EVE Q1 2026 Earnings Call Transcript

Quartr
Provided by Quartr
May 5, 2026

Key Takeaways

  • Positive Sentiment: Engineering prototype flight campaign has progressed materially with 59 flights (~2.5 hours), validation of 130 performance points, autoland and complex maneuvers, and preparations underway (software uploads and structural tests) to begin transition flights.
  • Positive Sentiment: Regulatory engagement advanced: Eve has formally applied for an EASA type certificate, met with ANAC, FAA and JCAB, and reports ~90% of means-of-compliance agreed with ANAC, which management says increases certification confidence.
  • Positive Sentiment: Balance sheet and cost actions provide runway visibility — record cash of $441M and total liquidity $578M (including $136M undrawn) plus a new $150M loan, and targeted $100–150M of Embraer synergies to reduce cash burn through 2028.
  • Positive Sentiment: Commercial traction remains strong with a pre-order backlog of ~2,700 aircraft / $13.5B list price, two binding customers (Revo and AirX, ~$500M) and ongoing LOIs for aftermarket and the Vector ATM product.
  • Negative Sentiment: Execution and financial risks remain: Q1 net loss was $69M, 2026 cash burn guidance is $225–275M (before synergies), and certification is now expected in 2028 but depends on conforming-prototype flight tests and regulatory approvals.
AI Generated. May Contain Errors.
Earnings Conference Call
EVE Q1 2026
00:00 / 00:00

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Operator

Greetings, and welcome to the Eve Holding, Inc. First Quarter 2026 Earnings Call. At this time all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. Should anyone require operator assistance during the conference please press star zero on your telephone keypad. As a reminder this conference is being recorded. It is now my pleasure to introduce your host, Lucio Aldworth, Head of Investor Relations.

Lucio Aldworth
Head of Investor Relations at Eve Holding Inc

Thank you, operator. Good morning, everyone. This is Lucio Aldworth, Director of Investor Relations at Eve, I wanted to welcome everyone to our first quarter 2026 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 that point, Luiz Valentini, our Chief Technology Officer, will also join in to address some more technical questions. We have a deck with a few slides and additional pictures that showcase our achievements in the quarter, including, of course, the more recent stages of the test flights of our full-scale prototype. The deck is available on our site at ir.eveairmobility.com, please feel free to download it and follow along.

Lucio Aldworth
Head of Investor Relations at Eve Holding Inc

In fact, we just published on our website today a video of one of the more recent flights that feature some more complex on-air maneuvers. You might want to check that out as well. 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. 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 undertake no obligation to update publicly or revise any forward-looking statements because of new information, future events, or other factors.

Lucio Aldworth
Head of Investor Relations at Eve Holding Inc

For a more detailed list of these risks and uncertainties, please refer to our SEC filings, which are available on our website. I'll turn it over to our CEO, Johann Bordais. Johann?

Johann Bordais
CEO at Eve Holding Inc

Thank you, Lucio. Good morning, everyone, and welcome to the first quarter 2026 conference call. This quarter was especially significant. As many of you know, we achieved the inaugural flight of our engineering prototype last December after thorough development and a series of rigs and ground tests. This major milestone validated not only our building block concept by extensively testing every part but also the integration of critical system such as fly-by-wire and fixed-pitch lifter rotors. The successful first flight launched an intensive flight test campaign. Our prototype completed 59 flights and logged nearly two and a half hours in the air with multiple days of two flights and the completion of all planned hover phase objectives. Moving to slide three, more than quantity, our flight campaign has also excelled in quality. Every flight is planned to test and validate specific aircraft component or flight metrics.

Johann Bordais
CEO at Eve Holding Inc

In total, our engineers have already validated 130 different performance points. The prototype has reached 215 ft above the ground and now moving forward at 30 kn. As an example of the envelope expansion, our first flight in December was stationary with the aircraft climbing to 40 ft. Besides flying more frequently, longer, higher, and faster since the first flight, we have also introduced multiple on-air maneuvers to the protocols. We use a building block approach in both design and flight testing, which means we break complex systems into smaller parts, test each unit until it reaches the needed maturity, and then build in on these components. Each test validates specific points and allows progression to next level, more complex phases of the campaign. As such, the aircraft has tested and validated the autoland feature fully controlled by the fly-by-wire system.

