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About Cubic Corporation

Cubic's products and services fit squarely within the global defense and transportation industries. With its business divided into three main segments, Cubic Corporation provides mission support services, including actual combat rehearsal exercises, to national military organizations and US security forces and their allies. It manufactures air and ground combat instrumentation systems for live and virtual training as well as communications, global asset tracking, and cyber security equipment for the defense market. It also provides automated fare collection (AFC) management systems and services for mass transit (including bus, light rail, ferry, and parking) worldwide. The US accounts for about 60% of the company’s revenue.  


Cubic has three primary business segments: Cubic Transportation Systems (CTS), Cubic Global Defense Systems (CGD Systems), and Cubic Global Defense Services (CGD Services).

CTS accounts for about 40% of total revenue and designs, produces, installs, and services electronic revenue collection systems for mass transit projects, including railways and buses.  

CGD Systems (more than 35%) performs work under US and foreign government contracts relating to electronic defense systems and equipment. CGD Systems products include customized military range instrumentation, laser-based training systems, and virtual simulation systems.

CGD Services (25%) provides training, operations, intelligence, maintenance, technical, and other services to the U.S. government and allied nations. 

Geographic Reach

Cubic has a global presence in about 20 countries on five continents. The US accounts for about 60% of Cubic's revenue while the UK generates more than 15%. Other major markets include Australia and the Far East. 

Sales and Marketing

About 60% of Cubic's total revenue is generated from US federal, state, and local governments. A scant 5% of these sales include domestic sales attributable to foreign military sales, which are sales to allied foreign governments facilitated by the US government. The remainder of the company's revenue is derived from foreign government agencies.

Financial Performance

Cubic Corporation has seen a steady rise in revenues for the past five years. Net sales in 2017 were $1.5 billion, a 2% increase from 2016 primarily due to increased sales from businesses it acquired in 2016 and 2017 (within CGD Systems).

Net income has been volatile with a loss of $11.2 million in 2017 due to income tax expenses on foreign earnings and U.S. tax expense related items. Net income in 2016 was $1.7 million.

Cash at the end of 2017 was $60.1 million, a decrease of $137.0 million from the prior year. Cash from operations contributed $24.7 million to the coffers, while investing activities used $42.5 million, mainly for machinery and equipment. Financing activities used another $129.8 million for loan payments and dividends to stockholders.


Cubic Corporation's "Goal 2020" strategy represents the company's aim to reach more than $2 billion in sales by 2020. The company has implemented several initiatives focused on increasing revenues, increasing service offerings, and winning customers.

In transportation, the company's "Building NextCity Globally" initiative is leveraging transportation data to develop more efficient payment systems, which would reduce congestion in major cities.

In defense, Cubic is growing through several acquisitions aimed at expanding the company's command, control, communication, computers, intelligence, surveillance and reconnaissance (C4ISR) business, which targets the communications-on-the-move, joint aerial layer network, and command & control/intelligence, surveillance and reconnaissance (C2/ISR) cloud transformation markets. The company is also working to identify future military training needs and develop improved training products that would accelerate proficiency.

Internally, its "Living One Cubic" initiative translates to more decentralized, customer-facing functions to ensure speed of delivery, and a centralized shared services organization to support operations. Cubic is in the midst of a transformation initiative that includes the implementation of a new enterprise resource planning (ERP) system. With the new system, the company hopes to streamline its manufacturing and procurement functions by consolidating processes into one organization with fewer locations.

Mergers and Acquisitions

In 2019, Cubic acquired GRIDSMART Technologies for $87 million. GRIDSMART makes differentiated video tracking products for the Intelligent Traffic Systems (ITS) market. It specialized in video detection at traffic intersections and uses computer vision modeling and machine learning to optimize the flow of people and traffic through intersections. The acquisition complements the company's 2018 acquisition of Advanced Traffic Solutions (Trafficware) for $235 million. Based in Sugar Land, TX, Trafficware makes software, sensors, traffic signals, controllers, video cameras, Caltrans control cabinets, and other intersection management technologies for about 200 cities across the U.S.

Also in 2019, the company acquired Nuvotronics, a maker of microfabricated radio frequency (RF) products, for approximately $64 million. Nuvotronics' trademarked PolyStratata technology enables Cubic to design and produce packaged RF devices, such as antennas, filters, and combiners—part of Cubic's advanced technology product portfolio.

In 2018, Cubic subsidiary ISR Systems acquired Shield Aviation, a provider of autonomous aircraft systems (AAS) for intelligence, surveillance, and reconnaissance (ISR) services. ISR Systems will further expand Cubic Mission Solutions (CMS) and grow its C4ISR business.

In 2017, Cubic acquired UK-based Deltenna Limited, a wireless infrastructure company with expertise in radio and antenna communications. Cubic hopes Deltenna's technology will enhance its tactical communication and training capabilities.

Company Background

The late Walter Zable founded Cubic in 1951 to make military electronics. The company went public in 1959, and in the late 1960s and early 1970s it expanded into revenue collection systems.

Cubic Corporation

9333 Balboa Ave
San Diego, CA 92123-1589
Phone: 1 (858) 277-6780

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: CUB
Stock Exchange: , NYSE
President and CEO: Bradley H. Feldmann
EVP and CFO: John D. Thomas
Chairman: Walter C. Zable
Employees (This Location): 1,243
Employees (All Locations): 6,200

Major Office Locations

San Diego, CA

Other Locations

Huntsville, AL
Alameda, CA
Concord, CA
San Diego, CA
Santa Clara, CA
Sunnyvale, CA
Orlando, FL
Shalimar, FL
Atlanta, GA
Chicago, IL
New York, NY
Tullahoma, TN
Austin, TX
Arlington, VA
Ashburn, VA
Chantilly, VA
Prince George, VA
Hyderabad, India
Milano, Italy
Concord, Canada
Sainte-Julie, Canada
Hamburg, Germany
Singapore, Singapore