Building a Four-Company Autonomous Systems & Drone Technology Portfolio
August 27, 2026
Volatus Aerospace • Ondas • Kraken Robotics • WRAP Technologies
We have established positions or starter positions in four companies that collectively give us exposure to what we believe is becoming a major new investment theme: the rapid adoption of autonomous systems across defence, surveillance, public safety, critical infrastructure and maritime security.
The four are:
| Company | Symbol | Primary Exposure |
|---|---|---|
| Volatus Aerospace | TSX: FLT | Aerial drones, ISR, autonomy, Canadian defence |
| Ondas Inc. | NASDAQ: ONDS | Autonomous drones, counter-UAS, tactical defence systems |
| Kraken Robotics | TSXV: PNG | Underwater autonomy, sonar, subsea batteries, naval systems |
| WRAP Technologies | NASDAQ: WRAP | Counter-UAS, threat detection, directed energy, public safety |
The important point is that we are not simply buying four drone stocks.
We are assembling exposure to four different layers of the autonomous-security ecosystem: air, underwater, counter-drone/defence and public safety/security.
That diversification is precisely why we find the group attractive.
The Investment Thesis
The war in Ukraine has demonstrated something defence planners can no longer ignore: relatively inexpensive autonomous systems can destroy, disable or threaten military assets costing tens or hundreds of millions of dollars.
At the same time, autonomous systems are moving beyond conventional warfare into border surveillance, Arctic sovereignty, infrastructure inspection, wildfire response, policing, maritime surveillance, mine countermeasures and protection of pipelines, ports and subsea communications cables.
Canada itself has now launched a Defence Drone Initiative covering tactical ISR drones, autonomous ground vehicles, unmanned maritime systems and counter-drone systems.
That creates an unusually broad investment opportunity.
Rather than attempting to determine which single drone manufacturer becomes the industry's dominant supplier, our approach is to own several companies occupying different strategic positions within the autonomous systems value chain.
And these four companies are very different businesses.
1. Volatus Aerospace — TSX: FLT
Canada's Emerging Sovereign Drone Platform
Volatus remains our Canadian aerial-drone play and arguably the most speculative of our Canadian autonomous-system investments.
But the business is changing.
Volatus is attempting to evolve from primarily being a drone operator, distributor and services company into a vertically integrated Canadian aerospace and defence company possessing manufacturing, autonomous flight technology, software, training and operational capabilities.
That transition is the principal reason we own it.
Mirabel changes the story
Volatus opened its 53,000-square-foot manufacturing and systems-integration facility at Montreal-Mirabel in June.
The facility gives the company something increasingly important in the current geopolitical environment:
sovereign Canadian manufacturing capability.
Canada wants substantially greater domestic defence production. Volatus is positioning itself to manufacture and integrate autonomous aircraft inside Canada rather than merely importing and operating foreign drones.
Volatus has also introduced its proprietary V-Cortex AI flight controller and autonomy operating system, while its SKYDRA counter-UAS software adds another potentially higher-margin layer.
The strategy is becoming considerably more interesting:
aircraft + autonomy + software + manufacturing + training + operations.
The K1000ULE opportunity
Another major development is Volatus's August partnership with Kraus Hamdani Aerospace.
The companies plan to introduce the K1000ULE ultra-long-endurance autonomous aircraft and ATNE++ resilient communications technology into Canada, with Volatus handling systems integration, deployment, training and lifecycle support while progressively establishing Canadian manufacturing at Mirabel.
That could become particularly important for Canada's enormous Arctic surveillance problem.
Long-endurance autonomous aircraft potentially provide persistent surveillance at dramatically lower operating costs than continuously deploying crewed aircraft.
Financial position
Volatus remains early-stage financially.
Q2 revenue was C$8.4 million and adjusted EBITDA was a C$4.35 million loss. H1 revenue was C$14.0 million and the company recorded a C$14.1 million net loss.
But the balance sheet has changed dramatically.
