Years ago, a member of our investment club suggested we investigate drone stocks since it seemed unmanned aerial vehicles (UAVs) were the coming big thing.
We did check out the drone stocks. We found only emerging companies losing tonnes of money.
This Bizworld column had another look at publicly traded drone stocks in the United States and Canada.
Those in the United States were either priced in the stratosphere and/or losing money, or were a small part of a large defence company. No sense flying there.
Canada has one publicly traded drone maker – Volatus Aerospace, emerging in the highly competitive international market. Drones are not that hard to build.
Marketing is a matter of connecting with users of drones and drone services.
Volatus is in the process of merging with another Canadian drone maker and service provider.
Toronto-based Volatus is merging with Saskatoon-based Dragonfly. Dragonfly just built a new plant in Saskatoon.
The merger will see two money-losing companies in the development of drones and drone services combine efforts.
Dragonfly is much like Volatus with manufacture of drones in Saskatoon and a range of services from defence, security, agriculture, to mapping, surveillance and cargo delivery.
The company lost $13.3 million in 2024 with revenues of $20.2 million and lost $9.3 million in 2022.
The company aims for $27 million revenue this year and $50 million by 203.0
Volatus raised $10 million equity recently to build for growing sales.
Volatus makes a range of drones from small cargo to larger units.
Serving Canada, U.S.A. and U.K., Volatus targets utilities/energy, mining, defence/security, construction and infrastructure markets.
Priced at 72 cents, not too far from the year high of 97 cents, Volatus jumped at news of the merger.
The drone company faces an uncertain future in this competitive global market.
If Canada adopts a suggested plan to utilize a fleet of drones with the six new F-35 fighter jets being delivered from the U.S., the future for Volatus could become brighter.
Canada’s plans for northern surveillance and security could also help growth.
But that’s one big if.
Caution: Remember when investing, consult your adviser and do your homework before buying any security. Bizworld does not recommend investments.
Ron Walter can be reached at [email protected]
The views and opinions expressed in this article are those of the author, and do not necessarily reflect the position of this publication.
