EVE Q4 2025 Earnings Call Transcript

Quartr
Provided by Quartr
March 17, 2026

Key Takeaways

  • Positive Sentiment: Flight-test momentum: Eve completed its first flight (Dec. 19) and has flown the prototype 28 times for a total of 1h06m, is progressing through hover-to-transition-to-cruise phases and targets roughly 300 flights in 2026 to expand the envelope and support certification.
  • Positive Sentiment: Commercial interest and backlog: Pre-order backlog stands at ~2,700 aircraft (~$13.5B list price), with recent firm orders (AirX: 2 firm + 48 options) and aftermarket/service contracts (Eve TechCare potential ~$1.6B), signaling customer demand and upsell opportunities.
  • Neutral Sentiment: Certification & supplier progress: Eve is actively engaging ANAC on means-of-compliance (aligning some work to a new FAA AC) and advancing supplier activity and tooling for its six certification-conforming prototypes, but regulatory alignment and demonstration testing remain material workstreams.
  • Positive Sentiment: Strong liquidity position: Eve reports total liquidity of roughly $641M after a $150M syndicated loan (Q4 cash ~ $393M–$390M reported), which management says supports operations well into 2028.
  • Negative Sentiment: Rising near-term cash burn and losses: Eve reported a FY2025 net loss of $224M and expects higher 2026 cash consumption of $225M–$275M as development intensifies (six conforming prototypes, more supplier and Embraer spend), increasing financing and execution risk before revenue generation.
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Earnings Conference Call
EVE Q4 2025
00:00 / 00:00

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Operator

Good day, and welcome to the Eve Holding, Inc. Q4 2025 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Lucio Aldworth, Director of Investor Relations. Please go ahead.

Lucio Aldworth
Director of Investor Relations at Eve

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 Q4 and full year 2025 earnings conference call. Our CEO, Johann Bordais, and CFO, Eduardo Couto, are joining me on the call today. After their prepared remarks, we will open the call for questions, at which point Luiz Valentini, our Chief Technology Officer, will also join us to address more technical questions.

Lucio Aldworth
Director of Investor Relations at Eve

We have a deck with a few slides and additional pictures and videos that showcase our achievements in the quarter, including, of course, the initial stages of the test flights and of our full-scale prototype. The deck is available on our website at ir.eveairmobility.com, so please feel free to download it and follow along.

Lucio Aldworth
Director of Investor Relations at Eve

Let me first mention that today's conference call includes statements about events or circumstances that have not yet occurred. These are primarily based on our current expectations and projections regarding future events and financial trends that will affect our business and future economic performance.

Lucio Aldworth
Director of Investor Relations at Eve

These forward-looking statements are based on current expectations and involve risks and uncertainties that could cause financial results to differ substantially from those expressed or implied in this conference call. We will take no obligation to update publicly or revise any forward-looking statements because of new information, future events, or other factors. For a more detailed list of these risks and uncertainties, please refer to our SEC filings, which are available on our website. With that, I will now hand over the presentation to our CEO, Johann.

Johann Bordais
CEO at Eve

Thank you, Lucio. Good morning, everyone, and welcome to the Q4 2025 conference call. This was a very special quarter for us. As many of you must have seen, we concluded the first flight of our engineering prototype last December after we completed an extensive series of ground tests on all of its systems.

Johann Bordais
CEO at Eve

Although the first flight was short and lasted about a minute, we are evolving quickly into other phases of the flight campaign. We are going to show more data further in the presentation. We have performed a total of 28 flights and accumulated more than an hour of flight time. The prototype has recently completed a two week scheduled load calibration test in preparation for continued expansion of the flight envelope that is part of the upcoming phases in the campaign and is ready to resume flight testing.

Johann Bordais
CEO at Eve

In parallel, we continue highly engaged with ANAC on the final terms of the certification plans and also suppliers from whom we are already receiving some of the components of the first conforming prototype. Going into a bit more details, as you can see on the picture slide three, we successfully conducted our first flight on 19 December.

Johann Bordais
CEO at Eve

This was obviously a major milestone for us. It confirmed that not only the proof of concept of the configuration, but also the integration of key systems, including the fifth generation fly-by-wire and the fixed pitch lifter rotors. During the flight, we exercised the control laws, verified the integration of the eight lifters, and assessed the energy management, the aircraft dynamic response, and the noise footprint.

