[Filing Information](index=1&type=section&id=Filing%20Information) This section details Eve Holding, Inc.'s registrant information, including incorporation, executive offices, and registered securities [Registrant and Filing Details](index=1&type=section&id=Registrant%20and%20Filing%20Details) This section provides the fundamental identification details of Eve Holding, Inc. as the registrant, including its incorporation state, principal executive offices, and its status as an emerging growth company, also listing registered securities on the New York Stock Exchange - Registrant Name: **EVE HOLDING, INC.**[1](index=1&type=chunk) - State of Incorporation: Delaware[1](index=1&type=chunk) - Principal Executive Offices: 1400 General Aviation Drive, Melbourne, Florida 32935[1](index=1&type=chunk) Registered Securities | Title of each class | Trading Symbol | Name of each exchange on which registered | | :------------------ | :------------- | :-------------------------------------- | | Common Stock, par value $0.001 per share | EVEX | The New York Stock Exchange | | Warrants, each whole warrant exercisable for one share of Common Stock | EVEXW | The New York Stock Exchange | - Emerging Growth Company Status: The registrant is an emerging growth company[4](index=4&type=chunk) [Current Report Items](index=2&type=section&id=Current%20Report%20Items) This section covers the announcement of second-quarter 2025 financial results and lists the accompanying exhibits [Item 2.02 Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) Eve Holding, Inc. announced its second-quarter 2025 financial results via a press release, furnished as an exhibit to this Form 8-K, clarifying its status as furnished, not filed, and thus not subject to Section 18 liabilities of the Exchange Act - Date of Announcement: August 06, 2025[5](index=5&type=chunk) - Event: Issued a press release announcing the Company's results for its second quarter 2025[5](index=5&type=chunk) - Exhibit Status: The press release (Exhibit 99.1) is furnished and not deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934[6](index=6&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=2&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section lists the exhibits accompanying the Form 8-K, which include the press release detailing the second-quarter 2025 results and the interactive data file for the cover page Exhibits Filed | Exhibit Number | Description | | :------------- | :-------------------------------------------------------------------------------- | | 99.1 | Press release, dated August 06, 2025, issued by Eve Holding, Inc. | | 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. | [Signatures](index=2&type=section&id=Signatures) This section confirms the authorized signatory and date for the report filing [Authorized Signatory](index=2&type=section&id=Authorized%20Signatory) The report is duly signed on behalf of Eve Holding, Inc. by its Chief Executive Officer, Johann Bordais, confirming the company's authorization for the filing - Signatory: Johann Bordais[11](index=11&type=chunk) - Title: Chief Executive Officer[11](index=11&type=chunk) - Date of Signature: August 06, 2025[11](index=11&type=chunk)

[PART I FINANCIAL INFORMATION (Unaudited)](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION%20(Unaudited)) Presents Eve Holding, Inc.'s unaudited condensed consolidated financial statements and management's discussion and analysis for the periods ended June 30, 2025 [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Eve Holding, Inc.'s unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive loss, equity, and cash flows, along with detailed notes explaining the company's organization, accounting policies, and specific financial components for the periods ended June 30, 2025, and December 31, 2024 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Provides a snapshot of Eve Holding, Inc.'s financial position, detailing assets, liabilities, and equity as of June 30, 2025, and December 31, 2024 Condensed Consolidated Balance Sheets (in thousands) | ASSETS/LIABILITIES AND EQUITY | June 30, 2025 | December 31, 2024 | | :------------------------------ | :------------ | :------------------ | | **ASSETS** | | | | Total current assets | $250,138 | $312,807 | | Total non-current assets | $10,854 | $5,435 | | **Total assets** | **$260,992** | **$318,242** | | **LIABILITIES AND EQUITY** | | | | Total current liabilities | $90,176 | $59,343 | | Total non-current liabilities | $157,381 | $134,977 | | **Total liabilities** | **$247,557** | **$194,320** | | Total equity | $13,435 | $123,922 | | **Total liabilities and