Drones, Data, Industrial Intelligence: How These Promising Trends Are Paying Off for Volatus Aerospace, Palantir, and Schaeffler

Volatus Aerospace: Milestones One After Another

With its proprietary autonomy platform V-Cortex, AI-powered flight controls, and the SaaS solution SKYDRA, the company is increasingly evolving from a hardware supplier to a provider of complete mission systems. At the same time, the company is continuously expanding its portfolio in the area of counter-UAS—that is, the detection and defence against hostile drones.

With V-Cortex AI and SKYDRA, the Canadian company enables more efficient control of autonomous flight missions, coordination of large drone fleets, and intelligent analysis of security-related data. This shifts the focus toward SaaS.

According to estimates by various market research firms, the global market for unmanned aerial systems and related software solutions is expected to grow at a double-digit annual rate in the medium term. So-called dual-use technologies, that is, products or services that can be used for both civilian and military purposes, are expected to show particularly dynamic growth.

The Canadians are positioning themselves in line with this strategic logic and are thus benefiting not only from government defence budgets but also from the ongoing digitalization of industry. However, the clear driver of growth is the company's operational performance, as evidenced by its business development. Having secured numerous contracts, the company has a strong chance of benefiting significantly from the major defence contracts in Canada and the United States.

Customers receive complete solutions. This, combined with the company's strong reputation as a NATO partner, creates competitive advantages and barriers to entry.

Most recently, the company reported on its large manufacturing capacities in Mirabel, Canada. With this, Volatus is sending an important signal and positioning itself as a potential component of North American supply chains in the aerospace sector on an industrial scale. The proximity to existing aerospace clusters, skilled workers, and international partners further enhances the location's significance.

The Canadian team recently reached an important regulatory milestone. The proprietary Canary drone system is among the first in Canada to be approved under the new certification process for autonomous BVLOS (beyond visual line of sight) flights. This significantly strengthens the company's position for the commercial deployment of autonomous drones in the fields of infrastructure, energy, public safety, and defence.

Most recently, the company entered into a strategic partnership with Concordia University's Volt-Age research program. The goal of the collaboration is to develop high-performance energy technologies for unmanned aerial systems. Currently, the shares are trading at just under CAD 0.50, with a market capitalization of approximately CAD 350 million.

Palantir: How is the market reacting to the latest figures and outlook?

Palantir has demonstrated how software can become the backbone of modern armed forces. However, the company's ability to analyze vast amounts of data to accelerate decision-making and optimize operations is in demand not only by governments, agencies, and the military, but also across a wide range of industries.

Palantir benefits from strong demand and, at the same time, exceptionally high barriers to entry. Once a customer has aligned its processes with the company's platforms, switching to another provider becomes complex and costly. The shares have therefore been a favourite among investors for many years. Valuations in the tech sector are rising, and share prices are becoming more volatile. Increasing competition and exorbitant investment costs are unsettling investors.

Since the start of the year, the stock has fallen by 31%. Nevertheless, the multiples remain ambitious. The 2027 P/E ratio stands at 67. At the current price of USD 123, the US company is valued at around USD 295 billion. On average, analysts believe the stock has upside potential of just under 50% over the next 12 months.

The Q2 results, due to be released soon, will be particularly interesting. Recent weeks have repeatedly shown that the announcement of quarterly results has led to significant price swings in tech stocks—and the pendulum swings both ways.

Schaeffler: Stock Market Disappointed by Lower Mid-Term Targets

The German industrial group is in the midst of transforming itself from a traditional automotive supplier into a technology company focused on electric mobility, robotics, and industrial automation. The latter two areas, in particular, will play a major role in the future.

With its precision bearings, sensor technology, (electric) drive technology, and control systems, the group supplies key components for industrial robots and automated manufacturing. At the same time, these technologies are also gaining importance in the defence sector, for example in unmanned systems such as drones or autonomous ground vehicles.

The Group recently officially launched its entry into drone production. Together with the French drone manufacturer Delair, Schaeffler is building multirotor drones and supplying components as well as its industrialization and manufacturing expertise for this purpose. This is part of the Group's revised strategic direction.

The defence business, robotics, and aerospace are to be developed as new pillars of growth. By 2035, these new fields are expected to account for around 10% of the Group's revenue. But let's return from these exciting prospects to reality.

The latest downward revision of forecasts caused the stock to fall by over 10%. The revenue targets for 2028 were lowered. In particular, the negative performance and outlook for the electric vehicle business unsettled investors. At the current price level of around EUR 7, however, the opportunities now outweigh the risks. Analysts have set an average price target of EUR 9.50. Experts at JPMorgan and Jefferies were slightly more optimistic, with target prices of EUR 10 and EUR 10.45, respectively.

The company is an integrated aerospace and defence technology group. Software, artificial intelligence, autonomous flight control, drone defence, and in-house production capabilities form the building blocks of a long-term growth strategy. Analysts believe the stock has the potential to double in value. While Schaeffler unsettled investors with its Q2 results and guidance, the market is now waiting to see how investors will react to Palantir's upcoming results.