Johann Bordais
CEO at Eve

The prototype behaved as predicted by our models, and we will, with this data point, expand the envelope and progress toward transition to wing borne flight. The next phases will be conducted in a disciplined manner, ramping up to around 300 flights throughout 2026 and building the knowledge required for type certification.

Johann Bordais
CEO at Eve

This brings us to the next slide, number four. As you can see, we quickly engage into a consistent and intense flight campaign. So far, we have flown our aircraft 28 times with a total of one hour and six minutes of accumulated flight time. As mentioned previously, the high quality of the flights with important test points being validated in each and every flight allow us to continue progressing and expanding the envelope of the flights. We are now performing longer flights at higher altitudes.

Johann Bordais
CEO at Eve

We are now performing in-air maneuvers with side-to-side movements, some horizontal displacement and rotation on its own axis. Some of the videos available on our website will show you know, these maneuvers. Lastly, weather permitting, and please keep in mind that this is the rainy season in Brazil, our aircraft is being put to the test twice a day. To date, there were seven different days in which we could fly twice. At the current pace, we should be in position to make around 300 flights as planned for the year.

Johann Bordais
CEO at Eve

Slide number five details a bit better what the flight campaign will look like for the prototype this year. In total, we are planning four distinct phases, each building up on knowledge and experience gained in the previous one. The first stage is hover and some maneuvers this is a critical phase to validate characteristics of vertical flight, which was the first for us. In this phase, the prototype performed vertical takeoff and landing. The flights gradually evolved to longer times and also higher altitude, but remained at a fixed position with some maneuvers with the use of the lifter propulsion system only.

Johann Bordais
CEO at Eve

This phase is now completed, and we're moving to transition flights where we will start to fly the aircraft originally. Initially at the speed below 30 knots and using our pusher motor and perform initial synchronization lifters. Because during this phase, the lifters will be powered at all time, we sometimes refer to the partial transition, and we expect to conclude it until the end of the first semester.

Johann Bordais
CEO at Eve

The third phase is what we call the cruise flight, in which after a takeoff of the aircraft, we'll move beyond the transition speed. At this point, the air moving through the wing will produce all the lift required to maintain the aircraft airborne. For the landing procedure, we will gradually slow the aircraft below the transition speed. The lifter will be engaged automatically to maintain vertical control, and the pilot in the remote pilot station, the RPS truck, will maneuver the aircraft vertically to its landing site.

Johann Bordais
CEO at Eve

In a nutshell, this is the same set of maneuvers from the takeoff to cruise, but in a reverse order, all of which controlled by our fifth-generation fly-by-wire. As in previous phase, speed, altitude, and distances will be all increased gradually, and we're planning completing this phase early in the second semester. Last but not least, we will introduce the failure into the system, such as unplanned motor shutdown, to test how the system reacts to validate and refine the safety procedures and the protocol of the pilot.

Johann Bordais
CEO at Eve

Now the slide number six shows the level of engagement with our suppliers. We regularly meet them and visit their sites, and there has been noticeable uptick in activity recently. We have some of the components for the first of our series of certification-compliant aircraft. The tooling for the pylon and some composite materials of other system are already being manufactured, as for the doors, propellers, and the wing tooling.

Johann Bordais
CEO at Eve

Importantly, we can see the mechanism that is designed to fold the propeller in its full form. This is notable achievement because we introduced the 4-blade system to reduce vibration and sound emission more recently, and the folding mechanism is necessary to reduce drag and improve aerodynamic profile as much as possible.

Johann Bordais
CEO at Eve

We are also working with our suppliers to conclude the critical design review, what we call also CDR, to freeze the specification of each component and release the drawing from them to start manufacturing each part. This, as the name suggests, is a critical phase of the design process and will kickstart the production process for the remaining component of our certification-compliant vehicles.

Johann Bordais
CEO at Eve

Slide number seven gives more details about the latest firm orders we signed early February with AirX. This is our second binding contract and includes two firm aircraft and the option for another 48 aircraft. This is a very important market for us with strong potential.

