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    James McGarragle • RBC Capital Markets

    James McGarragle's questions to CAE Inc (CAE) leadership

    James McGarragle's questions to CAE Inc (CAE) leadership • Q1 2026

    Question

    James McGarragle of RBC Capital Markets questioned the puts and takes for the Civil margin outlook given the drop in utilization, and also asked about the drivers of the strong Q1 Defense margin and its implication for the rest of the year.

    Answer

    On Civil margins, COO Nick Leontidis cited improved utilization and cost controls as drivers for the second half. On Defense, Interim CFO Constantino Malatesta explained that the strong Q1 margin was due to the timing of contracts rolling off and on, and reiterated the unchanged annual guidance due to potential quarterly volatility.

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    James McGarragle's questions to CAE Inc (CAE) leadership • Q3 2025

    Question

    James McGarragle from RBC Capital Markets asked about CAE's positioning regarding potential tariffs and whether they have impacted customer decisions. He also questioned the drivers of the strong Defense margins in Q3 and the outlook for future margin expansion.

    Answer

    CEO Marc Parent stated that no material short-term impact from tariffs is expected, as most revenue is from in-country services and CAE can adapt its supply chain if needed. On Defense margins, Mr. Parent, Interim CFO Constantino Malatesta, and COO Nick Leontidis attributed the strong performance to excellent execution, risk reduction on programs, and a favorable business mix, rather than one-time items, expressing confidence in continued expansion.

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    James McGarragle's questions to CAE Inc (CAE) leadership • Q1 2025

    Question

    James McGarragle of RBC Capital Markets asked for drivers of the expected second-half Defense margin increase and whether the announced $20 million in savings is incremental to future guidance. He also inquired about the magnitude of restructuring expenses beyond Q2.

    Answer

    COO Nick Leontidis attributed the second-half Defense margin improvement to both cost savings and execution of a higher-quality backlog, noting the savings add confidence to the forecast. CFO Sonya Branco stated that upcoming Q2 restructuring costs will be mostly cash-based, are factored into the free cash flow guidance, and have a payback period of approximately 1.5 years.

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    James McGarragle's questions to Algoma Steel Group Inc (ASTL) leadership

    James McGarragle's questions to Algoma Steel Group Inc (ASTL) leadership • Q2 2025

    Question

    James McGarragle of RBC Capital Markets questioned the outlook for realized pricing in Q3, particularly the 40% discount in Canada, given the 50% U.S. tariff was only partially in effect in Q2. He also asked about the Q3 cost of goods sold forecast and the status of the federal loan application.

    Answer

    CFO Rajat Marwah stated that the pricing discount in the oversupplied Canadian market is expected to remain around the 40% mark in Q3. He also projected that cost of goods sold should be similar to Q2, with a potential seasonal increase in Q4. Regarding the federal loan, CEO Michael Garcia described discussions as "very active" and characterized the engagement with the government as positive, but declined to share further details.

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    James McGarragle's questions to Algoma Steel Group Inc (ASTL) leadership • Q1 2025

    Question

    James McGarragle questioned the outlook for cost of goods sold in Q2 given the EAF ramp-up and cost initiatives, and also asked about the potential impact of recent U.S. auto tariff developments on Algoma's pricing power and demand.

    Answer

    CFO Rajat Marwah projected that the overall blended cost of production should improve to the CAD $1,020 to $1,040 per ton range in Q2, down from Q1 due to lower utility costs. CEO Michael Garcia explained that the recent U.S. auto tariff announcements provide more certainty to the supply chain, which could support volumes, but he does not expect it to create an opportunity for Algoma to increase its prices.

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