Johann Bordais
CEO at Eve Holding Inc

We have also performed difficult maneuvers in all four axes with consistent behavior, allowing continuous envelope expansion. On slide four, the flight campaign has delivered meaningful knowledge gain to date. Most importantly, we confirmed that our predictive models are reliable and precise, enabling safe and confident campaign advancement. Ground effect behaved somewhat differently, loads remain within expectations. These common small deviations help us further refine and improve our engineering models. We have better than expected results for motor thrust and battery performance, with noise and vibration meeting our expectations. The key takeaway is that we remain on track for further envelope expansion and more complex flights. Speaking of which, slide five shows the next steps in the engineering prototype test campaign for this year. The flights up to now have been in hover mode up to 30 kn, all were completed successfully on schedule with approximately 60 flights.

Johann Bordais
CEO at Eve Holding Inc

During the remainder of the second quarter, we will upload refined flight computer software and perform final ground tests on the pusher and actuators. This will ensure that they are fully integrated with all the other aircraft system in preparation to initiate transitions flights. Besides software upgrades, we will also perform mandatory structural ground tests and layup activities that are required for the transition phase and that will last few weeks. This is critical opportunity that will help us validate methods, setups, instrumentation, and test techniques to continue advancing. In a nutshell, this structural and software upload phase is an investment in the maturity, safety, and predictability of the coming transition and certification path. The transition phase will also be gradual. We will start with a partial transition, progressively increasing speed. The lifters will be engaged and to provide the aircraft with the necessary vertical support.

Johann Bordais
CEO at Eve Holding Inc

At the end of this phase, we plan to accelerate the aircraft to a full transition speed above 85 kn. At this point, the entire lift of the aircraft will be provided by the wing, meaning that the aircraft will be wing-borne flight with lifters motors off. This is the aircraft ultimate mission. Take off vertically, transition to wing-borne flight, and then transition back to vertical flight for landing procedures. After transition testing, we will introduce controlled failures, such as motor shutdown, to observe system reaction and refine the safety procedures and the pilot's protocols. Meanwhile, we are concluding the critical design review with our suppliers for each component that will be featured in our coming conforming prototypes. This will allow us to release drawings and continue manufacturing components within the required specs to start testing our conforming vehicle in 2027.

Johann Bordais
CEO at Eve Holding Inc

We continue to mature our flight test campaign, advance our engineering prototype this year while gaining greater visibility into the certification plans for our conforming vehicles. This suggests that certification and entry to service are more likely in 2028, as we will need to fly our conforming vehicles for 12 months to complete all necessary certification tests. It is important to mention that this greater visibility gives us more confidence in the new schedule and lowers its risks. The new timeline is also important to incorporate knowledge gained from the engineering prototype to the conforming prototype and guaranteeing the maturity and performance level of our Eve-100 eVTOL, especially for range, noise, reliability, payload, and lower operating cost. We are now confident that we can deliver an aircraft that is very competitive and well-designed for Urban Air Mobility missions.

Johann Bordais
CEO at Eve Holding Inc

In parallel, on slide six, we continue to engage with authorities worldwide to advance certification for our eVTOL. We recently performed a demonstration at the Gavião Peixoto Embraer facility in Brazil for several Brazilian authorities, including the president of Brazil. We also met with both Brazil ANAC and the U.S. FAA certification authorities at our Melbourne, Florida office to continue discussing our certification timeline. We also met with Japan JCAB and ANAC to strengthen cooperation between the two agencies. Lastly, we formally applied for our eVTOL type certificate with EASA. Moving on to slide seven, we attended VERTICON 2026 in Atlanta, the world's largest helicopter conference. Our goal was to raise awareness to our eVTOL amongst helicopter operators. We believe that these operators will be very early adopter and see an attractive short-term commercial opportunity with them.

