Defense Sector Surge Propels Volatus Aerospace to Record Performance

Volatus Aerospace CA92865G1054

The Canadian drone technology firm Volatus Aerospace is reporting unprecedented financial results, fueled by a strategic pivot toward defense contracting. Strategic appointments and manufacturing expansion underscore this shift as the company transitions from a service-focused model to a hardware and systems provider.

For the third quarter of 2025, Volatus posted record revenue of CAD 10.61 million. This figure represents a substantial 60% increase compared to the CAD 6.62 million generated in the same period last year. Gross profit reached CAD 3.47 million, yielding a healthy 33% margin.

A dramatic transformation within the company's revenue mix is the central story. Sales of drone equipment and systems skyrocketed by 427% year-over-year. This segment now accounts for 53% of total revenue, a seismic shift from just 16% in the prior-year quarter. This surge is directly attributed to escalating demand from defense and security clients. Meanwhile, the company's traditional service business has plateaued.

On the profitability front, the adjusted EBITDA loss was reduced by 52% to CAD 660,661. Following several successful financing initiatives, Volatus holds a robust liquidity position of approximately CAD 40 million. Cumulative revenue for the first nine months of the fiscal year stands at CAD 32.91 million, marking a 32% increase.

Strategic Advisory Appointment Targets Government Contracts

To accelerate its defense sector ambitions, Volatus announced on December 4, 2025, the appointment of retired Lieutenant-General Christopher J. Coates to its advisory board. LGen Coates brings over three decades of experience, having served as Deputy Commander of NORAD and Commander of Canadian Joint Operations Command.

This move is strategically targeted. The company aims to establish itself as a key supplier of drone systems, training solutions, and operational support for the Canadian Armed Forces, the NORAD modernization initiative, and allied NATO partners. The advisory board's role is to guide Volatus through complex procurement processes, regulatory landscapes, and international market entry. LGen Coates is also expected to leverage his network to foster relationships with government, military, and industry stakeholders.

Manufacturing Ramp-Up and Solid Financial Footing

In preparation for anticipated growth, Volatus is establishing manufacturing capabilities for unmanned aerial systems at its facility in Mirabel, Quebec. Production is scheduled to commence in late February or early March of 2026. This vertical integration step is designed to secure supply chain independence and position the company to meet rising demand across defense, civil, and Arctic operations.

Further strengthening its supply chain, Volatus has signed a memorandum of understanding with VoltaXplore to develop a domestic battery cell supply for future drone platforms.

The company's financial foundation was reinforced with the completion of a CAD 26.39 million financing round on November 26, 2025. Management has provided clear profitability targets, anticipating that the EBITDA break-even point will be achieved with quarterly revenue between CAD 13 million and CAD 14 million. A positive free cash flow is projected once quarterly revenue reaches CAD 16 million to CAD 17 million.

Currently, Volatus is managing a sales pipeline valued at over CAD 600 million, with a concentrated focus on opportunities in Canada and Europe. Demonstrating early traction, the company delivered tactical reconnaissance systems and related training worth CAD 4.06 million to NATO allies during Q3. Leadership has reaffirmed its financial outlook for both the fourth quarter of 2025 and the first quarter of 2026.