- Revenue Growth of 26% year-over-year
- Defence Equipment revenues more than 2x from 2024
- Total Assets of C$92M+, up ~60% year-over-year
- Europe & UK revenue grew 150%, driven by NATO-aligned defence business
- Current cash balance of ~C$41M
- Secured a NATO defence contract valued at up to C$9M in Dec 2025
- Establishment of the Volatus Innovation & Drone Manufacturing Facility in Mirabel, QC
MONTREAL, March 31, 2026 (GLOBE NEWSWIRE) -- Volatus Aerospace Inc. (TSX: FLT) (OTCQX: TAKOF) (Frankfurt: ABB.F) ("Volatus" or the "Company"), a Canadian-controlled global aerospace and defence company delivering integrated uncrewed systems, aerial intelligence, and mission-critical operational services, today released its audited consolidated financial results for the fiscal year ended December 31, 2025.
Fiscal 2025 was the Company's first full fiscal year as a combined entity following the August 2024 merger with Drone Delivery Canada Corp., and the year in which Volatus established itself as a Canadian-controlled aerospace and defence platform with the operational scale, financial strength, and proprietary technology portfolio to compete for significant domestic and NATO-aligned opportunities.
Volatus management will host a conference call and webcast to discuss these results on Wednesday, April 1, 2026, at 8:00 AM ET. Dial-in and webcast details are provided below.
FISCAL 2025 HIGHLIGHTS AT A GLANCE
- Total revenue of $34,204,035, 26% growth year-over-year
- Defence and equipment revenue more than doubled, $16,255,712 vs $7,890,916 in 2024
- Europe & UK revenue grew 150%, $10,018,915 vs $4,014,112, driven by NATO-aligned defence business
- Gross profit of $11,100,956, 16% growth year-over-year
- Cash of $41,114,832 at year-end, up from $1,558,909 at end of 2024
- Working capital surplus of $36,482,718, improved from deficit of ($8,392,375) in 2024
- Total assets of $92,655,765, up 60% from $57,804,071
- Subsequent to year-end: TSX graduation, SKYDRA launch, full Synergy Aviation ownership, NATO training contract
"Fiscal 2025 was a defining year for Volatus. We delivered NATO-allied ISR systems, secured a $9 million defence contract, established sovereign manufacturing infrastructure at Mirabel, and transformed our balance sheet ending the year with $41 million in cash and 26% revenue growth. 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." - Glen Lynch, Chief Executive Officer, Volatus Aerospace Inc.
FINANCIAL OVERVIEW:
- Total revenue of $34,204,035 for fiscal 2025 represents 26% growth over fiscal 2024, and marks the Company's return to fiscal 2023 revenue levels, achieved on a fundamentally more capable and strategically differentiated platform. This is the first full fiscal year of the combined Volatus and Drone Delivery Canada organization.
- Equipment revenue more than doubled, growing from $7,890,916 in fiscal 2024 to $16,255,712 in fiscal 2025, a 106% increase, driven by the delivery of tactical ISR drone systems to NATO member countries and the scaling of the Company's defence equipment business. Service revenue was $17,948,323, representing continued strength in energy, utilities, and infrastructure inspection operations across North America and the United Kingdom.
- Geographically, Europe and the United Kingdom grew 150% from $4,014,112 to $10,018,915, now representing 29% of total revenue and reflecting the Company's growing NATO-aligned defence business. Canada grew 10% to $19,258,543. United States revenue was $4,926,577, impacted by expanding restrictions on Chinese-manufactured UAS platforms, tariff effects, and "Made in America" procurement sentiment, headwinds the Company is actively addressing as its NDAA-compliant and domestically sourced platform offerings scale.
- Gross profit of $11,100,956, increased by 16% from $9,556,299, reflecting the benefit of 26% revenue growth. Blended gross margin was 32%, reflecting the intentional expansion of defence equipment sales, which carry lower initial margins than services but generate high-margin sustainment, training, and software revenue over the programme lifecycle.