Johann Bordais
CEO at Eve Holding Inc

Slide eight shows our total pre-order backlog with approximately 2,700 aircraft valued at about $13.5 billion at list price. Out of the 27 customers, we also have LOIs with 14 different customers for our eVTOL aftermarket services and support, as well as 21 different potential customers for our air traffic management solution called Vector. Now, I will hand over to our CFO, Edu, for the 2026 first quarter financial review.

Eduardo Couto
CFO at Eve Holding Inc

Thanks, Johann. Eve ended first quarter 2026 with a record cash position of $441 million and total liquidity of $578 million, including about $136 million in undrawn credit from the Brazilian Development Bank. This is our highest cash level since the IPO, driven by a new five-year, $150 million loan raised in January. This added liquidity should support operations through 2028 without new funding. We're also working with Embraer to find new synergies to reduce our cash burn from 2026 to 2028. Our initial review indicates that we can achieve $100 million-$150 million in incremental synergies in the next three years, likely reducing cash usage and extending our cash runway. We already started to implement these actions.

Eduardo Couto
CFO at Eve Holding Inc

Our 2026 expected cash burn remains at $225 million-$275 million, excluding the new potential synergies under implementation. Moving to slide 10, just to highlight some of our numbers. Eve invested $59 million in R&D during the first quarter 2026, mainly for eVTOL development. SG&A expenses totaled $7 million for the quarter. Including R&D and SG&A, Eve's net loss for first quarter 2026 was $69 million. As mentioned previously, we ended the quarter with $441 million in cash and $578 million in total liquidity. Cash consumption in the first quarter was $69 million, but this figure includes approximately $11 million in service expected to have been paid in the fourth quarter of 2025.

Eduardo Couto
CFO at Eve Holding Inc

Excluding this additional payment in the first quarter 2026, our cash consumption was $57 million and in line with the low end of our guidance. With that, we conclude our remarks, and I would like to open the call for questions. Operator, please proceed.

Operator

Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question please press star one on your telephone keypad. A confimation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment it maybe necessary to pick up your handset before pressing the star keys. One moment please while we pull up the questions. The first question is from Savi Syth from Raymond James. Please go ahead.

Savi Syth
Savi Syth
Analyst at Raymond James

Hey. Good morning, everyone. Maybe [Edu] first just on the synergies, could you provide a little bit of color on kind of what type of actions those are? Just to make sure that the $100 million-$150 million you're targeting over a three-year period, is that coming off of a base of, like, roughly $250 million per year over the next few years? Is that how we should think about it?

Eduardo Couto
CFO at Eve Holding Inc

Yeah. Hi, Savi. Good morning. Yeah, you're correct. We did a big workshop in Brazil a couple of weeks ago. There was more than 200 people involved on that, you know, from Eve and Embraer side. We basically explore, I would say, four main areas. We explore, you know, the Eve structure, right? We have a lot of costs at Eve. We also explore all the service that Embraer provides to us. A third pocket was suppliers, right? All activities we do with third-party suppliers. The fourth one was industrialization. After doing this big workshop, we were able to initially identify these $100 million-$150 million that we expected to capture between 2026 to 2028.

Eduardo Couto
CFO at Eve Holding Inc

That would be a reduction, right, on the expected cash burn that we were planning for the next three years. You're right. We believe these actions will help us to reduce the forecasted cash flow to the years ahead, cash burn to the years ahead.

Savi Syth
Savi Syth
Analyst at Raymond James

That's helpful. Thank you. Maybe, if Valentini is there, just on the means of compliance. I know last kinda earnings call you talked about working on two fronts. Just wondering if there's any kinda update on that. Just related to that, you noted that some suppliers have kinda already initiated performance certification rehearsal tests. Just wondering if you could elaborate a little bit more on that.

