EVE Q2 2025 Earnings Call Transcript

Quartr
Provided by Quartr
August 6, 2025

Key Takeaways

  • Positive Sentiment: Unveiled our full-scale mock-up at the Paris Air Show, featuring a redesigned wing with an enhanced aerodynamic profile, a new four-blade rotor configuration for reduced vibration and noise, and a taxi-wheeled version to streamline ground operations.
  • Positive Sentiment: Converted our first LOI into a firm order with Revo for 50 eVTOLs and TechCare services valued at $250 million, set to generate revenues beginning in 2027 and secure pre-delivery payments to fund assembly.
  • Positive Sentiment: Built a total pre-order backlog of approximately 2,800 aircraft worth ~$14 billion, with LOIs from 28 customers across nine countries and TechCare service commitments that could yield up to $1.6 billion in aftermarket revenue.
  • Positive Sentiment: The full-scale engineering prototype is completing ground tests with installed lifter and pusher motors; after integrating and trialing Beta Company motors, we expect first flight toward late 2025 en route to 2027 TAP certification.
  • Positive Sentiment: Ended the quarter with $242 million in cash and $375 million in total liquidity, maintaining full-year cash burn guidance of $200–250 million, providing runway through 2026.
AI Generated. May Contain Errors.
Earnings Conference Call
EVE Q2 2025
00:00 / 00:00

There are 13 speakers on the call.

Operator

Day, everyone, and welcome to the EVERY Mobility Second Quarter twenty twenty five Conference Call. At this time, all participants are in a listen only mode. Later, you will have the opportunity to ask questions during the question and answer session. Please note this call is being recorded, and I will be standing by should you need any assistance. It is now my pleasure to turn the conference over to Lucio Aldworth, Director of Investor Relations at EVE.

Operator

Please go ahead.

Speaker 1

Thank you, operator. Good morning, everyone. This is Lucio Aldworth, the Director of Investor Relations at EVE, and I wanted to welcome everyone to our second quarter twenty twenty five earnings conference call. Our CEO, Johan Bourde and CFO, Eduardo Cote are joining me on the call today. And after their prepared remarks, we will open the call for questions, at which point, Riz Valentini, our Chief Technical Officer, will join us for more technical questions.

Speaker 1

We have a deck with a few slides and additional pictures that show our achievements in the quarter, as well as the testing phase of our full scale prototype. The deck is on our site at ir.eveairmobility.com, so please feel free to download and follow it along. Let me first mention that today's conference call includes statements about events or circumstances that have not yet occurred. These are largely based on our current expectations and projections about future events and financial trends affecting our business and our future financial performance. These forward looking statements are based on our current expectations and involve risks and uncertainties that could cause financial results to differ substantially from those expressed or implied in this conference call, and we undertake no obligation to update publicly or revise any forward looking statements because of new information, future events, or other factors.

Speaker 1

For a more detailed list of these risks and uncertainties, please refer to our SEC filings available on our website. With that, I will now turn the presentation over to our CEO, Johan.

Speaker 2

Thanks Lucio. Good morning to all and welcome to our second quarter twenty twenty five conference call. We had a very exciting second quarter with several important developments and we continue to advance our program development. In a nutshell, and we will talk about it in more details in the call, we unveiled our full scale mock up at the Pairs Air Show in June with a new propeller configuration. We also announced our first firm order and signed additional LOIs.

Speaker 2

Last but not least, we are announcing today that we are bringing Beta Company to complement our suppliers list. Beta comes in with a proven and mature solution to the distributed propulsion of the eVTOL with the same lift and cruise aircraft configuration, and this will give EVE operating flexibility and optionality in our program. Our schedule remains unchanged with expected TAP certification and entering the service in 2027. Starting with slide two, our EV toll continues to advance and we redesigned the wing with a more aerodynamic profile for a more efficient cruise. We are now offering a taxi wheeled version of the aircraft to facilitate ground operation and taxiing in congested landing sites.

