Volatus Aerospace (FLT) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 revenue reached CAD 34.2 million, up 26% year-over-year, with defence now 25% of total revenue, reflecting a strategic pivot toward integrated aerospace and defence solutions and expanded operational scale post-merger.

• The business model integrates drones, piloted aviation, manufacturing, software, and training, creating multiple reinforcing revenue streams.

• Major milestones included a CAD 9 million NATO defence contract, NATO ISR drone deliveries, the launch of the SKYDRA™ platform, and the opening of the Mirabel manufacturing facility.

• The merger with Drone Delivery Canada in 2024 enabled scale, operational integration, and a stronger balance sheet, establishing a Canadian-controlled aerospace and defence platform.

Financial highlights

• Equipment and service revenue totaled CAD 34.2 million, up from CAD 27 million in 2024; equipment sales more than doubled, driven by defence.

• Gross margin held steady at 32%, with gross profit at $11.1M, reflecting a higher mix of equipment and defence sales.

• Adjusted EBITDA loss improved by 25% to $(7.2)M from $(9.7)M (proforma), while reported EBITDA reached CAD 7.2 million post-merger.

• Year-end cash position was CAD 41.1 million, up from CAD 1.6 million, after EDC loan repayment.

• Net loss after tax was $(21.99)M, compared to $(13.31)M in 2024.

Outlook and guidance

• Defence revenue is expected to grow toward 60%-65% of total revenue over time, with recurring revenue streams increasing and contracts expected to generate annual recurring revenue equivalent to 70-75% of the 2024 revenue base.

• Mirabel facility commercialization will begin in 2026, with significant revenue contribution expected from 2027.

• Breakeven is projected at CAD 60 million annualized revenue, with margin improvement as R&D investment normalizes.

• Revenue recognition from the $9M NATO contract is scheduled for Q2 2026.

• The Defence Industrial Strategy and government investment are anticipated to drive sector growth and infrastructure development.