Luiz Valentini
CTO at Eve Holding Inc

Sure. Good morning, Savi. This is Luiz Valentini. We continue to work with ANAC and also with the FAA on the discussion on the means of compliance. I think we've had good progress recently. We've had all of the means of compliance proposed to ANAC. They are inside the certification plans we call. Basically, we've been discussing them one by one, and we have all of them proposed. We believe that we are at around 90% of the means of compliance agreed, which puts us, we believe, in a good position, like you said, to start working on detail, the design of the test campaigns in order to show compliance with requirements.

Luiz Valentini
CTO at Eve Holding Inc

We also were able to find good agreement on the noise certification requirement, which is not part of the certification basis, but is an important part of the certification and operation of the vehicle. We believe that is still on par with the development of the vehicle itself. With respect to other authorities, we've also been engaging with the FAA, as we communicated previously, but most of the alignment work on the means of compliance is done directly with ANAC being the primary certification authority.

Savi Syth
Savi Syth
Analyst at Raymond James

Thank you.

Operator

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

Andres Sheppard
Andres Sheppard
Analyst at Cantor Fitzgerald

Hey, guys. Good morning. Thanks for taking our question, and congrats on the quarter. Wanted to touch on the flight campaign for a minute. Just to be sure I have it right, we're targeting first full transition flight in Q3. I guess just remind us what are the milestones leading up to it? You know, how confident are we in that milestone in Q3? Thank you.

Luiz Valentini
CTO at Eve Holding Inc

Hey, Andres. Good morning. This is Luiz Valentini. We've been flying quite a bit as we've shown all of the flights in the hover flight phase. We've been pretty excited not only with the pace of the campaign, but also with the results that are coming out that makes us confident in moving forward with the tests, right? The next few weeks will be focused on testing some of the integration of the systems in the ground. We've been planning shifting from a period of many flights to now a period of flight, of tests on the ground, and that, again, will focus on making sure that the flight control surfaces work well with the flight control laws connected with the pusher.

Luiz Valentini
CTO at Eve Holding Inc

All of, you know, the lifters, of course, all of that connected. We also will have more tests in the ground that focused on the structure on the airframe of the vehicle to make sure that the vehicle is ready for the larger envelope of flight that we will start, you know, from the Q2 to Q3. Of course, there is a lot to be learned as we move on to this new transition flight phase. Like I said, we're confident and we're excited on the way that the vehicle has been showing itself with respect, you know, as it compared to our expectations. There's a lot to be found out still on this expansion and as we move forward.

Luiz Valentini
CTO at Eve Holding Inc

We are planning this preparation phase very carefully to increase the chances of doing the transition. Again, that's very important, not only for the transition itself, but on the way that it brings knowledge for us to increase the maturity of the Eve-100 design as we progress to building the certification prototypes and moving to the certification flight test campaign.

Andres Sheppard
Andres Sheppard
Analyst at Cantor Fitzgerald

Got it. Wonderful. Thank you. I really appreciate all that context. Very helpful. Maybe just one quick follow-up. Just on the backlog, can you remind us kind of the strategy for this year? Is the plan to continue to increase the backlog, or are we happy with the number and that will be, you know, more about converting those LOIs? Just kinda curious how you're thinking about it for this year. Thank you.

Johann Bordais
CEO at Eve Holding Inc

Thanks, Andres. Johann speaking. When it comes to the backlog, we still have the strongest pre-order book with 2,700 aircraft at this stage. We understand the number of LOI and the spread of our customers and the customer profile is what we need. It really, it's a variety of first mile, last mile operation. It's also sightseeing. It's also organ transportation, different type of mission, which I think it's the right balance in different parts of the world, where it's Australia, it's Japan, it's Brazil, obviously, you know, and the U.S. So, we're very comfortable with our portfolio right now. We demonstrated that we have the right solution because we very preoccupied based on our strong experience with Embraer, you know, how is, you know, the operation will be.

Johann Bordais
CEO at Eve Holding Inc

That's something that we work hard also to make sure that we have the ecosystem ready. This is what's driven this big order book, let's say, right? The strategy for, you know, since last year or this year is to engage the customers so they can go for firm contracts. They can also engage with their local authority together with Eve, also the stakeholders and prepare the internet service, right? Certification is really the starting line. The game will be on when they're gonna be operating. We'll be delivering, certifying and delivering those aircraft. Then they'll be able to operate with the lowest operating costs, with the highest utilization. This is how we're gonna be starting the urban air mobility.

