Volatus Aerospace (FLT) Status update summary

Strategic context and market positioning

• Autonomous systems are now central to modern defense, with drones prioritized in Canada’s new Defence Industrial Strategy.

• Canada aims for 70% of defense procurement to be domestic, reversing past trends and supporting local industry.

• Volatus operates across drone platforms, autonomy software, remote operations, and services, with a national and international footprint.

• The company’s integrated platform aligns with government-identified strategic sectors, including uncrewed systems and ISR.

• Export markets and dual-use technology adoption are key growth drivers, alongside domestic procurement.

Government policy and funding landscape

• Over CAD 80 billion is committed to defense reinvestment, with CAD 50 billion targeted for small and medium businesses over 10 years.

• New agencies and funding streams (e.g., Defence Investment Agency, NRC IRAP, BDC, RDAs) are established to accelerate procurement and support industry.

• The strategy emphasizes Canadian ownership of technology and manufacturing, de-risking investment and lowering capital costs.

• Initial procurement will focus on R&D and building domestic capacity, with a build-partner-buy framework guiding decisions.

Operations, manufacturing, and partnerships

• The Mirabel facility is being refitted for drone production, with plans to manufacture large drones, docking systems, and attritable drones for military use.

• Specialized manufacturing follows aerospace standards, with automation and scalability prioritized for future demand.

• Strategic partnerships include Ondas, Dufour, Kongsberg, and MatrixSpace, focusing on technology integration and long-range drone solutions.

• The company is open to accretive M&A in Canada, Europe, and the U.S. to strengthen capabilities and market presence.