Investing in small-cap shares buying and selling at an inexpensive valuation and positioned for regular development is a technique that can enable you ship outsized good points over time. On this article, I’ve recognized two such Canadian shares you would contemplate shopping for with simply $1,000. Let’s see why.
Is that this Canadian inventory a superb purchase proper now?
Valued at a market cap of $306 million, Volatus Aerospace (TSXV:FLT) gives built-in drone options throughout Canada, the U.S., the U.Ok., and Norway. It gives UAV (unmanned aerial automobile) companies, together with pipeline monitoring, surveillance-as-a-service, wildfire administration, geomatics (lidar surveys, photogrammetry), inspection companies, and autonomous cargo supply.
The corporate gives drone tools gross sales, pilot coaching, and specialised software program platforms for information evaluation. Volatus serves oil & gasoline, utilities, development, defence, mining, agriculture, and public security industries with complete aerial intelligence and logistics options.
Volatus Aerospace delivered blended first-quarter (Q1) 2025 outcomes, as income declined to $5.7 million from $6.6 million within the prior 12 months, as a consequence of seasonal climate impacts and geopolitical uncertainties that delayed buyer buying choices.
Regardless of the income decline, its working losses narrowed by 24% to $3.6 million whereas normalized EBITDA (earnings earlier than curiosity, tax, depreciation, and amortization) improved 30% 12 months over 12 months.
In Q1, Volatus secured the Past Visible Line of Sight (BVLOS) approvals throughout Canada for daytime and nighttime operations. These approvals lengthen to advanced airspace environments, together with operations close to vertical buildings and in Canada’s distant northern areas. The regulatory milestone positions Volatus to commercialize its Operations Management Middle (OCC) as a scalable service providing.
Volatus is pivoting its enterprise mannequin from capital-intensive operations to a customer-owned, company-operated method. Below this construction, prospects buy drone tools whereas Volatus gives managed companies and recurring upkeep contracts, lowering the corporate’s capital necessities whereas producing regular income streams.
Its drone-in-a-box options, mixed with OCC capabilities, allow absolutely automated distant operations with minimal floor personnel. These techniques can function throughout ranges of 20-60 kilometres from centralized hubs, supporting functions together with infrastructure inspection, mining operations, and border surveillance.
Volatus maintains its dedication to attaining EBITDA breakeven by mid-2025, supported by enhancing operational efficiencies and an increasing pipeline of alternatives throughout vital infrastructure, mining, and public security sectors.
Analysts monitoring the Canadian inventory count on income to rise from $27.15 million in 2024 to $101 million in 2028. Comparatively, it’s forecast to report a free money stream of $12.4 million in 2027, in comparison with an outflow of $13.8 million in 2024. FLT inventory has greater than tripled 12 months thus far but in addition trades 40% beneath all-time highs, permitting you to purchase the dip.
Is that this Canadian tech inventory undervalued?
One other small-cap tech inventory that operates in an identical vertical is Draganfly (CNSX:DPRO), which develops and manufactures unmanned plane and distant information assortment techniques within the U.S. and Canada. It gives quadcopters, fixed-wing plane, floor robots, and specialised software program for monitoring and information evaluation. The corporate additionally operates well being/telehealth platforms for distant biometric detection and gives sanitary spraying companies, serving public security, agriculture, industrial inspection, and mapping markets.
In Q1 of 2025, Draganfly reported income of $1.55 million, a rise of 16% 12 months over 12 months, pushed by increasing partnerships and strategic positioning within the defence sector. It secured a number of notable partnerships, together with an unique settlement with SafeLane, the world’s largest demining firm, to offer aerial survey companies for unexploded ordnance removing operations.
Draganfly strengthened its defence credentials by including Chris Miller, former U.S. Appearing Secretary of Protection, as a spokesperson and advisor, offering essential entry to navy procurement channels.
Draganfly additionally opened a brand new Tampa facility with full testing capabilities, together with reside ordnance testing, positioned to serve particular operations prospects and manufacturing wants.
Administration expects this to be a breakout 12 months, with CEO Cameron Chell indicating the corporate wants roughly $35-40 million in income to realize profitability. Analysts monitoring the tech inventory forecast gross sales to rise from $6.56 million in 2024 to $21.5 million in 2026.
The gross sales pipeline exceeds $100 million, with a number of massive defence and public security contracts into account that would speed up development trajectories.
