Volatus Aerospace Shares Gain Momentum on Strategic Milestones

Volatus Aerospace CA92865G1054

Volatus Aerospace entered the new trading week with notable strength, as its shares advanced approximately 12% and stabilized above the CAD $0.60 level. This positive movement follows a series of operational achievements across its commercial and defense divisions, alongside a reinforced financial position.

The company's balance sheet was significantly bolstered in November 2025 by a bought-deal financing round that raised CAD $26.4 million. Management views this capital infusion as essential for accelerating key strategic initiatives without straining near-term liquidity. The proceeds are earmarked primarily for integrating newly acquired assets and deploying advanced technologies.

This financial strength supports a business demonstrating robust growth. For the third quarter of 2025, Volatus posted record quarterly revenue of CAD $10.6 million, representing a 60% year-over-year increase. Revenue for the first nine months of 2025 climbed to CAD $26.9 million, a 32% gain compared to the same period last year. A notable shift in revenue mix was observed, with equipment sales rising to constitute 53% of total revenue, up from 16%. Concurrently, the company's adjusted EBITDA loss improved by 52%, narrowing to CAD $660,000.

Precision Technology Enhances Drone Delivery

A key development driving operational progress is the integration of the Trimble PX-1 RTX positioning system into Volatus's commercial drone delivery service. This technology provides centimeter-level accuracy, a critical requirement for enabling beyond visual line of sight (BVLOS) operations at Edmonton International Airport.

The system is being deployed for daily medical supply flights from the airport to the Montana First Nations Clinic. This approved route requires drones to traverse beneath an active aircraft glide path at an altitude of just 15 meters. Transport Canada and Nav Canada granted authorization for these flights under strict protocols governing airspace access, flight altitude, and remote identification.

Chief Operating Officer Greg Colacitti described embedding the PX-1 RTX technology into the Canary delivery drone system as a "game changer." The enhanced positional accuracy in tightly defined delivery zones is expected to improve safety while supporting greater service reliability and scalability. Trimble has characterized this deployment as a significant milestone for both the company and the drone delivery industry.

Defense Division Integration Complete

On the defense front, Volatus has completed integrating the RPAS (Remotely Piloted Aircraft System) assets acquired from the UK's Caliburn Holdings LLP in October 2025 into its core portfolio. This acquisition brought heavy-lift drone platforms capable of mission durations up to seven days, as well as domestic "Made-in-Canada" manufacturing capacity.

These new platforms are directly applicable to a CAD $9 million defense contract awarded in late December 2025. The contract, for ISR (Intelligence, Surveillance, and Reconnaissance) training solutions, was granted to a NATO-aligned partner. Structured as a two-year agreement, it includes an initial tranche of approximately CAD $4.5 million with delivery slated for the first quarter of 2026; a second tranche can be called upon through 2027.

Forward Outlook and Catalysts

The company's dual strategy of leveraging defense contract revenues to fund the expansion of its commercial drone business is poised to enter a critical execution phase in early 2026. Several near-term catalysts are on the horizon:

• Q1 2026: Initial delivery under the CAD $9 million ISR training contract with the NATO partner.
• February–March 2026: Anticipated start of production at the expanded facility in Mirabel.
• Spring 2026: Potential new defense tenders utilizing the recently integrated platform capabilities.

Analyst consensus places the average 12-month price target at CAD $0.97, implying an upside potential of roughly 53% from current levels. Three analysts currently rate the stock as a "Buy." The company targets achieving break-even at a quarterly revenue run rate between CAD $30 and $40 million and projects a positive trend in earnings per share for the 2026 and 2027 fiscal years.