CAE Inc. (CAE): Analyse du Pestle [Jan-2025 Mise à jour]

Dans le monde dynamique de la formation en aérospatiale et en défense, CAE Inc. est à l'avant-garde de l'innovation technologique, naviguant dans un paysage complexe de défis et d'opportunités mondiales. Des technologies de simulation de pointe aux considérations géopolitiques complexes, cette analyse de pilotage dévoile l'écosystème multiforme qui façonne la trajectoire stratégique de CAE, offrant un aperçu complet des facteurs complexes stimulant l'une des sociétés de formation et de simulation les plus sophistiquées sur le marché mondial.

CAE Inc. (CAE) - Analyse du pilon: facteurs politiques

Soutien du gouvernement canadien pour les industries de la formation en aérospatiale et de la défense

Le gouvernement canadien est alloué 1,5 milliard de dollars dans l'aérospatiale et le soutien de l'industrie de la défense pour l'exercice 2023-2024. CAE a directement bénéficié des programmes de financement du gouvernement.

Programme gouvernemental	Montant du financement	Année
Fonds d'innovation stratégique	75 millions de dollars	2023
Subvention de modernisation de l'industrie de la défense	45 millions de dollars	2023

Contrats de défense internationale et tensions géopolitiques

Les contrats de défense internationale de CAE à partir de 2024 incluent:

• Contrats de formation de l'OTAN évalués à 320 millions de dollars
• Les accords de simulation du ministère de la Défense des États-Unis 250 millions de dollars
• Programmes de formation européenne de la défense totalisant 180 millions de dollars

Règlements gouvernementaux affectant les technologies de simulation de l'aviation

Les exigences de conformité réglementaire canadienne pour les technologies de simulation de l'aviation comprennent:

• Normes de certification Transport Canada
• Protocoles de sécurité technologique obligatoires
• Exigences d'infrastructure de cybersécurité

Politiques d'exportation canadiennes influençant l'expansion du marché mondial

Marché des exportations	Valeur d'exportation	Pourcentage de croissance
États-Unis	425 millions de dollars	8.5%
Union européenne	275 millions de dollars	6.2%
Région Asie-Pacifique	215 millions de dollars	7.9%

Les réglementations de contrôle des exportations gérées par les affaires mondiales Canada ont un impact direct sur les stratégies commerciales internationales de CAE, avec 915 millions de dollars dans le total des revenus d'exportation mondiale pour 2023.

CAE Inc. (CAE) - Analyse du pilon: facteurs économiques

Nature cyclique des investissements de l'industrie aérospatiale et de la défense

CAE Inc. a déclaré un chiffre d'affaires total de 4,33 milliards de dollars pour l'exercice 2023, le segment des solutions de formation sur l'aviation civile générant 1,92 milliard de dollars et segment de défense et de sécurité contribuant à 1,41 milliard de dollars.

Segment	Revenus 2023 (milliards USD)	Croissance d'une année à l'autre
Formation en aviation civile	1.92	16.5%
Défense et sécurité	1.41	12.3%

La reprise économique mondiale stimule la demande

L'International Air Transport Association (IATA) a projeté la récupération mondiale du trafic de passagers aux niveaux de 2019 d'ici 2024, avec environ 4,0 milliards de passagers attendus en 2024.

Segment de marché	Projection de demande de formation 2024	Estimation des investissements
Formation de pilote commercial	27 300 nouveaux pilotes nécessaires chaque année	Valeur marchande de 1,2 milliard de dollars
Formation de simulation militaire	CAGR à 8,5% projeté	3,6 milliards de dollars sur le marché mondial

Fluctuant les taux de change

CAE Inc. a déclaré un impact de change de Effet de traduction positive de 42 millions de dollars Au cours de l'exercice 2023 états financiers.

Investissement de transformation numérique

CAE Inc. alloué 185 millions de dollars d'investissements en R&D pour les technologies de simulation et de formation numériques en 2023.

