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Volatus Aerospace
(TSX:FLT)
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Rating:52Neutral
Price Target:
C$0.51
▼(-0.98% Downside)
Action:Reiterated
Date:09/12/26
The score is held back primarily by weak financial performance (large losses and persistent negative operating/free cash flow), partially offset by constructive price trend/momentum and a balanced earnings-call outlook supported by strong liquidity and stated growth catalysts. Valuation is constrained by loss-making results and no dividend support.
Positive Factors
Strong liquidity and balance sheet
The strengthened balance sheet gives Volatus greater capacity to fund production, working capital and product development while pursuing larger programs. This liquidity can support commercialization through an investment period and reduce immediate dependence on external financing as the business scales.
Negative Factors
Severe profitability deterioration
Very weak current profitability indicates that revenue is not yet converting into sustainable earnings and that operating leverage remains unproven. Large losses can consume the company's capital cushion, limit reinvestment flexibility and make future performance dependent on successful execution and scale.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong liquidity and balance sheet
The strengthened balance sheet gives Volatus greater capacity to fund production, working capital and product development while pursuing larger programs. This liquidity can support commercialization through an investment period and reduce immediate dependence on external financing as the business scales.
Read all positive factors
Volatus Aerospace (FLT) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$370.18M
Dividend YieldN/A
Average Volume (3M)1.29M
Price to Earnings (P/E)―
Beta (1Y)0.78
Revenue Growth7.58%
EPS Growth20.00%
CountryCA
Employees130
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-0.05
Shares Outstanding725,838,260
10 Day Avg. Volume720,560
30 Day Avg. Volume1,289,652
Financial Highlights & Ratios
PEG Ratio1.76
Price to Book (P/B)4.32
Price to Sales (P/S)8.75
P/FCF Ratio-32.52
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$0.98Price Target Upside91.18% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)-0.03
Revenue Forecast (FY)C$39.08M
Volatus Aerospace Business Overview & Revenue Model
Company Description
Volatus Aerospace Inc. provides integrated drone solutions in Canada, the United States, the United Kingdom, and Norway. The company offers UAV drone services, surveillance as a service, pipeline integrity monitoring, specialized geomatic services...
How the Company Makes Money
Volatus Aerospace makes money primarily by selling services and solutions related to commercial drone (UAS) operations. Key revenue streams include: (1) Service contracts for drone-enabled data collection and aerial operations (e.g., inspection, m...
Volatus Aerospace Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 26, 2026
Earnings Call Sentiment Neutral
The call communicated a mix of near‑term challenges and strategic progress. Short‑term financials were weak (year‑over‑year revenue decline, compressed Q2 margin, and a wider adjusted EBITDA loss) and supply chain/timing issues delayed $2.6M of contracted defense revenue. Offsetting that, management emphasized meaningful operational and strategic milestones: Mirabel is operational, key technology platforms (V‑Cortex, SKYDRA) and partnerships are advancing, sequential revenue recovered strongly (+49.5% Q/Q), and the balance sheet is substantially strengthened ( ~$59M cash) to support scale and capture emerging defense procurement opportunities. Management framed current losses as deliberate investments ahead of anticipated defense and civil program scale, with multiple procurement catalysts expected in the coming months. Overall, positives and strategic positioning are balanced against execution/timing and margin pressures in the near term.Positive Updates
Strong Sequential Revenue Recovery
Q2 revenue of $8.4M, up 49.5% sequentially from Q1 ($5.6M → $8.4M). Management notes this is a sequential recovery even though Q2 was down versus prior year.
Negative Updates
Year‑Over‑Year Revenue Decline and Below‑Target Quarter
Q2 revenue was down ~20% versus Q2 last year. Management acknowledged the quarter was below where they want the business to be at this stage of development.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Sequential Revenue Recovery
Q2 revenue of $8.4M, up 49.5% sequentially from Q1 ($5.6M → $8.4M). Management notes this is a sequential recovery even though Q2 was down versus prior year.