Johann Bordais
CEO at Eve

As a reminder, we believe that Japan can absorb as many as 390 eVTOLs to transport 3 million passengers per year. There are multiple use case from the airport shuttle, ecotourism, or point-to-point commute in its many large cities. AirX already operates in 10 of them, so it is a strategic partner for Eve. Slide eight shows our total pre-order backlog that stands around 2,700 aircraft for a total value close to $13.5 billion based on the list price 2025. This includes non-binding letters of intent from 27 different customers, as well as Revo's and AirX firm orders.

Johann Bordais
CEO at Eve

Out of the 27 customers, we also secured contract with different customers, 14 total, for our Eve TechCare suite of the aftermarket product and services, which could bring up to $1.6 billion in revenue to Eve over the first few years of operations. 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. Now, I would like to invite our CFO, Eduardo, to review the financial results and some of the 2026 coming milestones.

Eduardo Couto
CFO at Eve

Thanks, Johann. Eve ended last year with a very comfortable financial position. Our liquidity reached $541 million at the end of 2025, with $390 million in cash and another $150 in undrawn credit facilities with the Brazilian Development Bank, BNDES. These are important to help preserve our cash position. Also, when adding a new loan secured early this year with a syndicate of banks, total liquidity is even higher. Now at $641 million, this is the highest cash level ever for Eve.

Eduardo Couto
CFO at Eve

The syndicated loan brought $150 million. Our liquidity grew by $100 million because we refinanced $50 million of an existing loan to extend our amortization schedule, better matching our cash flow needs as we approach certification and entry into service. Last year, as you can see on slide nine, our operations consume $175 million. I wanted to note that we had a $21 million working capital gain last quarter, as some of our engineering payments to Embraer slipped into the Q1 of this year.

Eduardo Couto
CFO at Eve

If these invoices had been paid in 2025, our cash consumption would have been $196 million in 2025. Given that, our cash consumption in 2025 was very close to the low end of our guidance of $200 to 250 million, and it continues to reflect our robust yet simple structure, cost discipline, and the main synergies we enjoy by being part of the Embraer Group. Now moving to slide 10. Eve is a pre-operational company, and our financials reflect mostly the costs associated with our program development. That said, I would like to highlight some of our numbers.

Eduardo Couto
CFO at Eve

Eve invested $59 million during the Q4 2025 in research and development activities and $195 million in the full year. The majority was directed towards the development of our eVTOL. We also deployed $8 million in SG&A during the quarter and $31 million in the full year. Including R&D and SG&A, Eve reported a net loss of $64 million in the Q4 2025 and $224 million for the full year.

Eduardo Couto
CFO at Eve

Finally, we ended Q4 with $393 million in cash and $541 million in total liquidity, as already discussed. We expect cash consumption to intensify this year because of increased development activities. We are now in a full-fledged and intense flight campaign with our engineering prototype. We're increasing engagement with suppliers as we progress towards the assembly of our 6 certification-conforming prototypes.

Eduardo Couto
CFO at Eve

All of these efforts will involve greater engagement with Embraer engineering, infrastructure and testing facilities, and supplier payments. In the end, we expect our operations to consume between $225 million and $275 million in 2026. We remain in a comfortable financial position, and our liquidity is enough to cover our capital needs well into 2028. With that, we conclude our remarks, and I would like to open the call for questions. Operator, please proceed.

Operator

We will now begin the question-and-answer session. To ask a question, you may press star, then one on your touch tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. The first question today comes from Savanthi Syth with Raymond James. Please go ahead.

Savanthi Syth
Savanthi Syth
Managing Director and Senior Equity Analyst at Raymond James

Hey, good morning, everyone. Maybe first off, just wondering, Eduardo, if you could give a little bit more color on the cash consumption, just a breakout between how you think that R&D, SG&A, and CapEx generally gonna progress this year.

Eduardo Couto
CFO at Eve

Yeah, sure. Good morning, Savi. The $225 to 275 million, it's mostly R&D, right? We're trying to keep SG&A at kind of the levels we had last year, right? Around $30 million. The remaining portion is mostly for the development service that we pay to Embraer and all the development activities that we have with suppliers, right? A lot of activity on the suppliers.

Eduardo Couto
CFO at Eve

There's also, you know, a structure from Eve, but that is small. CapEx should be around $20 to 30 million specific about the plant. You know, by far the big chunk of the cash consumption this year is on the development, mostly Embraer and the several other suppliers we have.