Johann Bordais
CEO at Eve Holding Inc

First will be Revo, and then AirX, as we announced this year, you know, at the Singapore Airshow in Japan. We're working with other customers in Brazil, but also the United States.

Andres Sheppard
Andres Sheppard
Analyst at Cantor Fitzgerald

Wonderful. Thanks, Johann. Thanks, everyone. Congrats again. We'll pass it on.

Johann Bordais
CEO at Eve Holding Inc

Thank you. Appreciate it.

Operator

The next question is from Sheila Kahyaoglu from Jefferies. Please go ahead.

Analyst at Jefferies

Hi, everyone. This is Kira on for Sheila. Thank you for taking my question, and I appreciate the added color on the flight test progress. You mentioned greater engagement with suppliers with a pickup in R&D. Could you maybe walk us through how conversations with suppliers have developed since flight tests began and how work is progressing on the supplier side at this point in the campaign?

Luiz Valentini
CTO at Eve Holding Inc

Hi, Sheila. This is Luiz Valentini. What we've been doing with the suppliers is making sure that we have the parts and their systems in the most optimized way for the vehicle to meet its product requirements, right? The flight test campaign helps us to gather data on the vehicle behavior in flight, on the behavior of the systems, for example. One example, how the temperature of the battery behaves during flights, right? With that, we can go back to the supplier and use this information to make sure that what they are developing will lead the Eve-100 to meet its product goals.

Luiz Valentini
CTO at Eve Holding Inc

The way that the interaction is going now is to make sure that, again, their products will lead us to reach our targets, and the flight test data helps us to bring more clarity and more confidence on the data that we are exchanging with them. Based on this, we are moving forward to finalizing their design of the systems, and again, making sure that it all integrates in a way that will satisfy the Eve-100 goals. Once we are done with that, then we can go ahead and release the drawings for the manufacturing and then manufacture the production prototypes. That's how the, let's say, the connection is with the flight test campaign and what we expect to do once we're past this phase.

Analyst at Jefferies

Thank you. That's helpful.

Operator

The next question is from Andre Madrid from BTIG. Please go ahead.

Andre Madrid
Andre Madrid
Analyst at BTIG

Yeah. Good morning, everyone. Thanks for taking my question. I wanted to ask a bit more about the binding orders. At the end of the year, could you maybe just point to what dollar figure would be binding orders have to be for you to call it really a successful year? How many of what's in backlog right now would you have to convert to binding to?

Johann Bordais
CEO at Eve Holding Inc

Thanks, Andre. Yeah, the binding orders, we have two right now. The first one is Revo with 50 aircraft, up to 50 aircraft firm. We also have AirX, right? Same type of operation for both customers. As you can also see, you know, like, it's a $500 million under a binding agreement right now. You know, there are some PDPs actually associated to it. There are some milestone, you know, associated to also the product development. This is how we've been, you know, setting up the whole deal. Now, we need to move the right time.

Johann Bordais
CEO at Eve Holding Inc

As you understand, you know, since it's gonna be a high utilization aircraft and based also on the safety level, the standard and of commercial aviation. This is what we are doing, strong from our experience. You know, there are some commitment that they expect from the from the vehicle. As we move the testing campaign and the conforming prototype, also certification, then we'll define a bit better with the customers, how it's gonna work and how the operation will be.

Andre Madrid
Andre Madrid
Analyst at BTIG

Got it. If I could follow up on that, you mentioned the PDPs. I know you guys don't usually guide this, but is there any more colors you could point to as to the cadence of that flowing in?

Eduardo Couto
CFO at Eve Holding Inc

It's Edu here. In terms of down payments, right? As we sign the binding agreements, we already receive an initial down payment. We expect that those down payments will continue 18, 12, six months prior to the delivery. In total, we're anticipating we can receive up to 30% or 40% of the total value of the vehicle before the delivery and then receive the balance at the delivery. Very similar to what the industry practice is used to at between the commercial aviation or executive aviation.

