Lockheed Martin Buys Nova Scotia Defence Firm

The $3.4-billion deal for Ultra Maritime is one of two recent foreign purchases of Canadian defence companies.

Updated on Nov. 4, 2026 in Military

Lockheed Martin Buys Nova Scotia Defence Firm

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Lockheed Martin purchased Ultra Maritime, a Dartmouth, N.S. defence company that develops sonar and undersea warfare systems, for more than $3.4 billion. Separately, Elbit Systems completed its purchase of International Submarine Engineering, an underwater vehicle company in Port Coquitlam, B.C.

Why it matters

Ultra Maritime equipment is on board the Royal Canadian Navy's Halifax-class frigates, placing a foreign-owned firm inside core Canadian naval capability. Reports that the purchases proceeded without a national security review raise questions about how Canada screens foreign acquisitions of defence companies.

Ultra Maritime, founded in 1947, employs about 1,000 people in Nova Scotia and was sold in 2022 to Advent International before the $3.4-billion sale to Lockheed Martin. The source does not disclose whether a formal national security review was initiated for either purchase.

The players

Lockheed Martin

A major American defence contractor best known for the F-35 fighter program and other military aircraft and systems.

Elbit Systems

An Israeli defence electronics company that supplies military technology to governments and armed forces around the world.

Draganfly Inc.

A Saskatchewan-based drone manufacturer that received a $10-million investment from U.S. interests during the period reported.

The details

Ultra Maritime develops sonar and other undersea warfare systems from its Dartmouth base. Elbit Systems also completed its purchase of International Submarine Engineering, while the government said it was aware of both deals but could not comment specifically because of confidentiality concerns.

2022: Advent International purchased Ultra Maritime.
September 2025: Media reported a $10-million investment in Draganfly Inc. from a U.S. fund and Unusual Machines Inc., a company linked to Donald Trump Jr.
October 29, 2026: The National Post reported Elbit's purchase of International Submarine Engineering.

Military Context

Foreign ownership of Canadian defence firms falls under the national security provisions of the Investment Canada Act, which allow the federal government to review sensitive acquisitions. The reported absence of a review in these two cases tests how consistently that framework is applied to defence suppliers.

Ultra Maritime's Nova Scotia workforce and its role supplying Canadian naval systems are directly tied to how these ownership changes are handled. Readers following defence jobs or procurement in Atlantic Canada should watch for any government statement on the transactions.

The takeaway

Ownership changes in defence suppliers can affect national capability even when the companies themselves stay in place. Reviews under existing foreign-investment rules are the main tool Canada has to weigh those effects.