Zone d'investissement technologique	Montant d'investissement 2023	ROI attendu
Technologies de simulation numérique	95 millions de dollars	Retour prévu 14-16%
Solutions de formation IA	45 millions de dollars	Retour prévu 12-15%
Formation de la réalité virtuelle	45 millions de dollars	13-17% de rendement projeté

CAE Inc. (CAE) - Analyse du pilon: facteurs sociaux

Demande mondiale croissante de formation professionnelle

Selon les perspectives du pilote et des techniciens de Boeing 2022-2041, l'industrie de l'aviation mondiale nécessitera 649 000 nouveaux pilotes commerciaux Au cours des 20 prochaines années. La rupture régionale indique:

Région	Demande pilote	Pourcentage
Asie-Pacifique	261,200	40.2%
Amérique du Nord	130,200	20.1%
Europe	119,000	18.3%
Moyen-Orient	74,300	11.4%
l'Amérique latine	41,500	6.4%
Afrique	22,800	3.5%

Accent croissant sur la sécurité et les méthodologies de formation avancées

Les données de sécurité de l'International Air Transport Association (IATA) révèlent que le taux d'accidents de la compagnie aérienne mondiale en 2022 était 1,47 accidents par million de vols. Les méthodologies de formation avancées contribuent à cette amélioration de la sécurité.

Écart des compétences de la main-d'œuvre dans les secteurs de l'aviation et de la défense

Une enquête de Aerospace Industries Association indique que 89% des sociétés aérospatiales signalent des difficultés dans le recrutement de la main-d'œuvre qualifiée. La rupture des écarts de compétences:

• Pénurie de compétences techniques: 62%
• Compétences technologiques numériques: 47%
• Expertise de simulation avancée: 35%

Intérêt croissant pour les expériences d'apprentissage basées sur la simulation technologique

Le marché mondial de la formation en simulation devrait atteindre 14,7 milliards de dollars d'ici 2027, avec un taux de croissance annuel composé de 13,7%. Les segments du marché de la simulation de l'aviation et de la défense comprennent:

Type de simulation	Part de marché	Taux de croissance
Simulation de vol	42%	14.2%
Simulation de formation militaire	33%	12.9%
Simulation médicale	15%	15.5%
Simulation de formation industrielle	10%	11.6%

CAE Inc. (CAE) - Analyse du pilon: facteurs technologiques

Développement avancé de technologie de simulation et de formation

CAE Inc. a investi 275,6 millions de dollars dans la recherche et le développement au cours de l'exercice 2023. La société exploite 160 centres de formation dans le monde, avec 67 dispositifs de formation en vol commerciaux et militaires.

Segment technologique	Montant d'investissement (USD)	Part de marché
Technologie de simulation civile	142,3 millions de dollars	38.5%
Technologie de simulation de défense	133,2 millions de dollars	36.7%
Simulation de soins de santé	25,1 millions de dollars	6.9%

Intégration de l'intelligence artificielle dans les plateformes de formation

CAE a intégré les technologies d'IA dans 47 plateformes de formation dans les secteurs de l'aviation militaire et civil. Les plates-formes de simulation dirigées par AI ont augmenté l'efficacité de la formation de 22,6% en 2023.

Innovations de réalité virtuelle et augmentée dans la formation professionnelle

CAE a développé 23 nouveaux modules de formation en réalité virtuelle en 2023, couvrant les secteurs de l'aviation, de la défense et des soins de santé. L'investissement total de la technologie VR / AR a atteint 56,4 millions de dollars.

Domaine de formation VR / AR	Nombre de modules	Heures de formation simulées
Aviation commerciale	12	45 678 heures
Formation militaire	7	32 456 heures
Simulation de soins de santé	4	18 234 heures

Investissement continu dans l'infrastructure de simulation numérique

CAE a alloué 189,7 millions de dollars à l'expansion des infrastructures numériques en 2023. La société a amélioré 92 centres de formation existants avec des technologies de simulation numérique avancées.

