If you want full access to all our reports, data and investing ideas, join The Aerospace Forum , the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform.I covered Eve Holding, Inc. (NYSE: EVEX ) in November with a buy rating. The stock price actually went down by 16.5% while the broader markets lost nearly 7%. Eve stock performed worse than the markets. To me, that also does make senseDhierin runs ...

Eve Holding, Inc. (NYSE:EVEX) Q4 2024 Earnings Conference Call March 11, 2025 8:00 AM ET Company Participants Lucio Aldworth - Head-IR Johann Bordais - CEO Eduardo Couto - CFO Luiz Valentini - CTO Conference Call Participants Savanthi Syth - Raymond James Ellen Page - Jefferies Austin Moeller - Canaccord Amit Dayal - H.C. Wainwright Marvin Fong - BTIG Operator Good day, and welcome to the Eve Holding, Inc. Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note this event is being ...

100% SUPPLIERS SELECTED VECTOR LAUNCH $90M BNDES CREDIT LINE $96M CAPITAL RAISE 1ST PROTOTYPE ROLL OUT START OF PROTOTYPE GROUND TESTS ATM SIMULATION IN BRAZIL FINAL eVTOL AIRWORTHINESS CRITERIA PUBLISHED $ $50M CITIBANK LOAN AIRX LoI 50 eVTOL, TECHCARE & VECTOR TECHCARE LAUNCH EMBRAER/CAE AS TRAINING PROVIDER $35M BNDES CREDIT LINE HELIINC LoI 50 eVTOL, TECHCARE & VECTOR 2024 4Q24 & FY2024 EVE UPDATE This information belongs to Eve and cannot be used or reproduced without written permission from the Compan ...

Financial Performance - Eve Air Mobility reported a net loss of $40.7 million in Q4 2024, compared to a net loss of $39.3 million in Q4 2023, with R&D expenses at $33.7 million, relatively flat year-over-year [13]. - For the full year 2024, the net loss was $138.2 million, an increase from $127.7 million in 2023, with R&D expenses rising to $129.8 million from $105.6 million [16]. - The full-scale prototype will undergo test flights starting in mid-2025, but these will not count towards certification [36]. - Free cash flow for the year was reported as net cash used by operating activities of $(136.0) million, compared to $(94.5) million in the previous year [104]. - The net loss for 2024 was $138.168 million, compared to a net loss of $127.658 million in 2023 [95]. Cash Position and Liquidity - The total cash consumption for Q4 2024 was $39.9 million, up from $24.5 million in Q4 2023, driven by R&D costs and SG&A expenses [15]. - Eve's cash position at the end of 2024 was $303.4 million, up from $241.1 million at the end of 2023, reflecting new loans and a private placement [19]. - Total liquidity increased to $428.6 million as of December 31, 2024, up from $316.3 million in 2023, representing a 35.4% growth [103]. - The company reported net cash provided by financing activities of $203.0 million in 2024, a significant increase from $24.9 million in 2023 [104]. - Cash and cash equivalents at the end of 2024 were $56.366 million, up from $46.882 million in 2023 [98]. Research and Development - Research and development expenses for 2024 reached $129.844 million, an increase of 23% from $105.581 million in 2023 [95]. - Eve plans to initiate flight tests for its full-scale prototype by mid-2025, following extensive ground tests currently underway [25]. - The company aims to invest between $80 million and $90 million for the customization of its production facility in Taubaté, Brazil, to accommodate initial production efforts [40]. - Eve's aircraft design aims for a range of 60 miles (approximately 100 kilometers) and is focused on reducing sound levels compared to conventional helicopters [92]. - The company is engaged in developing advanced air mobility (AAM) market dynamics to enhance services offered at vertiports [81]. Customer and Market Engagement - Eve has a backlog of approximately 2,800 non-binding Letters of Intent (LOIs) from 28 customers across 9 countries, providing strong long-term revenue visibility [8]. - The company has secured 21 customers for its Urban Air Traffic Management software, Vector, enhancing its service offerings [8]. - The current client base consists of 28 customers, with no single client representing more than 14% of the total order book, and fixed wing operators account for 40% of the orders [86]. - Non-binding service contracts are expected to generate potential revenues of $1.6 billion during the initial years of vehicle operation [90]. - Eve has signed a letter of intent with Helicopters Inc. for up to 50 eVTOLs, including service support and urban air traffic management software [67]. Strategic Partnerships and Collaborations - The company is collaborating with Signature Aviation to research ecosystem requirements for Advanced Air Mobility ground operations [71]. - Eve's Urban ATM software solution is being explored for implementation in India through a partnership with JetSetGo [74]. - The company continues to engage with regulatory authorities, including ANAC and FAA, to strengthen relationships and advance the certification process [53]. - Eve has secured funding of $35 million from BNDES for eVTOL development in 2025, following a $92.5 million line of credit in 2022 and a $50 million investment from Citibank [63]. - Management emphasizes the importance of non-GAAP measures, such as total liquidity and free cash flow, to provide better insights into the company's financial health [102]. Future Outlook - Eve plans to initiate the production of the first certification compliant prototype in 2025, with five prototypes for its certification campaign [33]. - The company expects total cash consumption between $200 million and $250 million in 2025, compared to $141.2 million in 2024 and $94.7 million in 2023 [42]. - Future outlook includes potential growth driven by new product developments and market expansion strategies [106]. - Management acknowledges risks and uncertainties that may impact future performance, as outlined in their risk factors [106]. - The company plans to participate in multiple investor events, including the 2025 Cantor Fitzgerald Global Technology Conference and the J.P. Morgan 2025 Industrials Conference, indicating ongoing engagement with investors [100].

