Rheinmetall Challenges TKMS! Renk Shares Jump 20%, While Volatus Aerospace Unveils New Drone Application

Volatus Aerospace: Growth in Military and Civilian Drones

DroneShield's shares have skyrocketed by nearly 30% in just a few days. Is something similar on the horizon for Volatus Aerospace? In any case, this could mark the beginning of a comeback for drone and drone defence stocks. After all, despite the recent surge, DroneShield has lost over 30% of its value this year. For Volatus, the price decline in 2026 totals 12%, and the stock appears to have clear upside potential.

Volatus Aerospace, in particular, appears to be poised for a golden future. The Canadian company is not just benefiting from rising defence spending and the growing demand for military drone solutions. The technology firm also holds significant growth prospects in the civilian sector.** A recent example is its strategic partnership with the Spanish aircraft developer Singular Aircraft. Together, the companies aim to establish the FlyOx 1 autonomous heavy-lift aircraft for wildfire suppression, disaster response, and other government applications in Canada.

Under the agreement, Volatus will become Singular's strategic partner in Canada. Among other things, the companies are exploring manufacturing in Canada, system integration, operational deployment, and long-term technical support in the country. Volatus has already begun discussions with government agencies, regulatory bodies, and wildfire management organizations. There are unlikely to be any major issues with certification; after all, according to Singular, the platform has already been tested under the supervision of civil and military aviation authorities on four continents—including water drops.

The FlyOx 1 differs significantly from conventional commercial drones. The autonomous aircraft has a maximum takeoff weight of approximately 4,000 kg and can carry up to 1,560 litres of water or fire retardant, as well as other payloads. It also features a long range, amphibious capabilities, automatic takeoffs and landings, and the ability to operate from unpaved runways. This would allow the FlyOx 1 to be deployed quickly to the vicinity of emerging fires, for example, and to supplement existing firefighting aircraft fleets.

This partnership is another building block in Volatus's overarching strategy to advance Canada's autonomous aerospace capabilities for public safety, disaster response, and other government missions.

https://youtu.be/F4ajDCojMRo?si=XNXoEHVhjc9cyVRW

Rheinmetall Takes Aim at TKMS

Rheinmetall is going on the offensive with its naval defence division, NVL, and seeking to compete with TKMS. Following the setback surrounding the F126 frigate program, Germany's largest defence contractor has unveiled the GMF 140, a new, smaller class of ship designed for NATO countries and allied navies. The 140 m vessel, with a displacement of more than 6,000 tonnes, has been designed for global blue-water operations, coastal missions, and multinational naval deployments. Rheinmetall is particularly hopeful of securing its first order in the US, where a concrete procurement project is in the works.

The GMF 140 combines capabilities for air defence, ballistic missile defence, anti-submarine warfare, and long-range precision strikes. Among other features, the ship is planned to be equipped with modern US radar systems, the AEGIS Combat System, and 64 vertical launch cells for various types of missiles. The equipment is supplemented by anti-ship missiles, torpedoes, a 5-inch gun, close-in defence, electronic warfare, and, in the future, a laser weapon system.

Thanks to an open system architecture, the frigate can also be integrated with Lockheed Martin's CMS330 as well as European sensor and weapon systems. For anti-submarine warfare, the design features a low-signature hull, hull-mounted and towed sonars, as well as capabilities for both manned and unmanned aerial vehicles. Rheinmetall is thus positioning the GMF 140 as an interoperable, next-generation, multi-purpose frigate requiring relatively few crew members.

Rheinmetall shares have recovered somewhat following the sell-off and the drop below the EUR 1,000 mark at the end of June. Driven by positive half-year results, the share has at least climbed back above EUR 1,200.

RENK: Solid Numbers, but Nothing More

Rheinmetall's strong results lifted the entire sector. RENK has gained nearly 20% in value over the past few weeks. Yesterday, the transmission specialist published its own half-year results. Order intake rose by 29.7% to just under EUR 1.2 billion, with the second quarter setting a new record at EUR 612.8 million. The order backlog also reached an all-time high of EUR 7.4 billion.

Revenue, on the other hand, rose moderately by 2.7% to EUR 637.2 million, in line with project and delivery schedules. Profitability improved significantly. Adjusted EBIT climbed by 10.1% to EUR 98.2 million. The Vehicle Mobility Solutions division was once again the growth driver. This is likely to remain the case in the future, as order intake in the segment rose by 42.6% to EUR 970.4 million.

Among the most important orders were the extension of the Rheinmetall framework agreement for the KF41 Lynx, another order from the US Army for the HMPT-800 transmission, and the first series orders for the Patria TRACKX.

RENK confirms its forecast for 2026 and continues to expect revenue of more than EUR 1.5 billion and adjusted EBIT of between EUR 255 million and EUR 285 million. In addition, the Group is advancing its M&A strategy with the planned acquisition of David Brown Defence. With this move, RENK aims to strengthen its position in strategically important markets and gain access to long-term naval programs such as the Global Combat Ship. The transaction is scheduled to close in the fourth quarter of 2026.

Overall, the performance can certainly be described as solid. Order intake is the highlight. However, RENK will likely need to shift into a higher gear in terms of growth to ensure that its current valuation, which stands at no less than EUR 5 billion, has further upside potential.

RENK's operational performance remains solid, but nothing more. Rheinmetall continues to deliver stronger growth and, from a market perspective, its shares currently exhibit greater momentum. Volatus Aerospace, meanwhile, appears to offer meaningful catch-up potential. DroneShield has already rebounded, and sentiment across the broader defence sector continues to improve. If that positive trend persists, Volatus Aerospace could also benefit, particularly given the company's continued operational progress and expanding commercial opportunities.