Volatus Aerospace: Strong Second Half of the Year Expected
With Volatus Aerospace, investors can benefit from growth in the military and civilian drone markets. The Canadian company is a NATO partner and is transitioning from a traditional aviation services provider to an integrated aerospace and defence platform with a growing share of recurring software revenue. A key component is SKYDRA, a SaaS subscription model for planning and coordinating drone defence operations, which, according to the company, enables attractive margins of around 35%. At the same time, Volatus is expanding its technology portfolio with the V-Cortex AI flight controller and its own autonomy solutions. Building out the technology and production capacity comes at an initial cost. As a result, operating expenses rose by 48% to CAD 17 million in the first half of 2026.
These investments should pay off soon. At CAD 8.4 million, second-quarter 2026 revenue still fell short of the prior-year figure. The main reason, however, was a timing shift. A defence contract with an expected revenue contribution of approximately CAD 2.6 million could not be finalized during the quarter due to supply chain issues and is expected to be fully delivered later in the year. At the same time, sequential growth rates show a clear uptick. Compared to the first quarter, equipment revenue rose by 38% and service revenue by 59%.
Volatus has now laid the infrastructural and financial groundwork for its continued growth trajectory. In June, a large production and systems integration facility was opened at Montreal-Mirabel Airport, which, according to the company, is designed to generate up to CAD 250 million in annual revenue. At the same time, Volatus had cash and cash equivalents of CAD 59.2 million as of the end of June. The business in the US is also expected to contribute to future growth. Volatus has been accepted into the next phase of the US Drone Dominance Program. And particularly in the drone sector, the US must invest heavily following its bitter experiences in Iran and has already announced its intention to do so.
Against this backdrop, it can really only be a matter of time before Volatus shares take off again. They are currently trading on Tradegate at around EUR 0.32. In March, it was already trading above EUR 0.80. Yet the company is strategically much further along today than it was back then.
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DroneShield: Expanding Its Counter-Drone Business in Europe
While Volatus is an exciting drone play, DroneShield’s investment case centers on drone defence. The stock is also not currently attracting much investor attention. Its year-to-date performance is down 40%. Its market capitalization currently stands at around AUD 1.8 billion.
The Australian company recently received two new orders for vehicle-mounted drone defence systems with a total value of AUD 23.2 million. The client is a European military customer, and the orders are being processed through the Benelux distribution partner COBBS BELUX. The contracts include hardware, software subscriptions, warranties, and services. Deliveries are scheduled for 2026. Approximately AUD 21 million is expected to be recognized as committed revenue in 2026, with the remainder accounted for as recurring revenue in subsequent periods.
Overall, DroneShield continues on its strong growth trajectory. For the first half of 2026, the company reported preliminary revenue of AUD 125.8 million, representing a 74% increase over the same period last year. However, the gross margin declined from 65% to approximately 60%, due in part to the product mix, currency effects, and inventory write-downs on raw materials. For the full year, DroneShield now expects revenue of AUD 250 to 270 million.
At the same time, DroneShield is advancing its technological development and has unveiled RfAI-3, the third generation of its proprietary radio frequency intelligence platform. The software is designed not only to detect known drone signatures but also to identify previously unknown emissions through broadband spectrum analysis and to generate new signatures. In doing so, the company is responding to the increasingly software-defined and rapidly evolving radio technologies used in drones.
TKMS Shares: Is the All-Time High Not Enough Yet?
While investors in Volatus and DroneShield may be speculating on a return to previous all-time highs, TKMS has already made a comeback. Within just a few weeks, the share surged by nearly 50% and is trading at a new all-time high. On Friday, the share closed at EUR 104 heading into the weekend. Analysts at Bernstein even believe the naval shipbuilder’s stock could reach EUR 125. Last week, they upgraded TKMS from “Market Perform” to “Outperform.” The reasons are the full order book and, consequently, predictable medium-term growth.
And the order book is likely to continue filling up. If the ongoing contract negotiations are successfully concluded, the Canadian order for up to 12 submarines would become the largest single order in TKMS’s history. And there is hardly any doubt left that the order will be awarded. Most recently, TKMS, together with representatives from Germany, Norway, and Canada, as well as KONGSBERG and Multiconsult, held the first joint planning event for the 212CD submarine program in Kiel. The four-day meeting took place just a few weeks after TKMS was selected as the preferred supplier for the Canadian Patrol Submarine Project and marks the operational start of the multilateral collaboration. The focus was on planning the next phases of the program, establishing joint working structures, and preparing for the upcoming contract negotiations.
With Canada’s potential participation, the 212CD program would evolve into a multinational NATO cooperation between Germany, Norway, and Canada. The partners aim to enhance interoperability among their naval forces, leverage synergies throughout the submarines’ life cycle, and strengthen maritime security, particularly in the North Atlantic and the Arctic. In the coming weeks, the agreements are to be further refined and the next steps in program implementation prepared.
TKMS is currently riding a wave of success. However, it should not be forgotten that shipbuilding is also a highly complex process. Errors in planning or production can quickly wipe out margins. TKMS shares are an example of how quickly sentiment can shift—even with drone stocks. A strong rally appears possible at any time for Volatus Aerospace. Not to mention the enormous medium-term opportunities. DroneShield remains the core investment in drone defence. However, even after the price drop, the stock is not a bargain.
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