Savanthi Syth
Savanthi Syth
Managing Director and Senior Equity Analyst at Raymond James

That's very helpful appreciate it. I was also wondering, not sure on the means of compliance. I think originally the thought process was maybe that would be accepted in 2025. Just kind of curious what feedback you've received from ANAC on that front and if that has any kind of impact on the timing of the CDR review completion.

Luiz Valentini
CTO at Eve

Hey, Savi. This is Luiz Valentini good morning. We have some work currently going on the means of compliance, mostly on two fronts one is noise for which there is some specific regulation that is still being discussed both with ANAC and the FAA, but also with some means of compliance that are related to the certification of the product in many aspects, in the sense that there was not too long ago a new AC published by the FAA, and we are adapting or modifying some of the means of compliance that we had previously agreed with ANAC.

Luiz Valentini
CTO at Eve

To be more in line with this regulation that was issued by the FAA this helps us. Although it's some rework now, it helps us in the future when we have the ANAC TC and going to the validation process with the FAA, it'll be more streamlined with the requirements being more similar. It's work that we had not expected to be doing now, but again, it's something that accelerates in the future the process of validating TC it doesn't have much impact on the CDR, because it doesn't change the product it's just mostly the way of showing compliance with the requirements.

Savanthi Syth
Savanthi Syth
Managing Director and Senior Equity Analyst at Raymond James

Makes sense. Thanks, Luiz Valentini. Jenny?

Operator

The next question comes from Andres Sheppard with Cantor Fitzgerald. Please go ahead.

Andres Sheppard Slinger
Andres Sheppard Slinger
Research Analyst at Cantor Fitzgerald

Hey, everyone. Good morning. Congratulations on all the great progress, and thanks for taking our questions. I wanted to maybe just touch on the six ANAC conforming aircraft that you're building. Wondering if you could maybe give us an update there. How are you thinking about timing for those, you know, different phases, different steps? I guess if I could just combine that, are those the ones ultimately to deliver to Revo as part of that first delivery? Thank you.

Luiz Valentini
CTO at Eve

Yeah. Hey, Andres. Thanks for the call. Thanks for the question. The prototypes will not be delivered. These will be only for testing. The point that we are in them right now is that we have some of the long lead time items already being manufactured you saw there, one of the slides shows some of the parts already being started in production and also some of the tooling for, you know, some of the composite parts already being made.

Luiz Valentini
CTO at Eve

That's part of the, let's say, the initial production. When we have more parts like these, we can start assembling components and then go to the final assembly of the prototypes. These will be used only for certification campaign, as I mentioned development and certification, right? Not for delivering to customers.

Andres Sheppard Slinger
Andres Sheppard Slinger
Research Analyst at Cantor Fitzgerald

Got it. Okay. That's very helpful. Johann, I'm wondering if we can maybe get an update on the service and support and maintenance segment. Any sense of when you might target to kind of begin ramping that up and maybe emphasize that a bit more? Just curious on kind of what the strategy there is. Thank you.

Johann Bordais
CEO at Eve

Thanks, Andre. Since the very beginning of Eve solution, it's not only the product, but it's also the customer support and services we know how important it is to make sure that we have a clear value chain to start with, especially with Revo. As you can imagine, we're focusing on this entry into service. All the others, we recently announced last week at Verticon, a partnership with Skyports Infrastructure and also Alt Air in Australia.

Johann Bordais
CEO at Eve

As you can see, this is part of the whole ecosystem building. Customers want to make sure that the OEM is involved. They want to make sure that they'll have the availability and the right operating cost. We have this duty to be engaged, and it's exactly what we're doing with each of our customers. It's almost city per city, right? I mean, it's really operation and per operation. This is what we're really focusing on, and this is why you see more and more announcement related to this ecosystem readiness.

Andres Sheppard Slinger
Andres Sheppard Slinger
Research Analyst at Cantor Fitzgerald

Excellent. Thanks again for taking our questions, and, congrats on all the progress. We'll pass it on.

Johann Bordais
CEO at Eve

Thanks, Andre.

Operator

The next question comes from Ellen Page with Jefferies. Please go ahead.

Ellen Page
Ellen Page
Equity Analyst at Jefferies

Good morning. Thanks for the question. You announced the AirX order, firm order for two aircraft in February. Congrats on that second customer in the firm order book. How did you think about? the pace of further firm orders as you kind of progress through flight certification? Also, can you just level set us on your current expectations for certification and entry into service?

