CAE and TKMS sign teaming agreement to pursue the Canadian Patrol Submarine Project (CPSP)

Executive Summary

• CAE and German shipbuilder TKMS have entered a teaming agreement to jointly pursue the Canadian Patrol Submarine Project (CPSP), combining TKMS’s submarine design expertise with CAE’s simulation‑based training capabilities.
• The partnership positions CAE as a strategic provider of long‑term training, sustainment and mission‑system support for the future Royal Canadian Navy (RCN) submarine fleet, and may extend to other international naval programs.
• Both CEOs highlighted the importance of advanced, high‑fidelity simulation in preparing crews for complex under‑sea operations, underscoring the agreement’s role in enhancing Canada’s maritime security and industrial participation.

Key Details

• Parties Involved: CAE Inc. (NYSE: CAE, TSX: CAE) and ThyssenKrupp Marine Systems (TKMS).
• Purpose: To support TKMS’s bid for the CPSP by providing comprehensive training and sustainment solutions that replicate real‑world submarine operations.
• Scope of Collaboration:
• Development of simulation‑based training modules tailored to RCN’s future submarine fleet.
• Joint exploration of additional international and export opportunities involving training and simulation components for other subsurface and surface naval programs.
• Strategic Positioning: CAE is identified as a strategic partner for TKMS not only on the CPSP but also for broader engagements, potentially expanding CAE’s footprint in global defence training markets.
• Quotes:
• Matt Bromberg, President & CEO, CAE: “Our core responsibility is to give Royal Canadian Navy crews training that reflects the pressure and complexity they will face at sea… Together, we are strengthening the RCN's readiness and supporting Canada’s long‑term security.”
• Oliver Burkhard, CEO, TKMS: “Through this agreement with CAE, we are strengthening our ability to deliver an integrated and sustainable training solution as part of Canada's Patrol Submarine Project.”
• Implications for Stakeholders: The agreement may enhance CAE’s revenue streams from defence contracts, deepen its involvement in Canadian sovereign capabilities, and provide TKMS with a differentiated bid offering that includes advanced crew readiness solutions.

Notable Quotes

• “Training is a critical pillar of operational effectiveness for modern naval forces.” – Oliver Burkhard, CEO, TKMS
• “Submarine operations demand precision, teamwork and absolute readiness.” – Matt Bromberg, President & CEO, CAE