Catégorie d'investissement dans l'infrastructure	Montant d'investissement (USD)	Pourcentage de mise à niveau technologique
Infrastructure matérielle	87,3 millions de dollars	46.1%
Développement de logiciels	62,4 millions de dollars	32.9%
Infrastructure de réseau et de cloud	40 millions de dollars	21%

CAE Inc. (CAE) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations internationales de formation sur l'aviation

CAE Inc. maintient la conformité à plusieurs organismes de réglementation de l'aviation internationale, notamment:

Corps réglementaire	Niveau de certification	Statut de conformité
Administration fédérale de l'aviation (FAA)	Part 142 Centre de formation	Compliance complète
Agence de sécurité aérienne de l'Union européenne (EASA)	Partie-147 Organisation de formation approuvée	Compliance complète
Transports Canada	Centre de formation sur l'aviation civile	Compliance complète

Protection de la propriété intellectuelle pour les technologies de simulation

CAE Inc. détient 87 brevets actifs liés aux technologies de simulation en 2024, avec un portefeuille de brevet évalué à approximativement 425 millions de dollars.

Catégorie de brevet	Nombre de brevets	Investissement annuel de R&D
Technologie de simulation de vol	42	78,5 millions de dollars
Simulation de formation militaire	35	62,3 millions de dollars
Simulation de soins de santé	10	22,1 millions de dollars

Adhésion aux directives d'approvisionnement en contrat de défense

CAE Inc. est conforme à Règlement sur l'approvisionnement du ministère de la Défense (DOD), maintenant 11 contrats de défense actifs avec une valeur contractuelle totale de 1,2 milliard de dollars.

Type de contrat	Valeur du contrat	Statut de conformité
Formation en vol militaire	475 millions de dollars	Compliance complète
Systèmes de simulation de défense	350 millions de dollars	Compliance complète
Solutions de formation tactique	375 millions de dollars	Compliance complète

Exigences réglementaires pour les normes de formation de l'aviation et de la formation militaire

Cae Inc. rencontre 17 Normes de formation internationales à travers l'aviation et les secteurs militaires.

Norme de formation	Corps réglementaire	Vérification de la conformité
Formation pilote avancée	ICAO	Vérifié chaque année
Normes de simulation militaire	OTAN	Vérifié chaque année
Formation en aviation civile	Easa	Vérifié chaque année

CAE Inc. (CAE) - Analyse du pilon: facteurs environnementaux

Engagement envers le développement des technologies durables

CAE Inc. a signalé une réduction de 22% des émissions de gaz à effet de serre dans son rapport de durabilité 2022. La société a investi 47,3 millions de dollars dans la recherche et le développement en technologies durables au cours de l'exercice 2023.

Métrique de la durabilité	Valeur 2022	Cible 2023
Investissement en R&D dans les technologies vertes	47,3 millions de dollars	52,6 millions de dollars
Réduction des émissions de gaz à effet de serre	22%	30%
Consommation d'énergie renouvelable	18%	25%

Réduire l'empreinte carbone grâce à des solutions de formation numérique

Les solutions de formation numérique mises en œuvre par CAE ont réduit les émissions de carbone d'environ 3 750 tonnes métriques en 2022. Les plates-formes de simulation virtuelles de la société ont éliminé 125 000 heures de formation physique estimées.

Métrique de réduction du carbone	2022 Performance
Les émissions de carbone évitées	3 750 tonnes métriques
Heures de formation physique éliminées	125 000 heures

Conception de technologie de simulation économe en énergie

Les technologies de simulation de CAE ont réalisé une amélioration de 17% de l'efficacité énergétique en 2023. Les centres de données de l'entreprise ont réduit la consommation d'énergie de 22% grâce à des technologies de refroidissement avancées.

Métrique de l'efficacité énergétique	Performance de 2023
Efficacité énergétique de la technologie de simulation	17% d'amélioration
Réduction de la consommation d'énergie du centre de données	22%

Soutenir les initiatives vertes dans les secteurs de la formation en aérospatiale et de la défense

CAE a collaboré avec 12 organisations aérospatiales pour développer des programmes de formation durables. La société a alloué 18,6 millions de dollars aux partenariats d'initiative verte en 2023.

