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Blue Ops Integrates Volvo Penta D4-320 Propulsion System into Variant 7 Uncrewed Surface Vessel

Red Cat (Nasdaq: RCAT) announced that its maritime unit, Blue Ops, has completed the first integration of a Volvo Penta D4-320 diesel engine and DPI DuoProp drive into the Variant 7 (V7) uncrewed surface vessel.

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Red Cat (Nasdaq: RCAT) announced that its maritime unit, Blue Ops, has completed the first integration of a Volvo Penta D4-320 diesel engine and DPI DuoProp drive into the Variant 7 (V7) uncrewed surface vessel. The integration links Volvo Penta’s 320-horsepower propulsion package and global service network with V7’s autonomous navigation, remote operation, mission planning and payload management systems.

Built in the U.S. for U.S. and allied defense missions, V7 uses a Modular Open Systems Architecture to let customers configure propulsion, payloads, sensors and communications. The Volvo Penta integration expands propulsion choices while keeping compatibility with the V7 autonomy and mission architecture and follows Blue Ops’ move into full-rate V7 production.

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Positive

  • First Volvo Penta-powered V7 integration completed, expanding propulsion options for the Variant 7 USV platform
  • Integration leverages Volvo Penta’s global parts and service network for V7 operators in worldwide deployments
  • V7 designed on Modular Open Systems Architecture, allowing configurable propulsion, payloads, sensors and mission systems

Negative

  • None.
Argus Aug 3 session 58 alerts
+9.69% close to close 1.7x rel. volume Open Argus
Details

News Market Reaction – RCAT

+14.1% Peak in 26 hr 39 min
$1.38B Market Cap

In the Aug 3 session, RCAT gained 9.69%, reflecting a notable positive market reaction. Argus tracked a peak move of +14.1% during that session. Our momentum scanner triggered 58 alerts that day, indicating high trading interest and price volatility. Trading volume was above average at 1.7x the daily average, suggesting increased trading activity.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock moved +9.7% in the session following this news. The prior 32.61% 24-hour reaction to news_...
Analysis

The stock moved +9.7% in the session following this news. The prior 32.61% 24-hour reaction to news_id 1063875 showed strong historical sensitivity to V7 production news. This integration adds supplier-backed propulsion flexibility; high short positioning and recent insider net selling remain sourced risks.

Key Figures

Engine power: 320 horsepower Engine displacement: 3.7-liter Cylinder count: four-cylinder
Engine power
320 horsepower
Volvo Penta D4-320 engine
Engine displacement
3.7-liter
Volvo Penta D4-320 engine
Cylinder count
four-cylinder
Volvo Penta D4-320 engine

Historical Context

5 past events · Latest: Jul 23
5 events
  1. Jul 23

    Integration news

    24h Move
    +2.5%

    Completed Black Widow integration with C3A’s OBERON-enabled tactical fires networks

  2. Jul 20

    Earnings scheduling

    24h Move
    +10.7%

    Announced second-quarter earnings release date and upcoming investor conference participation

  3. Jul 02

    Program advancement

    24h Move
    -1.0%

    Teal Drones advanced to Gauntlet II of the U.S. Drone Dominance Program

  4. Jun 15

    Product introduction

    24h Move
    +7.1%

    Introduced Hellcat global small UAS configuration built on Black Widow

  5. May 28

    Production ramp

    24h Move
    +32.6%

    Blue Ops moved Variant 7 into full-rate production for defense missions

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

uncrewed surface vessel, common-rail diesel engine, modular open systems architecture
3 terms
uncrewed surface vessel technical
"completed the first integration of a Volvo Penta D4-320 diesel engine and DPI drive into the Variant 7"
An uncrewed surface vessel is a boat or ship that operates on the water without people onboard, using remote control or automated systems to navigate and carry out tasks. For investors, these vessels matter because they can reduce labor and operating costs, enable new services like offshore inspection, data collection or maritime security, and create market opportunities or risks tied to technology, regulation and reliability.
common-rail diesel engine technical
"The Volvo Penta D4-320 is a 320-horsepower, 3.7-liter, four-cylinder common-rail diesel engine."
A common-rail diesel engine uses a high-pressure shared fuel line (the “rail”) that feeds electronic injectors on each cylinder, allowing precise control of how much and when diesel is injected. Like a single high-pressure water pipe supplying many sprinklers with exact timing, this system improves fuel efficiency, engine performance and emissions control. Investors care because it can affect a vehicle maker’s operating costs, regulatory compliance and product competitiveness.
modular open systems architecture technical
"Built around Modular Open Systems Architecture (“MOSA”) principles"
A modular open systems architecture is a way of designing complex products so they’re assembled from standardized, interchangeable parts that connect using publicly available rules — think of building with Lego bricks rather than gluing everything together. For investors, it matters because this approach lowers lifecycle costs, reduces dependence on any single supplier, speeds upgrades and innovation, and makes products and programs less risky and easier to sell or partner on.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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First Volvo Penta-powered Variant 7 pairs proven marine propulsion with Blue Ops’ production-ready autonomous maritime platform

SALT LAKE CITY, Aug. 03, 2026 (GLOBE NEWSWIRE) -- Red Cat Holdings, Inc. (Nasdaq: RCAT) (“Red Cat” or the “Company”), a U.S.-based provider of advanced all-domain drone and robotic solutions for defense and national security, today announced that its maritime division, Blue Ops, has completed the first integration of a Volvo Penta D4-320 diesel engine and DPI drive into the Variant 7 (“V7”) uncrewed surface vessel.

The integration adds the Volvo Penta D4-320 and DPI drive to the range of propulsion configurations available for V7, giving defense, homeland security and allied customers access to a proven marine propulsion package supported by Volvo Penta’s global service network. The system has been integrated with V7’s autonomous navigation, remote operation, mission planning and payload management capabilities.