- The Company has secured contracts and framework agreements that are expected to generate annual recurring revenue equivalent to approximately 70-75% of its 2024 revenue base, subject to standard purchase order issuance and execution.
- Adjusted EBITDA improved by 25% to ($7,243,454) in fiscal 2025, from ($9,678,911) in fiscal 2024 on a proforma basis, an improvement of $2,435,457 year-over-year.
Fiscal 2025 marked the first full year in which Volatus bore the complete cost base of the combined organization, making the 25% improvement particularly meaningful. The improvement reflects merger integration benefits realized through the year, including the elimination of duplicated overhead, consolidation of operational infrastructure, and reduction in external partner costs, combined with the scaling of defence equipment revenue across the combined platform. The 2024 comparative is presented on a proforma basis to reflect a full year of the combined Volatus and Drone Delivery Canada organization, providing a like-for-like measure of operational progress; the reported 2024 Adjusted EBITDA, reflecting only the partial period following the August 30, 2024 merger closing, is disclosed in the Company's MD&A. Management expects this trajectory to continue as revenue scales, integration benefits are fully realized, and the Company's defence programme pipeline converts to recognized revenue.
DEFENCE AND NATO ENGAGEMENT
Fiscal 2025 established Volatus as a credible and active supplier of defence-grade uncrewed systems to NATO-aligned customers. Key achievements include:
- Multiple deliveries of tactical ISR drone systems to NATO member countries, with repeated orders confirming the Company's role as a reliable supplier of field-proven uncrewed systems
- Award of a defence contract valued at up to CA$9 million to supply a NATO-allied organization with a next-generation interim ISR training system, announced December 2025, with initial tranche delivery scheduled in H12026
- Receipt of a contract to commercialize heavy-lift offshore drone deliveries for a major wind energy operator, targeting ship-to-nacelle cargo transfers of up to 100 kg using the Company's Operations Control Centre
- Acquisition of the V100/V200/V300 long-endurance fixed-wing UAS technology platform from Caliburn Holdings LLP (UK), three scalable defence-grade platforms with endurance from 8 hours upto 7 days, designated for manufacture at Mirabel
- Establishment of the Volatus Innovation and Drone Manufacturing Facility in Mirabel, Québec, anchoring Canada's sovereign drone manufacturing capability
COMMERCIAL OPERATIONS
Commercial service operations continued to scale across the Company's core verticals:
- Multi-year agreement secured with one of North America's largest electricity transmission and distribution utilities, covering RPAS inspection and data services across approximately 100,000 miles of transmission and distribution lines through August 2028
- Pipeline integrity monitoring surpassed 75,000 cumulative flight hours, reinforcing the Company's leadership in long-linear aerial inspection
- Canada-wide approval obtained from Transport Canada for nighttime long-distance BVLOS drone operations, a first of its kind in Canada and a material competitive differentiator
- Condor XL heavy-lift RPAS program launched with NRC-IRAP non-dilutive funding approved, initial commercial deployments planned for 2026 across reforestation, offshore energy, and high-payload logistics
- Strategic reforestation partnership established with Ki Reforestation for large-scale aerial seeding using the Condor XL in support of Canada's 2 Billion Trees Program
BALANCE SHEET AND LIQUIDITY
The Company's financial position was transformed during fiscal 2025. Cash increased from $1,558,909 at December 31, 2024 to $41,114,832 at December 31, 2025, through capital raised during the year. Working capital improved from a deficit of ($8,392,375) to a surplus of $36,482,718, an improvement of $44,875,093 representing the strongest working capital position in the Company's history.
Total assets grew 60% to $92,655,765 while total liabilities decreased by 21% to $24,951,892, reflecting the conversion and extinguishment of convertible debentures, the settlement of contingent consideration, and the reduction of trade payables through integration. Shareholders' equity increased to $67,703,873 from $26,336,765.
The Company believes this strengthened balance sheet supports execution of its defence and infrastructure growth strategy.
