What is the Build–Partner–Buy framework?

It is a procurement order that prefers Canadian solutions first, then partnerships with allies, and foreign buys last. It steers more work to local design, assembly, and sustainment. For investors, it means higher domestic content, longer MRO contracts, and better visibility on revenue tied to serviceability targets.

Which sectors benefit most from the plan?

Aerospace upgrades, shipbuilding and refits, and MRO should lead. Munitions, energetics, electronics, sensors, and secure networks follow. The focus on serviceability favours recurring support work. This points to stable margins and cash flow for qualified Canadian suppliers across fabrication, integration, software, and depot maintenance.

How can investors track contract flow and timing?

Follow federal procurement portals for pre-qualified lists and RFP dates. Watch award notices, initial operating capability milestones, and export permits. Monitor backlog-to-revenue conversion and book-to-bill trends on quarterly updates. These signals show whether canada defence industrial spending is turning into real orders and cash.

What are the main risks to the strategy?

Budget delays, inflation in inputs, and labour shortages could slow delivery. Export controls and trade rules may complicate partnerships. Investors should stress test timelines, assume phased capex, and look for firms with strong supply agreements and proven MRO execution to reduce schedule and cost risk.

Global Market Insights

Canada Defence Strategy February 16: Build-at-Home Shift Targets 125K Jobs

ByDanny Kontos February 16, 2026February 16, 2026

Canada defence industrial strategy takes centre stage as Ottawa sets a 70% domestic award target, aims to lift equipment serviceability, and adds 125,000 jobs. The near-term C$6.6 billion ramp sits inside a C$81.8 billion plan through 2035. Expect demand across aerospace, shipbuilding, munitions, and MRO. For investors, the setup is multi‑year. Watch contract timing, export growth, and share shifts from foreign primes. This canada defence industrial pivot reduces reliance on U.S. suppliers and could reset Canadian defence procurement for a decade.