Three megatrends, one stock: Volatus Aerospace – Making millions with drones

Dilapidated infrastructure as a billion-dollar market: Drones make it cheaper

When we think of drones, we often picture fancy toys that occasionally disrupt airspace or serve as an alternative to traditional fireworks. But drones are anything but a gimmick. Volatus Aerospace offers clients a full-service package, with a strong focus on data collection and analysis. Potential customers for Volatus include companies in the energy, infrastructure, logistics, and defense sectors. Volatus's goal is to use innovative and reliable drone technology to make its customers' operational processes more efficient, safer, and cost-effective. To this end, the Canadian company operates its own drone fleets and control centers, develops software for autonomous missions, and trains drone pilots.

The use of drones for infrastructure monitoring is particularly exciting. At the end of last year, a study by asset manager Union Investment showed that public infrastructure in Germany can only be maintained with private investment. The figures are alarming: The investment required for roads, railways, and energy routes alone in Germany will amount to EUR 400 billion over the next ten years. The situation is similar in other economies around the world. Every year, media reports repeat how enormous amounts of water are lost in the US due to defective pipes. The collapse of bridges, such as in Italy, also demonstrates the urgent need for action. Volatus Aerospace makes infrastructure monitoring easier, faster, cheaper, and better.

Cooperation with DroneUp as a door opener to Walmart, Amazon, and Co.?

Drones equipped with modern technology fly over railroad tracks, bridges, and other infrastructure, creating digital images with high data density. When drones fly over the object repeatedly, Volatus experts can use modern data analysis to identify trends and changes. Thanks to high-resolution cameras, LiDAR scanners, and thermal imaging sensors, the drones do not miss a single detail. In total, Volatus has already flown over and analyzed 1.7 million km of pipelines and carried out 16,000 remote-controlled transport flights.

In the past, the transport of goods primarily focused on the delivery of urgent medical samples. In the future, however, Volatus could also deliver parcels – since this year, it has been cooperating with the US-based drone delivery service DroneUp. Through this partnership, Volatus and DroneUp aim to build a cross-border delivery network in North America. DroneUp will contribute its US licenses (as a certified air carrier) and a certified delivery drone system, while Volatus will contribute its Canadian operating permits (including a dangerous goods license) and experience. Both partners aim to set standards in drone logistics and drive commercialization forward. As drone deliveries are also becoming increasingly regulated, the use of delivery drones, as tested repeatedly by Amazon and DHL in recent years with great media coverage, is moving closer to reality.

Volatus Aerospace solves the problems of Western militaries

In addition to infrastructure and logistics, Volatus Aerospace is also active in the military sector and, with its defense team of former military pilots, offers solutions for professional reconnaissance, border protection, and military logistics. Drones can deliver supplies such as food, medicine, or ammunition in rough terrain, replacing conventional convoys. Volatus Aerospace's solutions, therefore, reduce risk in the field – exactly what Western armies need most.

Volatus Aerospace uses the full range of unmanned aerial vehicles. In the military sector, these range from drones that can be deployed immediately with a flight time of two hours to drones that can stay in the air for up to thirty hours. Volatus is already seeing a sharp increase in demand from the military. Higher revenues are also expected in other sectors. The Company benefits from close cooperation with regulators such as the Canadian Aviation Authority, with which it has jointly developed standards for the transport of hazardous materials. Cross-border cooperation with DroneUp also means that Volatus Aerospace is technologically and regulatorily compatible.

Comprehensive order pipeline, low valuation – What can the stock do?

According to the Company, Volatus currently has CAD 600 million in potential order volume in the pipeline. While such projections are, by definition, vague, Volatus Aerospace's comprehensive positioning in the drone business certainly gives cause for optimism. Thanks to its low market capitalization of just CAD 67 million, new partnerships or orders could directly trigger dynamic price movements. Volatus Aerospace shares represent a speculative investment in an industry with a bright future. Infrastructure, security, and last-mile logistics are all areas with great potential.