Speaker 2

The DNA of our eVTOLs and change with eight lifters and a pusher designed for short routes and a pilot and four passengers. Flying should be very simple with a single pilot control side stick supported by Embraer's fifth generation of the fly by wire. This is a proven technology that improves passenger comfort and safety. Slide three and four shows a few pictures of our full scale mock up, that was unveiled at the Paris Air Show last June. This is a true representation of our our commercial aircraft and features comfortable full flex configuration sittings for four passengers with a 32 inches pitch and external baggage compartment.

Speaker 2

This makes it ideal for short urban flight up to 60 miles, including trips to and from airports. The reception from customers, partners, government officials, and also stakeholders was extremely positive reflecting the strong interest and the support to our vehicle design and attributes which clearly demonstrate our aviation and certification DNA. Now moving to slide five, I am very happy to bring here our first LOI conversion of the letter of intent into a firm order from Revo. This is a helicopter operator with active helicopter airport shuttle and

Speaker 3

point to point

Speaker 4

operations. Is being recorded. This

Speaker 5

meeting is being transcribed.

Speaker 2

As a reminder, Sao Paulo is the largest and busiest helicopter market in the world with over 400 aircraft and more than 2,000 daily flights. The city offers a great potential market for EV tolls and Revo will launch operations in Sao Paulo region with our aircraft. We're very proud of this partnership. Besides that, Revo also signed a contract for our TechCare aftermarket services. So in total, the contract for 50 aircraft and services has a total potential value of $250,000,000 We expect that to start producing revenues in 2027.

Speaker 2

Now, this firm order means that we'll begin to collect pre delivery payment. This will bring cash in the door and help to fund the assembly of the aircraft. We are going to collect a substantial amount of PDPs until delivery date, very much in line with market practices, but for competitive reasons, we are not disclosing other specific terms of this contract. Slide six shows two additional LOIs we signed during the quarter for a total of 104 eVTOLs. These are two new customers with services in Brazil, The United States, and Costa Rica.

Speaker 2

We're also subscribing to the tech care services, so they do appreciate the value proposition of our product and aftermarket offering. This is actually a great way to introduce the next slide. On slide seven, it shows the total preorder backlog that now stands at approximately 2,800 aircraft for a total value close to $14,000,000,000 based on the list price. This now includes non binding letters of intent from 28 different customers as well as the firm order from Revo. These orders are from over nine countries and different businesses from main lines to regional airline, helicopter operators, ride sharing platform, and leasing companies.

Speaker 2

And because maintenance and support guarantees the proper aircraft operation, we are highly focused on providing the best in class services and support to EV tolls operators. Therefore, we have also secured contracts with 14 different customers for our EVE Tech Care suite of aftermarket products, which could bring up to $1,600,000,000 in revenue to EVE over the first few years of operations. Importantly, EVE Tech Care customers have placed LOIs to service around 1,100 aircraft or about 40% of our preorder book. As you can see, we also have 21 different customers for our air traffic management solution called Vector, and I believe this reflects the market leading value proposition we bring to our customers. Beyond that, together with our customers and authorities, we're also developing a strong network of partners in different areas such as infrastructure and energy to address one of the many challenges ahead for the urban air mobility, which is to create a whole new ecosystem besides simply developing an aircraft.

Speaker 2

Now going to slide eight and nine, you can see our more recent program advancement. Our full scale engineering prototype is undergoing the last set of ground tests before it initiates its flight campaign. You may remember that we have already tested and installed the pusher motor a few months back. And after extensive tests on the lifters at the facilities of our suppliers, we have now started installing the first units. In fact, the top picture here shows the propeller spinning on its first test on the prototype.

