Is CAE a prime beneficiary of the Canada defence strategy?

CAE is well placed because training, simulators, and mission support align with program needs and local-content goals. Canada defence strategy could tilt awards to domestic suppliers, improving visibility. Execution and timing still matter. Watch new RFPs tied to training and systems, plus multi-year service contracts that expand backlog and utilization.

How could defence procurement Canada impact CAE’s backlog?

Faster defence procurement Canada could turn pipeline to awards sooner, lifting funded backlog. Local-content targets and industrial benefits policy may route more training and MRO work to Canadian firms. The result can be steadier revenue, better asset utilization, and stronger cash conversion if schedules hold and pricing reflects cost inflation.

Is CAE.TO fairly valued today?

CAE trades near 35x TTM EPS and about 15x EV/EBITDA, with ROE around 7.5%. That is not cheap, so growth from Canada defence strategy and consistent free cash flow need to materialize. A HOLD stance fits while awaiting contract news and earnings progress. Watch liquidity and leverage metrics for improvement.

What technical levels matter for CAE in the near term?

Recent levels cluster near the Bollinger lower band around C$40. Support sits near the 200-day average close to C$39. Resistance appears near C$46 to C$47. Momentum gauges are soft, with RSI near 40. A move above the 50-day average would improve trend quality if backed by rising volume.

Global Market Insights

CAE.TO Stock Today: February 19 — Canada’s $80B defence push lifts outlook

ByDanny Kontos February 19, 2026February 19, 2026

Canada defence strategy is set to direct more than $80 billion to defence over the next decade with a 70% local-content target. For CAE.TO, that points to multi‑year demand in training, mission systems, and MRO. Recent data showed shares around C$40.89, near technical support, while Ottawa signals quicker procurement. Provinces are mobilizing supplier networks to capture spend. We explain how this shift could shape revenue visibility, valuation, and trading setups for Canadian defence stocks, and what to watch next.