EVE Q2 Earnings Call Highlights

Key Points

• Eve resumed flight testing of its eVTOL prototype and has begun partial transition flights, reaching 30 knots. It targets full transition by the end of 2026, crewed conforming-prototype flights in late 2027, and certification and entry into service in 2028.
• The company ended the second quarter with $403 million in cash and $531 million in total liquidity, which management believes can fund operations through 2028. Second-quarter cash burn was $49 million, while full-year cash consumption is expected at $225 million to $275 million.
• New letters of intent for 46 aircraft increased Eve’s stated preorder backlog to roughly 2,700 aircraft worth $13.5 billion at list prices, although only about 100 orders are currently firm. Eve also expects $100 million to $150 million in cost synergies and avoidance through its relationship with Embraer over the next three years.

EVE NYSE: EVEX said its full-scale engineering prototype has entered partial transition flight testing as the electric vertical takeoff and landing aircraft developer targets full transition by the end of 2026 and certification and entry into service in 2028.

Chief Executive Officer Johann Bordais said the company resumed its flight campaign after completing a planned three-month ground-test period focused on software upgrades and system integration. The work included testing the synchronization of the aircraft’s lifter rotors and pusher propeller, as well as ground testing of avionics, actuators and flight-control systems with motors powered on.

The prototype has completed 66 flights and logged 2 hours and 46 minutes of airtime, according to Bordais. Eve has validated 150 test points during the program and accumulated more than 15,000 hours of component and systems testing across its development infrastructure.

Transition flight program advances

The aircraft is now conducting partial transition flights, in which it accelerates forward by engaging its pusher while the lifter rotors remain powered. Bordais said the pusher initially operated at low revolutions and was subsequently increased to about 1,200 RPM, enabling forward flight at 30 knots, or roughly 35 miles per hour.

In the coming weeks, Eve plans to increase speed progressively to 60 knots and then to 80 to 90 knots. Full transition will occur when the lifter rotors are powered off and lift is generated by air flowing over the wing, allowing the aircraft to operate like a conventional airplane.

Bordais said the company expects to need approximately 30 to 40 additional flights to complete the full transition, with timing still targeted for the end of the year. He said the company does not intend to “cut any corners” in the testing campaign, which is designed to expand the flight envelope while transferring findings into the certification-conforming aircraft program.

Marcelo Basile, Eve’s chief flight prototype engineer, said the company expects to build six conforming prototypes next year. The first will focus on flight-envelope expansion, handling qualities and performance. Other aircraft will support testing of propulsion, electrical systems, avionics, cabin systems, and function-and-reliability requirements. The sixth prototype will be the closest to a series-production aircraft, he said.

Eve plans the first crewed conforming-prototype flight for the second half of 2027. Bordais said the company expects the conforming aircraft to fly for about 12 months before certification, supporting its 2028 entry-into-service target.

Certification, suppliers and infrastructure

The company said its means-of-compliance process with Brazil’s civil aviation authority, ANAC, is nearly complete. These requirements outline the tests needed to demonstrate that aircraft components meet certification standards. Some suppliers have already begun testing components for which compliance methods have been aligned with ANAC, Bordais said.

ANAC has opened an industry consultation on an updated airworthiness certification basis that Eve said reflects alignment with the Federal Aviation Administration. The consultation ends Aug. 18. ANAC also published proposed noise certification criteria for Eve’s E100 aircraft following engagement with the company, according to Bordais.

Eve has applied through ANAC for type-certificate validation by the European Union Aviation Safety Agency. Bordais said EASA certification is expected 12 to 15 months after approvals from ANAC and the FAA.

On the supply chain, Bordais said Eve has approximately 22 suppliers, with major contracts negotiated since 2023, beginning with the battery and propulsion systems. The company is conducting critical design reviews with suppliers and expects to freeze the aircraft design by the end of 2026, allowing only minor changes afterward.

Eve also announced partnerships with Hitachi and the Florida Department of Transportation. The Hitachi relationship is intended to address vertiport electrical-grid connections, charging cycles and integration of new energy demand. The Florida partnership will focus on infrastructure, operating procedures and airspace navigation needed to integrate urban air mobility into the state’s transportation network.

Liquidity, costs and production spending

Chief Financial Officer Eduardo Couto said Eve ended the second quarter with $403 million in cash and total liquidity of $531 million, including $128 million of undrawn credit facilities. The company believes its liquidity is sufficient to fund operations through 2028 without additional funding.

Second-quarter cash consumption was $49 million, while cash burn for the first half totaled $118 million. Eve expects full-year cash consumption to remain near the midpoint of its previously stated $225 million to $275 million range.

Research and development expense was $29 million in the second quarter, down from roughly $55 million in prior quarters due to supplier agreements that were more favorable than expected and program-development updates. Couto said R&D spending is expected to return to about $50 million per quarter going forward. Selling, general and administrative expense was $8 million, and net loss was $34 million.

The company identified $100 million to $150 million in potential synergies and cost avoidance over the next three years through its relationship with Embraer. Couto said slightly less than one-third of those savings is expected this year, with the remainder expected in 2027 and 2028.

Cost-saving efforts include shifting certain administrative activities to Embraer, improving the master services agreement covering engineering resources, and using Embraer facilities and industrial assets to avoid duplicative investments. Eve expects approximately $20 million of capital expenditures this year, around $50 million next year, and $30 million to $40 million in 2028, for roughly $100 million of total investment in modular production capacity.

Backlog expands at Farnborough

At the Farnborough Airshow, Eve announced two new letters of intent covering 46 aircraft: one from Moov for operations in Cape Verde and another from Shearwater, a Bay Point Capital Company affiliate and new leasing customer. The additions brought Eve’s stated preorder backlog to about 2,700 aircraft, valued at approximately $13.5 billion at list prices.

Bordais said the company has about 100 firm aircraft orders from Revo and AirX, while the broader backlog includes letters of intent. He said Eve is pursuing both direct sales to operators and sales to leasing companies, which can then lease aircraft to operators.

About EVE (NYSE:EVEX)

Eve Holding, Inc NYSE: EVEX is the publicly traded parent of Eve Air Mobility, a company dedicated to developing sustainable urban air mobility solutions. Through its engineering and design capabilities, Eve focuses on creating electric vertical takeoff and landing (eVTOL) aircraft tailored for short-haul passenger and cargo transport in densely populated areas.

The company’s flagship offering is an eVTOL aircraft designed to deliver clean, quiet and efficient point-to-point service, backed by an integrated digital platform for air traffic management.

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