industry decarbonization forward. We are dedicated to reducing direct carbon emissions through a sustainable aviation plan that includes developing an electric conversion kit for our training aircraft.