Financial Performance - The net loss for the year ended December 31, 2024, was $138.2 million, representing an increase in loss of $10.5 million or 8% compared to 2023 [344]. - The net loss for the year ended December 31, 2024, was $138,168,000, compared to a net loss of $127,658,000 in 2023, reflecting a decline of 8.8% [395]. - The net loss for 2024 was $138.168 million, compared to a net loss of $127.658 million in 2023, representing an 8.8% increase in losses [506]. - Basic and diluted net loss per share for 2024 was $(0.48), slightly worse than $(0.46) in 2023 [506]. - Cash flows used by operating activities totaled $135.966 million in 2024, up from $94.509 million in 2023, reflecting a 43.9% increase in cash outflow [404]. Research and Development - Research and development expenses increased by $24.3 million to $129.8 million for the year ended December 31, 2024, primarily due to intensified eVTOL development activities [344]. - Research and development expenses increased to $129,844,000 in 2024, up from $105,581,000 in 2023, a rise of 22.9% [395]. - Research and development expenses are focused on eVTOL, Service and Operations Solutions, and UATM projects, with costs expensed as incurred [430]. - Research and development expenses increased to $93.5 million in 2024, up 28.5% from $72.8 million in 2023, and significantly higher than $39.3 million in 2022 [455]. Operating Expenses - Total operating expenses for the year ended December 31, 2024, were $156.4 million, a decrease of $25.8 million or 20% compared to 2023 [344]. - Selling, general and administrative expenses increased by $3.4 million for the year ended December 31, 2024, mainly due to an increase in the workforce and outsourced services [348]. - Selling, general and administrative expenses rose to $26.529 million in 2024 from $23.104 million in 2023, a 10.5% increase [510]. Liquidity and Capital Resources - As of December 31, 2024, the company has cash and cash equivalents of $56.4 million, financial investments of $247.0 million, and available debt to be drawn of $125.2 million, totaling approximately $428.6 million in liquidity [355]. - The company intends to use its liquidity primarily for research and development activities and personnel costs, with future capital requirements dependent on revenue growth and customer cash flow timing [355]. - The company may explore various funding opportunities, including long-term or convertible debt, advances from customers, or equity issuances, but may face challenges in raising additional funds on favorable terms [355]. - The company raised $94.288 million from the issuance of common stock, net of fees, and $110.762 million from the issuance of debt in 2024, contributing to a net cash provided by financing activities of $203.019 million [404]. Debt and Financing - Interest expense increased by $3.4 million for the year ended December 31, 2024, primarily due to a larger principal balance compared to 2023 [351]. - Long-term debt surged to $132,011,000 in 2024, compared to $25,764,000 in 2023, indicating a significant increase of 413.5% [392]. - The company has outstanding long-term debt of $132.0 million as of December 31, 2024, a substantial increase from $25.8 million in 2023, with a weighted-average interest rate of 6.6% [459]. - The company entered into a loan agreement with BNDES for R$490 million (approximately $93.1 million) to support the development of the eVTOL aircraft, with R$360.7 million (approximately $69.6 million) issued as of December 31, 2024 [362][363]. Future Outlook - The company anticipates commercialization of eVTOL services beginning in 2026, with initial revenue generation from eVTOL sales expected in 2027 [337]. - The company is focused on developing a fully-integrated eVTOL transportation solution, with significant uncertainties regarding the business model and aircraft utilization rates [343]. - The company is focused on advancing the urban air mobility ecosystem through its eVTOL project and related services, with operations in Florida and Brazil [407]. Assets and Valuation - As of December 31, 2024, total assets increased to $318,242,000 from $245,339,000 in 2023, representing a growth of 29.7% [392]. - Total liabilities increased significantly to $194,320,000 in 2024 from $80,288,000 in 2023, marking a rise of 142.3% [392]. - Total equity decreased to $123,922,000 in 2024 from $165,051,000 in 2023, a decline of 25.0% [392]. - Valuation allowances against deferred tax assets were $428.5 million, reflecting the company's best estimate of future events impacting the utilization of these assets [369]. Shareholder and Stock Information - The weighted-average number of shares outstanding increased to 288,524,000 in 2024 from 275,763,000 in 2023, an increase of 4.6% [395]. - The maximum number of shares of common stock reserved for issuance under the 2022 Stock Incentive Plan is 16.6 million shares as of December 31, 2024 [496]. - The total unrecognized compensation expense associated with nonvested awards is $7.4 million, expected to be recognized over a weighted-average period of 2.0 years [502]. Lease Obligations - As of December 31, 2024, total operating lease ROU assets increased to $1,096 million from $508 million in 2023, representing a 116.5% increase [523]. - Total operating lease liabilities rose to $1,047 million in 2024, compared to $510 million in 2023, marking a 105.5% increase [523]. - The operating lease cost for 2024 was $588 million, significantly up from $113 million in 2023, indicating a 419.5% increase [523].