CONFERENCE CALL AND WEBCAST DETAILS
Volatus Aerospace will host a conference call and live webcast to discuss its fiscal year 2025 financial results on Wednesday, April 1, 2026 at 8:00 AM ET. Management will be available to answer questions from analysts and investors following prepared remarks.
Date: Wednesday, April 1, 2026
Time: 8:00 AM ET
Registration Details: https://us06web.zoom.us/webinar/register/WN_xymM1aDkRB-7GwiQExQOlQ#/registration
A replay of the webcast will be available on the Investor Relations section of the Company's website at www.volatusaerospace.com following the call.
FINANCIAL OVERVIEW
| Twelve months ended December 31 | |||||
| 2025 | 2024 | ||||
| Revenue | 34,204,035 | 27,147,414 | |||
| Direct costs | 23,103,079 | 17,591,115 | |||
| Gross Profit | 11,100,956 | 9,556,299 | |||
| OPERATING EXPENSES | |||||
| Advertising & marketing | 1,158,403 | 1,123,337 | |||
| IT & tech | 1,254,814 | 884,437 | |||
| Personnel | 10,817,374 | 7,458,005 | |||
| R&D | 251,848 | 41,279 | |||
| Office cost | 2,453,184 | 2,308,002 | |||
| Travel | 516,596 | 213,733 | |||
| External partner cost | 2,078,418 | 3,134,312 | |||
| Depreciation and amortization | 6,144,872 | 4,824,680 | |||
| Share based Payments | 1,278,631 | 456,028 | |||
| 25,954,140 | 20,443,813 | ||||
| (Loss) from Operations | (14,853,184 | - | (10,887,514 | - | |
| OTHER ITEMS - INCOME/(EXPENSE) | |||||
| Finance cost | (5,208,855 | - | (2,935,917 | - | |
| Loss on extinguishment of financial liabilities | (1,558,758 | - | - | ||
| FV changes in contingent consideration | - | 247,661 | |||
| Other income (expense) | 127,264 | (146,568 | - | ||
| Loss on modification of convertible debenture | (672,444 | - | |||
| Gain on disposal of property and equipment | 3,013 | 115,657 | |||
| Impairment loss on property and equipment | (178,175 | - | |||
| Foreign exchange | 193,473 | 12,900 | |||
| Net loss before income tax | (22,147,666 | - | (13,593,781 | - | |
| Deferred tax income/ (expense) | 152,389 | 283,457 | |||
| Net loss after income tax | (21,995,277 | - | (13,310,324 | - | |
| OTHER COMPREHENSIVE LOSS Items that maybe reclassified subsequently to profit or loss | |||||
| Foreign currency translation adjustment | 195,268 | - | |||
| Net loss and comprehensive loss | (21,800,009 | - | (13,310,324 | - | |
| Net loss attributable to | |||||
| Owners of Volatus Aerospace Inc. | (21,364,227 | - | (13,141,604 | - | |
| Non-controlling interest | (631,050 | - | (168,720 | - | |
| (21,995,277 | - | (13,310,324 | - | ||
| Total Comprehensive loss attributable to | |||||
| Owners of Volatus Aerospace Inc. | (21,188,735 | - | (13,141,604 | - | |
| Non-controlling interest | (611,274 | - | (168,720 | - | |
| (21,800,009 | - | (13,310,324 | - | ||
| Loss per share attributable to ordinary shareholders | (0.04 | - | (0.04 | - | |
| Basic and diluted | 543,912,520 | 302,699,537 | |||
SUMMARY OF QUARTERLY RESULTS (in CAD)
Q4 2025 revenue of $7,298,364 reflects the timing of defence contract deliveries, including the rescheduling of the initial tranche of the CA$9 million NATO-allied ISR training contract from Q1 2026, which had been contracted in Q4 2025 and whose associated revenue will be recognized upon delivery in Q2 2026. Q2 and Q3 2025 each benefited from the delivery of tactical ISR systems to NATO member countries, which drove the stronger revenue profile in those quarters. The quarterly revenue profile is expected to become more consistent as contracted deliveries progress and the Company's defence programme backlog converts to recognized revenue.
