Stocks in a Billion-Dollar Frenzy! Siemens Energy at EUR 245? +16% for Deutz! Is Volatus Aerospace Set to Take Off Again?

Volatus Aerospace: An Opportunity for Investors with a Little Patience

Volatus Aerospace is arguably one of the most interesting drone plays and is only at the beginning of an exciting development. The Canadian technology company is in the midst of a fundamental transformation. In an interview with Lyndsay Malchuk of the IIF, CEO Glen Lynch provided a detailed update.

Volatus no longer sees itself merely as a drone provider but rather as an aerospace platform, with the civilian and military sectors as two parallel pillars of growth. Today, this includes development, manufacturing, training, autonomous systems, aerial reconnaissance, software, and operational flight services. In-house production is key. At the end of February 2026, Volatus acquired a manufacturing and integration facility spanning approximately 53,000 square feet in Mirabel, Canada.

Lynch sees particularly significant opportunities in the Canadian defense market. This is driven by the government's new focus on sovereign capabilities and increased procurement from domestic companies. Volatus is positioning itself for this with its own technology and increasingly close ties to the Canadian Armed Forces. According to Lynch, with V-Cortex AI, the company now has its own autonomy platform, including a flight controller, hardware, firmware, communications, encryption, and an autonomy stack. At the same time, Volatus is participating in initiatives such as the Drone Defense Initiative, which aims to accelerate procurement processes. He expects larger procurement volumes primarily starting in 2027, while the first calls for proposals are already set to begin.

The example of wildfire suppression illustrates just how widely the technology can be applied. Volatus aims to combine satellite data, continuous aerial surveillance, and autonomous aircraft to detect fires earlier and respond to them more quickly. Among other things, the planned systems are designed to carry approximately 1,500 litres of water or fire suppressant and to be capable of operating at night. And this is just one initial use case for a dual-use platform that can also be deployed for disaster relief, deliveries to remote regions, or surveillance missions.

This strategic realignment does not yet appear to have fully registered with the capital market. Lynch acknowledges that investors primarily want to see large contracts and visible revenue contributions, whereas many investments only appear in the financials after a delay. In addition to the new factory, he cites the expansion to larger aircraft and a Transport Canada certification for a remotely piloted aircraft system with a "detect-and-avoid" function to prevent collisions as key operational advances. For Lynch, Volatus is therefore currently primarily in a positioning phase. The key question now is whether the capabilities, government relationships, and proprietary technologies the company has built up will actually translate into larger orders and, subsequently, rising revenue.

The stock has lost nearly 40% of its value over the past six months and is currently valued at CAD 378 million. This seems to limit the downside risk. Instead, buying the stock could pay off for investors with a little patience. The current share price is about EUR 0.31. In March of this year, it was already at EUR 0.55.

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

Siemens Energy: Analysts See Stock at EUR 245

There have been numerous positive analyst comments regarding Siemens Energy in recent days. JPMorgan is particularly bullish. Analysts estimate the fair value of the DAX stock at EUR 245, while it is currently trading at around EUR 151.

The experts were reacting to the company's latest announcement. The group plans not only to rebrand but also to restructure its organization. Siemens Energy is preparing for the legal and operational spin-off of its Transformation of Industry division. The goal is to create an independent company focused on industrial energy solutions, with greater entrepreneurial flexibility and better growth opportunities. In a second step, a new ownership structure will be explored, such as through the participation of external investors or a capital markets transaction. Siemens Energy aims to deconsolidate the division while retaining a significant minority stake. The division employs approximately 17,000 people and generated revenue of EUR 5.7 billion in fiscal year 2025, with a profit margin of 11.3%. The portfolio includes, among other things, industrial steam turbines, compressors, electrolysers, generators, and motors, as well as maritime and subsea technologies.

With the spin-off, Siemens Energy intends to focus more strongly on its high-growth core businesses of power generation and power transmission. Transformation of Industry, on the other hand, primarily serves industries such as oil and gas, chemicals, process manufacturing, paper, cement, and shipping, which, according to the Group's assessment, have different customer requirements and shorter decision-making cycles. As an independent company, the division should therefore be able to invest and grow more quickly. Siemens Energy sees tailwinds from trends such as industrial electrification, energy efficiency, decarbonization, digitalization, and security of supply. About 50% of revenue comes from the service business, and more than 85,000 units installed worldwide provide a broad base for recurring revenue. The spun-off division will initially operate under the future Siemens Energy brand Omterra.

Deutz: Stock Market Celebrates Billion-Euro Takeover

Deutz shares are currently performing strongly. In the past five trading days alone, they have risen by over 16%. So far this year, the stock has gained over 36%. The driver behind this is speculation about a defense deal. To that end, the engine manufacturer plans to pull off a billion-euro acquisition. It has recently cleared an important hurdle on the path to acquiring FFG Flensburger Fahrzeugbau Gesellschaft. At the special shareholders' meeting, 99.7% of Deutz shareholders approved the necessary capital increase in exchange for a contribution in kind. The Federal Cartel Office has also already approved the acquisition. The closing is expected in late 2026 or early 2027, following the granting of the remaining approvals. With FFG, Deutz aims to expand its defense business into a key pillar and accelerate its transformation from an engine manufacturer into a diversified industrial group.

FFG is one of Europe's leading suppliers of military land vehicles and specialty vehicles and is active, among other things, in the maintenance, modernization, and repair of wheeled and tracked vehicles. The company employs more than 1,100 people at 9 locations and supplies armed forces in more than 15 countries. In 2025, FFG generated revenue of approximately EUR 760 million, and its order backlog stands at more than EUR 1.9 billion. As early as next year, revenue is expected to exceed EUR 1 billion—with a margin of more than 20%. This could enable FFG to make a significant contribution to Deutz achieving its 2030 targets of EUR 4 billion in revenue and a 10% margin ahead of schedule.

Once the transaction is complete, the approved capital increase is to be implemented. In the process, the families that have owned FFG to date will become anchor shareholders of Deutz, holding up to 29.9%. While this will result in significant dilution for existing shareholders, it will simultaneously give Deutz access to a highly profitable and rapidly growing defense business. If the integration is successful, the Cologne-based group's business profile would undergo a fundamental change. The stock market currently expects this transformation to succeed.

The drone market has the potential to generate billions. In recent months, Volatus has reached important strategic milestones, such as establishing its own production facilities, to capitalize on this potential. This should increasingly be reflected in revenue and profit growth. In the future, Deutz also plans to secure a larger slice of the defense pie. If the integration of the new subsidiary is successful, an interesting group will emerge. Siemens Energy continues to focus on the AI hype. Naturally, this also increases the risk.