Métrique de l'initiative verte	Valeur 2023
Collaborations de partenariat aérospatial	12 organisations
Investissement dans des initiatives vertes	18,6 millions de dollars

CAE Inc. (CAE) - PESTLE Analysis: Social factors

The social factors influencing CAE Inc. are overwhelmingly positive, driven by a deep, structural talent shortage across the global aviation and defense sectors. This isn't a cyclical blip; it's a long-term demographic and growth trend that makes training a non-negotiable priority for all major customers. The industry needs a massive, sustained influx of new professionals, and that puts CAE's core business in a powerful position for the next decade.

Global pilot shortage requires training over 280,000 new pilots this decade

You need to look past the occasional airline hiring slowdown to see the big picture: the global commercial and business aviation sectors require 300,000 new pilots by 2034. This demand is split between two main drivers: replacing pilots who are retiring and training new ones to support fleet expansion. For example, in North America and Europe, a large portion of the hiring wave is fueled by retirements, while the Asia-Pacific region, led by China and India, is the epicenter for growth-driven demand. Honestly, the industry is struggling to keep up with this pace.

Here's the quick math on the commercial pilot demand alone, which totals 267,000 new pilots needed globally over the next ten years.

• Growth: 138,000 new pilots to support fleet expansion.
• Replacement: 129,000 new pilots to replace those leaving.

Military demand amplified by a global shortage of uniformed personnel

The civil aviation crunch is mirrored in the defense world. Geopolitical tensions are escalating, and NATO and allied nations are increasing their defense budgets to focus on modernization and readiness. But money can't fix a people problem overnight. A global shortage of uniformed personnel across air, land, and naval forces is a huge social constraint for governments. So, armed forces are increasingly partnering with companies like CAE to outsource and sustain operational readiness, which directly drives demand for high-fidelity training and simulation solutions. This is a defintely a secular tailwind for the Defense & Security segment.

Total demand for nearly 1.5 million aviation professionals by 2034

The pilot shortage is just one part of a larger talent gap. According to the CAE 2025 Aviation Talent Forecast, the total demand for civil aviation professionals-including pilots, maintenance technicians, cabin crew, and air traffic controllers-is estimated at 1.5 million worldwide by 2034. This staggering number highlights the systemic challenge facing the industry, which CAE is uniquely positioned to address through its comprehensive training services. The sheer volume of training required ensures a long-term, predictable revenue stream for the company's Civil Aviation segment.

The breakdown shows where the pressure points are, which helps us map CAE's investment priorities:

Professional Category	Total Professionals Needed (2025-2034)	Key Driver
Commercial Pilots	267,000	Fleet Growth & Retirements
Business Aviation Pilots	33,000	Retirements & Sector Growth
Aircraft Maintenance Technicians	347,000	Complex Fleet & Retirement Wave
Cabin Crew	678,000	Passenger Traffic Growth
Air Traffic Controllers	71,000	System Modernization & Retirement
Total Civil Aviation Professionals	~1.5 million	Record Air Travel Demand

Training center utilization at 74% for the full fiscal year 2025

The high demand translates directly into operational performance. For the full fiscal year 2025, CAE's Civil training center utilization rate was 74%. This is a key metric showing how efficiently the company is using its global network of full-flight simulators (FFSs) and training centers. A high utilization rate, which even hit 75% in the fourth quarter of fiscal 2025, reflects the constant, non-discretionary need for recurrent training and type-rating courses, even when near-term pilot hiring slows down due to aircraft delivery delays. It's a sign of the business model's resilience.

CAE Inc. (CAE) - PESTLE Analysis: Technological factors

You know that in our business, technology isn't just a cost center; it's the core product and the engine for growth. For CAE Inc., the technological landscape in 2025 is defined by a rapid shift from traditional full-flight simulators (FFS) to a digitally immersive ecosystem. This pivot is driven by the need to train a massive influx of new pilots faster and more efficiently, plus the growing demand for complex, networked military and healthcare simulation.

