Christine Lang

Christine Lang with Morgan Stanley sought clarification on the new ROIC threshold, asking if it has already been identified as higher or if the company is still in the process of firming up the new level, and requested more information on the process.

Answer

Matthew Bromberg, President and CEO of CAE, confirmed that higher thresholds have been identified. He explained that while the capital base is large and slow to move, the focus is on driving top-line performance from existing investments and making sound decisions for future investments. He reiterated that full guidance, including details on the new thresholds, will be provided when financial guidance for 2027 and beyond is announced.

Christine Lang sought clarification on the process and status of identifying and implementing new, higher ROIC thresholds for CAE's investments.

Answer

Matthew Bromberg, President and CEO of CAE, confirmed that higher ROIC thresholds have been identified. He explained that due to the large capital base, it will take time to optimize existing investments and make future decisions, with full guidance to be provided when 2027 financial guidance is announced.