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |||||||||
| Revenue | 7,298,364 | 10,605,438 | 10,587,075 | 5,713,158 | 6,783,176 | 6,618,504 | 7,121,993 | 6,623,741 | ||||||||
| Direct costs | 4,873,412 | 7,134,827 | 7,211,655 | 3,883,185 | 4,209,577 | 4,366,107 | 4,617,447 | 4,397,985 | ||||||||
| Gross Profit | 2,424,952 | 3,470,611 | 3,375,420 | 1,829,973 | 2,573,599 | 2,252,397 | 2,504,546 | 2,225,757 | ||||||||
| 33 | - | 33 | - | 32 | - | 32 | - | 38 | - | 34 | - | 35 | - | 34 | - | |
| OPERATING EXPENSES | ||||||||||||||||
| Advertising & marketing | 273,142 | 321,558 | 428,128 | 135,575 | 100,878 | 331,763 | 397,357 | 293,339 | ||||||||
| IT & tech | 369,988 | 521,629 | 118,017 | 245,180 | 157,851 | 210,328 | 259,456 | 256,802 | ||||||||
| Personnel | 3,444,560 | 2,574,798 | 2,147,111 | 2,650,905 | 1,958,572 | 1,787,175 | 1,515,536 | 2,196,722 | ||||||||
| R&D | 234,868 | 834 | 4,390 | 11,756 | 25,429 | 4,011 | - | 11,840 | ||||||||
| Office cost | 644,280 | 395,516 | 795,819 | 617,569 | 673,047 | 497,706 | 554,050 | 583,199 | ||||||||
| Travel | 277,446 | 101,097 | 73,765 | 64,288 | 38,959 | 77,011 | 40,143 | 57,621 | ||||||||
| External partner cost | 1,004,383 | 399,524 | 473,874 | 200,637 | 386,259 | 2,117,840 | 430,141 | 200,072 | ||||||||
| Depreciation and amortization | 1,651,141 | 1,334,223 | 1,663,083 | 1,496,425 | 1,315,544 | 1,294,350 | 1,116,698 | 1,098,088 | ||||||||
| Share based Payments | 262,934 | 670,844 | 179,399 | 165,454 | 77,523 | 124,861 | 126,822 | 126,822 | ||||||||
| 8,162,742 | 6,320,023 | 5,883,586 | 5,587,789 | 4,734,061 | 6,445,045 | 4,440,202 | 4,824,504 | |||||||||
| (Loss) from Operations | (5,737,790 | - | (2,849,412 | - | (2,508,166 | - | (3,757,816 | - | (2,160,462 | - | (4,192,648 | - | (1,935,656 | - | (2,598,748 | - |
| OTHER ITEMS - INCOME/(EXPENSE) | ||||||||||||||||
| Finance cost | (944,859 | - | (1,874,601 | - | (1,743,710 | - | (645,685 | - | (1,072,341 | - | (992,806 | - | (491,664 | - | (379,106 | - |
| Other income (expense) | 129,788 | 42,803 | 17,104 | (62,431 | - | 113,777 | (2,669 | - | 153 | (10,168 | - | |||||
| Impairment Loss - PPE | (178,175 | - | - | - | - | - | - | - | - | |||||||
| Loss on extinguishment of financial liabilities | - | - | (1,558,758 | - | - | - | - | - | - | |||||||
| Gain (Loss) on disposal of property and equipment | 2,416 | 597 | - | - | (1,541 | - | (194,662 | - | 319,044 | (7,184 | - | |||||
| Loss on redemption | - | - | (672,444 | - | - | - | - | - | - | |||||||
| Foreign exchange translation | 109,779 | 140,881 | (58,413 | - | 1,225 | 92,541 | (109,037 | - | 25,508 | 3,887 | ||||||
| Net Loss | (6,618,840 | - | (4,539,732 | - | (6,524,387 | - | (4,464,707 | - | (3,028,025 | - | (5,491,822 | - | (2,082,615 | - | (2,991,319 | - |
| Deferred Tax Income/ (Expense) | 152,389 | - | - | - | 283,457 | - | - | - | ||||||||
| Net Loss | (6,466,451 | - | (4,539,732 | - | (6,524,387 | - | (4,464,707 | - | (2,744,568 | - | (5,491,822 | - | (2,082,615 | - | (2,991,319 | - |
| OTHER COMPREHENSIVE LOSS | ||||||||||||||||
