Canada's Volatus Aerospace Q3 revenue rises 24.9% sequentially 

Overview

• Canada aerospace and defence firm's Q3 revenue rose 24.9% from Q2, but dipped 0.9% yr/yr

• Adjusted EBITDA loss narrowed 34.3% from sequentially, reflecting higher defence-related costs

• Company awarded five-year Canadian Armed Forces contract and completed AISPECO acquisition post-quarter

Outlook

• Volatus expects Adjusted EBITDA to improve as defence contracts convert to revenue

• Company expects gross margins to rise as services and defence revenue increase into 2027

Result Drivers

• DEFENCE PROGRAM MIX - Lower gross margin attributed to higher share of lower-margin defence programs in early delivery phase

• COST INCREASES - Higher personnel, office, and marketing costs linked to defence expansion and Mirabel operations weighed on profitability

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for Volatus Aerospace Inc is C$1.00, about 115.1% above its November 9 closing price of C$0.47

Reuters Recommended Reads

• Nov 10 - Carney says Canada will do all it can to oblige Stellantis to meet obligations

• Nov 10 - Canadian defense firm Roshel is in talks with automakers to manufacture civilian vehicles at idled Brampton plant, CEO says

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)