Speaker 2

We are scheduled to receive the remaining motors shortly. In parallel, we signed with Beta an agreement to test their propulsion electrical motors on our prototype. Nidec continues committed and involved with our eVTOL and they bring engineering and production expertise. Well, Beta comes in with a startup mindset and adds agility to our program with a proven and tested track record of lift and cruise eVTOL flights along with their strong relationship with FAA. As always, we're looking for the most optimal possible design when it comes to safety, performance, reliability, and cost effectiveness to deliver most competitive aircraft to our customers.

Speaker 2

In that sense, Nidec and Beta are complementary to our AVTOL design. With that, we expect to start flying our prototype in the next few months. Lastly, as I mentioned earlier, we unveiled at the Paris Air Show our full scale mock up with a new rotor configuration. The rotor now features four blades. This is a design that generates less vibration and is quieter than the previous configuration.

Speaker 2

The blades have a fixed pitch and a mechanism to align the blades align reduce aerodynamic drag during the cruise phase of the flight. We also have a few pictures of our truck mounted rig testing in real condition the aerodynamic drag of this new rotor setup. As you can see, the blades are all aligned and this rig helps us to define our load analysis on the entire motor propellers rig and validate the new blade configuration. Now on slide 10, you can see the progress of the final stage of testing the motors for our engineering prototype. As a reminder, the lifters were tested at the Nidec facilities for power output, energy consumption, vibration noise emission, among other metrics.

Speaker 2

And upon satisfactory results, they were installed into their respective nacelle, integrating into the system that control them, and finally, spun on the eVTOL for the first time. We are going to follow the similar protocol with the beta motors that will still arriving and should be ready to fly in the next few months. And finally, on slide 11, we updated our list of primary system and component suppliers currently engaged, including Beta. We follow a best of breed approach and select partners with aviation experience and that can support our certification efforts. We are very proud of all members of this list, and I'm confident that we will have the best EVTEL in the market available to the operators with a great design, high dispatchability, and industry low operating cost.

Speaker 2

Now I would like to invite our CFO, Edu, to go over our financials along with a checklist for our twenty twenty five milestones.

Speaker 3

Thanks, Johan. Now moving to Slide 13. EVE is a preoperational company and our financials reflect mostly the costs associated with our program development. That said, I would like to highlight some of our numbers. EV invested 55,000,000 during the second quarter in our program development, including our EVTOL, the tech care service and support solutions and Vector, our urban air traffic management software.

Speaker 3

We continue to accelerate our program development with more engineers from EVE and Embraer as well as higher engagement with suppliers. That explains the higher R and D expenses in the quarter. We also deployed around $8,000,000 in SG and A during the second quarter. Including R and D and SG and A, Yves reported a net loss of $64,000,000 in the second quarter twenty twenty five. We also recognized a charge related to the fair value of our outstanding warrants as the value of our shares increased in the quarter.

Speaker 3

Importantly, this is a non cash expense and does not impact our cash flow or liquidity position. Now moving to cash flow, our operations consumed EUR 57,000,000 in the quarter. This is almost twice the cash consumed in the first quarter, which had a temporary working capital gain as one of our invoices of around EUR 50,000,000 from Embraer is lifted to the second quarter. Still, the $83,000,000 consumed in the first six months of the year can be considered as a normalized level for our current development stage. We continue comfortable with our guidance for the full year of 200,000,000 to $250,000,000 which reflects our financial discipline, advantages of using Embraer's engineering team, as well as our increased efforts in the program development.

Speaker 3

Finally, on liquidity, we ended the second quarter with $242,000,000 in cash, including an additional disbursement of the credit line with the Brazilian Development Bank of $11,000,000 The standby facilities continue to help Yves to preserve a solid cash position throughout the year. The total liquidity of $375,000,000 at the end of the quarter includes our cash, all undrawn standby facilities as well as a $50,000,000 grant we announced during the quarter. We view our liquidity as sufficient to sustain our operations through 2026. Now going to Slide 13, we remain on track to deliver our milestones this year. As Johan detailed earlier, our first full scale prototype is concluding the final steps and installations to start to perform its initial flights in the next few months.