Read all positive updates
Company Guidance
The company reiterated guidance for meaningful revenue growth in FY2026 but emphasized timing risk: Q2 revenue was $8.4M (up 49.5% sequentially from Q1’s $5.6M but down ~20% year-over-year), with $2.6M of contracted defense revenue deferred into H2 due to battery supply issues; services/training made up 57% of Q2 revenue (56% for H1) and products/equipment 43% (44% H1). Gross margin was 29.3% in Q2 (35% in Q1), with a 6-month margin of 31.6% vs. 31.9% a year ago and a long‑term target of 35–40%. Adjusted EBITDA loss widened to $4.35M for the quarter (vs. ~$0.3M a year ago) as the company deliberately invested in people, V‑Cortex, Mirabel and defense capabilities. Balance sheet metrics provide runway: cash $59.2M, working capital ~ $64M, total assets ~ $119M and shareholders’ equity ~ $87M. Operational capacity metrics include a 53,000 sq ft Mirabel facility with ~ $250M annual revenue potential, Condor payload ~180 kg and Flyox ~1,500 L water/cargo capability; key program/timing milestones cited include the Defense Drone Initiative supplier list in early September and an expected Defense Investment Agency milestone in late Sept/Oct, plus an ambition for deep precision strike capability by June 2027.Volatus Aerospace Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
56
Neutral
Cash Flow
22
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 31.95M | 34.20M | 27.15M | 34.87M | 29.77M | 9.91M |
| Gross Profit | 20.61K | 11.10M | 9.56M | 11.14M | 8.35M | 2.53M |
| EBITDA | -15.24M | -11.33M | -5.91M | -4.46M | -3.89M | -1.19M |
| Net Income | -24.36M | -21.36M | -13.14M | -9.46M | -4.62M | -3.68M |
Balance Sheet | ||||||
| Total Assets | 118.80M | 92.66M | 57.80M | 26.88M | 19.75M | 32.96M |
| Cash, Cash Equivalents and Short-Term Investments | 59.35M | 41.11M | 1.56M | 1.68M | 15.30M | 27.67M |
| Total Debt | 23.48M | 21.44M | 24.07M | 18.73M | 220.01K | 410.60K |
| Total Liabilities | 30.20M | 24.95M | 31.47M | 24.34M | 1.23M | 2.20M |
| Stockholders Equity | 89.77M | 69.25M | 27.28M | 3.31M | 18.52M | 30.76M |
Cash Flow | ||||||
| Free Cash Flow | -18.12M | -9.20M | -13.88M | -3.39M | -12.12M | -12.57M |
| Operating Cash Flow | -16.20M | -7.50M | -12.43M | -1.65M | -11.94M | -11.89M |
| Investing Cash Flow | -2.22M | -1.67M | -664.71K | -2.03M | -176.99K | -687.37K |
| Financing Cash Flow | 72.27M | 48.58M | 13.40M | 1.68M | -256.06K | 16.78M |
Volatus Aerospace Technical Analysis
Negative
0.51
Price Trends
0.54
Negative
0.55
Negative
0.62
Negative
Market Momentum
-0.02
Positive
42.20
Neutral
19.44
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FLT, the sentiment is Negative. The current price of 0.51 is below the 20-day moving average (MA) of 0.54, below the 50-day MA of 0.54, and below the 200-day MA of 0.62, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 42.20 is Neutral, neither overbought nor oversold. The STOCH value of 19.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:FLT.
Volatus Aerospace Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | C$665.15M | 15.07 | 9.32% | 1.36% | -3.60% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | C$6.29B | 49.95 | 6.60% | 7.63% | 38.30% | -13.39% | |
60 Neutral | C$1.89B | 32.51 | 7.11% | 0.59% | 15.36% | 57.18% | |
52 Neutral | C$370.18M | -10.57 | -36.18% | ― | 7.58% | 20.00% | |
44 Neutral | C$205.50M | -4.82 | -27.52% | ― | 26.30% | 55.00% |
* Industrials Sector Average
TSE:FLT
Volatus Aerospace
0.50
-0.18
-26.47%
TSE:CHR
Chorus Aviation
30.20
7.32
32.01%
TSE:MAL
Magellan Aerospace
33.41
16.41
96.51%
TSE:DPRO
Draganfly
5.26
-6.22
-54.18%
TSE:MDA
MDA Space Ltd
37.54
2.85
8.22%
Volatus Aerospace Corporate Events
Business Operations and StrategyFinancial Disclosures
Volatus Aerospace Delivers Initial ISR Drone Fleet to NATO Partner
Positive
Oct 7, 2026
Volatus Aerospace has completed delivery of an initial uncrewed ISR training drone fleet to a NATO partner under a previously announced contract, fulfilling an approximately C$4.5 million tranche of a deal valued at up to C$9 million. The customer...
Business Operations and Strategy
Volatus Aerospace Expands Canadian Manufacturing with New Mirabel Facility
Positive
Sep 29, 2026
Volatus Aerospace has formally opened a new 53,000-square-foot manufacturing and systems integration facility in Mirabel, Québec, significantly expanding its Canadian capacity to produce uncrewed and autonomous systems. Situated within the Mo...
Business Operations and Strategy
Volatus Aerospace Joins Supplier Pool for Canada’s Defence Drone Initiative
Positive
Sep 3, 2026
Volatus Aerospace has been selected as a qualified supplier under the Government of Canada’s new Defence Drone Initiative Marketplace, positioning the company within a pre-approved pool for future defence and security requirements involving ...
Business Operations and StrategyFinancial Disclosures
Volatus Aerospace Boosts Liquidity and Defence Platform Despite Q2 Loss
Positive
Aug 13, 2026
Volatus Aerospace reported Q2 2026 revenue of $8.4 million, up 49.5% quarter-over-quarter but down year-over-year due to delayed delivery of a single defence contract amid supply chain disruptions. Services grew 59% and equipment 38% versus Q1, wh...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.