Andre Madrid
Andre Madrid
Analyst at BTIG

Got it. Very helpful. Thank you, gentlemen. I'll leave it there.

Johann Bordais
CEO at Eve Holding Inc

Thank you.

Operator

The next question is from Austin Moeller from Canaccord Genuity. Please go ahead.

Austin Moeller
Austin Moeller
Analyst at Canaccord Genuity

Hi, good morning, Johann, Edu, and Lucio. Just my first question on Vector. Is that being actively evaluated by ANAC for approval? Can that be integrated immediately into Brazil's National Airspace System once your aircraft are delivered to customers for the first time?

Johann Bordais
CEO at Eve Holding Inc

Yeah. Thank you, Austin, for your question. Yeah, Vector is definitely part of the ecosystem that, you know, and the solution that we're providing for our customers. Obviously, it comes with module, just like, you know, for the air traffic management, and we can start today the urban air mobility operation, using the current air traffic management system in place. The idea is as we're gonna be scaling up, we will need to have a really robust solution eventually. When we say we, it's not necessarily Eve, it's we're talking about the aerospace industry. It's gonna be, you know, we're talking about thousand, hundreds and thousands of vehicle, whether it's drone, whether low altitude, you know, space, airspace. That's something, it's a journey.

Johann Bordais
CEO at Eve Holding Inc

It goes along with the scale of the UAM. The first module is really focused on how to manage your vertiport, right? Or helipad still, because our strategy is to start today. As a matter of fact, we delivered the first module to Revo, and they already tested it at the Grand Prix of São Paulo end of last year, and it was successful. Then we're gonna go at a fleet level. Then, you know, we go for a certifiable software together with ANAC and DECEA, as a matter of fact, who takes care of the flying of the air traffic management in Brazil, right?

Johann Bordais
CEO at Eve Holding Inc

Our experience on Vector, we have a strong DNA and a strong right to play as, you know, I'd like to remind everyone that, you know, the software company that actually developed the air traffic management that is used in Brazil to control the whole airspace in Brazil is actually coming from Atech. It's a fully owned company from Embraer, and we're developing Vector together with them.

Austin Moeller
Austin Moeller
Analyst at Canaccord Genuity

Okay. If we think about the production schedule for the certification prototypes, I understand there will be one finished by the end of the year, but how should we think about the cadence of how many will be produced between now and 2028?

Johann Bordais
CEO at Eve Holding Inc

I think as you say, we'll start assembling the prototype, and then we'll finish up, you know, probably the first semester next year. Then we're looking at, you know, the first flight, which I think it's very important milestone for conforming prototype certification. It's the first flight with the pilot on board. We're looking at, you know, mid-next year for the early second semester for the first flight.

Johann Bordais
CEO at Eve Holding Inc

Of that prototype. Then, we will be producing and delivering, more or less once every, you know, once a month afterwards, up to six prototypes.

Austin Moeller
Austin Moeller
Analyst at Canaccord Genuity

Awesome. Congratulations on all the progress.

Johann Bordais
CEO at Eve Holding Inc

Thank you, Austin.

Operator

The next question is from Marcelo Motta from JPMorgan. Please go ahead.

Marcelo Motta
Marcelo Motta
Analyst at JPMorgan

Hey. Hi, everyone. Just two follow-ups here. The first one, we look at the release in the fourth quarter. You were talking about, like, a $21 million deferral payment to Embraer, and this quarter this was converting to $11 million. Just wondering if this $10 million difference, you know, is for next quarter or if, you know, there was some readjustment on the amount. The second question is regarding the test campaign. You mentioned to try to get to 300 testing flights this year. Just wondering if this is still the level or, you know, what are you expecting in terms of maybe number of testing or hours in the air, you know, whatever you can share with us. Thank you.