Speaker 3

We now expect the first flight towards the end of the year as similar to Nidec, we also perform tests with the beta motors in our engineering prototype in the upcoming months before the first flight. In parallel, we continue in talks with ANAC to detail the means of compliance, which are the specific tasks that need to be conducted during the certification campaign. We expect those to be published by the end of the year at which point we'll be able to begin our certification campaign. Also, we continue highly engaged with suppliers working on the initial parts of our conforming prototypes. And in parallel, the sites to assemble these aircraft is starting to receive the necessary equipment and tooling.

Speaker 3

Lastly, our cash consumption in the year, despite the better first semester, should stay in the guidance of 200 to 250,000,000, probably closer to the low end of the range. With that, we conclude our remarks and I would like to open the call for questions. Operator, please proceed.

Speaker 6

Thank

Operator

And we'll take our first question from Savi Syth with Raymond James. Please go ahead. Your line is open.

Speaker 6

Hey, good morning, everyone. Maybe first one for Edu, just on a kind of housekeeping side just on the cash consumption, you're progressing well right now especially maybe tracking below that 200 to $2.50 and you also do have the grants that you got recently is it fair to assume that it'll be close to the lower end and maybe below and you can consider the grants as well

Speaker 7

hey hi Savi we continue to monitor right our expenses very closely We are very diligent where we spend our money, and we make sure we leverage, right, all the resources that we have from Embraer so that we don't need to duplicate costs. With that, we have been able to optimize our expenses, right, in the first half. We burn around 85,000,000, little less than 85,000,000. Second half should be a little more, so that's the reason we are guiding towards the low end of the range, right? Maybe $200 maybe slightly below.

Speaker 7

But, you know, we there's a lot of investments on the development. We're going to continue to advance. We're going to be doing a lot of tests, so we're excited. But, yeah, I believe we we are leveraging more from Embraer, and because of that, we have been able to optimize our cash consumption.

Speaker 6

Very helpful. Thank you, Adieu. And and then maybe if I can ask on the engineering flight testing, looks like maybe it's slipping a little bit, know, now late twenty five, early twenty six, which is not surprising. But you also mentioned kind of moving forward with building certification conforming aircraft, but I'm guessing those are just building the kind of the long range components. How how long do you think you need to fly the engineering prototype before you kind of finalize the design and and can really start assembling the certification aircraft?

Speaker 8

This is Luis Valentini. So with respect to the flight of the conforming prototypes, we are still planning that for next year, towards the end of next year also, so we still have time to perform the conforming flight test prototype campaign, which is composed of a development phase and also a certification phase, leading us to certification still in 2027. So the the this engineering prototype plan and development is parallel to this path of developing the conforming prototypes with this schedule I mentioned, then leading to the certification in '27.

Speaker 6

And Mandy, can I ask, are the kind of the design changes reflected in this engineering prototype, or is that what kinda go directly onto the the certification aircraft that you're building?

Speaker 8

Yeah. So so at this point, we don't have any significant changes with respect to this testing that Edu and Johan mentioned the beginning of the call. The other modifications such as optimization on the wings and things like that, those are already part of the engineering prototype configuration. Configuration. They're not on the engineering prototype because this is a vehicle that is already assembled.

Speaker 8

So these most recent changes are not on them, which for us is not significant because as we mentioned before, this engineering prototypes helps us to calibrate our models and helps us in estimates. So, it doesn't have the same configuration as the conforming prototypes.

Speaker 6

Understood. Thank you.

Operator

Thank you. Our next question comes from Andres Sheppard with Cantor. Please go ahead. Your line is open.

Speaker 9

Hey, everyone. Good morning. Congrats on the quarter. Thanks for taking our questions. Hi, Johan.

