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CAE Secures $300M US Air Force Contract Amid Procurement Ban

September 21, 2026

2 min read

Key Takeaways

CAE awarded $300M contract with US Air Force.
Contract extends CAE's role in training US aircrews on C-130 Hercules.
Training to take place at multiple air force bases through 2035.
Deal comes despite US procurement ban on Canadian companies.

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Strategic Implications

This contract award may indicate that US defense procurement decisions could be exempt from broader trade tensions. The deal suggests that CAE's services, particularly in critical areas like pilot training, may be considered essential to US military operations, which could benefit the company's long-term prospects.

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What Happened

Montreal-Based Flight Simulator Maker Defies Trade Tensions

CAE Inc. has secured a $300-million contract with the US Air Force to continue training crews on the C-130 Hercules military transport plane, despite a procurement ban on Canadian companies imposed by US President Donald Trump. The deal extends CAE’s role as the main contractor for this training, which will take place at multiple air force bases across the US through 2035. The announcement comes as trade tensions between Canada and the US continue to escalate. This development was first reported by The Globe and Mail.

Source | Originally Published: September 21, 2026

Companies Mentioned