In early June 2025, Canadian Prime Minister Mark Carney announced a landmark shift: Canada will increase defence expenditures to CAD 62.7 billion in fiscal 2025‑26, marking the first time since 1990 it will reach NATO’s 2 % of GDP benchmark—five years ahead of initial plans. This is more than a fiscal milestone; it’s a deliberate signal of Canada’s renewed commitment to modernizing its armed forces, reinforcing national sovereignty, and rebalancing procurement away from heavy U.S. dependence.
Why 2 % Matters—and What’s Next
NATO’s 2 % threshold has long been a marker of political will and military readiness. Canada’s prior defence spending averaged around 1.4–1.5 %, resulting in capability gaps—especially in submarines, surveillance platforms, and Arctic operations. The new CAD 9 billion surge addresses these deficiencies, with strategic investments in multi-mission aircraft, unmanned systems, ISR sensors, and modernization of aging platforms.
This pivot also introduces a shift in procurement priorities: less reliance on U.S. contractors, and a stronger push for Canadian and allied supply chains. This opens a critical window for domestic aerospace firms with proven regulatory and operational capabilities.
A Milestone Moment for Canadian Aerospace
Canada’s aerospace industry contributes over CAD 27 billion in GDP and supports over 210,000 jobs, including 12 % in defence manufacturing and MRO. As noted in a recent Globe and Mail article, this new defence posture has elevated key players like CAE—Elisen’s long-time partner—as essential contributors to national defence and training infrastructure. CAE’s continued growth in defense simulation and aircraft systems integration mirrors the increasing demand for made-in-Canada aerospace solutions.
Lessons from Top Aces: Trusted, Trusted Again
Our client Top Aces, recently profiled in Canadian Defence Review, exemplifies the rise of Canadian excellence in the ADAIR (Adversary Air) space. With over 15,000 flight hours annually and 25 years of trusted operations, Top Aces showcases how Canadian firms can offer combat-relevant capabilities while meeting NATO interoperability standards.
This reinforces the broader trend: sovereign Canadian aerospace solutions are not only viable—they’re essential.
The Opportunity for Elisen
Elisen’s service portfolio aligns directly with the government’s evolving needs. We support the engineering and certification of:
- Electronic surveillance systems (including AESA radar)
- Electronic warfare (EW) modules
- Target-tow and ordnance drop systems
- Night-vision and NVIS-compliant cockpit integrations
- Ejection systems and canopy fracture upgrades
- Mission computers for special purpose aircraft
Our engineering teams have delivered certified systems across North America, Europe, Asia and Australia—supporting both civilian and military regulators.
With the rise of electric aviation and hybrid platforms, Elisen is also engaged in certification innovation. Our recent leadership role in the certification efforts of one of Canada’s first electric aircraft underscores our ability to navigate new regulatory ground—a capability increasingly valuable in defence R&D programs.
A Strategic Acquisition for Special Mission Growth
In July 2025, Elisen entered into an agreement to be acquired by Chorus Aviation, the parent company of Voyageur Aviation—a Canadian leader in special mission aircraft operations and fleet sustainment. This acquisition enhances Elisen’s ability to scale defence work, integrating seamlessly with Voyageur’s experience in ISR conversions, MRO, and airframe modifications.
The combined capability strengthens our value proposition to the Department of National Defence (DND), defence primes, and international OEMs seeking local certification and integration expertise. Elisen retains its leadership structure and engineering autonomy while benefiting from Chorus’s scale and financial backing.
What This Means for Industry Partners
- Scaled Procurement, More Opportunity
With CAD 9 billion in new procurement, the demand for certified, mission-ready systems will spike—especially in areas like avionics, sensors, and EW. - Canadian Supply Chains Take Priority
Government intent to retain more defence spending domestically (shifting away from sending 75 % to the U.S.) gives Canadian firms like Elisen a unique edge. - NATO Interoperability and Allied Collaboration
As Canada boosts alignment with European defence suppliers, Elisen’s expertise with NATO standards, joint mission planning, and civil-military certification makes us an ideal partner.
A Vision With Elisen
At Elisen, we deliver full-spectrum engineering—from concept through certification—for mission systems, aircraft modifications, and sustainable flight technologies. As defence priorities evolve, we remain committed to helping clients meet them with precision, safety, and speed.
With our integration into Chorus Aviation, expanded support from Voyageur Aviation, and continued collaboration with partners like CAE and Top Aces, Elisen is positioned not just to meet the moment—but to lead in it.
