"Olive-Green Economic Miracle" – Who stands to benefit? Volatus Aerospace, Hensoldt, AeroVironment

NATO billions flow into innovation – Drones benefit

According to the Atlantic Council, NATO countries increased their military spending by 18% in 2024, with 23 of 32 members spending 2% or more of their economic output on defense. Since the events of February 2025, when the US at least raised doubts about its support for NATO, military spending is set to rise even more significantly – 5% of economic output is the new target. Some observers assume that Germany alone could spend an additional EUR 100 billion each year. The majority of the investment could go toward innovative military technology: drones and drone defense, but also satellites and reconnaissance systems. Traditional ammunition is also in short supply – neither stocks nor production capacities are sufficient to deter a potential aggressor.

AeroVironment: Step by step toward becoming a defense tech corporation

One of the biggest beneficiaries of the drone trend is traditionally the US company AeroVironment from Arlington, Virginia. Founded in 1971, the Company once made a name for itself with aircraft innovations and has been taking off as a drone supplier since the 2000s. AeroVironment primarily manufactures small and medium-sized reconnaissance drones and unmanned ground vehicles. Until 2025, AeroVironment was primarily known as a drone specialist, but in May, the Company acquired defense technology provider BlueHalo in a stock swap worth USD 4.1 billion. Thanks to this acquisition, the Company is now a diversified defense group with capabilities in space, drone defense, cyber, laser weapons, and satellite technology. At the end of the third quarter of fiscal year 2025, the order backlog reached a record high of USD 764 million.

Volatus Aerospace: NATO drone supplier with full order books

While AeroVironment is valued at around USD 10 billion on the stock market, Canadian drone specialist Volatus Aerospace, which has also been in business for many years, is valued at only around EUR 200 million. Despite the significant difference in valuation, Volatus has also already proven that it is compatible with NATO standards. In 2025, Volatus secured NATO contracts in the areas of education and training, as well as for the delivery of reconnaissance drones on land. Analyst Rob Goff of Ventum Capital sees these successes as indications of further potential for NATO contracts. Media reports repeatedly refer to Volatus's bulging order pipeline.

In addition to the military sector, Volatus also offers civilian solutions, such as for monitoring infrastructure such as bridges or pipelines, to the Condor XL transport drone, with which the Company plans to conduct test flights at the end of the year to test its use in the areas of logistics and forestry. Military use of such transport drones is also conceivable in principle.

Volatus as a takeover candidate – Are the Canadians a good fit for Hensoldt?

As a long-standing drone specialist that has already proven its compatibility with NATO and is moderately valued, Volatus Aerospace is considered a potential takeover candidate. Similar to how AeroVironment broadened its base by purchasing Blue Halo for more than USD 4 billion, other companies in the defense and technology sectors could also seek partners. One possible option could be the German company Hensoldt. Based in Taufkirchen, just outside Munich, the Company is considered a specialist in sensors and defense electronics and thus focuses on the areas of surveillance and reconnaissance. In 2022, Hensoldt acquired the German electronics service provider ESG, thereby strengthening its portfolio in the areas of unmanned systems and logistics. 25.1% of Hensoldt's shares are held by the state-owned development bank Kreditanstalt für Wiederaufbau (KfW).

Potential investors in Volatus Aerospace may be drawn not only to the Company's expertise in drones, but also to its strong order backlog. Under the umbrella of a company that already does regular business with major customers in the defense sector, this growth potential could be leveraged more quickly. Volatus Aerospace stands out as an exciting stock in the defense sector and also offers investors a latent takeover fantasy. After weeks of consolidation, the stock is showing renewed upward momentum. **The so-called "olive-green economic miracle" is clearly extending to include this Canadian drone specialist.