Vertical Aerospace Q2 Earnings Call Highlights

Key Points

• Flight testing advanced: Vertical Aerospace completed piloted transition flights with two full-scale VX4 prototypes and successfully demonstrated the aircraft’s full transition sequence at the Farnborough International Airshow.
• Funding extends runway: A financing package expected to generate about $100 million in gross proceeds, combined with existing resources, is intended to fund operations through roughly the third quarter of 2027. The company expects about $150 million in operating cash outflows over the next 12 months.
• Certification target delayed: Vertical now expects VX4 type certification in 2029, a year later than its prior target, while advancing hybrid-electric, battery infrastructure and manufacturing programs and targeting completion of its aircraft-level Critical Design Review by year-end 2026.

Vertical Aerospace NYSE: EVTL said its first-half 2026 progress included piloted transition flights with two full-scale prototypes, a public eVTOL demonstration campaign at the Farnborough International Airshow, and a financing package intended to support development through the third quarter of 2027.

Chief Executive Officer Stuart Simpson said the company completed its first two-way piloted transition flight under oversight of the U.K. Civil Aviation Authority in April and subsequently completed multiple transition flights. A second full-scale prototype began piloted testing in June and completed its own piloted transition this week, he said.

Farnborough Demonstration and Flight Testing

At the Farnborough International Airshow in July, Vertical conducted what it described as the event’s first eVTOL flight demonstration. Chief Test Pilot Simon Davies said the aircraft performed a complete transition sequence, taking off vertically, accelerating into wing-borne flight and then reversing the process for landing.

Davies said the company repeated the display over five consecutive days in varying weather conditions, including headwinds, tailwinds and crosswinds, in front of an audience of about 140,000 people. The aircraft “behaved exactly as designed,” he said.

The flight campaign also involved operating outside Vertical’s usual test environment at Cotswold Airport. Davies said the company flew the aircraft to RAF Brize Norton, RAF Benson, Blackbushe Airport and Farnborough Airport after the CAA expanded its permit to fly. The operations required coordination with air traffic control, airfield operators and the regulator, he said.

Vertical said having two aircraft in the flight-test program will increase testing and demonstration capacity. The second aircraft is also intended to support future hybrid-electric testing.

Autonomy, Hybrid Development and Airspace Programs

Chief Commercial and Strategy Officer Michael Cervenka said Vertical is pursuing a common VX4 platform for commercial and defense uses, with battery-electric and hybrid-electric propulsion options and the potential for increased autonomy over time.

At Farnborough, the company announced a partnership with Near Earth Autonomy. Cervenka said Near Earth’s technology is designed to integrate with Honeywell’s Anthem avionics system, which Vertical uses in the VX4. The company said it sees potential applications in logistics, resupply, medical transport and defense operations, while noting that necessary approvals would still be required.

Vertical’s hybrid propulsion system is undergoing integration testing on its HYPER rig at Cotswold Airport. The company said the work covers the turbine, generator, electrical systems, controls and fault responses before installation in an aircraft. Vertical expects to select a long-term turbogenerator supplier in the second half of 2026 and begin hybrid-electric flight testing in the first half of 2027.

During the question-and-answer session, Simpson said the hybrid powertrain is expected to be installed in Aircraft 3 in the first quarter or early second quarter of 2027. He added that the hybrid program could potentially be accelerated if government or military demand warranted it.

Vertical also highlighted its role in Project VERTI-GO, a European Union-funded program led by Honeywell under the SESAR Joint Undertaking. The 12-partner consortium includes aircraft manufacturers, regulators, airports, air-navigation providers and technology companies working on procedures for integrating eVTOL aircraft into European airspace.

Vertical was selected as the piloted eVTOL demonstration partner for planned flights between Malaga and Marbella, Spain. Cervenka said the program does not count toward aircraft certification and is not a revenue generator, but is intended to demonstrate operational procedures and support broader stakeholder engagement. Unlike the U.S. eVTOL Integration Pilot Program, he said, VERTI-GO receives grant co-funding from the European Parliament.

Battery Infrastructure and Manufacturing Plans

The company said it is developing proprietary battery packs and battery-management systems while sourcing cells from outside suppliers. Cervenka said batteries are currently expected to be replaced about once annually, creating potential aftermarket revenue in addition to aircraft sales.

Vertical also announced ECLiPSE, a U.K. government-supported program with the University of Bath and the National Composites Centre to develop high-power charging and liquid-cooling infrastructure for electric aircraft. The company said the infrastructure is intended to be vehicle-agnostic and designed to reduce charging-system size, installation complexity and operating costs.

In response to an analyst question, Simpson said the charging solution could potentially be monetized before VX4 certification, though he did not provide a timeline. He said the ECLiPSE program has U.K. government resources and is included in Vertical’s budget, adding that it is not expected to represent a major cash drain.

Vertical said it expects its early aircraft assembly facility at Cotswold Airport to come online in the third quarter of 2026 and an expanded Vertical Energy Center in the fourth quarter. The company said the expanded energy center is expected to triple battery-production capacity over time.

The company is also in advanced discussions with the U.K. government regarding support for its first planned global production facility in the country. The proposed package includes a grant of up to $30.5 million related to selecting U.K. sites for aircraft assembly and battery manufacturing. If finalized, Vertical said total U.K. government support awarded to it would reach about $100 million. It expects to announce the site selection within six months.

Funding, Certification and Next Milestones

Vertical announced a financing package expected to provide approximately $100 million in gross proceeds. The package includes a $35 million underwritten offering, $40 million accelerated under an existing Mudrick Capital convertible-note facility and a $25 million draw under its Yorkville preferred-equity facility.

Simpson said the company had approximately $134 million of cash and cash equivalents as of Aug. 13, 2026, and expected available cash of $148 million following receipt of financing commitments. Vertical said the package, together with existing resources and facilities, is expected to extend its cash runway toward the end of the third quarter of 2027.

For the next 12 months, the company expects net cash outflows from operations of approximately $150 million. It reported $112 million in net cash used in operating activities during the first half, which Simpson attributed to flight testing, Critical Design Review work, suppliers, manufacturing readiness, batteries and hybrid development.

Vertical said it still has about $700 million in potential capacity under Yorkville preferred-equity and equity-line facilities, but emphasized that capacity is not cash on its balance sheet and remains subject to conditions, limitations and market conditions.

The company now expects VX4 type certification in 2029 through the U.K. CAA and European Union Aviation Safety Agency pathway, compared with its prior 2028 target. Simpson said the shift reflected a delay of roughly one quarter in transition testing, which kept engineering resources focused on flight testing rather than certification-aircraft work. He said the company’s estimated cash needs through certification remain around $700 million.

Vertical expects to complete its aircraft-level Critical Design Review by the end of 2026. Simpson said the review is intended to establish the certifiable design baseline for VX4, including aircraft mass, payload and range, and support subsequent customer discussions. The company said it expects to make additional order-book announcements following the review and plans initially to build seven VX4 aircraft as production ramps toward the end of 2027.

About Vertical Aerospace (NYSE:EVTL)

Vertical Aerospace is a United Kingdom–based aerospace manufacturer specializing in the development of electric vertical takeoff and landing (eVTOL) aircraft for urban air mobility. Founded in 2016 by entrepreneur Stephen Fitzpatrick, the company is publicly listed on the New York Stock Exchange under the ticker EVTL. Vertical Aerospace's mission is to deliver zero-emission, high-speed electric aircraft designed to transform short-haul journeys in densely populated areas.

The company's flagship model, the VA-X4, is a piloted, five-seat eVTOL craft engineered for quiet operation, low running costs and minimal environmental impact.

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