BETA Technologies Q1 Earnings Call Highlights

Key Points

• BETA’s Q1 revenue topped guidance, coming in at $10.1 million versus a prior range of $7 million to $10 million, while the company ended the quarter with $1.59 billion in cash and short-term investments.
• The company said its biggest update was being selected for seven of eight eIPP awards, which it expects will accelerate commercialization by more than a year and drive about $50 million of incremental investment at the midpoint of its updated outlook.
• Backlog and infrastructure continued to expand, with commercial aircraft backlog rising to $3.9 billion from $3.5 billion, and the charging network growing to 123 sites as BETA advanced certification, flight testing and customer operations.

BETA Technologies NYSE: BETA reported first-quarter 2026 revenue above its prior guidance range and said it is accelerating investments tied to the FAA and U.S. Department of Transportation’s eVTOL Integration Pilot Program, or eIPP, after being selected for seven of eight awards.

Founder and Chief Executive Officer Kyle Clark said the company added $375 million to its aircraft backlog in the roughly two months since its prior earnings call, expanded its charging network, advanced certification programs and continued customer flight operations in international markets including New Zealand, Norway and Japan.

“BETA is demonstrating real-world operations and training operators and maintainers,” Clark said. He added that the company’s production facilities are supporting FAA-conforming engine and airframe builds for certification testing and that BETA remains “on track” to meet its year-end production capacity target.

eIPP Selections Pull Forward Commercial Plans

Clark called BETA’s selection for seven eIPP awards “the most significant commercial update” since the company’s last call. He said BETA received more eIPP selections than any other aircraft developer, spanning 26 states, and attributed the outcome to the “maturity and readiness” of its aircraft.

The company plans to begin eIPP operations with cargo and medical missions before moving into passenger transport, and with conventional takeoff and landing, or CTOL, aircraft before vertical takeoff and landing, or VTOL, missions. Clark said the awards will accelerate BETA’s commercial readiness by more than a year.

“The awards will pull forward our commercialization efforts,” Clark said. He said the company decided to buy materials and organize labor to build eIPP aircraft ahead of final contracting through other transaction authority agreements.

During the question-and-answer session, Kristen Costello, BETA’s Head of Government and Regulatory Affairs, said the company expects to launch the selected projects once the agreements are signed. “We are ready to meet the call from a fleet readiness perspective, an operational readiness perspective,” Costello said.

Chief Financial Officer Herman Cueto said some of the increased spending reflected in the company’s updated outlook will support aircraft repositioning and mission readiness for eIPP operations.

Revenue Beats Guidance; Adjusted EBITDA Outlook Lowered

Cueto said first-quarter revenue was $10.1 million, up 6% year over year and above the company’s prior guidance range of $7 million to $10 million. He said revenue reflected progress in BETA’s merchant supply business, including propulsion system deliveries, engineering services, infrastructure and charging system orders.

Operating expenses were $138.8 million, including $91.7 million of research and development expense and $47.1 million of general and administrative expense. Adjusted EBITDA was negative $97.2 million, which Cueto said was ahead of the company’s expectations. BETA ended the quarter with $1.59 billion in cash and short-term investments.

The company maintained its full-year 2026 revenue guidance of $39 million to $43 million and said revenue is still expected to be weighted toward the second half of the year. BETA guided for second-quarter revenue of $8 million to $11 million and adjusted EBITDA of negative $100 million to negative $120 million.

BETA updated its full-year adjusted EBITDA guidance to a range of negative $355 million to negative $445 million, compared with its prior range of negative $305 million to negative $395 million. Cueto said the change reflects approximately $50 million of incremental eIPP investment at the midpoint.

The company lowered its capital expenditure outlook to $150 million to $200 million from $175 million to $225 million, citing updated timing expectations for long-lead tooling and equipment receipts, facilities investments and efficiency gains tied to a recent tuck-in acquisition of an artificial intelligence company focused on software validation for regulated applications.

Backlog and Charging Network Expand

Clark said BETA’s commercial aircraft backlog increased to $3.9 billion and 991 aircraft, up from $3.5 billion and 891 aircraft at the end of last year. The increase was helped by an order from Surf Air Mobility, which Clark said would support operations in Hawaii and California and expand BETA’s maintenance, repair and overhaul footprint.

BETA also reported that it had flown more than 139,000 nautical miles through May 10, toward a full-year goal of 250,000 nautical miles. Clark said those flights support customer activity and flight testing and generate data for regulators.

The company’s charging network grew by 16 sites since the prior call, reaching 123 total sites. Clark said the Florida Department of Transportation signed a contract for 34 chargers plus thermal management systems to support eIPP operations in the state. Cueto said Florida’s purchase included 17 BETA Charge Cubes, 17 thermal management systems and 17 smaller chargers.

Clark said BETA uses a mix of customer-funded and company-funded chargers. In many customer-funded cases, he said customers pay a priority access fee roughly equivalent to BETA’s deployment cost, while BETA retains ownership and can sell unused capacity. He said chargers sold to customers are required to remain part of BETA’s network.

Certification Work Advances, With Engine Timeline Uncertain

Clark said BETA has made progress across three certification programs, including its H500A electric engine, CTOL aircraft and VTOL aircraft. He said 11 conforming electric engines are supporting parallel certification test activities, including four credit lightning tests and an icing and ingestion test that is being presented to the FAA.

However, Clark said BETA now expects endurance and containment testing for the H500A to extend beyond the original target of completing certification activities and closing type certification in the first half of the year. He also said negotiations with the FAA on continued rotation compliance are expected to extend past June.

Rather than provide a new timeline, Clark said the company wants to advance discussions with the FAA to determine the schedule impact. He said the engine is performing well and that BETA does not expect the changes to affect its market entry strategy, including type certification of the CX300 aircraft or launch into the eIPP program.

On the CTOL program, Clark said BETA has agreed with the FAA on all means of compliance and has submitted 17 of 19 certification plans, eight of which the FAA has accepted. The company completed the build of its first aircraft for company flight testing in March and has four more flight test vehicles in various stages of build.

For VTOL, Clark said flight testing continues and recent blade design improvements reduced hover power requirements by 6%, lowering noise and energy needed for transition. He said BETA typically discusses a planning range below 100 miles with customers, including reserves and weather considerations.

Defense and Partnerships Remain in Focus

Clark highlighted a new contract with General Dynamics following completion of a first phase supporting DARPA work on advanced propulsion technology for undersea vehicles. He also said the MV-250 unmanned VTOL program has been accelerated by six months amid demand for unmanned attritable aircraft.

BETA is working with GE Aerospace on hybrid propulsion technology, including a hybrid turbo generator for the MV-250. Clark said the companies recently completed a preliminary design review, and he described the relationship with GE as broadly supportive across technical and certification efforts.

Cueto said military-related business should be modeled with higher gross profit margins than commercial aircraft, citing the R&D mix and potential to recoup margin later.

Clark closed the call by emphasizing BETA’s stepwise approach to certification, charging infrastructure and commercialization. “These things aren’t easy, but we’re getting through them,” he said.

About BETA Technologies NYSE: BETA

BETA Technologies is an American aerospace company that develops electric vertical takeoff and landing (eVTOL) aircraft and supporting infrastructure. The company focuses on designing aircraft and propulsion systems intended for short-range cargo, logistics and regional passenger movement, emphasizing electric propulsion, battery systems and integrated charging solutions to support distributed operations.

Its product and service set includes aircraft design and development, electric motor and battery integration, charging hardware and software, and flight testing aimed at meeting certification requirements.

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