Breaking News! OHB Follows SpaceX's Footsteps; Hensoldt and Deutsche Telekom in Focus; Volatus Aerospace Boasts CAD 500 Million Pipeline

Volatus Aerospace: Drone Platform Meets Ukrainian Expertise

Volatus Aerospace is increasingly emerging as one of the most exciting providers in autonomous aviation systems. The company combines traditional aviation, drone technology, and defence applications in an integrated platform. With 28 manned aircraft and more than 100 drones, Volatus is already active in Canada, the US, the UK, and South America. Annually, the company conducts approximately 1.7 million km of pipeline inspections and handles tens of thousands of inspections of infrastructure and utilities. These operations generate recurring revenue, provide valuable flight data, and enable the continuous development of the company's own AI and autonomy systems. At the heart of the technology is the proprietary V-Cortex AI platform, which functions as autonomous control and mission software.

In recent years, Volatus has invested significant time and money in building its own platform. This should pay off in the coming years. With its diversified business model encompassing hardware, services, training, and software, the company is ideally positioned to capitalize on the drone boom. This is also reflected in its order pipeline, which exceeds CAD 500 million.

Volatus is receiving a boost from geopolitical developments. Canada has unveiled its new defence and industrial strategy, valued at approximately CAD 70 billion, which is intended to provide significantly greater support to domestic aerospace companies. At the same time, demand from Europe and NATO partners is rising steadily. Revenue in Europe and the UK recently increased by 244% compared to the previous year. To capitalize on this growth, Volatus has expanded its production capacity. The new manufacturing facility in Mirabel, Québec, spans 53,000 square feet and has a potential revenue capacity of up to CAD 250 million. Among other products, the facility manufactures Sentinel docking stations, the V100 MALE drone, SKYDRA software for drone defence, and the heavy-lift Condor XL drone. Given its strong market position in the commercial sector, its growing defence division, and a market opportunity worth billions, the company's current valuation remains attractive compared to many industry peers.

Amid the general AI hype of recent weeks, Volatus' latest announcement has been somewhat overshadowed. Yet it is highly interesting. The company will be collaborating with the UCan Brave Tech Centre, which promotes the development of dual-use and defence technologies between Canada and Ukraine. The focus is on autonomous systems, drone defence, reconnaissance and surveillance solutions and secure communication and software platforms. For Volatus, the partnership opens up interesting prospects. Ukraine's experience in drone deployment and drone defence is now regarded as a global benchmark and is in demand by the armed forces of numerous NATO countries. Thanks to its manufacturing capabilities in Canada, Volatus could help scale technologies proven in Ukraine and produce and market them for allied nations.

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Hensoldt: With Airbus and Deutsche Telekom On Board

Hensoldt's stock continues to struggle. Yet a lot is happening at the defence electronics specialist, both operationally and strategically. In early June, the forecast for adjusted free cash flow for the current year was raised. The company now expects it to be around 50% of adjusted EBITDA, rather than around 40%. The increase is primarily attributed to higher customer prepayments.

At the same time, the company is strategically positioning itself for the next generation of European defence systems. Now that the Franco-German FCAS project has been definitively shelved, Hensoldt is part of the "Team Gen 6" led by Airbus. Together, they aim to present an alternative for the development of a next-generation fighter jet. In this context, Hensoldt could contribute its core competencies in the areas of sensor technology, reconnaissance, and electronic warfare—technologies that are indispensable for modern air combat systems.

And toward the end of the week, another flagship project in which Hensoldt is involved was announced. According to a report in "WELT," Hensoldt is working with Deutsche Telekom on a drone defence system. The market for so-called counter-UAS solutions is considered one of the fastest-growing sectors in the defence industry. Experience from Ukraine clearly demonstrates that drones are now among the most important weapons on modern battlefields. At the same time, the threat posed by unmanned aerial vehicles to critical infrastructure, military facilities, airports, and industrial sites is steadily increasing.

While Hensoldt contributes its expertise in radar, sensor, and reconnaissance systems, Deutsche Telekom possesses high-performance communications and network infrastructures. The goal is to detect and identify drones early on and effectively defend against them in an emergency. What is particularly interesting is that the potential customer base is not limited to the armed forces. Operators of critical infrastructure, government agencies, airports, energy suppliers, and large industrial companies will also need high-performance protection systems against drone attacks in the future.

OHB: First Cooperation, Then Capital Increase

A bombshell at OHB. Initially, the company had underscored its ambitions in the field of defence-related space systems at the International Aerospace Exhibition (ILA) in Berlin. Together with Helsing, Kongsberg Defence & Aerospace, and Hensoldt, the KIRK joint venture is driving the development of a European infrastructure for space-based reconnaissance and defence solutions. Letters of intent have now been signed with seven innovative space companies and startups, including ConstellR, Rocket Factory Augsburg, Marble Imaging, LiveEO, and ISAR Aerospace. The goal is to integrate market-ready technologies into the development of new systems at an early stage, thereby strengthening Europe's technological sovereignty in space.

For OHB, the initiative represents another step toward a high-performance European space ecosystem. Through collaboration with young technology companies, the aim is to shorten development times, accelerate innovation, and bring modern reconnaissance and communication systems into operation more quickly.

Then came the bombshell yesterday. OHB is planning a capital increase with a volume of approximately EUR 500 million. The fresh funds are intended, in particular, to finance growth projects and further expansion in the fields of space and defence technologies. At the same time, it was announced that the major shareholder, KKR, also intends to sell part of its stake. The share reacted to the news yesterday morning, dropping by over 10%. However, the dilution of existing shareholders is manageable at less than 10%. The OHB stock has more than tripled in value this year alone and has even gained 400% over the past 52 weeks.

Space and drones are clearly among the markets of the future. Volatus is excellently positioned to play a key role in both the civilian and military drone market. Revenue and earnings should rise sharply. Hensoldt must also grow to justify its ambitious valuation. Strategically, the company appears to be setting the course for several important initiatives. OHB is the only German publicly traded "space play" and is valued accordingly.