Following its financing, Volatus finished Q2 with approximately C$59.2 million of cash and C$63.8 million of working capital, its strongest liquidity position historically.
That gives management something it previously lacked: sufficient capital to pursue the defence opportunity without constantly worrying about immediate financing requirements.
Why we own FLT
Volatus is essentially an investment in the proposition that Canada will require a domestically controlled autonomous-aircraft industry.
If Volatus captures a meaningful Canadian Armed Forces, Coast Guard, Arctic surveillance or NATO-related program, today's relatively small revenue base could change quickly.
That is also the risk.
Volatus still has to prove that its rapidly expanding capabilities translate into large contracts, growing revenue and eventually profitability.
Our classification: High-risk / potentially high-reward strategic position.
2. Ondas — NASDAQ: ONDS
The Fast-Growing Autonomous Defence Platform
There is one important clarification regarding Ondas.
Although much of the technology and operational heritage comes from Israel — particularly through Airobotics — Ondas itself is a U.S.-listed American company with both U.S. and Israeli operating subsidiaries. Airobotics Ltd. is its Israeli subsidiary.
Ondas has also become a much larger and more diversified autonomous-defence company than it was even a year ago.
And financially, the transformation has been remarkable.
Q2 changes the investment case
Ondas reported Q2 2026 revenue of $83.8 million, up 67% sequentially and more than thirteen-fold year-over-year.
More importantly, it reported approximately:
$175 million of new Q2 orders
and
$613 million of backlog at June 30.
Including the subsequently completed DZYNE and Cyberhawk acquisitions, pro-forma backlog reached approximately $757 million.
Ondas also reported another $105 million of orders already captured in Q3 through August 10 and raised its 2026 revenue target to $525–550 million.
Those numbers move ONDS beyond being simply an interesting drone technology speculation.
There is now considerable commercial validation behind the story.
Israeli defence validation
On August 11 Ondas announced another significant development.
It was selected by the Israeli Ministry of Defense for the Digital Bat program to develop and produce a next-generation low-cost tactical attack drone system.
That is particularly important because Israel has arguably accumulated more real-world operational drone and counter-drone experience than almost any Western-aligned military.
Technology that succeeds there can potentially migrate into U.S., NATO and allied defence programs.
Systems-of-systems strategy
Ondas is increasingly moving beyond selling individual autonomous aircraft.
Its objective is to connect sensors, drones, counter-UAS systems, ground robotics, communications and AI-driven command-and-control software.
That creates the possibility of considerably higher-value contracts.
Instead of selling the military a drone, Ondas wants to sell an autonomous battlefield architecture.
That distinction is important.
Why we own ONDS
Of our four companies, Ondas currently appears to have the strongest near-term revenue-growth trajectory.
It also has substantially greater diversification following its acquisitions.
The principal risks are acquisition integration, valuation, execution and the enormous complexity created by expanding this quickly.
Nevertheless, backlog approaching three-quarters of a billion dollars gives us considerably greater confidence than we would have had in ONDS twelve months ago.
Our classification: Aggressive growth / strongest current operating momentum.
3. Kraken Robotics — TSXV: PNG
Owning the Underwater Battlefield
Kraken is sometimes grouped with drone companies, but that description substantially understates what the company has become.
Kraken supplies the technologies that allow autonomous underwater vehicles to see, navigate, map and remain powered underwater.
Those capabilities are becoming increasingly strategic.
The oceans contain enormous amounts of critical infrastructure: telecommunications cables, pipelines, offshore energy infrastructure and military assets.
Meanwhile, NATO navies are rapidly expanding their use of unmanned underwater vehicles for mine countermeasures, seabed surveillance and reconnaissance.
Kraken sits directly inside that transition.
Three strategic technologies
The core investment thesis revolves around:
Synthetic aperture sonar
Kraken's AquaPix technology provides extremely high-resolution seabed imagery.
KATFISH
Its actively controlled towed sonar platform can perform high-resolution mine detection and seabed mapping.
