CAE Inc.

Good day, ladies and gentlemen. Welcome to the CAE First Quarter Financial Resource for Fiscal Year 2026 Conference Call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity for analysts to ask questions. To join the question queue, you may press star, then 1 on your telephone keypad. If you need assistance during the conference call, you may signal an operator by pressing star, then 0. I would like to turn the conference over to Mr. Andrew Arnovitz. Please go ahead, Mr. Arnovitz.

Good morning, everyone, and thank you for joining us today. Before we begin, I'd like to remind you that today's remarks, including management's outlook and answers to questions, contain forward-looking statements. These forward-looking statements represent our expectations as of today, August 13, 2025, and accordingly our subject to change. Such statements are based on assumptions that may not materialize and are subject to risks and uncertainties. Actual results may differ materially, and listeners are cautioned not to place undue reliance on these forward-looking statements. A description of the risks, factors, and assumptions that may affect future results is contained in CEE's annual MD&A, and MD&A for the three months ended June 30, 2025, available on our corporate website and in our filings with the Canadian Securities Administrators on CDAR+, and at the U.S. Securities and Exchange Commission on EDGAR. On the call with me this morning from CAE are Caelan Rovinescu, the company's chairman, Marc Parent, president and chief executive officer, Matthew Bromberg, incoming president and chief executive officer, and Constantino Malatesta, our interim chief financial officer. Nick Leontidis, chief operating officer, is on hand for the question period. After formal remarks, we'll open the call to questions from financial analysts. Let me now turn the call over to Caelan.