Johann Bordais
CEO at Eve

Thanks, Ellen. This is Johann. Since the very beginning, we've announced this, we've made LOIs. We understood that at the time it was very important to sign LOIs, not so much about the number of aircraft, obviously it comes with it because it reflects, you know, the need of each operator in their own respective region.

Johann Bordais
CEO at Eve

But also, you know, showing that we had the right solution. That's the trust that the customers are putting by sending an LOI to say, "Look, you know, you come up with the aircraft, you certify it, you have the right customer support, the right suite of solution, Vector for ATM, right, different modules, then I'm in. I believe in this, you know, urban air mobility, fully electrical, and I'm in." This is what we've built over the years, the last five years.

Johann Bordais
CEO at Eve

I think this is now, you know, we're at the crossroad right now where we need to convert because we're two years away, you know, from the first delivery. Obviously, we're starting to do what we call the S&OP, right, which is, you know, really see, you know, what are the sales, you know, where the slots of the production, you know, will come in the first ramp up of production. This is natural, and this is exactly what happened with Revo but it's not so much, because of, you know, getting the aircraft ready for production it's also because the customer-

Johann Bordais
CEO at Eve

-needs to really get the authorities, the partners for the ecosystem to be ready, right? It takes time to get the power line, for example, to the vertiport, transform a helipad to a vertiport, get the right authorities or authorization for firefighters, for example, procedures for the vertiport and ramp operation.

Johann Bordais
CEO at Eve

This is also, you know, needed for the operators, and then they can come back to the local authority and say, "Look, you know, I've signed a contract. We need to get ready also. You also need to get ready as much as the OEM, otherwise we'll be delivering a vehicle that we wanna make sure that it has the right operation support."

Johann Bordais
CEO at Eve

This is natural we selected Revo. Revo, it elected us to start the operation in São Paulo. I always say, you know, Brazil and São Paulo is the place where UAM will be showing, you know, what is a true OEM operation, especially when you have a customer like Revo that already is doing urban air mobility with helicopters, right?

Johann Bordais
CEO at Eve

AirX, it's another consequence of a market where you can see that authorities, government, private initiatives understand that and they see the future and the urban air mobility, and they believe in it. now they know that it's time to also convert.

Johann Bordais
CEO at Eve

This conversion rate is natural. We have 2,700 vehicle signed under LOI. It can go up and down i've said it, you know, in previous calls that we're not looking for more LOI unless it really makes sense for Eve in strategic region or specific customers or a mission fit. Also, you know, really the focus is to start having this conversion happening together with the aftermarket and ecosystem preparation i think this is the key because we wanna really make sure it becomes a routine right.

Ellen Page
Ellen Page
Equity Analyst at Jefferies

Great. Thank you.

Operator

The next question comes from Marcelo Motta with JP Morgan. Please go ahead.

Marcelo Motta
Marcelo Motta
Research Analyst at JPMorgan

Hi, everyone. Two quick questions the first, if you can provide some additional color regarding this deferral of payments to Embraer, you know, why that happened. You know, we haven't seen that before on the earnings, so just wondering if something that could happen, you know, in the coming quarters. The second is also a little bit more color on the backlog i mean, if we are correct, there was a very small contraction in the number of orders and in the value.

Marcelo Motta
Marcelo Motta
Research Analyst at JPMorgan

Just wondering, you know, what was the driver for one of the clients, you know, to take its LOI out you know, if it was related to, I don't know, timing of evolution of, you know, any milestone that you need to reach or if it was maybe a financial issue with the client. I mean, whatever you can tell us, that would be appreciated. Thank you very much.

Johann Bordais
CEO at Eve

Thanks, Motta. Let me take first the payments to Embraer. The way we pay to Embraer is they invoice us every quarter, right? Once the quarter ends, they take around 15 days to, you know, get all the expenses, then they send us an invoice, and we have 45 days to pay.

Johann Bordais
CEO at Eve

That means we end up paying Embraer now, for instance, for the Q4 of last year, we end up paying at the end of the following quarter, which is the 45 days plus the 15 days that they take to send us the invoices. In the Q4, right, which was actually the invoice of the Q3, it took us a little bit longer, and we ended up paying at the beginning of January so there's nothing special. It was, as I said, sometimes it sleeps a little bit. We have to do some, we have to check all the expenses, everything. It was unusual. We do not expect to see other invoices sleeping.