Pressure-tolerant batteries
Autonomous underwater vehicles require enormous amounts of energy. Kraken's subsea battery technology therefore provides exposure not simply to one UUV manufacturer but potentially to the entire expansion of autonomous underwater systems.
That picks-and-shovels characteristic is particularly attractive.
Today's Q2 results strengthen the thesis
Kraken released Q2 results today, August 27.
Revenue reached C$27.3 million, gross margin reached an impressive 59%, and adjusted EBITDA was C$5.0 million.
More importantly, announced 2026 orders across Kraken and Covelya have now reached approximately C$355 million.
Kraken also disclosed a long-term master supply agreement to provide subsea batteries to a major international conglomerate developing extra-large unmanned underwater vehicles — XL-UUVs.
That is exactly the type of contract we want to see.
Covelya transforms Kraken
Kraken completed its approximately C$615 million acquisition of Covelya Group on July 2.
The transaction brings Sonardyne, EIVA, Voyis, Wavefront and other underwater technology businesses into the group.
Management expects the combination to expand Kraken's addressable market, geographic reach, engineering capabilities and customer relationships, while generating approximately C$10 million of cost synergies within 24 months.
Kraken now expects 2026 revenue of approximately C$290–320 million and adjusted EBITDA of C$65–75 million.
That means Kraken is no longer the tiny Newfoundland sonar company it once was.
It is becoming a global subsea technology platform.
Why we own PNG
Kraken may actually represent the highest-quality underlying business of these four companies today.
It possesses proprietary technology, significant defence exposure, commercial customers, strong margins and positive adjusted EBITDA.
And unlike aerial drones — where dozens of companies compete — sophisticated underwater sensing and pressure-tolerant power systems have considerably higher technological barriers to entry.
Our classification: Core autonomous-defence technology holding.
4. WRAP Technologies — NASDAQ: WRAP
The Counter-Drone Wild Card
WRAP is the smallest and most unconventional member of this portfolio.
Historically, investors knew WRAP primarily for BolaWrap, its non-lethal restraint technology used by law-enforcement agencies.
That is no longer the entire investment thesis.
Management is attempting to transform WRAP into a broader public-safety and defence technology company built around WrapShield.
And this is where the drone connection becomes important.
From policing into counter-UAS
WrapShield is intended to combine:
Detection → identification → decision-making → response.
WRAP is incorporating technologies including advanced sensing, passive RF detection and counter-UAS capabilities into the architecture.
On August 24 — only three days ago — WRAP announced that laser counter-UAS technology is being added to WrapShield, targeting Department of War, Homeland Security and tactical law-enforcement markets.
That potentially moves WRAP into one of the fastest-growing areas of defence technology:
How do we economically destroy or disable cheap hostile drones?
Using a $1-million missile to destroy a $10,000 drone is economically unsustainable.
Directed-energy systems potentially alter that equation dramatically.
Israeli technology pipeline
WRAP has also established a relationship with Israel's Frenel Imaging, giving it access to advanced thermal polarimetric imaging technology and potentially other Israeli security technologies.
Management describes its strategy as creating a pipeline whereby Israeli technologies can be identified, licensed or partnered and subsequently commercialized through WRAP into U.S. public-safety, federal and defence markets.
That strategy is intriguing — although still very early.
Financial picture
WRAP remains tiny.
Q2 revenue was only $2.1 million, although that represented 103% year-over-year growth.
Gross margin improved dramatically to approximately 75%, while the operating loss narrowed to approximately $2.3 million.
WRAP subsequently raised another $12 million from institutional investors to help expand WrapShield and its broader public-safety and defence strategy.
Those are encouraging developments.
But WRAP must still demonstrate that WrapShield can progress from an attractive collection of technologies into meaningful federal and defence contracts.
Why we own WRAP
WRAP provides something the other three companies do not.
Counter-UAS exposure.
If inexpensive drones proliferate globally, then technologies capable of detecting and defeating those drones should experience their own enormous demand cycle.
We therefore view WRAP as a relatively small venture-style public-market position rather than something that currently deserves the same portfolio weighting as Kraken or Ondas.
