Europe is building a drone wall – Manufacturers like Volatus Aerospace set to benefit enormously!

Volatus Aerospace: Ideally positioned!

The war in Ukraine makes it clear that new technologies, especially drones, have changed the rules of the game. Not only are armed drones important, but also effective defense systems. In addition, drones are widely used, from reconnaissance and surveillance to civilian tasks.

One potential beneficiary of the overall situation is Volatus Aerospace. The Canadians have many years of extensive experience with drones, which are used to monitor infrastructure such as bridges and pipelines, but also for automated border protection. Know-how and approvals, such as for beyond visual line of sight operations, night flights, or operations in controlled airspace, clearly set the Canadians apart from many start-ups. This wealth of experience is a powerful argument for also getting involved in the military sector.

Another distinguishing feature is that the Canadians offer customers not only hardware, but also service and training. This complete package is convincing, and the training for drone pilots at the Company's own Volatus Academy is particularly well-received. Volatus has already won several contracts from NATO countries in the past, often in conjunction with training packages.

The Company is technologically ahead in the use of drones with high-quality sensors, which are used, among other things, to obtain high-quality aerial images. But cargo drones are also one of Volatus Aerospace's areas of expertise. The Aero2 product was developed in a collaboration between Volatus and Dufour Aerospace. Further collaborations exist with MatrixSpace (radar technology), Kongsberg Geospatial (airspace management), and Ondas Holdings (autonomous border security). Thanks to these connections, Volatus has access to complementary and proven technologies without having to bear the high costs of in-house development. At a current price of CAD 0.84, the Company is valued at over CAD 500 million. The stock remains promising.

thyssenkrupp – Naval division to be listed on the stock exchange from October 20!

The industrial group recently finalized the timeline for the IPO of Germany's largest naval shipbuilder, TKMS. The initial listing of TKMS in the Prime Standard of the Frankfurt Stock Exchange will take place as early as October 20. Shareholders of the industrial group had already approved the spin-off of the thyssenkrupp Marine Systems division at an extraordinary general meeting in the summer.

As part of the spin-off, thyssenkrupp shareholders will receive one TKMS share for every 20 thyssenkrupp shares held, with October 17 being the relevant allocation date. thyssenkrupp will continue to hold a majority stake (51%) in TKMS through a new holding company. Since August, Thyssen shares have gained around 30% and are currently trading just below EUR 13.

Rheinmetall – A breather at a high level

Air defense also plays a major role for the German defense contractor. Rheinmetall recently secured an order worth more than EUR 9 billion for its Skyranger air defense system, including the required vehicles. The shares are currently consolidating in the EUR 1,800 range. Several analysts see upside potential of more than 20% from current levels. Deutsche Bank experts believe the stock will only gain a good 10%. Things will get interesting on November 6, when the group releases its third-quarter figures.

War as a special economic factor

All three companies stand to benefit from rising defense budgets. Drones represent a rapidly expanding and highly dynamic growth segment. Thanks to its many years of expertise, Volatus Aerospace is well-positioned to capitalize on rising order volumes for drones. Rheinmetall offers broader exposure across the defense sector, though its stock has already seen a strong run-up. TKMS, meanwhile, is an exciting new entry to the stock market.