Cubic Corporation designs, integrates and operates systems, products and services focused in the transportation, command, control, communication, computers, intelligence, surveillance and reconnaissance (C4ISR), and training markets. The company offers integrated payment and information systems, expeditionary communications, cloud-based computing and intelligence delivery, as well as training and readiness solutions.
The company operates through Cubic Transportation Systems (CTS) and Cubic Mission and Performance Solutions (CMPS) segments.
This segment integrates payment, information technology and services for intelligent travel solutions. The company engages in the design, development, production, installation, maintenance and operation of automated fare payment, traffic management and enforcement solutions, real-time information systems, and revenue management infrastructure and technologies for transportation agencies. As part of its turnkey solutions, this segment also provides these customers with a suite of business process outsourcing services and expertise, such as card and payment media management, central systems and application support, retail network management, customer call centers and financial clearing and settlement support.
As a partner with transportation authorities and operators, the company has installed systems in approximately 40 markets on four continents. The company operates in large-scale automated fare payment and revenue management systems and services for major metropolitan areas, such as London (Oyster/Contactless Payment), the New York region (Metrocard/OMNY), the Chicago region (Ventra), the San Francisco Bay Area (Clipper), the Vancouver region (Compass), the Sydney region (Opal Card) and the Brisbane region (Go Card). The company is designing and building major new systems in New York, Boston, Brisbane, and the San Francisco Bay Area.
Through its NextBus, ITMS, Trafficware and GRIDSMART businesses, the company provides advanced transportation operational management capabilities and related services to various customers, including organizations, such as Transport for London, Transport Scotland, Highways England, Transport for Greater Manchester, Los Angeles Metro, San Francisco Muni and the Toronto Transit Commission. The company also provides a modern tolling and road user charging alternative that uses tools that are flexible and modular compared to the proprietary, legacy systems that the industry views as their only option.
This segment serves defense C4ISR and training customers worldwide. The company offers expeditionary communications, cloud-based computing and intelligence delivery, as well as training, readiness and performance solutions. The company provides its global customers with mission-critical solutions to increase operational readiness, effectiveness and performance.
In the fourth quarter of 2020, the company combined its Cubic Mission Solutions (CMS) and Cubic Global Defense Systems (CGD) segments to form this segment.
CMS provides C4ISR capabilities for defense, intelligence, security and commercial missions. The company’s rugged IoT solutions provide a range of deployable and tactical communications products to meet the mission requirements of its military, government, first-responder and civilian customers. Its protected communications products also include RF data links, search and rescue avionics and customized radio products. The company offers a range of Command and Control, Intelligence, Surveillance and Reconnaissance products and solutions to support expeditionary and tactical needs of its military and allied forces. The company supports the collection, processing, analysis and dissemination of information across the full spectrum of the Department of Defense and Intelligence Community’s mission. Additionally, the company has developed UAV systems, which would provide affordable ISR-as-a-service, and its airborne collection solutions would be complemented by complete flight services and ongoing sustainment and logistics support.
CMS customers include the military services, principally the U.S. Army and U.S. Special Operations Command, various other government agencies of the U.S. and other countries, and commercial customers. In 2020, U.S. government customers accounted for 95% of CMS sales, international customers accounted for 1% of sales, and U.S. commercial and other customers accounted for 4% of CMS sales. The company’s major CMS programs include the U.S. Army Contracting Command NJ SBIR IDIQ.
CGD offers live, virtual, constructive (LVC) and game-based training solutions to the U.S. Department of Defense (DoD), other U.S. government agencies and allied nations. The company designs and manufactures realistic, high-fidelity air, ground, and surface instrumentation, visualization and data analytic systems that support LVC training in high fidelity environments. Its customized systems and services accelerate combat readiness in the air, on the ground and at sea while meeting the demands of evolving operations worldwide.
The company’s products and systems help its customers to retain operational, tactical, and technological superiority with solutions. The company also provides ongoing support services for systems it has built for its international customers. The company’s training business portfolio is organized into air training, ground training, and synthetic/digital solutions. CGD does business on five continents and working in 12 nations providing training systems to the DoD and allied nations.
The company’s established international footprint in 34 allied nations is a key element of its strategy. Its global footprint helps to mitigate possible shifts or downturns in DoD spending. Sales to international customers accounted for 60% of CGD sales in 2020. In addition, new technologies, such as LVC training systems and potential expansion into adjacent markets provides the company the means to add scale to its business.
Air Training Solutions
In air training, the company develops and supplies air combat maneuvering instrumentation (ACMI) capability during the Vietnam War. The latest ACMI generation, the P5 Combat Training System, provides air combat training capability to the U.S. Air Force, Navy and Marine Corps, as well as allied nations, which has solidified its position. In addition to procuring the ACMI training system, major nations also rely on Cubic for on-site operations and maintenance support.
Ground Training Solutions
The company provides tactical engagement simulation systems that minimize user set-up time and increase training effectiveness. The company’s ground combat training systems operate at approximately 90 combat training centers worldwide. Its laser-based tactical engagement simulation systems, known as Multiple Integrated Laser Engagement Systems, are used to enable realistic training without live ammunition.
The company’s synthetic/digital solutions integrate instructional material into a gaming environment, thus reducing instructor costs and providing a platform that is ideal for embedded training. These technologies are transferrable to different training domains and subject matters. The experiential learning environment could be augmented with intelligent tutoring and assessment tools increasing the value of this approach. As the blend of LVC training creates broader higher fidelity training environments, the data generated creates opportunity to capitalize on the company’s synthetic and digital capabilities to deliver insight into customer training effectiveness.
The key elements of the company's strategy are to leverage its market leadership position, provide value-based solutions and develop subscription-based revenue models, and improve its financial performance by leveraging its One Cubic scale, driving continuous improvement and leveraging a real-time, data-driven, digital performance management system.
The company deals with various the U.S. government agencies and entities, including all branches of the U.S. military and the DoD. Therefore, the company must comply with and is affected by laws and regulations relating to the formation, administration, and performance of U.S. government and other contracts. These laws and regulations, among other things, include the Federal Acquisition Regulations and all department and agency supplements, which regulate the formation, administration and performance of the U.S. government contracts.
The company’s competitors include among others Accenture, Conduent, Econolite, IBM, Indra, Init, Intelight, Kapsch, Kimley-Horn, McCain, Flowbird, Roper Technologies, Scheidt & Bachmann, Siemens, Thales, Trapeze and Vix.
CMPS competes with large companies, including Boeing, General Dynamics, L3Harris, Lockheed Martin, Northrop Grumman, and Saab Training Systems.
Cubic Corporation was incorporated in the state of California in 1949 and began operations in 1951.