Volatus Aerospace Inc

XMUN:ABB

Revenue: Q2 revenue was $8.4 million, up 49.5% sequentially but down 20% year over year, as $2.6 million of contracted defense revenue was delayed by battery supply issues.

Margins: Gross margin was 29.3% in Q2, while first-half margin was 31.6%, broadly stable year over year. Management attributed the quarterly decline to delivery mix and higher fuel prices, not weaker pricing.

Investment: Adjusted EBITDA loss widened to $4.35 million from approximately $0.3 million a year ago as Volatus invested ahead of revenue in engineering, defense talent, Mirabel, security infrastructure and proprietary technology.

Balance Sheet: The company ended June with $59.2 million in cash, approximately $64 million of working capital and almost $119 million of total assets, which management described as its strongest balance sheet in history.

Execution: Management expressed high confidence that the delayed $2.6 million defense revenue will be delivered in Q3, potentially extending into Q4, after supply-chain issues were addressed.

Defense Outlook: Volatus is pursuing Canadian and allied opportunities including the Defense Drone Initiative, MINERVA, deep precision strike, counter-UAS and Build with Ukraine, but timing remains dependent on government procurement processes.

Guidance: The previously discussed $50.6 million 2026 planning target included M&A that has not yet occurred. Management said organic second-half revenue should be stronger, but reiterated that the company does not formally issue guidance.

Capacity: Mirabel has 53,000 square feet of manufacturing and integration capacity, with management estimating approximately $250 million of potential annual revenue depending on product mix.