Eduardo Couto
CFO at Eve Holding Inc

Hi, Motta. How are you? Edu here. In terms of the accounts payable, you're correct, right? We closed last year with $21 million that were supposed to be paid in fourth quarter. We paid $11 million. Actually, we paid the whole $21 million, but then on the invoices of the first quarter, there was $10 million that slipped to the right, so we pretty much recover more than half of what was, you know, a carryover from last year. Your math is correct.

Luiz Valentini
CTO at Eve Holding Inc

Hey, Motta, this is Luiz Valentini. With respect to the number of flights, yes, we are still considering the 300 flights as a reference for the test campaign of the engineering prototype. Of course, this is flexible as we may, you know, decide to test more things. Maybe we have modifications on the vehicle, for example. We want to test, for example, different propellers or different lifters, things like that. The vehicle allows us to do that, there is a lot of flexibility on the campaign. The 300 flights we are considering, that is the number of flights that allows us to bring the knowledge that we need for the development of the Eve-100 and also to progress with the expansion of the envelope, as we have mentioned.

Luiz Valentini
CTO at Eve Holding Inc

We believe that with that campaign, we can demonstrate the vehicle and its characteristics, and also we can bring the knowledge to the development of the Eve-100, in time, as we've been mentioning, for the manufacturing of the production prototypes, right? Keep in mind that this number is a reference and we may change it as we progress with the test campaign and decide to test more things if we'd like to.

Marcelo Motta
Marcelo Motta
Analyst at JPMorgan

Perfect. Super clear. Thank you very much.

Operator

The next question is from Amit Dayal from H.C. Wainwright. Please go ahead.

Amit Dayal
Amit Dayal
Analyst at H.C. Wainwright

Thank you. Good morning, everyone. Just going back to the Embraer synergies, Can you clarify whether this includes technology or personnel? Like, where are these synergies coming from? If you could just maybe clarify that.

Eduardo Couto
CFO at Eve Holding Inc

Yeah. No, that's a good question, Amit. You know, it's a broad range, right? We're looking a bunch of different things. You know, we're looking how we can use existing assets better, existing facilities, how we can allocate the work between the different teams in a more efficient way. You know, there are different. Also getting to more details of the flight test campaign, the CapEx and OpEx associated with all of that. You know, it was a very big work. As I mentioned, there was more than 200 people involved. It came with hundreds of actions, and we are starting to implement that. That's the beauty, right, of being part of a big group as Embraer.

Eduardo Couto
CFO at Eve Holding Inc

When you start to look things in more details and we bring everybody together, you are able to identify gains and synergies that, you know, you're not seeing before. That's pretty much what we're doing. We mapped these $100 million-$150 million to incorporate, to capture, right, in three years. You know, we are now moving forward with the plan.

Amit Dayal
Amit Dayal
Analyst at H.C. Wainwright

Just to follow up on that, Edu. Will this impact more on the SG&A side or more on the R&D side, do you think, the cost synergies?

Eduardo Couto
CFO at Eve Holding Inc

It's both. There are synergies in terms of being more efficient in the way that we, you know, are gonna be assembling the vehicles, in the way that we're doing the development, being more efficient on the general expenses, more efficient with third-party consultants, right? Third-party service. There's a lot of things. I would say it includes both pockets, R&D and SG&A, right? General expenses. As I mentioned, also industrialization, right? How we can be more efficient, not only assembling the conforming prototypes that are coming, but also on the production going forward. There are different areas, pockets, and it includes both.

Amit Dayal
Amit Dayal
Analyst at H.C. Wainwright

Okay. Some CapEx is what it looks like.

Johann Bordais
CEO at Eve Holding Inc

Amit, are you there?

Eduardo Couto
CFO at Eve Holding Inc

That's correct.

Amit Dayal
Amit Dayal
Analyst at H.C. Wainwright

yes.

Eduardo Couto
CFO at Eve Holding Inc

Amit?

Johann Bordais
CEO at Eve Holding Inc

Yes, Amit.

Johann Bordais
CEO at Eve Holding Inc

Oh, okay. Sorry about this. Yeah, no, it's, you know I like the question, and it's something You know, it's important to understand that, you know, within Embraer, and Eve is born as such.