equity**| **$260,992** | **$318,242** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Details Eve Holding, Inc.'s financial performance, including operating expenses, losses, and net loss for the three and six months ended June 30, 2025, and 2024 Condensed Consolidated Statements of Operations (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Operating expenses | $53,877 | $41,717 | $106,480 | $75,649 | | Operating loss | $(53,877) | $(41,717) | $(106,480) | $(75,649) | | (Loss) gain from derivative liabilities | $(9,471) | $2,066 | $(6,156) | $8,408 | | Financial investment income | $3,541 | $1,996 | $7,454 | $4,332 | | Related party loan interest income | $- | $1,222 | $- | $2,445 | | Interest expense | $(2,388) | $(613) | $(4,622) | $(1,025) | | Loss before income taxes | $(64,251) | $(35,993) | $(113,593) | $(60,666) | | Net loss | $(64,685) | $(36,388) | $(113,470) | $(61,684) | | Net loss per share – basic and diluted | $(0.21) | $(0.13) | $(0.37) | $(0.22) | [Condensed Consolidated Statements of Comprehensive Loss](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Presents Eve Holding, Inc.'s total comprehensive loss, which equals its net loss, for the three and six months ended June 30, 2025, and 2024 Condensed Consolidated Statements of Comprehensive Loss (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(64,685) | $(36,388) | $(113,470) | $(61,684) |\n| **Total comprehensive loss** | **$(64,685)** | **$(36,388)** | **$(113,470)** | **$(61,684)** | [Condensed Consolidated Statements of Equity](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) Outlines changes in Eve Holding, Inc.'s equity, including common stock, additional paid-in capital, and accumulated deficit, for the six months ended June 30, 2025 Condensed Consolidated Statements of Equity (in thousands) | Metric | Balance at Dec 31, 2024 | Net Loss (Q1 2025) | Share-based compensation (Q1 2025) | Balance at Mar 31, 2025 | Net Loss (Q2 2025) | Share-based compensation (Q2 2025) | Balance at June 30, 2025 | | :----------------------- | :---------------------- | :----------------- | :--------------------------------- | :---------------------- | :----------------- | :--------------------------------- | :----------------------- | | Common Stock (Shares) | 297,644 | - | - | 297,644 | - | 242 | 297,886 | | Common Stock (Amount) | $298 | $- | $- | $298 | $- | $0 | $298 | | Additional Paid-In Capital | $606,460 | $- | $1,002 | $607,462 | $- | $1,980 | $609,442 | | Accumulated Deficit | $(482,835) | $(48,784) | $- | $(531,619) | $(64,685) | $- | $(596,304) | | **Total Equity** | **$123,922** | **$(48,784)** | **$1,002** | **$76,141** | **$(64,685)** | **$1,980** | **$13,435** | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Summarizes Eve Holding, Inc.'s cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025, and 2024 Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :----------------------------- | :----------------------------- | | Net cash used by operating activities | $(80,523) | $(66,568) | | Net cash provided by investing activities | $45,278 | $19,235 | | Net cash provided by financing activities | $20,479 | $28,993 | | Effect of exchange rate changes on cash and cash equivalents | $(65) | $(779) | | Decrease in cash and cash equivalents | $(14,832) | $(19,119) |\n| Cash and cash equivalents at beginning of period | $56,366 | $46,882 | | **Cash and cash equivalents at end of period** | **$41,534** | **$27,763** | [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations and disclosures supporting the unaudited condensed consolidated financial statements, covering accounting policies and specific financial components [Note 1 – Organization and Basis of Presentation](index=6&type=section&id=Note%201%20%E2%80%93%20Organization%20and%20Basis%20of%20Presentation) Describes Eve Holding, Inc.'s business as an aerospace company focused on urban air mobility and the basis for preparing its unaudited interim financial statements - Eve Holding, Inc. is an aerospace company dedicated to accelerating the urban air mobility (UAM) ecosystem through an advanced electric vertical take-off and landing (eVTOL) project, a global services and support network, and a unique air traffic management solution[20](index=20&type=chunk) - The unaudited condensed consolidated financial statements are presented in US Dollars, prepared in accordance with U.S. GAAP for interim financial reporting, and reflect management's material adjustments[21](index=21&type=chunk)[22](index=22&type=chunk) - The Company is evaluating the impact of new FASB ASUs 2023-09 (Income Tax Disclosures, effective Dec 31, 2025) and 2024-03 (Expense Disaggregation Disclosures, effective Dec 31, 2027), but does not expect ASU 2023-09 to have a material impact on the consolidated financial statements[24](index=24&type=chunk)[25](index=25&type=chunk) [Note 2 – Cash and Cash Equivalents](index=6&type=section&id=Note%202%20%E2%80%93%20Cash%20and%20Cash%20Equivalents) Details the composition of cash and cash equivalents and explains changes in these balances between December 31, 2024, and June 30, 2025 Cash and Cash Equivalents (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :------------- | :------------ | :---------------- | | Cash | $40,717 | $11,763 | | CDBs | $817 | $4,453 | | Fixed deposits | $- | $40,151 | | **Total** | **$41,534** | **$56,366** | - Cash and cash equivalents decreased by **$14,832 thousand** from December 31, 2024, to June 30, 2025, primarily due to a significant reduction in fixed deposits[18](index=18&type=chunk)[27](index=27&type=chunk) [Note 3 – Financial Investments](index=7&type=section&id=Note%203%20%E2%80%93%20Financial%20Investments) Explains the classification and valuation of the company's held-to-maturity financial investments, primarily time deposits, as of June 30, 2025, and December 31, 2024 - Financial investments are classified as held-to-maturity (HTM) and include time deposits with original maturities of one year or less but greater than 90 days, recorded at amortized cost[28](index=28&type=chunk) HTM Securities, at Cost (in thousands) | Category | June 30, 2025 Amortized Cost | June 30, 2025 Fair Value | December 31, 2024 Amortized Cost | December 31, 2024 Fair Value | | :---------- | :--------------------------- | :----------------------- | :------------------------------- | :--------------------------- | | Time deposits | $201,204 | $201,081 | $247,012 | $247,283 | [Note 4 – Related Party Transactions](index=7&type=section&id=Note%204%20%E2%80%93%20Related%20Party%20Transactions) Discloses significant transactions and relationships with Embraer S.A. and its subsidiaries, including service agreements and a matured related party loan - Embraer S.A., through one of its wholly owned subsidiaries Embraer Aircraft Holdings, Inc. (EAH), owns approximately **83% of the outstanding common stock** of the Company, leading to significant related party transactions[30](index=30&type=chunk) - The Company has Master Service Agreements (MSA) and Shared Service Agreement (SSA) with Embraer and Atech for research and development (R&D), selling, general and administrative (SG&A) services, and air traffic management software development, with initial terms of 15 years[32](index=32&type=chunk) Related Party Expenses (in thousands) | Expense Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Research and development expenses | $30,675 | $24,094 | $60,407 | $44,983 | | Selling, general and administrative expenses | $1,212 | $838 | $2,211 | $1,588 | | **Total** | **$31,887** | **$24,932** | **$62,618** | **$46,571** | - A related party loan of **$81.0 million** to EAH matured on August 1, 2024, with principal and interest collected totaling **$85.9 million**, resulting in no related party loan interest income for the periods ended June 30, 2025[40](index=40&type=chunk)[138](index=138&type=chunk) [Note 5 – Other Balance Sheet Components](index=8&type=section&id=Note%205%20%E2%80%93%20Other%20Balance%20Sheet%20Components) Provides a breakdown of specific balance sheet items such as property, net, and other current payables as of June 30, 2025, and December 31, 2024 Property, net (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :------------------------ | :------------ | :---------------- | | eVTOL mockups | $1,743 | $516 | | Leasehold improvement | $201 | $167 | | Construction in progress ("CIP") | $3,364 | $241 | | Computer hardware | $41 | $15 | | Total property | $5,348 | $939 | | Less: Accumulated depreciation | $(432) | $(328) | | **Total property, net** | **$4,916** | **$611** | Other Current Payables (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :---------------- | :------------ | :---------------- | | Accrued services | $25,300 | $8,393 | | Accrued payroll | $5,257 | $4,639 | | Accrued interest | $1,044 | $810 | | Other payables | $1,025 | $1,579 | | **Total** | **$32,625** | **$15,422** | [Note 6 – Debt](index=9&type=section&id=Note%206%20%E2%80%93%20Debt) Details the company's outstanding term loans, debt issuance costs, and compliance with debt covenants, including available borrowing capacity Outstanding Debt (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :---------------------------- | :------------ | :---------------- | | Term loans outstanding | $156,298 | $133,615 | | Unamortized debt issuance costs | $(1,745) | $(1,604) | | **Total debt, net** | **$154,553** | **$132,011** | | Less: current portion of long-term debt | $(543) | $- | | **Long-term debt, net** | **$154,010** | **$132,011** | - The Company has secured multiple loan agreements with BNDES and Citibank to support eVTOL development and manufacturing, totaling approximately **$156.3 million** in outstanding term loans as of June 30, 2025[46](index=46&type=chunk)[47](index=47&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) - As of June 30, 2025, approximately **$116.2 million** is available to be drawn under existing debt arrangements, and the Company was in compliance with all debt covenants[52](index=52&type=chunk)[53](index=53&type=chunk) [Note 7 – Equity](index=10&type=section&id=Note%207%20%E2%80%93%20Equity) Describes the company's common stock, the impact of the 2024 Private Placement, and its dividend policy - As of June 30, 2025, there were **297,886,723 shares of common stock** issued and outstanding, with no preferred stock issued[54](index=54&type=chunk)[55](index=55&type=chunk) - The 2024 Private Placement, closed in July and September 2024, generated aggregate gross proceeds of **$95.6 million** from the issuance of **23,900,000 new common shares** and certain warrant exchanges[57](index=57&type=chunk)[58](index=58&type=chunk) - The Company does not expect to pay dividends on common stock in the foreseeable future[54](index=54&type=chunk) [Note 8 – Common Stock Warrants](index=11&type=section&id=Note%208%20%E2%80%93%20Common%20Stock%20Warrants) Explains the different types of equity-classified and liability-classified common stock warrants, their outstanding amounts, and vesting conditions - The Company has three types of equity-classified warrants: Public Warrants (**8,203,407 outstanding** as of June 30, 2025), Penny Warrants (**21,022,536 outstanding**, **6,000,000 vested**), and Market Warrants (**12,000,000 outstanding**)[59](index=59&type=chunk)[61](index=61&type=chunk)[64](index=64&type=chunk)[69](index=69&type=chunk)[70](index=70&type=chunk)[72](index=72&type=chunk) - Private Warrants (**14,250,000 outstanding** as of June 30, 2025) are liability-classified due to a **$0.01 cash redemption feature** if transferred to a non-permitted transferee, which affects the settlement amount[73](index=73&type=chunk)[74](index=74&type=chunk) - Penny Warrants are often contingent on future conditions or milestones, such as eVTOL purchase commitments or type certification, and are recognized as expense or a reduction of revenue upon vesting[66](index=66&type=chunk)[67](index=67&type=chunk) [Note 9 – Derivative Financial Instruments](index=12&type=section&id=Note%209%20%E2%80%93%20Derivative%20Financial%20Instruments) Details the company's derivative financial instrument liabilities and the impact of changes in warrant trading prices on recognized losses Derivative Financial Instrument Liabilities (in thousands) | Date | Amount | | :---------------- | :------ | | June 30, 2025 | $13,139 | | December 31, 2024 | $6,983 | - The increase in derivative liabilities is primarily due to a **$0.66 increase in the Public Warrant trading price** for the three months ended June 30, 2025[75](index=75&type=chunk)[76](index=76&type=chunk)[134](index=134&type=chunk) - A loss of **$6.2 million** and **$9.5 million** was recognized from derivative liabilities for the six and three months ended June 30, 2025, respectively, compared to gains in the prior year[11](index=11&type=chunk)[76](index=76&type=chunk) [Note 10 – Fair Value Measurements](index=13&type=section&id=Note%2010%20%E2%80%93%20Fair%20Value%20Measurements) Explains the fair value hierarchy used for financial liabilities, specifically Private Warrants and debt, and their carrying and fair values - The Company uses a three-level fair value hierarchy based on input reliability, with Private Warrants and debt classified as **Level 2** due to estimation using observable inputs[77](index=77&type=chunk)[78](index=78&type=chunk) Financial Liabilities by Fair Value Hierarchy (in thousands) | Liability | June 30, 2025 Carrying Amount | June 30, 2025 Fair Value (Level 2) | December 31, 2024 Carrying Amount | December 31, 2024 Fair Value (Level 2) | | :--------------- | :------------------------------ | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Private Warrants | $13,139 | $13,139 | $6,983 | $6,983 | | Debt | $156,298 | $163,522 | $132,011 | $132,488 | [Note 11 – Earnings Per Share](index=13&type=section&id=Note%2011%20%E2%80%93%20Earnings%20Per%20Share) Presents the calculation of basic and diluted net loss