Johann Bordais
CEO at Eve

In the Q4, there was this $20 million, and as I said, we already paid in the beginning of January. That's Marcelo for a second question. This is, like I said, I mean, you know, we started to sign LOIs, you know, almost when we started the company, you know, four to five years ago. It's really natural that you see the LOI, especially when it's LOI, you know, the companies actually move sometimes they change their strategy sometimes, some of them go bankrupt or start up, you know they see an opportunity in UAM.

Johann Bordais
CEO at Eve

Then they, you know, they go bankrupt or sometimes it also happen, you know, the reduction of the backlog or the pre-order backlog. It's with Blade, since Joby did purchase, you know, with Blade and then they obviously have another strategy when it comes to the OEM or eVTOL. Like i said, it's natural it goes up and down when it comes to LOI but now we're focusing really on the order conversion and moving forward to start, you know, looking at the first slots also and getting the customers ready their, you know, get their ecosystem ready. Quite natural.

Marcelo Motta
Marcelo Motta
Research Analyst at JPMorgan

No, super clear. Thank you very much.

Johann Bordais
CEO at Eve

Great. Thank you, Marcelo. I'm sorry. I think Ellen Page asked a question that we did not answer, which was about the certification deadline, right? Luiz Valentini can give us a little more insight.

Luiz Valentini
CTO at Eve

Sure. Just complementing Johann's answer earlier to Ellen about the timeline. We see on the presentation today that we have significant progress in the project, right? That goes both on the work with the suppliers, on the definition of the product, and advancing what we see are characteristics that will be on the final vehicle.

Luiz Valentini
CTO at Eve

At the same time, on the certification, I mean, the development flight test campaign that we've been doing with the engineering prototype. These are aspects that we see that the project is moving very strongly and we're excited about that. At the same time, we still have significant challenges moving ahead i mentioned earlier how we are working with the authorities on setting the means of compliance, and we feel that's going well.

Luiz Valentini
CTO at Eve

There's another stage that come afterwards, which is actually showing compliance with those requirements for certification. That involves not only work and analysis, but also testing, ground testing, flight testing. That's, you know, a big campaign, a big project, a big part of the project that will come next.

Luiz Valentini
CTO at Eve

There are significant challenges that are still ahead of us, in finalizing the product characteristics, moving the product to the certification phase, and managing to show compliance with our requirements to finalize, you know, the type certificate issuance. In summary, we see that there are strong, steps that we were able to take and progress that we are excited about in the last quarter. Still, a lot of challenges that are ahead, on the road to certification on the timeline that we had, you know, that we're still publishing.

Operator

The next question comes from Samir Doshi with H.C. Wainwright. Please go ahead.

Samir Doshi
Samir Doshi
Analyst at H.C. Wainwright & Co

Hey, good morning. Thanks for taking my questions. The first is about the suppliers. Have all the critical components been finalized and suppliers for them finalized? If not, then is there a timeline before which you have to freeze all the suppliers?

Luiz Valentini
CTO at Eve

All of the suppliers for the critical parts and critical components and systems are already engaged. They are working with us. These, I can mention for example, the electrical system, the propulsion. You know, lifters and pushers, flight controls computer that we're working with Embraer. All of the suppliers for these systems have been engaged already for quite a while in the project, and that's really important for us in the sense that they need to work at an integrated fashion, right?

Luiz Valentini
CTO at Eve

The communication, for example, between the motors and the vehicle goes through the flight controls computer, you know, also handles communication with the battery so all of these need to work together, and that's why it's important that all of the suppliers have already been on the project and have been working together on these. No significant components to be sourced at this time.

Samir Doshi
Samir Doshi
Analyst at H.C. Wainwright & Co

Understood. Then the second is just a sort of clarification or more insight. Of these 300 times that you are targeting to fly this year, is there a magic to that number in the sense that would you be able to complete, based on your tests and results, these flights and or rather all your objectives in less number of flights? Can this be accelerated, or do you foresee some things that you have to test multiple times and require more flights? I just wanted to see how this timeline could be pushed forward or back.