Thank you, Andrew, and good morning, everyone. Since being appointed chairman of CAE earlier this year, I've had the chance to connect with a number of our long-term investors, many of whom I've known through my years at Air Canada. While this is my first time addressing the broader investment community in this role, I want to share why I was compelled to accept the chairman position, and more recently to take on expanded responsibilities as executive chairman. My relationship with CAE goes back many years. As president and CEO of Air Canada, I saw firsthand the value CAE brought as a trusted partner in building and sustaining a world-class training organization, particularly through our co-located training centers in Toronto and Vancouver. Earlier in my career, during my time in law and as a managing partner at Stikeman Elliott, I also had a connection to CAE through one of its original investors and longtime chairman, Fraser Elliott, co-founder of that firm that bore his name. And as an investor, I've been a longtime supporter of the company's mission and potential. So it's both an honor and a privilege to now take on an active role as executive chairman. I've reoriented my professional commitments to dedicate the time required to support Matt and help guide CAE's long-term direction. In addition to board duties, I'll work closely with him on strategy, operational excellence, and capital allocation with a clear focus on enhancing the customer experience, improving free cash flow conversion, and driving stronger returns on invested capital. A key priority will be deleveraging the balance sheet, not merely as a financial objective, but as a means to enhance shareholder value and strengthen CAE's long-term resilience. The company made solid progress last fiscal year and we're targeting a net debt to adjusted EBITDA ratio of approximately two and a half times by fiscal year end. I see that as a waypoint, not the final destination, as I believe we can go further in reinforcing our financial position. At the same time, we continue to give thoughtful consideration to the potential timing and form of shareholder returns, including dividends and share repurchases. We have a buyback program in place to be used opportunistically, and at the appropriate time, we may also consider reinstating a dividend. As Executive Chairman, I'll also engage regularly with key stakeholders, including investors and government leaders. With defense spending accelerating across NATO toward 5% of GDP, along with initiatives like the EU's ReArm strategy and renewed momentum in Canada, I intend to play an active role in positioning CAE as a strategic partner. This includes sustained engagement with federal and provincial governments, particularly in Quebec, where CAE is a long-standing anchor company. Our goal is to ensure CAE is recognized not only for its critical training and simulation capabilities, but also for the broader economic value we deliver through high quality jobs, exportable IP and technology leadership. As defense procurement and policy frameworks continue to evolve, we remain committed to close alignment and active participation. As you all know, today marks an important milestone for CAE as Matt Bromberg formally succeeds Marc Perrin and steps into the role of Chief Executive Officer following our AGM. I want to acknowledge Mark for his outstanding leadership and enduring contribution to CAE. Over his 21 years with the company, including 16 as CEO, Mark guided CAE through a period of tremendous transformation and growth. Under his stewardship, CAE became the global leader in civil aviation and defense training and simulation that it is today. Perhaps most importantly, Mark is widely credited with instilling a deeply customer-centric culture across the organization that continues to define the way CAE's more than 13,000 employees around the world serve our partners and stakeholders each day. Mark has earned a deep respect within the global aerospace industry and his impact extends far beyond CAE. His vision, passion, and unwavering commitment to excellence have helped shape the future of aviation training globally. On behalf of the board and the entire CAE team, I want to thank Mark for his legacy that will continue to inspire us as we build upon his accomplishments. It's also my pleasure to formally mark the beginning of Matt's tenure as Chief Executive Officer as he steps into this important leadership role at CAE. I had the privilege of leading the board's CEO selection process, and I'll speak briefly to the qualities and experience that led us to the clear conclusion that Matt is the right person to lead CAE into its next era as the company builds on nearly eight decades of leadership and innovation. His appointment follows a comprehensive and highly competitive international search. Given the distinctiveness of CAE's business, we sought a leader with a strong record of value creation in either aerospace or defense. And in Matt's case, we found both. We also prioritized candidates with experience managing complex large-scale global operations. And most recently, Matt led global operations at Northrop Grumman, where he drove significant enterprise-wide cost and performance transformations. Prior to that, he served as president of military engines at Raytheon and earlier as president of commercial aftermarket at Pratt & Whitney. Matt brings a rare combination of strategic insight, operational depth, and leadership acumen. He is, as one would expect of an MIT-trained engineer with a business degree, intellectually rigorous. But equally important, he brings a high degree of emotional intelligence. His track record of leadership in world-class aerospace and defense organizations combined with that important balance of IQ and EQ makes him exceptionally well-suited to carry forward CAE's unique culture, which we believe is one of our most important differentiators. Equally important to the board was Matt's full commitment to CAE's identity as a proudly Quebec-headquartered global company. Matt and his family are relocating to Montreal, which we view as essential. He has also begun taking French lessons, a reflection of his respect for our local roots and commitment to leading CAE in a way that is fully aligned with our values and culture. On behalf of the board and the broader CAE community, I want to formally welcome Matt as he begins this important new phase with us. As Matt, the management team, and I begin to assess CAE's forward plans, I'm highly optimistic about the next three to five year period. We're building on the strong foundation established under Mark's leadership and are now well positioned to unlock the next level of performance and value creation. With a refreshed board, new CEO, and an even sharper focus on financial and operational priorities, we see a clear path to delivering stronger returns. These internal drivers, combined with favorable long-term market dynamics, support what we believe is a compelling and durable investment thesis. In civil, the long-term fundamentals remain particularly strong, despite some timing noise around pilot hiring this summer. The two major aircraft OEMs currently hold a record combined backlog of more than 17,500 aircraft, and both forecast that the global in-service fleet will nearly double over the next 20 years. CAE also estimates that approximately 300,000 new pilots will be needed globally over the next decade to support this growth and offset retirements. These structural drivers point to a sustained runway for growth in commercial pilot training and in earnings. In business aviation, the long-term outlook remains quite positive as well, supported by strong aircraft OEM backlogs, an expanding population of high net worth individuals, and a shift towards fractional ownership models. We are in the early stages of a generational upcycle in defence, driven by rising geopolitical tensions and a surge in spending across NATO, the EU and Canada. This is fuelling sustained demand for advanced training and simulation. This is an area where CAE's global reach, technical capabilities and trusted customer relationships position us to lead. The Canadian government's renewed emphasis on aerospace and sovereign industrial capacity further reinforces the durability of this demand. As allied nations work to rebuild critical capabilities, CAE's alignment with national priorities, from mission readiness to supply chain resilience, supports our conviction in the long-term growth opportunity ahead. Importantly, our growing defense business provides a predictable revenue stream and adds balance to CAE's portfolio, offering meaningful upside in a sustained upcycle and complementing the secular growth we continue to see in civil aviation. Looking ahead, our priorities are disciplined execution, greater operating leverage, and translating earnings into robust and sustainable cash generation to support future investment and shareholder returns. With strong market tailwinds, a focused leadership team, and a reinforced internal foundation, I believe we're well positioned to deliver meaningful long-term value to our shareholders. Now turning to the first quarter performance, Overall, we had a solid start to the year amid a backdrop of heightened economic uncertainty. We delivered adjusted earnings per share of 21 cents and secured $1.1 billion of adjusted order intake. Defence delivered strong year-over-year growth in adjusted segment operating income and margin expansion, driven by improved execution and disciplined program management. In civil, performance was mixed with continued strength in business aviation, offset, as I said, by some near-term softness in commercial training and pilot hiring, consistent with the outlook we provided. I'll now turn it over to Mark and Constantino to walk you through the results in more detail.