Is Volatus Aerospace still a buy?

Volatus Aerospace (Volatus Aerospace Stock Quote, Chart, News, Analysts, Financials TSXV:FLT) is shifting into the growth phase of its strategic transition toward higher-margin drone services, Ventum Capital Markets analyst Rob Goff said in an Oct. 28 update, reiterating a “Buy” rating and $0.80 share-price target.

Goff said momentum is building across regulated utility and government channels, with long-cycle inspection and infrastructure contracts supporting a potential recurring-services run-rate above $35-million annually exiting 2025. He added that disciplined integration and cost control are expanding EBITDA efficiency, forming “the foundation for scalable growth” as product mix shifts away from equipment sales.

Vaughan, Ontario-based Volatus acquires, builds, and operates aerial data and drone-enabled services, while also manufacturing unmanned aircraft and technology solutions for commercial, industrial and defence customers in Canada and internationally.

Goff noted there is a strengthening outlook for defence-related work, particularly after Volatus secured Canadian-based drone intellectual property through a deal with U.K. aerospace firm Caliburn Holdings LLP for $2-million up front and up to $6.5-million in performance earnouts. The fixed-wing designs, capable of 12-hour to multi-day endurance with 15- to 50-kilogram payloads, align with expanding NATO and domestic border-surveillance requirements, he said.

With engineers relocating to Volatus’s new Mirabel, Que. innovation and manufacturing centre , and additional U.K. business-development staff remaining embedded in allied procurement networks, Goff said the company is “exceptionally well positioned” for large Canadian and NATO border-security contracts.

Rising federal-defence spending targets, including Ottawa’s accelerated push toward the NATO 2%-of-GDP baseline, reinforce that thesis.

“Recent share-price gains and multiple expansions across North American drone and autonomy peers point to a constructive market backdrop,” he said. “We see sufficient liquidity to secure large contracts and materially ramp equipment sales.”

Goff maintained revenue forecasts of $43.6-million for 2025 and $67.5-million for 2026 as the contracting pipeline converts into deployments. He said strategic wins in surveillance and inspection could represent incremental upside not yet embedded in baseline estimates.

He projects Adjusted EBITDA of $0.8-million in fiscal 2025, improving to $6.4-million in 2026.

-30-