per share and identifies potentially dilutive securities excluded due to their anti-dilutive effect Net Loss Per Share (Basic and Diluted) | Period | Net Loss (in thousands) | Weighted-average shares outstanding | Net Loss per share | | :--------------------------- | :---------------------- | :---------------------------------- | :----------------- | | 3 Months Ended June 30, 2025 | $(64,685) | 303,727 | $(0.21) | | 3 Months Ended June 30, 2024 | $(36,388) | 276,355 | $(0.13) | | 6 Months Ended June 30, 2025 | $(113,470) | 303,686 | $(0.37) | | 6 Months Ended June 30, 2024 | $(61,684) | 276,309 | $(0.22) | - For both periods, basic and diluted weighted-average shares outstanding were equal as no securities had a dilutive effect on earnings per share[82](index=82&type=chunk) Potentially Dilutive Securities Excluded (Six Months Ended June 30, in thousands) | Category | 2025 | 2024 | | :-------------------------------- | :------ | :------ | | Unvested restricted stock units | 2,213 | 1,569 | | Penny warrants subject to unmet contingencies | 15,023 | 13,523 | | Warrants "out-of-the-money" | 34,453 | 42,750 | | **Total** | **51,689**| **57,841**| [Note 12 – Research and Development Expenses](index=15&type=section&id=Note%2012%20%E2%80%93%20Research%20and%20Development%20Expenses) Provides a breakdown of R&D expenses by category and explains the significant increase due to intensified eVTOL development activities Research and Development Expenses (in thousands) | Category | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :---------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Outsourced services | $42,750 | $33,445 | $84,956 | $58,123 | | Payroll costs | $2,720 | $2,617 | $5,059 | $5,224 | | Other expenses | $203 | $255 | $368 | $426 | | **Total** | **$45,672** | **$36,317** | **$90,383** | **$63,772** | - R&D expenses increased by **$9.4 million (26%)** for the three months and **$26.6 million (42%)** for the six months ended June 30, 2025, primarily due to intensified development activities for eVTOL, including parts purchase, prototype assembly, and increased engineering engagement with Embraer[130](index=130&type=chunk)[131](index=131&type=chunk) [Note 13 – Selling, General and Administrative Expenses](index=15&type=section&id=Note%2013%20%E2%80%93%20Selling,%20General%20and%20Administrative%20Expenses) Details SG&A expenses by category and explains the increase driven by workforce expansion, RSU recognition, and pre-operating expenses Selling, General and Administrative Expenses (in thousands) | Category | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :---------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Outsourced services | $3,998 | $2,506 | $6,877 | $4,603 | | Payroll costs | $3,847 | $1,787 | $8,186 | $5,060 | | Director and officers insurance | $256 | $266 | $512 | $645 | | Other expenses | $104 | $841 | $523 | $1,569 | | **Total** | **$8,205** | **$5,400** | **$16,097** | **$11,877** | - SG&A expenses increased by **$2.8 million (52%)** for the three months and **$4.2 million (36%)** for the six months ended June 30, 2025, driven by an increase in direct workforce, Restricted Stock Units recognition, higher outsourced services, and pre-operating expenses for the Taubaté production site[132](index=132&type=chunk)[133](index=133&type=chunk) [Note 14 – Income Taxes](index=15&type=section&id=Note%2014%20%E2%80%93%20Income%20Taxes) Discusses the income tax expense and benefit recognized, primarily influenced by operations in the Brazilian tax jurisdiction - The Company recognized income tax expense of **$0.4 million** for both three-month periods ended June 30, 2025 and 2024, due to operations in the Brazilian tax jurisdiction[89](index=89&type=chunk) - For the six months ended June 30, 2025, the Company recognized an income tax benefit of **$0.1 million**, a decrease of **$1.1 million** compared to an expense of **$1.0 million** in the prior year, primarily due to Eve Brazil's standalone operations[89](index=89&type=chunk)[141](index=141&type=chunk) [Note 15 – Commitments and Contingencies](index=15&type=section&id=Note%2015%20%E2%80%93%20Commitments%20and%20Contingencies) Discloses a shareholder derivative action and an economic grant agreement for an eVTOL project, outlining potential impacts and funding details - A shareholder derivative action was filed on March 3, 2025, alleging breach of fiduciary duty related to the 2024 Private Placement, with proceedings currently stayed pending resolution of constitutional questions in an unrelated case[91](index=91&type=chunk)[92](index=92&type=chunk) - The Company cannot predict the ultimate outcome or