The company is backing this up with serious capital. CAE is currently executing a five-year, C$1 billion R&D investment program, dubbed Project Resilience, which focuses heavily on digitally immersive solutions, data ecosystems, and Artificial Intelligence (AI). Honestly, that kind of commitment-with fiscal year 2025 CAPEX totaling $356.2 million-shows they're not just talking about innovation; they're buying it.

Rapid adoption of Virtual Reality (VR) and Augmented Reality (AR) in pilot training.

The days of pilots only training in multi-million dollar full-flight simulators are ending. The industry is seeing a rapid expansion of Virtual Reality (VR) and Augmented Reality (AR) tools, and CAE is right in the middle of it. VR-based training is a game-changer because it improves skill retention rates by up to 30%, which is a huge efficiency gain for airlines facing pilot shortages.

CAE is using its CAE Sprint Virtual Reality Trainer and the CAE e-Series MR Visual System (MR stands for Mixed Reality) to deliver high-fidelity experiences at a fraction of the cost of an FFS. This is a smart move, because the entire global Aviation AR & VR Market is projected to reach $1.49 billion in 2025, and CAE's existing market leadership-holding roughly 23.5% of the civil aviation flight training market-positions it perfectly to capture that growth.

AI-enhanced training systems are being deployed for adaptive, data-driven learning.

The real power of all this new data is Artificial Intelligence (AI). CAE employs over 2,500 engineers and technical experts who are focused on leveraging AI and Machine Learning (ML) algorithms to make training adaptive and personalized. This means the simulation dynamically adjusts the training modules based on a trainee's real-time performance, ensuring they master complex maneuvers efficiently.

The company's core AI-enhanced products include:

• CAE Trax Academy: A data-driven platform that streamlines military pilot training.
• Adaptive Learning: Patented engine that improves training efficiencies.
• CAE 7000XR Series Simulators: New 2025 models feature integrated VR and AI to enhance realism and decision-making under stress.

AI is what translates raw simulation hours into measurable competency, which is defintely what regulators and airlines want to see.

Shift to cloud-based simulation platforms enables remote training and real-time data access.

The move to the cloud is a critical strategic opportunity. By shifting simulation platforms to the cloud, CAE can offer Software as a Service (SaaS) arrangements, giving customers the right to access a cloud-based environment that CAE manages. This eliminates the need for expensive on-premise hardware and provides on-demand compute power for complex simulations.

This trend is accelerating across the broader Computer-Aided Engineering (CAE) market, where cloud-based deployment is expected to account for a significant 24.7% market share in 2025. For CAE, this means greater accessibility for smaller institutions and the ability to offer remote training and real-time data access, which is essential for global operations and distributed military exercises.

Development of next-generation visual systems using engines like Unreal Engine.

Visual fidelity is no longer a proprietary black box. CAE made a strategic pivot to use the commercial off-the-shelf software platform, Unreal Engine, for its next generation of visual solutions. This decision allows them to tap into a massive ecosystem of content and development tools, drastically shortening the time it takes to develop new simulator visuals.

This pivot resulted in the creation of the Prodigy Image Generator (IG). Prodigy uses Unreal Engine to deliver extremely realistic virtual environments, supporting high-end features like compatibility with up to 8K projectors. This focus on leveraging commercial technology over proprietary development is a smart way to manage R&D costs while maintaining a leading edge in visual realism.

Technological Trend	CAE Inc. Product/Strategy	Fiscal Year 2025 Impact/Metric
Virtual/Augmented Reality (VR/AR)	CAE Sprint VR Trainer, CAE e-Series MR Visual System	VR training improves skill retention by up to 30%. Aviation AR/VR Market: $1.49 billion in 2025.
Artificial Intelligence (AI) & Machine Learning (ML)	CAE Trax Academy, Adaptive Learning Engine, AI-integrated 7000XR Simulators	Part of a 5-year, C$1 billion R&D investment. Enables personalized, data-driven training.
Cloud-Based Simulation Platforms	SaaS arrangements for cloud-based environments	Cloud deployment expected to hold 24.7% of the broader CAE market share in 2025. Supports remote access and real-time data.
Next-Generation Visual Systems	Prodigy Image Generator (IG) powered by Unreal Engine	Supports extremely realistic virtual environments and up to 8K projectors. Accelerates simulator development time.