Speaker 9

Hi, Edu. And hi, Lucio. And congrats on the unveiling of the aircraft and on the first binding order. So certainly exciting there. Quick question, just maybe following up on Savi's question regarding the test flight campaign, maybe different way of asking is, can you just maybe give us a sense of kind of how you're envisioning this ramping up, starting with hover slides and then kind of what are the plans to kind of ramp up the test flight campaign?

Speaker 9

And is the plan still to deploy five prototypes for conforming test flights? And if so, kind of what's the timeline for that? Thanks.

Speaker 8

Yeah, thanks Andres. So the plan is still the same. So starting from the end of your question, we're still planning the five prototypes. There's still some discussion on the amount of the, you know, test points that will be on each one and if we should bring in another six prototypes. So that's, still something that may change in the future, but we're still planning to go with the five prototypes and the timeline we had previously.

Speaker 8

With respect to the steps on the flight test campaign, we are still very much in line with the concept of building maturity on the building blocks we have for the vehicle, so we will definitely spend some time focusing on the hover flight of the vehicle since this is one of the building blocks in which we don't have as much previous experience in comparison to others such as cruise flight, right, where we bring the experience of Embraer in previous projects. Right? So we will spend some time focusing on hover flight, and that relates to the controllability of the vehicle, the power needed, the managing the management of the systems, temperatures, power, things like that. And then transition between hover and cruise is also an important phase. It's a very short one for the vehicle, but it's very important that it's executed smoothly, both in terms of, let's say, technical aspects, but also for the comfort and the user experience of the passengers.

Speaker 8

And then finally, after that move to cruise, where again, we believe we have more maturity based on previous experience of other projects.

Speaker 9

Got it. Super, super helpful. I appreciate that color. And maybe just as a quick follow-up, if I may. Just regarding the order book, curious on kind of how you're thinking about it.

Speaker 9

You know, is the plan to continue to build up the order book? Is it to begin converting some of those LOIs into binding orders? Should we expect any PDPs from the order book? Just any granularity there or

Speaker 3

thoughts would be helpful. Thanks.

Speaker 10

Johan speaking. Andre, thank you. Thank you for your comment and about the unveiling of the book up at the Paris Air Show. Well, the order book is definitely what we've been working in the beginning. We work on this order book with the LOI because we wanted to put the customer, the operator, the center of what we do.

Speaker 10

And I've been saying this before, mean, this really, it proves, you know, the solution that we're giving to the operators, not only the aircraft, but also the service and support, make sure they can operate reliably. They can also make sure that they fly, they keep flying on a regular basis, and have the most optimal operating cost. And also, UATM is around the corner. Can begin with what we have today in the traffic management, but eventually putting thousands of vehicles in the air and the low altitude airspace will need this. So, I think customers understand this, and they want to engage.

Speaker 10

That's why it starts with LOI. Basically it says that we're working together, we're defining the solution together, they participate in SteerCo with us, where we give them regular feedback on how the product development and also the service support solutions that we're developing for them. And naturally, as you go forward and you get closer to the certification date, then we start converting. And that's exactly what happened with Revo. I think it's just important for them to prepare the Internet service.

Speaker 10

And this is why we're two years away from interim service. The ecosystem needs to be ready. And with this contract, they can go back to the different stakeholder and say, okay now, this is real, this is happening. My first PDPs, and Eve is developing this vehicle and we need to be ready. So we're not looking to add necessarily, we add only when it makes sense, when we have the right partner with the right mission, okay?

Speaker 10

And this is what we've been working on. And then, of course, once we start converting the first one, we'll also have an issue. Pay attention to the press release we did at the Paris Air Show, it says Sao Paulo area, right? This is the lounge customer for Sao Paulo. You can imagine that we're already working with other customers in Brazil, but also United States to convert other AOI.

Speaker 9

Excellent. Thanks, Johan. Very, very clear. Appreciate that. And congrats on all the recent momentum.

Speaker 9

I'll pass it on.

Speaker 10

Thank you, Anna.

