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Volatus Aerospace
(TSX:FLT)
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Rating:45Neutral
Price Target:
C$0.61
▼(-19.21% Downside)
Action:Reiterated
Date:07/02/26
The score is weighed down primarily by weak financial performance—declining revenue, very large losses, and ongoing cash burn—despite a comparatively more stable balance sheet with moderate leverage. Technicals are mixed with neutral momentum indicators but a generally weak longer-term trend. Valuation offers limited support because the company is loss-making (negative P/E) and no dividend yield is provided.
Positive Factors
Diversified revenue mix
A dual business model of contracted services (aerial data, inspections) and product/distribution sales provides multiple revenue channels and use cases. Structurally this reduces reliance on a single customer type, enables cross‑sell of services with hardware, and can stabilize cash flows over a multi‑quarter horizon.
Negative Factors
Revenue decline and margin erosion
A pronounced drop in top‑line and a sharp gross margin contraction indicate either pricing pressure, adverse mix shift, or execution problems. Deep negative net margins suggest the company cannot cover fixed costs, undermining sustainable profitability and limiting ability to self‑fund growth absent a durable rebound.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified revenue mix
A dual business model of contracted services (aerial data, inspections) and product/distribution sales provides multiple revenue channels and use cases. Structurally this reduces reliance on a single customer type, enables cross‑sell of services with hardware, and can stabilize cash flows over a multi‑quarter horizon.
Read all positive factors
Volatus Aerospace (FLT) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$420.99M
Dividend YieldN/A
Average Volume (3M)1.38M
Price to Earnings (P/E)―
Beta (1Y)1.08
Revenue Growth78.10%
EPS Growth8.72%
CountryCA
Employees149
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-0.04
Shares Outstanding725,838,260
10 Day Avg. Volume830,134
30 Day Avg. Volume1,384,083
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$1.06Price Target Upside39.80% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.03
Revenue Forecast (FY)C$47.57M
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 through a mix of (1) services revenue and (2) product/distribution revenue. On the services side, it generates fees by planning and executing drone missions for customers—typically delivering aerial data and/or inspec...
Volatus Aerospace Earnings Call Summary
Earnings Call Date:May 29, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Aug 26, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant operational improvements and strategic milestones, such as BVLOS expansion and cost reductions, while acknowledging challenges like revenue and profit margin declines due to seasonal and geopolitical factors.Positive Updates
Expansion of Beyond Visual Line of Sight (BVLOS) Operations
Volatus Aerospace has achieved significant milestones with the expansion of BVLOS operations across Canada, allowing nationwide approvals for daytime and nighttime operations in uncontrolled airspace.
Negative Updates
Revenue Decline
Q1 2025 revenue of $5.7 million marked a decline from $6.6 million in Q1 2024, attributed primarily to seasonal weather impacts and geopolitical uncertainties.
Read all updates
Q1-2025 Updates
Positive
Negative
Expansion of Beyond Visual Line of Sight (BVLOS) Operations
Volatus Aerospace has achieved significant milestones with the expansion of BVLOS operations across Canada, allowing nationwide approvals for daytime and nighttime operations in uncontrolled airspace.
Read all positive updates
Company Guidance
During the Volatus Aerospace Q1 2025 earnings call, the company reported $5.7 million in revenue, a decrease from $6.6 million in Q1 2024, primarily due to seasonal weather impacts and geopolitical uncertainties. Despite the revenue decline, Volatus achieved a 5% improvement in equipment gross margin and maintained a strong services gross margin of 42%, resulting in an overall blended gross margin of 32%. The pro forma loss decreased from $4.4 million in Q1 2024 to $3.36 million in Q1 2025, driven by a $1.78 million reduction in post-merger costs. Operating expenses showed significant improvements, with marketing expenses reduced by 54%, IT and tech costs down by 5%, and office costs decreased by 25%. Personnel costs rose by 11% to support future growth. The company achieved a 30% improvement in normalized EBITDA year-over-year, with a 70% improvement on a pro forma basis, and generated $1.45 million in cash from operating activities. Volatus is optimistic about future performance, expecting to become EBITDA positive by mid-year 2025, supported by a strong sales pipeline and new regulatory approvals for beyond visual line of sight (BVLOS) operations across Canada.Volatus Aerospace Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
52
Neutral
Cash Flow
18
Very Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 34.20M | 27.15M | 34.87M | 29.77M | 9.91M |
| Gross Profit | 11.10M | 9.56M | 11.14M | 8.35M | 2.53M |
| EBITDA | -11.33M | -5.91M | -4.46M | -3.03M | -2.87M |
| Net Income | -21.36M | -13.14M | -9.46M | -4.62M | -3.68M |
Balance Sheet | |||||
| Total Assets | 92.66M | 57.80M | 26.88M | 19.75M | 32.96M |
| Cash, Cash Equivalents and Short-Term Investments | 41.11M | 1.56M | 1.68M | 15.30M | 27.67M |
| Total Debt | 21.44M | 24.07M | 18.73M | 220.01K | 410.60K |
| Total Liabilities | 24.95M | 31.47M | 24.34M | 1.23M | 2.20M |
| Stockholders Equity | 69.25M | 27.28M | 3.31M | 18.52M | 30.76M |
Cash Flow | |||||
| Free Cash Flow | -9.20M | -13.88M | -3.39M | -12.12M | -12.57M |
| Operating Cash Flow | -7.50M | -12.43M | -1.65M | -11.94M | -11.89M |
| Investing Cash Flow | -1.67M | -664.71K | -2.03M | -176.99K | -687.37K |
| Financing Cash Flow | 48.58M | 13.40M | 1.68M | -256.06K | 16.78M |
Volatus Aerospace Technical Analysis
Negative
0.76
Price Trends
0.65
Negative
0.69
Negative
0.65
Negative
Market Momentum
-0.02
Negative
44.18
Neutral
70.37
Neutral
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 0.76 is above the 20-day moving average (MA) of 0.59, above the 50-day MA of 0.65, and above the 200-day MA of 0.65, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 44.18 is Neutral, neither overbought nor oversold. The STOCH value of 70.37 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | C$8.23B | 69.55 | 7.24% | ― | 42.91% | 2.84% | |
66 Neutral | C$1.94B | 41.87 | 5.48% | 0.93% | 10.42% | 12.81% | |
65 Neutral | C$569.73M | 9.16 | 12.73% | 0.76% | -7.22% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
51 Neutral | C$278.46M | -5.34 | -29.13% | ― | 25.32% | 68.42% | |
45 Neutral | C$420.99M | -14.60 | -42.43% | ― | 78.10% | 8.72% |
* Industrials Sector Average
TSE:FLT
Volatus Aerospace
0.58
0.21
56.76%
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Chorus Aviation
24.79
3.16
14.63%
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34.03
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81.20%
TSE:DPRO
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7.63
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63.38%
TSE:MDA
MDA Space Ltd
59.34
22.05
59.13%
Volatus Aerospace Corporate Events
Business Operations and Strategy
Volatus Aerospace Wins Multi-Year Training Deal with NATO-Allied Government
Positive
Apr 15, 2026
Volatus Aerospace has secured a multi-year contract to provide specialist training to a NATO-allied government ministry, reinforcing its role as a defence and security training provider. The deal, initially spanning two years with renewal options ...
Business Operations and Strategy
Volatus Aerospace Wins Multi-Year NATO-Allied Training Contract
Positive
Apr 15, 2026
Volatus Aerospace has secured a multi-year contract to provide specialist training to a NATO-allied government ministry, with an initial two-year term and options that could bring the total value to about CAD $2.1 million. The company will design ...
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.