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Canada is ramping up its defence ambitions, aiming to hit 2% of GDP on defence spending by early 2026—ahead of previous targets. Longer-term proposals under debate envision spending as high as 5% of GDP by 2035, equating to roughly CAD $150 billion annually at current GDP levels. For Canadian investors, this surge in defence budgets presents a rare window of opportunity over the next 2–3 years.
With global defence spending rising and Canada boosting military and aerospace modernization, select Canadian stocks like CAE (+40% yearly returns as on 14th close price), MDA (+9% 1-year returns as on 14th close price), and Calian (+24% 1-year returns as on 14th close price) are gaining momentum, backed by strong order backlogs, long-term contracts, and improving financials for sustainable investor growth.
- CAE (TSX:CAE): With multi-year global training contracts, CAE provides long-dated revenue visibility and stable cash flows.
- MDA Space (TSX:MDA): Positioned to benefit from the surge in satellite and space-based defence infrastructure, MDA offers growth tied to emerging space tech.
- Calian (TSX:CGY): Recurring government service contracts give Calian stability and predictable revenue, making it a defensive yet profitable play.
- Magellan Aerospace (TSX:MAL): Deep integration in global defence supply chains positions Magellan for steady margins as production ramps up.
- Bombardier (TSX: BBD-B): While not a pure defence stock, Bombardier brings scale, cash flow strength, and upside from special-mission aircraft demand.
Invest Smarter with Kalkine Insights!
Kalkine helps investors make informed decisions before the crowd by analyzing order pipelines, financial health, sector trends, and technical indicators and general recommendation via research report. With Kalkine’s research, investors can identify high-potential defence stocks, evaluate risks, and position confidently.
The next wave of Canadian defence spending isn’t just about geopolitics—it’s about execution, margin expansion,. For investors looking to capitalize, the time to act is now.