estimate the range of possible loss from the derivative action due to its early stage[93](index=93&type=chunk) - On May 14, 2025, the Company entered into an Economic Grant Agreement with Finep for up to **R$90.0 million** (approximately **$16.5 million**) in economic subsidy funding for an eVTOL project in Brazil, with no funding received as of June 30, 2025[95](index=95&type=chunk)[96](index=96&type=chunk) [Note 16 – Segments](index=16&type=section&id=Note%2016%20%E2%80%93%20Segments) Describes the company's three reportable segments (eVTOL, Service and Operations Solutions, UATM) and their respective research and development expenses - The Company operates in three reportable segments: eVTOL (designing and certifying eVTOLs), Service and Operations Solutions – Tech Care (offering eVTOL service and support), and Urban Air Traffic Management (UATM) (developing Vector software for eVTOL operations)[97](index=97&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk) - As a pre-revenue company, the primary measure of profit or loss by segment is research and development expenses, which are used by the CEO (CODM) for resource allocation[97](index=97&type=chunk)[100](index=100&type=chunk) Research and Development Expenses by Segment (in thousands) | Segment | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | eVTOL | $43,235 | $33,439 | $85,658 | $58,082 | | Service and Operations Solutions | $1,532 | $1,679 | $2,866 | $3,272 | | UATM | $905 | $1,199 | $1,859 | $2,418 | | **Total segment expenses** | **$45,672** | **$36,317** | **$90,383** | **$63,772** | [Note 17 – Subsequent Events](index=17&type=section&id=Note%2017%20%E2%80%93%20Subsequent%20Events) Reports on events occurring after the balance sheet date, including new tax legislation and the exercise of Penny Warrants - The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025, amending U.S. tax law, but the Company does not expect it will have a material effect on its consolidated financial statements[102](index=102&type=chunk) - In July 2025, warrant holders exercised **3,000,000 Penny Warrants** for **2,962,181 shares** of the Company's common stock through a cashless exercise[103](index=103&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Eve Holding, Inc.'s financial condition and operational results for the three and six months ended June 30, 2025, compared to 2024. It highlights the company's pre-revenue status, significant R&D investments in eVTOL and UAM solutions, and the need for substantial future capital. Key factors affecting operations include the Brazilian economic environment, UAM market development, competition, and government certification processes [Overview](index=18&type=section&id=Overview) Provides a high-level summary of Eve Holding, Inc.'s business focus on urban air mobility, its pre-revenue status, and strategic relationship with Embraer - Eve Holding, Inc. is an aerospace company focused on urban air mobility (UAM), developing eVTOLs, a portfolio of maintenance and support services (TechCare), and new air traffic management software (Vector)[109](index=109&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk) - The Company has not generated revenue to date and expects to finance operations through existing cash, public/private offerings, and debt financing, requiring substantial additional capital for the foreseeable future[114](index=114&type=chunk) - Eve plans to leverage its strategic relationship with Embraer to de-risk and accelerate its development plans, while saving costs by utilizing Embraer's extensive resources[110](index=110&type=chunk) [Services Agreements](index=18&type=section&id=Services%20Agreements) Details the Master Services Agreements (MSAs) and Shared Services Agreement (SSA) with Embraer and Atech, crucial for product development and operational support - Eve has Master Services Agreements (MSAs) with Embraer and Atech, and a Shared Services Agreement (SSA) with Embraer and EAH, for product development, services development, and administrative support[115](index=115&type=chunk) - These agreements allow Eve to collaborate with Embraer and leverage their expertise as an aircraft producer to design and manufacture eVTOLs, develop maintenance systems, pilot training programs, and establish operations[116](index=116&type=chunk) [Key Factors Affecting Operations](index=19&type=section&id=Key%20Factors%20Affecting%20Operations) Identifies critical external and internal factors influencing the company's operations, including economic conditions, market development, competition, and regulatory certifications - Operations are significantly affected by the Brazilian