Volatus Aerospace Releases Q2 2026 Financial Results

TSX: FLT | OTCQX: TAKOF | FSE: ABB

Overview

Volatus Aerospace Inc. (TSX:FLT) (OTCQX:TAKOF) (Frankfurt: ABB.F) ("Volatus" or the "Company"), a Canadian-headquartered global aerospace and defence company, announced its financial results for the three and six months ended June 30, 2026 (Q2 2026). According to the company, all dollar figures are stated in Canadian dollars, unless otherwise indicated.

The company reported revenue of $8,418,830 in Q2 2026, an increase of 49.5% quarter-over-quarter, according to the company. Equipment sales increased 38% quarter-over-quarter while services grew 59% quarter-over-quarter, the company stated. Volatus also reported it exited the quarter with cash of $59,199,739 and working capital of $63,796,848, which the company described as the strongest liquidity position in its history.

Key Highlights

• Revenue of $8,418,830 in Q2 2026, compared with $10,587,075 in Q2 2025, according to the company.
• Equipment delivery increased 38% and services increased 59% compared to Q1 2026, the company stated.
• Cash position of $59,199,739 at June 30, 2026, up from $41,114,832 at year-end 2025, according to the company.
• Working capital of $63,796,848, described by the company as the strongest liquidity position in its history.
• The company opened its 53,000 square foot manufacturing and systems integration facility at Montreal-Mirabel International Airport in June, according to the company.

Q2 2026 Financial Highlights

• Revenue: $8,418,830, compared with $10,587,075 in Q2 2025. The company stated the year-over-year comparison reflects a single defence contract, representing approximately $2.6 million of anticipated revenue, for which delivery was not completed within the quarter due to continued supply chain disruption. Excluding the impact of that contract, the company said revenue from the balance of the business grew modestly year over year, reflecting continued underlying demand.
• Gross Profit: $2,468,184, representing a gross margin of 29.3%, compared with 31.9% in Q2 2025. The company said margin reflects a higher proportion of defence programs in the quarter.
• Adjusted EBITDA: Loss of ($4,352,154), which the company attributed to the increase in operating expenses and the lower gross profit contribution due to change in product mix.
• Cash Position: $59,199,739 at June 30, 2026, up from $41,114,832 at year-end 2025, which the company said reflects its best position in company history after subsequent financing events.
• Revenue Mix: Services accounted for 57% of Q2 revenue and equipment 43%, supported by 59% quarter-over-quarter growth in services and 38% quarter-over-quarter growth in equipment, according to the company.

H1 2026 Highlights

• Revenue: $14,049,389, compared with $16,300,233 in H1 2025, a decrease of $2,250,844 or 13.8%. The company said the decline reflects the timing of defence deliveries, including the approximately $2.6 million contract not completed in the second quarter, which the company expects to fulfil in full over the balance of fiscal 2026.
• Revenue Mix: Services and training represented 56% of H1 revenue ($7,830,947) and products and equipment 44% ($6,218,443), which the company said is within its stated long-term target range of 55-60% services and 40-45% equipment.
• Geographic Distribution: Canada contributed $9,080,453, the United Kingdom $3,948,037, and the United States $1,020,899, with markets outside Canada representing approximately 35% of consolidated revenue, according to the company.
• Gross Profit: $4,437,859, representing a gross margin of 31.6%, compared with $5,205,393 and 31.9% in H1 2025. The company said blended margin was broadly stable year over year when measured across the six-month period.
• Operating Expenses: $17,019,022, compared with $11,471,375 in H1 2025, an increase of $5,547,647 or 48.4%, which the company attributed to a concentrated period of growth-stage investment in its defence vertical, the establishment of its Mirabel manufacturing base, technology platform development, and its capital markets positioning.
• Net Loss: $(14,093,290), compared with $(10,989,094) in H1 2025. Loss per share was $(0.02) in both periods, according to the company.
• Balance Sheet: Total assets increased 28% to $118,797,720 from $92,655,765 at December 31, 2025. Working capital increased by $27,314,130 to $63,796,848, and the current ratio stood at 7.74 against a covenant requirement of 1.25. Interest-bearing borrowings, excluding lease liabilities and convertible debentures, decreased to $9,717,062 from $11,656,106.

Strategic/Operational Context

According to the company, the second quarter of fiscal 2026 marked a step in Volatus Aerospace's transition into a sovereign aerospace and defence platform, combining what the company described as the strongest balance sheet in its history with progress across manufacturing, proprietary technology, and allied defence programs.

