1. CAE secures a $270M CAD contract with Australia for military training systems. 2. The contract spans 10 years, enhancing RAAF's air mission training capabilities. 3. Collaboration with key industry partners ensures advanced training environments. 4. Over 40 new jobs will be created in Victoria, Australia, by 2028. 5. This solidifies CAE's longstanding relationship with the RAAF since 1994.
The significant contract with Australia indicates strong future revenue potential for CAE, akin to prior major contracts that have positively influenced stock performance.
The contract's size and strategic importance to CAE's defense portfolio greatly enhance its financial outlook, justifying a high importance score.
The 10-year performance period suggests sustained revenue flow, with anticipated job growth and presence in the defense sector driving long-term stability.
CAE (NYSE: CAE; TSX: CAE) has announced a significant contract with the Commonwealth of Australia to provide the Future Air Mission Training System (F-AMTS) as part of Project AIR5428 Phase 3 for the Royal Australian Air Force (RAAF). This landmark agreement, valued at over $270 million CAD, marks a pivotal development in the training capabilities for the Australian Defence Force, scheduled for an initial performance period of ten years.
The F-AMTS aims to revolutionize the way the RAAF trains its mission aircrew. In collaboration with industry leaders including Nova Systems, Adacel, DXC Technology, Milskil, MMCLD, Airflite, and Seeing Machines, CAE will implement a comprehensive and integrated training system. This system is designed to include:
These components will work together to replicate complex real-world operations, thereby enhancing the effectiveness of training for RAAF personnel.
The F-AMTS will be established at RAAF Base East Sale in Victoria, contributing to the training of various critical positions, including:
This comprehensive training approach will create an engaging learning experience and enhance post-graduate instructor training, equipping future leaders with the tools needed for effective instruction.
According to France Hébert, President of Defense & Security – Canada and International, “Achieving mission readiness for today's rapidly evolving defence landscape requires a training partner who deeply understands operational challenges.” He further emphasized that this contract signifies a strategic investment in Australia's defense capabilities and national resilience.
This initiative will initially generate over 40 new skilled jobs within CAE in Victoria, Australia, with the first cohort of students expected to graduate by 2028.
This contract further strengthens CAE's enduring partnership with the RAAF, which has been in place since 1994. Over the years, this collaboration has successfully trained multiple generations of Australian military aircrew, establishing CAE as a trusted provider in training and simulation solutions.
With nearly 80 years of experience in the industry, CAE remains committed to enhancing mission readiness and safety for aviation and defense personnel around the world. By delivering cutting-edge training technologies, CAE aims to continue setting standards in the field and supporting the operational requirements of defense forces globally.
CAE is dedicated to making the world safer through advanced training, simulation, and operational solutions tailored for aviation and defense professionals. With approximately 13,000 employees across 240 sites in over 40 countries, CAE continually innovates to support the highest standards in training and operational readiness.