Defense Giants Shaken by Consumer Drones: Rheinmetall and AeroVironment Under Pressure as Volatus Aerospace Strengthens the Supply Chain

Rheinmetall Focuses on Reconnaissance and International Collaborations

The Düsseldorf-based defence conglomerate Rheinmetall is responding to the global drone boom with a mix of high-performance in-house developments and international alliances. For fiscal year 2026, the group's management is targeting a significant jump in revenue to between EUR 14.0 and 14.5 billion, with an operating margin of around 19%. The most important airborne reconnaissance system in the portfolio is the LUNA NG tactical UAS, which is being introduced by the German Armed Forces as HUSAR and offers a flight duration of over 12 hours and a range of more than 100 km. To promptly meet the growing European demand for precision loitering munitions, Rheinmetall is cooperating closely with the Israeli specialist UVision.

The HERO drone series is mass-produced by the subsidiary RWM Italia. This strategic partnership secured Rheinmetall a major order from a NATO customer at the end of 2025 to deliver several hundred HERO systems worth over EUR 100 million. Nevertheless, European system integrators are also under pressure, as their complex, traditional procurement cycles and expensive platforms often fail to respond to agile, low-cost competition from Ukraine. The war-torn country now has a significant defence industry and operates with extreme agility.

AeroVironment: Cost Advantages Thanks to "Attack + Defence"

The US defence contractor AeroVironment has long been positioned in the tactical reconnaissance sector but is now facing challenges in the Ukraine conflict. The high-priced loitering systems of the first Switchblade generations proved vulnerable in the face of electronic warfare. In response, management is driving the development of the Switchblade 300 Block 20 and Switchblade 600 Block 2 to ensure reliability even without GPS, through redundant navigation and encrypted communication. Demand remains robust despite these issues. Under a separate US Army IDIQ framework contract for lethal unmanned systems (LUS), AeroVironment secured an order volume of up to USD 990 million. Additionally, in 2026, the company was awarded a prototype contract for the Switchblade 400 as part of the LASSO program.

For fiscal year 2026, AeroVironment achieved record revenue of approximately USD 1.98 billion. To counter the significant economic leverage of cheap attack drones, the company is pursuing a dual "Attack + Defence" strategy through the acquisition of defence specialist BlueHalo. The high-energy laser system LOCUST, developed there, combats incoming drone swarms using purely electrical energy. The system costs only USD 1-5 per shot and is expected to be AeroVironment's game-changer.

Volatus Aerospace Takes the Next Step at the Mirabel Innovation Hub

While established industry giants are coming under increasing pressure, Canadian drone specialist Volatus Aerospace is completing its transformation into a vertically integrated original equipment manufacturer for NATO countries. Volatus's production facility is the newly opened, 53,000-square-foot plant at Montreal-Mirabel Airport. Here, Volatus will manufacture its V-Series, which includes the V100 Viscount, V200 Vantage, and the heavy-lift V300 Vigil—the latter offering a long flight time of up to 7 days with an operational range of up to 18,000 km. Volatus relies on the V-Cortex AI flight controller for its platforms, which enables fully autonomous mission planning even under intense electromagnetic interference. Maximum operational flexibility is also ensured by the modular ReKam, which, thanks to a click-ring interface on the nose, can be converted from an ISR reconnaissance aircraft to a loitering strike system in just a few minutes.

Volatus: A Comprehensive Portfolio for NATO's Front Lines

But Volatus Aerospace does not stop at strategic long-range systems; it covers the entire military spectrum. For automated front-line resupply, Volatus Aerospace supplies the heavy-lift UAS Condor XL with a payload of up to 180 kg, as well as the hybrid-electric tilt-wing drone Aero-200. In addition, there are specialized systems such as the hand-launched Peremoha, the ultra-compact Helius nanodrone, and the tethered Khronos system, which ascends to an altitude of 60 m in just 2 minutes and guarantees continuous surveillance. This comprehensive portfolio comes with virtually no supply chain risks and gives Volatus a decisive advantage when it comes to securing new orders. The reason: supply chains and self-sufficiency are factored in from the outset today. After months of sideways movement, Volatus shares could soon become attractive again. Catalysts for the share price include concrete orders or partnerships with other companies or governments. Volatus Aerospace is an exciting company with promising products**.