- Volatus Aerospace (TSX:FLT) reported 26 per cent revenue growth in 2025, driven by sharply higher defence and equipment sales and strong expansion in Europe and the U.K.
- Adjusted EBITDA losses narrowed 25 per cent as merger integration efficiencies took hold and defence contract activity increased
- The company’s balance sheet strengthened significantly, with year-end cash rising to C$41.1 million and working capital shifting from a deficit to a C$36.5 million surplus
- Volatus Aerospace stock (TSXV:FLT) last traded at $0.68
Volatus Aerospace (TSXV:FLT) released its audited consolidated financial results for the fiscal year ended December 31, 2025, reporting higher revenue, stronger gross profit, and a significantly improved balance sheet during its first full year operating as a combined entity following the August 2024 merger with Drone Delivery Canada Corp.
The company said fiscal 2025 represented its transition into a Canadian‑controlled global aerospace and defence platform with the scale and technology portfolio required to compete for larger domestic and NATO‑aligned opportunities.
Volatus will host a conference call and webcast to discuss the results on Wednesday, April 1, 2026, at 8:00 a.m. ET.
Revenue growth driven by defence and equipment sales
Volatus reported total revenue of C$34.2 million, an increase of 26 per cent over fiscal 2024 and a return to its 2023 revenue levels. Management said the results were achieved on a more advanced and strategically positioned platform following the merger.
Equipment revenue more than doubled to C$16.3 million, up from C$7.9 million in 2024, driven by deliveries of tactical intelligence, surveillance, and reconnaissance (ISR) drone systems to NATO member countries. Service revenue totaled C$17.9 million, reflecting continued demand for aerial inspection and data services in North America and the United Kingdom.
Europe and the U.K. recorded the strongest geographic growth, rising 150 per cent year‑over‑year to C$10.0 million, now representing 29 per cent of company-wide revenue. Canadian revenue grew 10 per cent to C$19.3 million, while U.S. revenue declined to C$4.9 million, which management attributed to restrictions on Chinese-manufactured UAS platforms and evolving procurement requirements. Volatus said it is working to address these market headwinds through NDAA‑compliant and domestically sourced product offerings.
Gross profit rose 16 per cent to C$11.1 million, reflecting the benefit of higher overall revenue. Blended gross margin was 32 per cent, influenced by the increasing mix of defence equipment sales, which carry lower initial margins but generate higher-margin sustainment and training revenue over longer project cycles.
Improved profitability and integration progress
Adjusted EBITDA for 2025 improved by 25 per cent to (C$7.2 million) from a proforma (C$9.7 million) in 2024. Volatus said the improvement reflects the first full fiscal year absorbing the entire cost base of the merged company while realizing integration efficiencies, including reduced overhead and consolidated operational infrastructure.
Management said it expects further improvement as integration benefits continue and the company converts its defence pipeline into recognized revenue.
The company also reported that it has secured contracts and framework agreements expected to generate recurring annual revenue equivalent to roughly 70–75 per cent of its 2024 revenue base, subject to standard purchase order processes.
Defence and NATO engagement expands
Volatus said fiscal 2025 established the company as an active supplier of defence-grade uncrewed systems to NATO‑aligned customers. Key developments included:
- Multiple deliveries of tactical ISR drone systems to NATO member countries.
- A defence contract valued at up to C$9 million to supply a next-generation interim ISR training system, with first deliveries scheduled for the first half of 2026.
- A contract to commercialize heavy‑lift offshore drone deliveries for a major wind energy operator.
- Acquisition of the V100/V200/V300 long-endurance fixed‑wing UAS platform series from Caliburn Holdings LLP in the U.K., with manufacturing designated for Mirabel, Québec.
- Establishment of the Volatus Innovation and Drone Manufacturing Facility in Mirabel to support Canada’s sovereign drone industrial capability.
Commercial operations expand across core sectors
The company also reported continued expansion of its commercial service operations:
- A multi-year agreement with a major North American electricity utility covering inspection and data services across approximately 16,093 km of transmission and distribution lines through 2028.
- Pipeline integrity monitoring surpassing 75,000 cumulative flight hours.
- Nationwide Transport Canada approval for nighttime long-distance BVLOS operations, which Volatus described as a first in Canada.
- Launch of the Condor XL heavy‑lift RPAS program, supported by NRC‑IRAP funding, with initial commercial deployments planned for 2026.
- A strategic partnership with Ki Reforestation to support large-scale aerial seeding as part of Canada’s Two Billion Trees initiative.
Balance sheet strengthens significantly
Volatus reported a major improvement in liquidity and capital resources during fiscal 2025. Cash increased from C$1.6 million at the end of 2024 to C$41.1 million at the end of 2025, supported by capital raised during the year. Working capital moved from a deficit of (C$8.4 million) to a surplus of C$36.5 million, described as the strongest position in the company’s history.
Total assets grew 60 per cent to C$92.7 million, while total liabilities declined 21 per cent to C$25.0 million due to the conversion of convertible debentures, settlement of contingent consideration, and reduced trade payables. Shareholders’ equity increased to C$67.7 million, more than doubling from 2024.
Management said the strengthened balance sheet provides the foundation for executing its growth strategy in defence and infrastructure markets. Subsequent to year-end, the company reported several strategic milestones, including its graduation to the TSX, the launch of its SKYDRA platform, the acquisition of full ownership of Synergy Aviation, and a new NATO training contract.
Leadership commentary
“Fiscal 2025 was a defining year for Volatus. We delivered NATO-allied ISR systems, secured a C$9 million defence contract, established sovereign manufacturing infrastructure at Mirabel, and transformed our balance sheet, ending the year with C$41 million in cash and 26 per cent revenue growth,” Volatus Aerospace’s CEO, Glen Lynch, said in a news release. “The combined organization is performing, our defence pipeline is growing, and our platform is aligned with evolving requirements across Canada and allied markets. We are executing.”
About Volatus Aerospace
Volatus develops and supplies uncrewed aerial systems (UAS), ISR training solutions, and related services for defence, civil, and industrial applications. Its offerings include equipment, training, operational support, and lifecycle services designed to enable safe, effective, and scalable UAS deployment.
Volatus Aerospace stock (TSXV:FLT) last traded at $0.68 and has risen 300 per cent since this time last year.
Join the discussion: Find out what investors are saying about these drone stocks on the Volatus Aerospace and make sure to explore the rest of Stockhouse’s stock forums and message boards.
Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein. For full disclaimer information, please click here.