| Foreign currency translation adjustment | 195,269 | - | - | - | - | - | - | - | ||||||||
| Net loss and comprehensive loss | (6,271,183 | - | (4,539,732 | - | (6,524,387 | - | (4,464,707 | - | (2,744,568 | - | (5,491,822 | - | (2,082,615 | - | (2,991,319 | - |
| Total Comprehensive loss attributable to | ||||||||||||||||
| Owners of Volatus Aerospace | (6,016,955 | - | (4,545,679 | - | (6,509,690 | - | (4,116,411 | - | (2,715,484 | - | (5,440,827 | - | (2,070,150 | - | (2,915,143 | - |
| Non-controlling interest | (254,228 | - | 5,947 | (14,697 | - | (348,296 | - | (29,085 | - | (50,994 | - | (12,465 | - | (76,176 | - | |
| (6,271,183 | - | (4,539,732 | - | (6,524,387 | - | (4,464,707 | - | (2,744,568 | - | (5,491,822 | - | (2,082,615 | - | (2,991,319 | - | |
| Loss per share | ||||||||||||||||
| Basic and Diluted | (0.01 | - | (0.01 | - | (0.01 | - | (0.01 | - | (0.01 | - | (0.02 | - | (0.02 | - | (0.02 | - |
RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS (in CAD)
| Twelve months ended Dec 31, | Twelve months ended Dec 31, | |||
| 2025 | 2024* | |||
| Adjusted EBITDA (loss) | (7,243,454 | - | (9,678,911 | - |
| Interest | 5,208,855 | 2,935,917 | ||
| Depreciation | 6,144,872 | 4,824,680 | ||
| Share-based Payments | 1,278,631 | 456,028 | ||
| Other (Income) Expense | 58,963 | - | ||
| FV changes in Contingent Consideration | (247,661 | - | ||
| (Gain) or Loss on Disposal of Property & Equipment | (3,013 | - | (115,657 | - |
| Impairment Loss - PPE | 178,175 | - | ||
| Foreign Exchange translation (Gain) | (193,474 | - | (12,900 | - |
| Loss on extinguishment of financial liabilities | 1,558,758 | - | ||
| Loss on redemption | 672,444 | - | ||
| Drone Delivery Canada FY 2024 Pre-Acquisition Proforma Expenses | - | (5,894,796 | - | |
| M&A Related Transaction Cost | - | 1,969,259 | ||
| Net Loss before Taxes | (22,147,666 | - | (13,593,781 | - |
- The 2024 comparative is presented on a proforma basis to reflect a full year of the combined Volatus and Drone Delivery Canada organization, providing a like-for-like measure of operational progress; the reported 2024 Adjusted EBITDA, reflecting only the partial period following the August 30, 2024 merger closing, is disclosed in the Company's MD&A and differ materially from numbers presented here.
About Volatus Aerospace Inc.
Volatus Aerospace Inc. is a Canadian integrated aerospace company providing unmanned aerial systems, aerial intelligence services, autonomy software, and advanced training solutions supporting civil infrastructure, public safety, and defence markets. Through its combination of manufacturing, operations, and technology development, Volatus Aerospace is advancing the adoption of autonomous systems while supporting sovereign aerospace capability development in Canada and allied markets.
The Company operates a global platform supporting drone operations, pilot training, equipment sales, and data services while continuing to expand its capabilities in autonomy, remote operations, and next-generation aerial technologies.
