New Horizon Aircraft NASDAQ: HOVR said it is focusing its fiscal 2027 efforts on completing a full-scale Cavorite X7 demonstrator aircraft, with a target to finish assembly around the end of the first quarter of calendar 2027 and begin testing shortly afterward.
Chief Executive Officer Brandon Robinson said the hybrid-electric vertical takeoff and landing aircraft is being developed for regional transportation, emergency response, cargo and potential military applications. The company is designing the X7 to operate without ground charging infrastructure and to combine vertical operations with conventional wing-borne flight.
“The central measure of execution remains the aircraft itself,” Robinson said, referring to the completion of the demonstrator and progression through ground and flight testing.
X7 Development and Flight-Test Plans
Horizon Aircraft said it is conducting detailed design and production work on the X7’s forward and vertical propulsion systems, flight controls, electrical systems, avionics, landing gear and primary and secondary structures. Robinson said the company’s workforce has grown from 30 people a year ago to more than 65 employees, plus external contractors, for more than 85 full-time equivalents.
The company selected BETA Technologies’ flight-control computers and customized fly-by-wire software for the demonstrator. Robinson said BETA’s platform has flown more than 200,000 miles and will allow Horizon to avoid developing all major systems internally. The company is also applying a flight dynamics and control model developed by Marshall Aerospace.
After completion of the demonstrator, Horizon plans an initial test phase of ground runs, taxi tests and progressively higher-speed taxi testing. The company intends to begin flight tests with conventional takeoff and landing operations before advancing to vertical operations. Robinson said each step will be governed by test data and safety reviews.
During the question-and-answer session, Robinson said Horizon initially plans to build two full-scale prototypes. One would be used for conventional takeoff and landing testing, while another would support vertical takeoff and landing testing. Initial flight tests are expected to include a pilot onboard, though the X7 will use a fly-by-wire system.
The company is also pursuing all-weather operating capabilities, including instrument flight rules capability and certification for flight into known icing conditions. In July, Horizon began wind-tunnel testing of small samples incorporating ice-protection technologies developed by the University of Toronto under its CAD 10.4 million INSAT project. Robinson said substantial testing and regulatory work remains.
Certification, Customer Interest and Support Network
Horizon said its certification work with Transport Canada is continuing alongside aircraft development. The company expects to advance its certification basis and means-of-compliance work over the winter. Robinson said Horizon’s current goal is to receive certification for its first aircraft in early 2030, while noting that the company cannot guarantee a certification date.
In July, the company announced a non-binding letter of intent with Australia-based V-Star Powered Lift Aviation for up to 100 aircraft, representing approximately $600 million in potential value. Horizon said signed letters of intent across customers now cover potential purchases of up to 200 X7 aircraft, including options, with more than $1 billion in indicated potential sales value. The company also has an LOI for the potential lease of five aircraft.
The company recently signed an LOI with Ontario-based Great Lakes Helicopters to support potential X7 operations through maintenance, repair and overhaul services and pilot training. The agreement also contemplates possible future aircraft purchases by Great Lakes Helicopters.
Robinson said prospective customers have shown interest in the X7’s projected speed, range, all-weather ambitions and ability to operate without charging infrastructure. He said the company expects a full-scale demonstrator and flight-test data to provide customers and manufacturing partners with a more concrete basis for potential orders.
Horizon is also speaking with potential manufacturing partners, though Robinson said prototype development is not dependent on a manufacturing-partner decision. The company is taking what he described as a traditional aerospace production approach and expects to build prototypes in-house.
Research Spending Rises as Development Advances
Chief Financial Officer Brian Merker said research and development expenses increased to CAD 7.4 million in the fiscal first quarter from CAD 2.7 million a year earlier. The increase was driven by engineering and development work on the full-scale aircraft, including prototype manufacturing, flight software and analysis.
Engineering costs within R&D rose to approximately CAD 5.3 million from CAD 0.3 million in the prior-year quarter. Merker said the spending related to the fuselage, wings and flight controls, and that development costs are expected to remain elevated as the company continues design, engineering and testing activities.
- General and administrative expenses declined to CAD 1.7 million from CAD 3.2 million, primarily due to lower stock-based compensation expense.
- Net cash used in operations rose to CAD 7.2 million from CAD 2.4 million in the prior-year period.
- Investing activities used CAD 0.7 million, primarily for equipment and tooling.
- The company received CAD 0.6 million through its at-the-market program during the quarter.
- Horizon ended the quarter with more than CAD 70 million in cash.
The company reported a net loss of CAD 4.1 million, or CAD 0.06 per share, compared with a net loss of CAD 10.9 million, or CAD 0.29 per share, a year earlier. Merker said the lower net loss included a CAD 3.8 million non-cash gain from the change in fair value of warrant liabilities, compared with a CAD 5.1 million non-cash expense in the prior-year quarter.
Merker said Horizon is seeking non-dilutive funding sources, including reimbursements under the INSAT-supported project and Canada’s Scientific Research and Experimental Development program. The company has received close to CAD 500,000 in reimbursed INSAT project costs and expects reimbursable costs to exceed CAD 1 million during the fiscal year.
Looking ahead, Robinson said Horizon expects to provide updates on engineering milestones, supplier relationships and certification developments as the X7 program advances.
About New Horizon Aircraft (NASDAQ:HOVR)
New Horizon Aircraft Ltd. is an aerospace company developing hybrid-electric vertical takeoff and landing (eVTOL) aircraft for the emerging advanced air mobility market. The company is focused on aircraft that can operate from runways while also performing vertical takeoffs and landings, with the goal of combining the flexibility of helicopters with the efficiency and speed of fixed-wing aircraft.
Its primary product is the Cavorite X5, a five-seat eVTOL aircraft under development. The aircraft incorporates a fan-in-wing design intended to enable vertical flight and transition to efficient forward flight.
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