Volatus Aerospace: Positioned for Growth in the Expanding Drone Economy

NATO Partners Seek New Partners

There are only a few drone manufacturers worldwide, and not all armies want to continue working with US companies—let alone Chinese ones—in the future. Trust was particularly high in the US. However, the past ten years have likely made it clear even to the last politician in Western Europe that one cannot trust the former protective power, especially when it comes to military technology. And even the US's neighbour, Canada, is already taking steps to prepare. The new government under Prime Minister Mark Carney will place greater emphasis on "Made in Canada." As a result, the military's strategic procurement policy is being completely overhauled. Instead of simply buying weapons from US companies, 70% of the approximately CAD 82 billion defence budget is to be spent domestically in the medium to long term.

Volatus Aerospace: Mass Production in Sight

Volatus Aerospace (CAD 0.68; CA92865M1023) is not only one of the few drone companies in the Western Hemisphere but also a Canadian firm. With a broad range of civilian and military drones, it is currently storming the markets. And it certainly has a good chance of securing a slice of the Canadian military pie. The company is ideally positioned to benefit from this. Volatus is currently establishing itself with the construction of its central production facility in Mirabel, in the province of Québec. There, the "Volatus Innovation & Drone Manufacturing" plant is under construction and is expected to report its first production revenues as early as the second half of 2026. Volatus aims to make the facility the centrepiece of its long-term manufacturing strategy. In addition to development, drone series production is also to take place here. The facility covers approximately 18,500 sqm and is located in the Mirabel Innovation Zone, a state-of-the-art aerospace ecosystem. Volatus is currently investing an additional CAD 10 million to increase capacity and expand system integration capabilities. Starting in June of this year, MALE (Medium Altitude Long Endurance) drones are to be manufactured here. They can remain in continuous operation for up to seven days and carry payloads ranging from 100 kg to 265 kg. According to CEO Glen Lynch, operations and production are set to begin before the summer break. Investors can then expect significant revenue from series production by 2027.

Full Order Books and Strong Growth

Volatus already demonstrated strong growth last year and laid the groundwork for an accelerated pace. Revenue rose to more than CAD 34 million, an increase of approximately 26%. In the defence sector, revenue reached approximately CAD 16.3 million—twice as much as in the previous year. Orders came particularly from the UK and EU countries. Here, revenue growth amounted to 150%. Volatus Aerospace also reported that it has signed contracts and framework agreements expected to generate annual recurring revenue of approximately 70–75% of its 2024 revenue base. This would correspond to at least CAD 19 million in recurring revenue. This is possible because Volatus is not merely a drone manufacturer. Rather, it sees itself as an integrated provider with its own platform. The goal is to combine drones, manned aviation, software, training, and data. Volatus then aims to generate revenue across the entire value chain within this ecosystem. According to the company, margins from the new SaaS platform SKYDRA can reach up to 85%.

Whether wind power or oil pipelines: Drones are everywhere!

Volatus Aerospace is also working on its own ecosystem in the civilian sector. There, the focus is primarily on the oil and gas and utilities sectors. This includes, for example, the maintenance and continuous monitoring of pipelines, such as the Keystone pipeline, which connects Alberta's rich oil sands with refineries in the US. But drones are just as in demand for inspecting wind turbines. For this, Volatus uses specialized drones. These drones fly autonomously around the rotor blades and use high-resolution cameras (8K and infrared). These help detect the tiniest cracks, erosion damage on the edges, or the effects of a lightning strike—all of which would be invisible to the naked eye from the ground. Infrared sensors, in turn, can be used to locate delaminations in the composite layers or moisture inclusions. Volatus's actual "product" here is often not just the flight itself, but the data processing, which is carried out using an AI-driven software platform. This offers major advantages for operators: An inspection no longer takes hours or days per wind turbine, but perhaps just 30 minutes. Additionally, personnel are no longer put at risk by working at great heights. Thanks to precise data, the operator can plan repairs early, before a small crack becomes major damage.

With its integrated drone technology, Volatus Aerospace is one of the fastest-growing companies in the industry. Potential catalysts include further orders from both the civilian and military sectors, as well as the start of production in Mirabel. Following the steep rise in 2025, the stock moved sideways for a long time and is currently trading around 15% below its annual high.