Volatus Aerospace: Capitalizing on Defense Shifts and Investor Outreach

Volatus Aerospace is strategically aligning itself with evolving priorities in U.S. defense procurement while simultaneously ramping up its engagement with the institutional investment community. A series of new capital initiatives, NATO contracts, and an expanding operational footprint in the United States are poised to underpin the company's continued expansion.

Entering the new year, Volatus Aerospace finds itself on solid financial footing following significant capital raises late in 2025. Key financial and operational highlights include:

• A combined CAD 26.4 million raised through a public bought deal offering and a concurrent private placement.
• The reporting of a record third quarter for 2025.
• A cash position of approximately CAD 40 million following the completion of its financing transactions.
• A substantial defense contract worth CAD 9 million awarded by a NATO partner nation.
• A remarkable 240% appreciation in its share price over a one-year period.

The company's equity closed at CAD 0.64 on January 9, reflecting a market capitalization of roughly CAD 428 million.

Strategic Positioning for U.S. Defense Budget Trends

Management has provided detailed commentary on recent U.S. defense policy developments, notably an Executive Order emphasizing military readiness. This shift creates a favorable environment for the company, centered on several key budget and procurement trends:

• A planned expansion of the U.S. defense budget to approximately USD 1.5 trillion by fiscal year 2027.
• An increased emphasis on delivery speed, operational readiness, and implementation quality.
• Reduced tolerance for program delays and underperformance.
• Greater openness to non-traditional and new suppliers.

This new procurement philosophy is seen as advantageous for more agile, smaller defense contractors like Volatus, potentially giving them an edge over larger, established prime contractors with histories of cost overruns and scheduling issues.

Building a U.S. Operational Foundation

Supporting its strategic focus, Volatus is actively expanding its physical presence within the United States. The company now operates facilities in Syracuse, New York, and has recently extended its reach to Tulsa, Oklahoma. These sites serve as hubs for providing drone solutions to utility providers, energy companies, and public safety agencies across multiple states.

Should investors sell immediately? Or is it worth buying Volatus Aerospace?

This on-the-ground operational capability aligns with the U.S. Department of Defense's renewed focus on tangible, proven performance over theoretical promises.

Enhanced Investor Relations Push

The company's executive team is embarking on a concentrated investor outreach campaign this week. CEO Glen Lynch and CFO Abhinav Singhvi are presenting at the 28th Annual Needham Growth Conference in New York today. This will be followed by investor meetings at the AlphaNorth Capital Event, scheduled for January 16-18 in the Bahamas.

Furthermore, on January 15, Mr. Lynch will participate as a panelist at the RBC Canadian Aerospace and Defence Symposium in Toronto. This back-to-back conference schedule is designed to elevate the company's profile specifically within the institutional capital market.

NATO Contracts Validate Defense Capabilities

Volatus is bolstering its defense sector credentials through several contracts associated with NATO and allied nations, which serve as critical performance references:

• The aforementioned CAD 9 million defense contract from a NATO partner nation, announced in December 2025.
• The fulfillment of a CAD 1.85 million delivery for tactical ISR (Intelligence, Surveillance, Reconnaissance) drone systems.
• The appointment of Retired Lieutenant-General Christopher J. Coates to its Board of Advisors, adding significant defense and strategic expertise.

Targeting High-Growth Drone Market Segments

The company operates across multiple high-growth niches within the broader drone industry. The global drone market is projected to grow to approximately USD 95 billion by 2034. Within this, the specialized "Drone-in-a-Box" segment is currently estimated at about USD 1 billion, with forecasts predicting it will reach USD 5 to 9 billion by the early 2030s.

Through a vertically integrated business model encompassing hardware sales, services, training, and research & development, Volatus aims to capture revenue across the entire drone economy value chain rather than limiting itself to a single sub-segment. The focus for the coming months will be on whether this broad positioning translates into follow-on contracts, particularly within the evolving U.S. defense procurement landscape.