Operator

Thank you. Our next question comes from Ellen Page with Jefferies. Please go ahead. Your line is open.

Speaker 4

Hi, guys. Thanks for the question. I just wanted to touch on some of the changes in the competitive landscape. Joby and Blade announced that, Joby would acquire Blade's passenger business earlier this week. How do you think about how that impacts your competitive dynamic and your positioning, especially given Blade had been part of your, 2.8, thousand LOIs?

Speaker 4

And that combined with your partnership with Beta, how do you envision the ecosystem developing from here?

Speaker 10

Yeah. So hello, Ellen. We welcome very much this news about Adobe investing in Blade. I think this is exactly proving our point, what we've been saying since the beginning, as there's this transition happening in the electrification of the vertical flights from the helicopter to Evitol, and this is proof of it. So we're excited.

Speaker 10

We think it's a good news, because this is what we've been preaching. It's just getting together, there's room for everyone, Toby going and getting a platform, ride sharing platform, is positive for all the eVTOL manufacturers. We don't see, and there's a special point, I mean, don't see that it's going to take out our backlog with the 200 vehicle that we have. We have a good relationship with Blade. And it's a ride sharing platform, remember?

Speaker 10

I mean, it's like and I'm going make a joke a little bit here, but it's like Uber asking their drivers to drive on a Toyota, right? Mean, it's just that you need all the OEMs, you need various OEM for the right mission. Each of the EDTEL is its mission, and same thing for the helicopter, they're multi OEM. Blade is a multi OEM today. And so we don't see it as an issue today for us.

Speaker 4

Great, thank you. I'll pass it on.

Operator

Thank you. We will move next with Austin Moeller with Canaccord. Please go ahead. Your line is open.

Speaker 11

Hello. Good morning. Just my first question here. What is the difference in performance between the motor that's being acquired from beta and the one that you were using in testing previously? And are you still sourcing a battery pack from BAE or is that going to change?

Speaker 8

Hi, Austin. So, with respect to the battery, nothing changes there. We're still developing with BAE and and still on the same requirements, same products, same line we were before. On the differences between, the motors from Nidec and from Beta, there are mainly differences, with respect to, cooling system. For example, there's a little bit on on the architecture of the motor, so the size of the motor is a little bit different between, you know, the two solutions.

Speaker 8

The control is different, and there's some differences on the way that it integrates into the vehicle, and so how it communicates and how some of the protections are made. Basically, these are differences that we believe that want us a phase of testing so we can, with these differences, find what is best for the vehicle as a whole. So we optimize the global solution based on these differences that the systems bring to us. And so by doing this step, we are looking for a solution that is best for the vehicle overall, and that's why we believe this phase of testing will increase our maturity moving forward for the flight test campaign.

Speaker 11

Okay. And are you able to comment on the tip speed of the new rotor blades, and do you expect additional design changes to the aircraft before building the conforming units for ANAC to evaluate?

Speaker 8

Yeah. So, that's a very good point because the blade tip speed is one of the main parameters that dictates the noise that is emitted by the vehicle, which again is one of the important characteristics of the vehicle when we think of bringing them into urban areas and the way we relate to the communities where the vehicles will be operated. Right? So this change of motors that we are testing, they don't affect the tip speed. And so we are maintaining the requirement for tip speed so that we maintain the level of noise of the vehicle and keep that at a level that is low enough not to significantly impact the areas where we'll be operating.

Speaker 8

And so in that sense, there is no change. And then just completing your question with respect to changes that will be brought to the conforming prototypes, of course, we will bring any learnings that we believe are relevant through this phase of testing with the engineering prototype to the certification vehicle and to the vehicle that will go into service. So that's one of the objectives is to bring these solutions that we optimize into this vehicle as much as we can to the vehicle that will be certified and go into service.

Speaker 11

Great. Thank you for filling me in.

Speaker 1

You're welcome.

