Question · Q2 2026
Jordan Leonette asked about the sustainability of strong defense product revenue in the quarter and CAE's protection against risks associated with fixed-price contracts in the defense sector.
Answer
Matthew Bromberg, President and CEO of CAE, highlighted CAE's unique position as a commercially organized entity with a defense business, allowing it to pursue both fixed-price and cost-type development contracts with agility. Dean Fisher, VP of Global Customer Strategy, BD and OEM Relationships, explained that the higher proportion of defense product revenue is due to new and recently signed contracts, particularly the Canadian FACT contract, which is product-heavy in its initial years.
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