Our classification: Highest-risk / asymmetric counter-UAS option.
Why These Four Fit Together
This is what makes the portfolio particularly interesting.
| Capability | FLT | ONDS | PNG | WRAP |
| Aerial autonomous systems | ★★★ | ★★★ | — | — |
| Tactical defence drones | ★★ | ★★★ | — | — |
| ISR / surveillance | ★★★ | ★★★ | ★★★ | ★★ |
| Counter-UAS | ★★ | ★★★ | — | ★★★ |
| Underwater autonomy | — | — | ★★★ | — |
| Naval / NATO exposure | ★★ | ★★ | ★★★ | ★ |
| AI/autonomy software | ★★★ | ★★★ | ★★ | ★★ |
| Canadian sovereignty | ★★★ | — | ★★★ | — |
| U.S. defence opportunity | ★★ | ★★★ | ★★ | ★★★ |
Instead of betting on a single drone manufacturer, we are effectively investing in an autonomous-security stack.
AIR
Volatus + Ondas
SEA
Kraken
COUNTER-DRONE / DEFENCE
Ondas + WRAP
SENSORS, SOFTWARE & AUTONOMY
All four
That is the central rationale behind owning the group.
How We Currently Rank Them
From an investment-quality standpoint rather than simply potential percentage upside, our ranking today would be:
1. Kraken Robotics — 9.2/10
The most mature business, strong technological moat, high margins, rapidly expanding defence opportunity and the transformative Covelya acquisition.
2. Ondas — 8.9/10
The strongest current growth trajectory. The enormous increase in revenue, orders and backlog substantially strengthens the investment thesis. Acquisition integration and valuation remain important risks.
3. Volatus Aerospace — 8.2/10
Perhaps the most interesting Canadian asymmetric opportunity. Mirabel, V-Cortex, K1000ULE and Canadian defence spending could create a very different company over the next several years. Execution and profitability remain the principal questions.
4. WRAP Technologies — 7.4/10
Potentially enormous upside if WrapShield becomes a credible counter-UAS/federal-security platform, but considerably less commercially proven than the other three. This is precisely the type of investment where a starter position rather than a full position makes sense.
Portfolio Strategy
We would not equal-weight these four companies.
They are at completely different stages of development.
For every $100 allocated to this theme, our preferred aggressive weighting today would be approximately:
| Company | Allocation | Role |
| Kraken Robotics | 35% | Core position |
| Ondas | 30% | Growth position |
| Volatus Aerospace | 25% | Canadian asymmetric growth |
| WRAP Technologies | 10% | Venture-style counter-UAS position |
This weighting deliberately puts approximately two-thirds of the capital into Kraken and Ondas, where there is considerably more demonstrated revenue and backlog, while retaining meaningful exposure to the potentially much larger percentage upside available from Volatus and WRAP.
What Could Cause Us to Add
We would become more aggressive if the following catalysts occur.
Volatus: a material Canadian Armed Forces procurement, Arctic ISR program, K1000ULE deployment, significant NATO contract or evidence that Mirabel production is beginning to scale.
Ondas: continued backlog conversion, additional U.S./Israeli defence awards, successful DZYNE/Cyberhawk integration and demonstrated EBITDA profitability.
Kraken: major NATO mine-countermeasure awards, additional UUV battery agreements, successful Covelya integration and continued order growth.
WRAP: actual Department of War/DHS counter-UAS contracts, successful field demonstrations of WrapShield, meaningful directed-energy deployment or evidence that federal revenue is becoming material.
Those milestones matter more to us than short-term fluctuations in the respective share prices.
Principal Risks
There is a common danger running through this portfolio.
Autonomous defence has become a fashionable investment theme.
Markets frequently capitalize future contracts before they actually arrive.
Volatus and WRAP remain particularly dependent upon execution. Ondas must successfully digest rapid acquisitions and enormous growth. Kraken must integrate a C$615-million acquisition without destroying the operating discipline that made the original company attractive.
Government procurement is also notoriously slow.