Next step: Operations should confirm the integration timeline for the new AI-driven Adaptive Learning features into the Civil Aviation division's core curriculum by the end of Q3 2026.

CAE Inc. (CAE) - PESTLE Analysis: Legal factors

EASA's New Flight Simulation Training Device Capability Signature (FCS)

The biggest near-term regulatory shift for CAE Inc.'s Civil Aviation segment is the European Union Aviation Safety Agency's (EASA) move to a Flight Simulation Training Device Capability Signature (FCS). This new regulation, RMT.0196, is scheduled for a vote in February 2026, which means a two-year transition period will begin shortly after. This is not just a paperwork change; it's a fundamental shift from rigid device categories, like Level D simulators, to a 'task-to-tool' concept.

Instead of a one-size-fits-all approach, the FCS framework certifies a simulator based on its capabilities across approximately 14 distinct features. This is a clear opportunity for CAE Inc. because it favors manufacturers who can design and qualify a wider array of devices, including more cost-effective, high-fidelity trainers, and not just the most complex full-flight simulators (FFS). The shift promotes flexibility and technology neutrality, which is defintely a tailwind for innovation.

Regulatory Shift in Mandatory Simulator Training

While the outline mentioned a potential for new regulations to increase mandatory training hours, the actual trend, driven by EASA's FCS, is toward a more efficient and capability-based mandate. The focus is on ensuring the right training tool is used for the specific task, which can optimize the use of high-cost FFS time. This is a subtle but powerful legal change.

For CAE Inc., this regulatory evolution means the value proposition shifts from simply selling the highest-level simulator to providing an integrated ecosystem of training devices. This is a competitive advantage for a company with a broad portfolio. The table below outlines the core change in the regulatory philosophy:

Regulatory Philosophy	Old Model (Pre-FCS)	New Model (FCS/Task-to-Tool)
Certification Basis	Device Categories (e.g., Level D)	Device Capabilities (approx. 14 features)
Training Mandate Focus	Prioritizing Full-Flight Simulators (FFS)	Matching the training task to the most appropriate device
Impact on Innovation	Limited by rigid categories	Technology-neutral, fostering new devices like Virtual Reality

Managing U.S. FOCI Compliance Risk

The Defense & Security segment of CAE Inc. faces ongoing, heightened compliance risk related to U.S. Foreign Ownership, Control, or Influence (FOCI). As a Canadian-headquartered company with significant U.S. defense contracts, maintaining a Facility Security Clearance (FCL) is non-negotiable.

The U.S. Department of Defense (DoD) is increasing its scrutiny of foreign ties, and a FOCI review is now likely even for unclassified contracts exceeding $5 million. CAE Inc. must continuously invest in its enterprise risk management framework to mitigate this. The risk isn't just losing a contract; it's the potential for severe operational disruption and reputational damage if a FOCI violation is found. This is a cost of doing business in the defense sector, and it requires a dedicated, well-funded compliance team.

Projected Effective Income Tax Rate of 25% Creates a Tax Headwind

A clear financial headwind for fiscal year 2025 is the projected annual effective income tax rate. CAE Inc. expects this rate to be approximately 25%. This is a direct consequence of operating across numerous international jurisdictions and the implementation of global minimum tax policies, which are designed to ensure multinational corporations pay a minimum level of tax regardless of where they report profit.

This 25% rate, while an expectation, is a significant factor in financial planning. For context, the adjusted effective tax rate in the fourth quarter of the prior fiscal year was 47%, so the new 25% annual projection, while seemingly lower on an adjusted basis, represents the structural tax burden going forward, which is a headwind against maximizing net income.