Note Regarding Non-GAAP Measures:
In this press release we describe certain income and expense items that are unusual or non-recurring. There are terms not defined by International Financial Reporting Standards (IFRS). Our usage of these terms may vary from the usage adopted by other companies. Specifically, gross profit, gross margin, Adjusted EBITDA or Normalized EBITDA, and operating leverage are undefined terms by IFRS that may be referenced herein. We provide this detail so that readers have a better understanding of the significant events and transactions that have had an impact on our results.
Throughout this release, reference is made to "gross profit," "gross margin,", "Adjusted EBITDA", and "operating leverage", which are non-IFRS measures. Management believes that gross profit, defined as revenue less direct costs, is a useful supplemental measure of operations. Gross profit helps provide an understanding on the level of costs needed to create revenue. Gross margin illustrates the gross profit as percentage of revenue. Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"). The Company defines Adjusted EBITDA as IFRS comprehensive loss excluding interest expense, depreciation and amortization expense, share-based payments, income tax expense, integration and due diligence costs, one time profit or loss (non-recurring), and impairment of goodwill, property, plant, and equipment and right-of-use assets (ROU). The Company believes that Adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations which the Company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth initiatives. In addition, the Company refers to "operating leverage." Operating leverage measures how sensitively operating income responds to changes in revenue, based on the proportion of fixed versus variable costs in the Company's cost structure. A business with high operating leverage typically experiences a more-than-proportionate increase in operating income when revenue grows, while declines in revenue can have an amplified negative effect. Management monitors operating leverage to evaluate margin scalability, understand cost-structure dynamics, and assess the potential impact of volume changes on profitability. Readers are cautioned that these non-IFRS measures may not be comparable to similar measures used by other companies. Readers are also cautioned not to view these non-IFRS financial measures as an alternative to financial measures calculated in accordance with International Financial Reporting Standards ("IFRS"). Adjusted EBITDA does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers and should not be construed as alternatives to comprehensive loss or income determined in accordance with IFRS. For more information with respect to financial measures which have not been defined by GAAP, including reconciliations to the closest comparable GAAP measure, see the "Non-GAAP Measures and Additional GAAP Measures"? section of the Company's most recent MD&A which is available on SEDAR.
Forward-Looking Statement:
This news release contains statements that constitute "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs, and current expectations of the Company with respect to future business activities and operating performance. Often, but not always, forward-looking information and forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or statements formed in the future tense or indicating that certain actions, events or results "may", "could", "would", "might" or "will" (or other variations of the foregoing) be taken, occur, be achieved, or come to pass. Forward-looking information includes information regarding: (i) the business plans and expectations of the Company; and (ii) expectations for other economic, business, and/or competitive factors. Forward-looking information is based on currently available competitive, financial, and economic data and operating plans, strategies, or beliefs as of the date of this news release, but involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors may be based on information currently available to the Company, including information obtained from third-party industry analysts and other third-party sources, and are based on management's current expectations or beliefs. Any and all forward-looking information contained in this news release is expressly qualified by this cautionary statement. Investors are cautioned that forward-looking information is not based on historical facts but instead reflects expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Forward-looking information and forward-looking statements reflect the Company's current beliefs and is based on information currently available to it and on assumptions it believes to be not unreasonable in light of all of the circumstances. In some instances, material factors or assumptions are discussed in this news release in connection with statements containing forward-looking information. Such material factors and assumptions include, but are not limited to: the commercialization of drone flights beyond visual line of sight and potential benefits to the Company; and meeting the continued listing requirements of the TSXV. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. The forward-looking information contained herein is made as of the date of this news release and, other than as required by law, the Company disclaims any obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.
No securities regulatory authority has either approved or disapproved of the contents of this news release. The Toronto Stock Exchange accepts no responsibility for the adequacy or accuracy of this news release.
For additional Information, please contact:
Volatus Aerospace Inc.
Abhinav Singhvi, Chief Financial Officer
+1-833-865-2887
investorrelations@volatusaerospace.com
COMPANY WEBSITE
https://volatusaerospace.com
