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 marking the first full year post-merger.

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

• Major milestones include NATO ISR drone deliveries, a CAD 9 million NATO training contract, the launch of the Mirabel manufacturing facility, and acquisition of advanced UAS platforms.

• The merger with Drone Delivery Canada in 2024 enabled scale, operational integration, and a stronger balance sheet.

• Europe & UK revenue surged, now 29% of total revenue, reflecting strong NATO business.

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% despite a higher mix of equipment and defence sales.

• Adjusted EBITDA loss improved 25% to $(7.2)M from $(9.7)M (proforma), reflecting integration benefits.

• Year-end cash position was CAD 41 million, up from CAD 2 million, after EDC loan repayment; working capital swung from a deficit to a $36.5M surplus.

• Operating cash flow improved to CAD 7.5 million from -CAD 12.4 million the prior year.

Outlook and guidance

• Defence revenue is expected to grow toward 60%-65% of total revenue over time, with recurring revenue streams increasing.

• 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.

• Contracts and framework agreements are expected to generate recurring revenue equivalent to 70-75% of the 2024 base.

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