Luiz Valentini
CTO at Eve

Yeah. Well, thanks, Samir. It's the 300 flights we usually mention that as a reference to help everyone understand the volume of testing that will be done with this vehicle, right? It's just a way for us to help everybody gauge, you know, the level and the intensity of the flights that will be performed.

Luiz Valentini
CTO at Eve

Really, the way that it feeds into our development is much more gradual than that, right? Johann mentioned we're doing the hover tests now. Already with these hover tests, we are bringing useful information for the design of the certification vehicle, right? This will be, you know, the case for all of the steps that we take moving forward with the flight test campaign. It's something that happens gradually.

Luiz Valentini
CTO at Eve

Of course, as we move forward, we may find that there are some characteristics of the vehicle that require us to do some more extensive testing. This is something that happens with all of the development of aircraft.

Luiz Valentini
CTO at Eve

As you fly, you find that there are some characteristics that sometimes need more tuning, or you find that there are some opportunities there to extract more performance, for example so you do more testing. It's normal to adjust the number of flights and exactly which types of flights you perform as you go along. The 300, again, is just a reference, you know, of the size of the flight test campaign, but we don't hold ourselves so much on that. It's more important to perform the scope and feed into the project as we move along this flight test campaign.

Samir Doshi
Samir Doshi
Analyst at H.C. Wainwright & Co

Understood. Thanks for that color, and good luck for 2026. Thanks.

Luiz Valentini
CTO at Eve

Thank you.

Operator

The next question comes from Austin Moeller with Canaccord. Please go ahead.

Austin Moeller
Austin Moeller
Senior Aerospace and Defense Technology Analyst at Canaccord Genuity

Hi. Good morning, Johann and Eduardo. My first question here is ANAC planning any equivalent to the eVTOL Integration Pilot Program, or are you planning to participate in something similar in other countries?

Johann Bordais
CEO at Eve

Yeah. Great question. Thank you. I know, you know, the elPP has been a program with high visibility i mean, we definitely support the U.S. government efforts to accelerate the future of air transportation, right, through the eVTOL Integration Pilot Program. This is one of them. You know, we're a global company, and we've been, you know, working in different countries and this is not unusual to have government going through this type of program.

Johann Bordais
CEO at Eve

As a matter of fact, whether it's Japan, it's Australia or it's the Middle East or, you know, even in Brazil, we do have the similar program. We're very supportive of this type of program. We do have our own flight test activity, just like Valentini just described, right? Progressing as part of the ANAC certification progress, also with the FAA validation, right? They do have meetings between FAA and EASA and ANAC, right?

Johann Bordais
CEO at Eve

I'm thinking of EASA because eventually, you know, we will apply there. That's why. Yeah, we've been working also with different states in the United States, you know, to have a similar type of what we call CONOPS or, you know, pilot program, that will allow to demonstrate, you know, what is a UAM operation, right? Something that we do in Brazil, in the U.S., but in many other countries.

Austin Moeller
Austin Moeller
Senior Aerospace and Defense Technology Analyst at Canaccord Genuity

Okay. Can you talk a little bit about the production capacity for aircraft to roll off the line that you have in your existing facilities versus what you plan to scale into as we get closer to certification? Production capacity.

Johann Bordais
CEO at Eve

Oh, hang on. We were on mute here. Can you repeat that? The question. Sorry, we were-

Austin Moeller
Austin Moeller
Senior Aerospace and Defense Technology Analyst at Canaccord Genuity

Yes. I was just wondering if you could talk about the production capacity for eVTOLs that you have at your existing facility versus what you plan to scale into as you get closer to certification?

Johann Bordais
CEO at Eve

Yeah, nice. Thank you. Since the very beginning, we, you know, Eve has a modular approach when it comes to industrialization. We do have a brownfield operation. We elected the Taubaté site, which is currently a site of Embraer, which actually technically is not anymore because we're paying the rent, so it's our site. We started to, you know, some pre-infrastructure refurbishment.

Johann Bordais
CEO at Eve

Then we are actually planning to go for a first module which is gonna go, sorry, it's modular, like I said, with 120 vehicle per year. We can go up to 480 vehicle per year, right? Which beyond that number, then we will have to go and to another facility, right? More than likely not on the same site, somewhere else, even abroad, where the market will be, you know, with a center of gravity, right, for de-risk purposes.