"Q2 2026 marked an important inflection point for Volatus Aerospace as we continued to transform the Company from an operator of advanced unmanned systems into a vertically integrated aerospace and defence platform with sovereign Canadian capabilities. The opening of our 53,000-square-foot manufacturing and systems integration facility at Mirabel is particularly significant. We now have the infrastructure in place to scale domestic production, advance our proprietary technologies and support larger aerospace and defence programs from Canada. Combined with the launch of our V-Cortex™ AI flight controller and autonomy operating system, we are increasingly building capabilities across the full value chain, from aircraft and autonomy to manufacturing, intelligence and operations. We believe the combination of our strengthened balance sheet, expanding manufacturing capability, proprietary technology and growing government and defence relationships positions Volatus for a significant next phase of growth," said Abhinav Singhvi, Chief Financial Officer of Volatus Aerospace Inc.

The company stated it continues to deepen its presence across established commercial verticals, including energy, utilities and infrastructure inspection, while expanding into government, public safety and allied defence markets, which it said is being supported by geopolitical realignment, increasing domestic defence investment and structural growth in global demand for autonomous systems. The company said it is advancing the commercialization of its proprietary technology portfolio across both hardware and software, including its SKYDRA™ C-UAS SaaS platform, its NATO-aligned intelligence, surveillance and reconnaissance (ISR) capabilities, autonomous aircraft platforms, and its proprietary V-Cortex™ autonomy technology. The company said it is leveraging its manufacturing and systems integration infrastructure at Mirabel to support the development, production and deployment of autonomous aerospace and defence systems for Canadian and allied markets, and that it remains focused on achieving sustained profitability through operational efficiency, disciplined cost management, growth in long-term contracted revenue, and an increasing mix of higher-margin services, software and defence programs.

Q2 2026 Operational Highlights

• June 23, 2026: Opened its 53,000-square-foot Mirabel facility, establishing a domestic manufacturing base for autonomous defence systems, according to the company.
• June 5, 2026: Closed a $34.5 million bought deal public offering, according to the company.
• May 27, 2026: Introduced its proprietary V-Cortex™ AI flight controller and autonomy operating system at CANSEC 2026, according to the company.
• April 15, 2026: Awarded a multi-year training contract with a NATO-allied government, according to the company.
• March 25, 2026: Expanded its global training network through a strategic partnership with University of Technology, Jamaica, according to the company.

Subsequent to Q2 2026 Highlights

• August 5, 2026: Entered into a strategic partnership with Kraus Hamdani Aerospace to establish a sovereign Canadian persistent intelligence capability, according to the company.
• August 4, 2026: Entered into a strategic partnership with Singular Aircraft to introduce heavy-lift autonomous aircraft for Canadian wildfire response, according to the company.
• July 21, 2026: Joined forces with Concordia University's Volt-Age research program to collaborate on energy technologies for uncrewed aircraft systems, according to the company.
• July 20, 2026: Participated in the Farnborough International Airshow as part of the Team Canada delegation, showcasing its aerospace, autonomy, and aerial intelligence solutions, according to the company.
• July 9, 2026: Participated in the Maritime & Arctic Security & Safety (MASS) 2026 conference in St. John's, Newfoundland and Labrador, according to the company.
• July 8, 2026: Received a Letter of Acceptance from Transport Canada under the new Pre-Validated Declaration (PVD) process for its Canary Remotely Piloted Aircraft System (RPAS), according to the company.

What to Watch Next

• Volatus expects to fulfil in full, over the balance of fiscal 2026, the approximately $2.6 million defence contract not completed in Q2 2026, according to the company.
• Volatus will host a webinar on Friday, August 14, 2026 at 8:30 AM EST, at which Glen Lynch, Chief Executive Officer, and Abhinav Singhvi, Chief Financial Officer, will review financial results and major milestones with Kristina Davis, VP of Corporate Affairs and Strategic Positioning, as moderator, according to the company.
• An audio replay of the webinar will be archived on the Investor Relations page of the company's website, according to the company.

About Volatus Aerospace Inc.

According to the press release, Volatus Aerospace Inc. (TSX:FLT) (OTCQX:TAKOF) (Frankfurt: ABB.F) is a Canadian-headquartered global aerospace and defence company.

Read full press release here.

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