Canada F-35 audit: findings, response and current status
- Auditor
- Office of the Auditor General of Canada
- Report date
- 10 June 2025, Report 2
- Subject
- Delivery of Canada's Future Fighter Capability Project
- Contractor
- United States government arrangement, with Lockheed Martin and Pratt & Whitney
- Status
- follow-up pending
- Last checked
- 19 October 2026
What the audit found
The Auditor General examined National Defence's preparations to introduce 88 CF-35A fighter aircraft and maintain fighter capability during the transition from the CF-18 fleet 1.
The audit found that the project estimate rose from $19.0 billion in 2022 to $27.7 billion in 2024, an increase of $8.7 billion or 46%. It attributed part of the increase to inflation, foreign exchange movement and demand for munitions 1,2.
The $27.7 billion estimate did not include every element needed for full operational capability. The audit identified separate infrastructure, advanced weapons and other costs outside the project estimate 1.
Planning and staffing were incomplete. An integrated transition schedule lacked enough detail, and only 14 of 47 planned permanent positions for mission planning, logistics and security had been filled by 1 September 2024 2.
The Auditor General recommended stronger risk management, immediate completion of plans and schedules, annual cost reviews and public reporting that includes all elements needed for full operational capability 1.
The official response
National Defence agreed with the audit recommendations and supplied a detailed action plan. It committed to an updated master implementation plan and linked schedule, revised cost monitoring and stronger risk reporting 2.
At the Public Accounts Committee hearing on 7 October 2025, Deputy Minister Stefanie Beck said the department was continuing under the current agreement and focusing on infrastructure, pilots and training pending any government decision from its review 4.
Public Services and Procurement Canada told the committee that it had run the competitive procurement and remained ready to support National Defence in implementing the audit recommendations 4.
Parliament
The House of Commons Standing Committee on Public Accounts held a hearing on 7 October 2025 and adopted its report on 2 February 2026. It presented Report 7 to the House on 27 February 2026 2.
The committee asked National Defence for progress reports on risk work, plans, annual cost reviews and full-cost public reporting by 30 June 2026. It asked for annual project updates during the 45th Parliament 2.
The committee concluded that plans were incomplete, progress on some work was slow and estimated costs had risen, creating schedule and budget risks 2.
Follow-up audits and recommendations
The 2025 audit followed earlier Auditor General work on fighter replacement in 2012 and fighter force management in 2018. The new report focused on putting the selected F-35A fleet into service rather than rerunning the earlier procurement audit 1,5.
The public project page records the 9 January 2023 acquisition announcement and says the first eight aircraft are intended for pilot training in Arizona before aircraft arrive in Canada 3.
The Public Accounts Committee's 30 June 2026 reporting deadline had passed by the date of this check. A complete government response linked to the committee report was not shown on the committee study page as of 19 October 2026 6.
Courts, tribunals and investigations
No court or tribunal case deciding the 2025 audit findings was found as of 19 October 2026. No official criminal investigation tied to those audit recommendations was found. The audit concerned project planning, cost, workforce and delivery risk 1.
Where it stands now
The acquisition remained in implementation. Canada confirmed the purchase of 88 aircraft through an arrangement with the United States government and Lockheed Martin with Pratt & Whitney. The 2023 announcement estimated the project at $19 billion and anticipated full operational capability between 2032 and 2034 7.
The later audit estimate was $27.7 billion and excluded some items required for full operational capability 1. Parliament requested a new estimate and progress reports 2. The site found no published court result and no final project completion report as of 19 October 2026.
Timeline
| Date | Event |
|---|---|
| April 2012 | Auditor General reports on the earlier fighter replacement process 5 |
| November 2018 | Auditor General reports on Canada's fighter force 2 |
| December 2022 | Canada finalises the acquisition arrangement 1,2 |
| 9 January 2023 | Government announces 88 F-35A aircraft and a $19 billion estimate 7 |
| 10 June 2025 | Auditor General tables Report 2 with a $27.7 billion 2024 estimate 1 |
| 7 October 2025 | Public Accounts Committee holds its audit hearing 4 |
| 2 February 2026 | Committee adopts its report 2 |
| 30 June 2026 | Committee deadline for National Defence progress and cost reports 2 |
Common questions
How much did the F-35 project estimate increase?
The estimate rose from $19.0 billion in 2022 to $27.7 billion in 2024, an $8.7 billion or 46% increase 1,2.
Does $27.7 billion include every F-35 cost?
No. The audit said some infrastructure, advanced weapons and other full-operational-capability elements sat outside that estimate 1.
Did National Defence accept the recommendations?
Yes. It agreed and filed an action plan with milestones 2.
Was the F-35 contract cancelled?
No. The official project page still records the acquisition of 88 aircraft, and officials told Parliament in October 2025 that work continued under the agreement 3,4.
Audit cases move on. Each page shows the date we last checked it. Spotted an error or a newer official record? Email hello@auditoutcomes.org with the official link.
Sources
- Office of the Auditor General of Canada: Report 2, Delivering Canada's Future Fighter Jet Capability (10 June 2025)
- House of Commons Public Accounts Committee: Report 7 on future fighter capability (27 February 2026)
- National Defence: Future Fighter Capability Project status page (checked 19 October 2026)
- House of Commons Public Accounts Committee: evidence on Report 2 (7 October 2025)
- House of Commons Public Accounts Committee: 2012 report on replacing Canada's fighter jets (6 November 2012)
- House of Commons Public Accounts Committee: study page for 2025 Report 2 (checked 19 October 2026)
- Public Services and Procurement Canada: agreement to purchase new fighter jets (9 January 2023)
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