Therefore these companies should not be evaluated simply on announcements, demonstrations, partnerships or memoranda of understanding.
Ultimately we want to see:
Orders → backlog → revenue → margins → cash flow.
Kraken is furthest along that progression.
Ondas is moving through it rapidly.
Volatus is approaching the crucial transition.
WRAP is still near the beginning.
Investment Conclusion
We believe autonomous systems represent something considerably larger than another technology cycle.
Drones are becoming consumable, intelligent machines.
Militaries will require thousands — eventually potentially millions — of autonomous systems operating in the air, on land, on the ocean and beneath it.
And every drone deployed creates secondary requirements for communications, sensors, batteries, autonomy software, surveillance systems and counter-drone technologies.
That is why we have chosen not to bet everything on one drone manufacturer.
We now have:
Volatus — Canadian autonomous air systems and sovereign manufacturing.
Ondas — rapidly scaling autonomous defence and tactical drone systems.
Kraken — the underwater sensing, power and autonomous naval infrastructure layer.
WRAP — the speculative counter-UAS and security response layer.
Together they provide a surprisingly comprehensive exposure to the emerging autonomous defence ecosystem.
Our present view is therefore constructive on all four, but not equally bullish on all four.
Kraken is the core. Ondas is the growth engine. Volatus is the Canadian asymmetric opportunity. WRAP is the venture-style option.
That distinction should determine position sizing.
And if the autonomous transformation of defence proceeds at anything close to the rate we currently expect, owning several of the enabling technologies rather than trying to predict the single winning drone manufacturer may ultimately prove to be the more durable investment strategy
The Takeover Factor
There is another reason we find this group attractive: consolidation across drone, autonomous and counter-drone technology is accelerating, making successful smaller companies increasingly plausible acquisition targets. Large defence primes and security companies need autonomous aircraft, subsea robotics, AI-enabled sensing, counter-UAS and specialized power systems faster than they can always develop them internally. Recent transactions demonstrate the appetite: Motorola Solutions agreed to acquire counter-drone specialist D-Fend Solutions for $1.5 billion, while Thales struck a deal for underwater-drone specialist Exail at an implied enterprise value of approximately €3.9 billion ($4.5 billion); Lockheed Martin has likewise moved to acquire Ultra Maritime, strengthening its position in sonar and autonomous maritime sensing.
That makes Kraken Robotics and Volatus Aerospace particularly interesting strategic assets in Canada. Kraken's sonar, subsea batteries, robotics and autonomous maritime capabilities could eventually attract interest from a major naval/defence contractor seeking immediate access to advanced underwater technology. Volatus could become attractive if its Canadian manufacturing base, autonomous aircraft, software and defence relationships translate into significant CAF/NATO programs—although Canada's desire to build sovereign defence champions could also make a foreign takeover politically sensitive. The broader Canadian policy environment is increasingly emphasizing domestic defence capability and reduced dependence on foreign suppliers.
WRAP could be a different type of target: if its counter-UAS and WrapShield strategy gains meaningful government adoption, it could fit naturally inside a much larger public-safety, defence-electronics or security company. The $1.5-billion D-Fend transaction provides a useful real-world indication of how strategically valuable proven counter-drone technology can become. Ondas, meanwhile, may be more likely to remain the acquirer than become the acquired. It has already been aggressively assembling an autonomous-defence platform through acquisitions including DZYNE, BIRD Aerosystems and Rotron Aerospace.
We therefore do not own any of these companies because we expect a takeover—that would be speculation rather than an investment thesis. But takeover optionality is valuable. If FLT, PNG or WRAP develops strategically important technology, wins major defence programs and establishes a difficult-to-replicate position, a larger contractor may eventually conclude that buying the company is faster and cheaper than trying to build the capability from scratch. In a defence industry now actively consolidating around AI, autonomy, drones and counter-drone systems, that possibility should not be ignored.
Ed Note:
We have also added to this portfolio one of the bigger fish in the sea (and sky)
AeroVironment, Inc.