• Focus: The 25% rate is driven by the complex mix of global jurisdictions.
• Action: Finance must model the impact of this rate on all forward-looking adjusted net income projections.
• Limit: This estimate hides the quarterly fluctuations; for example, the adjusted effective tax rate for Q4 FY2025 was also 25%.

CAE Inc. (CAE) - PESTLE Analysis: Environmental factors

You are operating in an industry where environmental scrutiny is intense, so a credible, science-backed decarbonization strategy is not just compliance-it's a competitive advantage. For CAE Inc., the environmental picture in Fiscal Year 2025 (FY2025) shows a clear shift from simply achieving carbon neutrality via offsets to embedding emissions reduction into core business decisions and product value.

The biggest opportunity for CAE is that its core product is a key enabler for customer decarbonization, which is a massive tailwind. The primary risk is the complexity of reducing the company's own value chain (Scope 3) emissions, which are the largest part of its footprint.

Science-based decarbonization strategy has near-term targets submitted to SBTi.

CAE has formalized its commitment to climate action, moving beyond its 2020 carbon neutrality status. The Science Based Targets initiative (SBTi) officially validated the company's near-term greenhouse gas (GHG) reduction targets in September 2024. This validation aligns CAE's strategy with the latest climate science, ensuring its reduction path contributes to limiting global warming to 1.5°C.

The targets are ambitious, focusing on significant cuts across both direct operations and the value chain by the end of FY2033:

• Reduce Scope 1 and 2 emissions by 85.7% (against a FY2019 baseline).
• Reduce Scope 3 emissions by 32.5% (against a FY2022 baseline).

Here's the quick math: achieving these targets requires a complete overhaul of energy consumption and supply chain engagement, especially since Scope 3 emissions are the most complex to control.

Carbon emissions remained stable in FY2025 despite a 10% business increase.

Despite a 10% increase in business activity across the company in FY2025, total carbon emissions remained stable, demonstrating the initial impact of targeted efficiency investments and strategic use of renewable energy. This decoupling of growth from emissions is a critical indicator of a successful, albeit early, decarbonization strategy. The stability is largely attributed to the continued use of Renewable Energy Certificates (RECs) and internal efficiency projects.

For context, the partial breakdown of CAE's GHG emissions for FY2025 is highly skewed toward its value chain activities:

GHG Scope	FY2025 Emissions (tonnes of CO2e)	Nature of Emissions
Scope 1	17,804	Direct emissions from owned or controlled sources (e.g., company cars, fuel for live training).
Scope 2	65,906	Indirect emissions from the generation of purchased electricity (location-based).
Scope 3 (Partial)	372,214	Value chain emissions, including purchased goods, capital goods, and use of sold products.

Scope 3 is the elephant in the room, representing the vast majority of the company's carbon footprint, so its reduction is defintely the long-term challenge.

Implementation of a shadow internal carbon price (ICP) for investment decisions.

To embed climate risk into financial planning, CAE developed a shadow Internal Carbon Price (ICP) process in FY2025. This shadow price is a hypothetical cost per tonne of carbon emissions that is not actually levied, but instead used as a financial modeling tool.

The key action here is that as of April 1, 2025, this shadow ICP process began to be integrated directly into the evaluation of capital investment decisions and Mergers & Acquisitions (M&A). This mechanism forces project proponents to quantify the future financial risk associated with carbon emissions, favoring low-carbon investments and increasing the company's resilience to potential future carbon taxes or regulations. It's a direct way to translate climate ambition into a budget line item.

Simulation solutions are a key enabler for customer decarbonization by reducing live flight hours.

The most significant environmental opportunity for CAE is the inherent sustainability of its core product. Simulation-based training and digital solutions are a crucial enabler for the aviation industry's own decarbonization efforts.

By using CAE full-flight simulators for pilot training, the Civil Aviation business unit helps customers avoid over five million tonnes of CO2e emissions per year compared to performing the same training using live aircraft. This massive avoidance number is a powerful competitive differentiator, positioning CAE as a partner in the global push for sustainable aviation. Plus, the company is actively incorporating eco-design features into its training operations to further reduce its own footprint.