Operator

Thank you. Our next question comes from Marcelo Motta with JPMorgan. Please go ahead. Your line is open.

Speaker 12

Hi, everyone. Thanks for taking the question. It's just one is regarding, you know, capital needs. You mentioned that you feel very comfortable until the '26, and as you mentioned in previous calls, you know, you have been exploring the options for '27. You guys have this shelf registration that was filed during the quarter, you know, to to raise money.

Speaker 12

The sector had been doing pretty well. So just wondering if you can comment anything about that that or how do you see the current state of the sector, and what else do you think could improve, or what are the current risks, and, you know, what type of de risk would you be expecting, you know, to be more optimistic about the outlook for the EBITDA? That's it. Thank you.

Speaker 7

Thanks, Mato, for the question. It's Edu here. We continue to feel very good, right, in terms of cash. Only the cash we have in hands gives us more than around eighteen months. Right?

Speaker 7

So, we have plenty of cash to get at the 2026. If you add the standby facilities, we have already signed at the recent grant that we raised that gives us probably, we're talking about almost 400,000,000, which gives us two full years. Right? So probably until, I would say, mid-twenty twenty seven. So the position is good.

Speaker 7

We still need some resources, right, to get certification. We have different options. Right? You mentioned the S3, shelf registration we have, but we also have interesting discussions in terms of long term low ones, right, Similar facilities to what we already, you know, have been drawing from vendors and also from Citibank. So, different from some other players, right, given

Speaker 2

the

Speaker 7

strength of the group, right, being part of the Embraer Group, we have, I would say, more options in terms of funding, and we are analyzing. We are not in a hurry, but, you know, we need to assess the best option and execute at the right time.

Speaker 12

Thank you, Durdo.

Operator

Thank you. Our next question comes from Andrea Madrid with BTIG. Please go ahead. Your line is open.

Speaker 3

Hey, good morning. Thanks for taking my question. Quick one on the eVTOL landscape. I mean, we've seen a number of partnerships between eVTOL names and defense contractors emerge, for the development of of, you know, defense use cases. Could we see ePursuing similar partnerships?

Speaker 10

Andre, yeah, this is John. I'm sorry. Got mixed up with the microphone here. Well, you know, since the beginning of EAV, it's another focus, and we're really working on the UAM. It's the one hundred-one 150 kilometer market.

Speaker 10

See and by the way, we released our market outlook at the Bearsert Show, and we were the first OEM to put our experience out there and all the discussion that we've been having with all the stakeholders, and we do confirm that we believe that the UEM will go for urban dense collision area, and this is also Revo is confirming what we're saying. So it's a matter of focus, at the same time we always look, and this is also one of the advantage of having Embraer, you know, that can bring the technology development, analysis, and all the bandwidth to look at different technologies. And we're looking at the possibility of getting into a hybrid solution for the vehicle, not changing the core structure of the vehicle, and for specific markets. Defense could be one of them, but to remind you that we do have LOI with BAE system, which also looking at different markets as defense, whether it's in The US or UK. And so yes, we are looking into this, but the focus is still to be certifying the vehicle that we're offering the fully electrical.

Speaker 3

Got it. Got it. Very helpful. I'll leave it to one. Thanks so much.

Operator

Thank you. And this will conclude our Q and A session. I will now turn the call over to Lucio Ellworth for closing remarks.

Speaker 1

Thank you, Nikki, and thanks everyone, who joined the call today. As you can see, we accomplished several important milestones in the past quarter. We're fully engaged, moving fast, and there's a whole lot more to come in the next few quarters. So, we're going to keep updating you guys on our progress, throughout the next few quarters, and we look forward to meeting you in the upcoming events we're going to attend. As always, if you have any questions, please don't hesitate to reach out to me or to my team.

Speaker 1

Thanks, and have a great day. Thank you.

Operator

Thank you. And this does conclude today's program. Thank you for your participation. You may disconnect at any time.

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