Johann Bordais
CEO at Eve Holding Inc

Is about the lean philosophy. This is something that's dear to Embraer. This is in a program that was implemented back in 2007. I think it really has to do with it's in the blood of all of the Embraer employees, but also the Eveers, is, we're looking for, you know, being lean and looking every efficiency, you know, that we can bring. We do it through a whole philosophy, which is called the Kaizen. Then, you know, we go through. That's something we do all the time.

Johann Bordais
CEO at Eve Holding Inc

You know, I spent 25 years in Embraer, and then we've done it over the last 20 years, and it's just amazing how, you know, you keep improving and you keep, you know, working on your efficiency at all time. This is one of the benefit that also Eve is getting from, being, you know, part of the group of Embraer.

Amit Dayal
Amit Dayal
Analyst at H.C. Wainwright

Yeah. It looks definitely like, you know, a little bit of a competitive edge you guys have versus some of the other players. Just one last one from me. On the cost of the aircraft side, right, roughly it's translating around $5 million per aircraft right now with the numbers you shared. Have any inflationary, you know, factors been built into this, you know, given sort of these trends all over the world where prices have been rising? I'm just wondering, curious about like, how this may sort of end up in the next few years in terms of, you know, pricing per aircraft.

Eduardo Couto
CFO at Eve Holding Inc

Yeah. I can start here, Johann, but feel free.

Johann Bordais
CEO at Eve Holding Inc

Yeah, yeah. Go ahead

Eduardo Couto
CFO at Eve Holding Inc

Valentini to chime in. The list price is $5 million, right? We, as we are progressing on the development of our vehicle, we're gaining not only confidence on the specs of the vehicle, in terms of range, noise, payload, and everything, but we are also getting more visibility on the COGS of the vehicle. We believe our vehicle, given the simplicity, and the design, the lift plus cruise design, and the focus on the urban missions, we believe our vehicle is gonna be extremely competitive in terms of COGS. We have been working also with our suppliers of the critical components to make sure that our COGS stay within the range that will allow us to sell the vehicle at the $5 million list price and be highly profitable.

Eduardo Couto
CFO at Eve Holding Inc

You know, things are going this direction. We are the whole time challenging, not only internally ourselves, but our suppliers, to make sure we have a lower cost vehicle and how we can leverage, right, the supply chain of Embraer and the supply chain that our big suppliers also have to have a competitive vehicle.

Johann Bordais
CEO at Eve Holding Inc

Nice. Thank you. Yeah, this is something how we build our program. We have the major systems, you know, covered by the suppliers. This is also what we worked on very big in Eve. I mean, those contracts are lifetime contracts. We don't look only just to develop the prototype or the production, but also make sure that the operation is covered to guarantee to our customers that they have a competitive aircraft. We do have also on those long-term and lifetime, the life cycle aircraft contract, sorry, the inflation also formulas that allows us to control all this and including the aftermarket. This is something that we have a good visibility.

Johann Bordais
CEO at Eve Holding Inc

We brought, you know, from Embraer also, experience, and then we're comfortable with what we have in our $5 million vehicle.

Amit Dayal
Amit Dayal
Analyst at H.C. Wainwright

Understood, guys. Thank you for all the color. Appreciate it. That's all I have.

Johann Bordais
CEO at Eve Holding Inc

Thank you.

Operator

There are no further questions at this time. I would like to turn the floor back over to Lucio Aldworth for closing comments.

Lucio Aldworth
Head of Investor Relations at Eve Holding Inc

Right. Thank you, [Sashi], and everyone who joined the call today. As you can see, we have accomplished several important milestones this past quarter. There is much more to come. Our upcoming achievements will be more visible to the investment community from now on. It's going to be very exciting next few months for Eve as a whole. We're going to keep you updated on our progress over the next few quarters. We do look forward to meeting you in the upcoming events we're going to attend. If you have any questions, as always, please feel free to reach out. Thank you. Have a good day.

Operator

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

Analysts
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