Core Viewpoint - Levi & Korsinsky, LLP has initiated an investigation into Eve Holding, focusing on potential shareholder concerns regarding the company's practices and disclosures [1] Group 1 - The investigation aims to determine whether Eve Holding has engaged in any unlawful or improper conduct that could affect shareholder value [1] - Shareholders are being informed about the investigation to ensure they are aware of potential issues that may impact their investments [1] - The law firm is known for its focus on protecting shareholder rights, indicating a serious approach to the investigation [1]

Investigation Alert - Levi & Korsinsky, LLP has notified investors of an investigation into Eve Holding, Inc [1]

Market Performance - The S&P 500 increased by 1.1% during the Christmas Eve trading session, driven by strength in the tech sector [1][2] - The Nasdaq surged 1.4%, while the Dow added 0.9% as financial markets prepared for the Christmas break [2] Company Highlights - Tesla (TSLA) shares rose by 7.4%, leading the S&P 500, with analysts forecasting record fourth-quarter deliveries but emphasizing long-term opportunities in self-driving and AI as key drivers [3] - Super Micro Computer (SMCI) shares gained 6%, recovering from previous losses after being removed from the Nasdaq 100 Index [4] - Broadcom (AVGO) shares increased by 3.2%, continuing a December rally fueled by increased AI revenue estimates from UBS analysts [5] - Starbucks (SBUX) shares ticked up by 2.8%, with a return to work expected for union-backed baristas after a strike, and operations anticipated to remain largely unaffected [6] Underperformers - Walgreens Boots Alliance (WBA) shares fell by 1.2%, continuing a downward trend after earlier gains related to potential sale talks, and are down nearly 65% in 2024 [7] - Celanese (CE) shares also decreased by 1.2%, with RBC cutting its price target due to margin pressures from high energy costs [8]

Core Points - American Airlines has grounded all its U.S. flights due to a "technical issue" [2] - The airline is working to resolve the issue quickly and has apologized to customers for the inconvenience [1][4] - This incident follows a previous operational meltdown at Southwest Airlines in 2022, which resulted in over 16,900 flight cancellations and a record fine of $140 million imposed by the U.S. government in 2023 [1] Customer Impact - Passengers traveling during the Christmas period have reported delays and diversions on social media, with complaints emerging from crowded airports [3] - An airport staff member at Fort Lauderdale was heard stating that "our system is down," indicating widespread operational disruptions [3] Regulatory Response - The Federal Aviation Administration (FAA) confirmed that American Airlines requested a nationwide ground stop, but directed all inquiries to the airline for further information [4] - American Airlines has not provided a specific timeline for when the technical issue will be resolved, but is attempting to fix it as quickly as possible [4]

Melbourne, Florida, Dec. 11, 2024 (GLOBE NEWSWIRE) -- MELBOURNE, Fla. – Dec. 11, 2024 - Eve Air Mobility (NYSE: EVEX; EVEXW), a global leader in manufacturing and providing services for electric vertical take-off and landing (eVTOL) aircraft, and Signature Aviation, the world’s largest network of private aviation terminals, have signed a Memorandum of Understanding (MoU) to research ecosystem requirements as well as the ground services necessary for safe, efficient and scalable Advanced Air Mobility (AAM) g ...