- Volatus Aerospace (TSXV:FLT) secured a defence contract worth up to C$9 million to deliver ISR training systems to a NATO partner, with initial delivery scheduled for Q1 2026
- Lieutenant‑General (Ret’d) Christopher J. Coates joined Volatus’ Advisory Board, bringing extensive experience in NORAD, CJOC, and defence modernization
- Q3 2025 revenue rose 60 per cent year-over-year to C$10.6 million, driven by strong defence equipment demand and improved operating leverage
- Volatus Aerospace stock (TSXV:FLT) last traded at $0.56
Drone company Volatus Aerospace (TSXV:FLT) has secured a defence contract valued at up to C$9 million to supply an allied defence organization with a next-generation interim training system for Intelligence, surveillance, and reconnaissance (ISR) operations.
About the NATO contract
The award is structured over two years, with an initial tranche of approximately C$4.5 million scheduled for delivery in the first quarter of 2026. A second tranche may be exercised at the customer’s option through the end of 2027. The identity of the end‑user and specific system configurations were not disclosed under the terms of the agreement.
According to the company, the contract responds to an urgent requirement from a NATO partner seeking to accelerate foundational unmanned aviation skills across defence personnel. The scope of deliverables—generalized for security reasons—includes a fleet of unmanned aircraft training systems purpose‑built for introductory ISR skill development; integrated control interfaces to support fundamental flight and sensor‑operation training; comprehensive technical and operational documentation; onsite instructor familiarization to enable seamless integration into the customer’s training environment; and warranty and lifecycle support aligned with defence procurement and sustainment standards.
Volatus characterized the award as supportive of Canada’s defence industrial base, citing contributions to domestic expertise in uncrewed and ISR‑related technologies, interoperability with NATO and allied partners, and the expansion of Canada’s aerospace and defence industrial capacity. The company said the program emphasizes mission‑focused innovation intended to improve readiness, resilience, and operational agility for allied customers.
“Uncrewed ISR capability is now fundamental to modern defence readiness,” Glen Lynch, Volatus Aerospace’s CEO, said in a news release. “This contract demonstrates the trust international partners are placing in Canadian innovation and showcases Volatus’ ability to deliver scalable, defence-grade solutions that strengthen allied preparedness.”
30-year Canadian army veteran joins the team
In a separate development, Volatus appointed Lieutenant‑General (Ret’d) Christopher J. Coates, CMM, MSM, CD, LOM, to its Board of Advisors. Coates is a former Commander of Canadian Joint Operations Command (CJOC), where he oversaw domestic and global operations across the Canadian Army, Royal Canadian Navy, Royal Canadian Air Force, and Canadian Special Operations Forces. He also served as Deputy Commander of the North American Aerospace Defence Command (NORAD), jointly leading the air defence of North America alongside the U.S. Department of Defense and directing readiness, exercises, and capability development for continental defence.
Following an extensive military career as a helicopter pilot and tactical aviation commander, Coates has held senior roles in advanced training, synthetic environments, and defence transformation. His work includes leading Single Synthetic Environments development at CAE, advising on defence modernization in the Middle East, and currently heading the Foreign Policy, National Defence, and National Security Program at the Macdonald‑Laurier Institute. He continues to publish on national security, NORAD modernization, Arctic sovereignty, and the evolving strategic landscape. Volatus said his appointment strengthens its defence expertise as the company advances its vision to support the Canadian Armed Forces (CAF), NORAD modernization, and allied defence partners with Canadian‑made uncrewed aerial systems (UAS), training, and operational capabilities.
In a media statement on his appointment, Coates called this a pivotal moment in Canada’s defence evolution.
“Canada must accelerate the adoption of modern technologies, sovereign manufacturing, and advanced training capabilities to meet growing security challenges,” he said. “Volatus’ vision and operational maturity position the Company to make a meaningful contribution to the CAF, NORAD modernization, and our allies.”
The company noted that its Advisory Board operates in a consultative capacity, providing strategic guidance on defence procurement, government policy, emerging capability requirements, and international markets, while supporting relationship‑building with government, military, and industry stakeholders. Volatus described the board’s role as reinforcing the firm’s long‑term strategic direction in defence and sovereign capability.
Record quarterly results
Separately, Volatus reported record quarterly revenue and gross profit for its Q3 2025 The company posted revenue of C$10,605,438 for the three‑month period, up 60 per cent from C$6,618,504 in Q3 2024, driven by strong equipment demand alongside continued services and training execution. Gross profit was C$3,470,611, representing a 33 per cent gross margin compared with 34 per cent in the prior‑year quarter; the company said the margin reflects a higher proportion of equipment sales in the period.
Adjusted EBITDA was a loss of C$(660,661), a 52 per cent improvement versus a loss of C$(1,364,143) in Q3 2024, reflecting scale, service growth, and improved operating leverage. Volatus reported a cash position of C$17,274,905 as at September 30, 2025, and said current cash is approximately C$40 million after subsequent financing events. The company closed a C$10,000,000 non‑brokered LIFE private placement on July 17, 2025, and a C$4,830,000 brokered “bought deal” LIFE private placement on August 14, 2025. For the nine‑month period ended September 30, 2025, revenue totaled C$26,905,671, compared with C$20,364,238 in the same period of 2024. Year‑over‑year quarterly growth was primarily attributed to equipment sales, which the company said increased by 427 per cent due to heightened defence‑segment demand. Services and Training accounted for 47 per cent of Q3 revenue, with equipment at 53 per cent, compared to a 16 per cent equipment mix in Q3 2024.
Defense demand drove a significant rise in equipment sales according to the company, and its commercial and utility programs continued to scale with new contract awards.
Operationally, Volatus cited several milestones in the quarter: an LOI executed on September 30, 2025, with VoltaXplore to establish domestic battery‑cell supply for next‑generation RPAS platforms used in defence, civil, and Arctic operations; C$4.06 million delivered in tactical ISR systems and training to NATO‑country partners on September 23, July 7, and July 2, 2025; a multi‑year agreement secured on September 16, 2025, with a major North American utility to provide RPAS inspection, mapping, and vegetation‑management services across approximately 100,000 miles of transmission and distribution assets; and a strategic partnership formed on August 25, 2025, with KI Reforestation to deploy Condor XL heavy‑lift RPAS for large‑scale aerial seeding across fire‑damaged forest regions.
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 $0.56 and has elevated more than 286 per cent since the year began and 300 per cent since this time last year.
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