Austin Moeller
Austin Moeller
Senior Aerospace and Defense Technology Analyst at Canaccord Genuity

Great. That's really interesting. Thank you.

Johann Bordais
CEO at Eve

Thank you.

Operator

The next question comes from Andre Madrid with BTIG. Please go ahead.

Andre Madrid
Andre Madrid
VP and Aerospace and Defense Analyst at BTIG

Good morning, everyone. Thanks for taking my question. Looking ahead, I mean, as you guys move through the test flight campaign, what do you expect the pace of conversion of LOIs to firm orders to be, or do you have any expectations at all?

Johann Bordais
CEO at Eve

Ever since we signed up the contract and converted with Revo and more recently at the Singapore Airshow with AirX, we've seen the interest of customers, you know, increasing, right? From either the one that already have the LOI under contract or some new customers, right? Where we're actually engaging in negotiation, not even to go through a LOI, but directly to a firm order i think it's to find the right balance between being able to show them, you know, how the program is progressing, right?

Johann Bordais
CEO at Eve

And also, you know, is it the right moment for them to engage and to get a vehicle, and when is that gonna be, right? To get the slots, so for 2028, and then this ramp up. As I just mentioned about production, we can accelerate, we can go a little slower. We have this full flexibility. It's a ratio that we have, you know, that we're looking at what needs to be done it's what we call internally the SIOP, right? It's the sales, inventory, and operations process.

Johann Bordais
CEO at Eve

Where we have the sales team together with production and procurement, and finance, obviously, and looking at how this ramp up is gonna look like. We're not disclosing any more information on it right now, but we do expect that, you know, with the up to 300 flights, as Luiz Valentini mentioned, as a target, right?

Johann Bordais
CEO at Eve

We're progressing also the getting the conforming prototype, the six conforming prototype, which one of them, by the way, will be a demonstrator, which I think also it's a great tool to have, you know, to demonstrate to customers and it brings usually also a lot of conversion at the time.

Andre Madrid
Andre Madrid
VP and Aerospace and Defense Analyst at BTIG

Got it. If I could follow up, I know you've been helpful in outlining the you know, your expected cash burn through the year for 2026, but I mean, could you maybe just you know, peel back a little bit more and explain the exact cadence quarter to quarter?

Eduardo Couto
CFO at Eve

Yeah. We're expecting in terms of cash burn, Andre, we're expecting $225 to 275 million, right? It's an increase versus the $200 million we burned last year. The increase goes mostly to more development activities, right? Not only with Embraer, but also with several suppliers. Generally, it's not evenly spread over the quarters, maybe a little bit less in the first half. As we continue to progress on the conforming vehicles, right? It may be more heavy on the second half, but you know, it will be spread maybe a little bit more second half than first half.

Andre Madrid
Andre Madrid
VP and Aerospace and Defense Analyst at BTIG

Got it. That's very helpful. Thank you.

Operator

This concludes our question and answer session. I would like to turn the conference back over to Lucio Aldworth for any closing remarks.

Lucio Aldworth
Director of Investor Relations at Eve

Thank you, Betsy, and everyone who joined the call today. As you can see, we accomplished several milestones this past quarter. We're fully engaged, and there's much more to come. As you just saw, our upcoming achievements will be more clearly visible to the investment community, so the next few months will be very exciting for us.

Lucio Aldworth
Director of Investor Relations at Eve

We're gonna continue to update you on all of our progress through the next few quarters. It's gonna be very exciting, 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 our team. Thank you and have a great day.

Analysts
    • Andre Madrid
      VP and Aerospace and Defense Analyst at BTIG
    • Andres Sheppard Slinger
      Research Analyst at Cantor Fitzgerald
    • Austin Moeller
      Senior Aerospace and Defense Technology Analyst at Canaccord Genuity
    • Eduardo Couto
      CFO at Eve
    • Ellen Page
      Equity Analyst at Jefferies
    • Johann Bordais
      CEO at Eve
    • Lucio Aldworth
      Director of Investor Relations at Eve
    • Luiz Valentini
      CTO at Eve
    • Marcelo Motta
      Research Analyst at JPMorgan
    • Samir Doshi
      Analyst at H.C. Wainwright & Co
    • Savanthi Syth
      Managing Director and Senior Equity Analyst at Raymond James
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