“We design our boats to give customers flexibility while maintaining the reliability, maintainability and mission performance required for demanding maritime operations,” said Barry Hinckley, President of Blue Ops. “Integrating the Volvo Penta D4-320 gives operators another proven propulsion option from a manufacturer they know and trust, while preserving the common autonomy and mission architecture at the core of the platform.”

The Volvo Penta D4-320 is a 320-horsepower, 3.7-liter, four-cylinder common-rail diesel engine. Paired with the DPI DuoProp drive, the integrated package is designed to deliver responsive handling, durability and efficient marine performance. In addition to its propulsion systems, Volvo Penta’s global parts and services network provides a significant benefit to Blue Ops customers who are operating USVs globally and depend on rapid service.

“Volvo Penta is committed to delivering dependable propulsion solutions, as well as parts and support for customers where and when they need it,” said Brock Gavin, Vice President of marine sales and service for Volvo Penta North America. “The integration of the D4-320 and DPI drive into Variant 7 demonstrates how proven propulsion technology can support the growing requirements of autonomous maritime operations in demanding environments. We are pleased to support Blue Ops with reliable propulsion solutions and service expertise as the company continues to develop and deploy innovative autonomous marine technologies for its customers.”

V7 is a mission-adaptable USV designed, built and assembled in the United States for U.S. and allied defense missions. The platform supports intelligence, surveillance and reconnaissance; force protection; harbor and coastal security; contested logistics; and other payload-adaptable operations.

As defense and security organizations accelerate investment in autonomous maritime capabilities, Blue Ops is focused on delivering production-ready USVs that can be configured for a wide range of missions and customer requirements. The V7 combines scalable U.S. manufacturing, open architecture and an integrated autonomy stack in a platform designed to adapt as operational needs evolve.

Built around Modular Open Systems Architecture (“MOSA”) principles, V7 enables customers to configure propulsion, payloads, sensors, communications and mission systems based on operational requirements. The Volvo Penta integration broadens customer choice while maintaining compatibility with the platform’s autonomy, control and mission systems.

The integration follows Blue Ops’ move into full-rate production of V7 and reinforces Red Cat’s strategy to build a flexible portfolio of autonomous systems across air, land, sea and space.

About Red Cat Holdings, Inc.

Red Cat (Nasdaq: RCAT) is a U.S.-based provider of advanced all-domain drone and robotic solutions for defense and national security. Through its integrated portfolio of trusted U.S. and allied hardware and software, Red Cat supports military, government, and public safety operations across air, land, sea and space. Its systems span small unmanned aircraft systems, uncrewed surface vessels, wireless power transfer technology, and autonomous swarming software to enhance situational awareness, operational effectiveness, and mission safety. Learn more at www.redcat.red.

Safe Harbor Forward-Looking Statements

This press release contains "forward-looking statements" that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements.

Forward-looking statements contained in this press release may be identified by the use of words such as "anticipate," "believe," "contemplate," "could," "estimate," "expect," "intend," "seek," "may," "might," "plan," "potential," "predict," "project," "target," "aim," "should," "will," "would," or the negative of these words or other similar expressions, although not all forward-looking statements contain these words.

Forward-looking statements are based on Red Cat Holdings, Inc.'s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. These and other risks and uncertainties are described more fully in Red Cat's filings with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and Red Cat undertakes no duty to update such information except as required under applicable law.

Investor Contact:
Ankit Hira
Solebury Strategic Communications for Red Cat Holdings, Inc.
E-mail: RCAT@soleburystrat.com

Media Contact:
Peter Moran
Phone: (347) 880-2895
Email: peter@indicatemedia.com


FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Red Cat (RCAT) announce about the Variant 7 uncrewed surface vessel on August 3, 2026?

Red Cat announced Blue Ops has integrated a Volvo Penta D4-320 diesel engine and DPI drive into the Variant 7 uncrewed surface vessel. According to the company, this adds a new propulsion option aligned with V7’s existing autonomy, control and mission systems.

What is the Volvo Penta D4-320 propulsion system integrated into Red Cat’s Variant 7 (RCAT)?

The Volvo Penta D4-320 is a 320-horsepower, 3.7-liter, four-cylinder common-rail diesel engine paired with a DPI DuoProp drive. According to Red Cat, this package is designed for responsive handling, durability and efficient marine performance for the Variant 7 USV platform.

How does the Volvo Penta integration benefit Blue Ops Variant 7 customers and RCAT investors?

The integration gives Variant 7 operators another proven propulsion option supported by Volvo Penta’s global service network. According to Red Cat, this can support customers operating USVs globally who depend on reliable propulsion, rapid service and mission-ready autonomous maritime capabilities.

What missions is the Blue Ops Variant 7 uncrewed surface vessel designed to support?

Variant 7 is designed for intelligence, surveillance and reconnaissance, force protection, harbor and coastal security, contested logistics and other payload-adaptable operations. According to Red Cat, the platform’s open architecture lets defense and security customers configure systems for evolving operational requirements.

How does the Modular Open Systems Architecture of Variant 7 impact the Volvo Penta integration?

Variant 7 uses Modular Open Systems Architecture, enabling configuration of propulsion, payloads, sensors, communications and mission systems. According to Red Cat, the Volvo Penta integration broadens propulsion choice while maintaining compatibility with the platform’s autonomy, control and mission architecture.

Is Blue Ops’ Variant 7 uncrewed surface vessel in full-rate production for Red Cat (RCAT)?

Yes. According to Red Cat, the Volvo Penta integration follows Blue Ops’ move into full-rate production of the Variant 7 platform. This production status supports the company’s strategy to deliver production-ready USVs for U.S. and allied defense and security missions.

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