economic environment, including government intervention, inflation, and exchange rate variations, which can impact the Company's financial condition and results[118](index=118&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk)[121](index=121&type=chunk) - The UAM market is undeveloped, with commercialization of eVTOL services-and-support anticipated in **2026** and eVTOL sales in **2027**, requiring significant investment and facing uncertainties in demand and adoption drivers[122](index=122&type=chunk)[123](index=123&type=chunk) - The Company faces competition from focused UAM developers and established aerospace/automotive conglomerates, with risks of competitors reaching market first or benefiting from Eve's development efforts[124](index=124&type=chunk) - Obtaining government certifications (ANAC, FAA, EASA) for eVTOLs and related services is critical, with potential delays or failures adversely impacting business launch timelines[125](index=125&type=chunk) - Eve has signed non-binding letters of intent to sell approximately **2,800 eVTOL aircraft** and Memorandums of Understanding (MOUs) with about **30 market-leading partners**, focusing on implementation and ecosystem readiness[127](index=127&type=chunk) [Results of Operations (unaudited, in thousands)](index=21&type=section&id=Results%20of%20Operations%20(unaudited,%20in%20thousands)) Analyzes the company's financial performance, detailing changes in key expense categories, operating loss, and net loss for the reported periods Key Financial Results (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change (Unfavorable)/Favorable | % Change | | :-------------------------------------- | :---------- | :---------- | :----------------------------- | :------- | | Research and development expenses | $45,672 | $36,317 | $(9,355) | (26)% | | Selling, general and administrative expenses | $8,205 | $5,400 | $(2,805) | (52)% | | Operating loss | $(53,877) | $(41,717) | $(12,160) | (29)% | | (Loss) gain from derivative liabilities | $(9,471) | $2,066 | $(11,537) | n.m. | | Financial investment income | $3,541 | $1,996 | $1,545 | 77% | | Related party loan interest income | $- | $1,222 | $(1,222) | n.m. | | Interest expense | $(2,388) | $(613) | $(1,775) | (289)% | | Net loss | $(64,685) | $(36,388) | $(28,297) | 78% | Key Financial Results (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change (Unfavorable)/Favorable | % Change | | :-------------------------------------- | :----------- | :---------- | :----------------------------- | :------- | | Research and development expenses | $90,383 | $63,772 | $(26,610) | (42)% |\n| Selling, general and administrative expenses | $16,097 | $11,877 | $(4,220) | (36)% | | Operating loss | $(106,480) | $(75,649) | $(30,831) | (41)% | | (Loss) gain from derivative liabilities | $(6,156) | $8,408 | $(14,564) | n.m. | | Financial investment income | $7,454 | $4,332 | $3,122 | 72% | | Related party loan interest income | $- | $2,445 | $(2,445) | n.m. | | Interest expense | $(4,622) | $(1,025) | $(3,597) | (351)% | | Net loss | $(113,470) | $(61,684) | $(51,785) | 84% | - Net loss significantly increased by **78%** for the three months and **84%** for the six months ended June 30, 2025, primarily driven by higher R&D and SG&A expenses, a loss from derivative liabilities, and increased interest expense[129](index=129&type=chunk) [Liquidity and Capital Resources](index=22&type=section&id=Liquidity%20and%20Capital%20Resources) Discusses the company's current financial position, future capital needs, and strategies for funding operations and growth initiatives - As of June 30, 2025, total liquidity is approximately **$358.9 million** (**$41.5 million cash**, **$201.2 million financial investments**, **$116.2 million available debt**), expected to fund operations for at least the next twelve months[143](index=143&type=chunk) - Future capital requirements include research and development expenses, capital expenditures for manufacturing expansion, raw material procurement, general and administrative expenses, interest expense, and selling and distribution expenses[143](index=143&type=chunk)[152](index=152&type=chunk) - The Company expects to utilize a combination of equity and debt financing for future capital needs, exploring long-term debt, customer advances, and convertible debt or equity issuances[144](index=144&type=chunk) Cash Flows (Six Months Ended June 30, in thousands) | Cash Flow Activity | 2025 | 2024 | Change | | :-------------------------------------- | :---------- | :---------- | :-------- | | Net cash used by operating activities | $(80,523) | $(66,568) | $(13,955) |\n| Net cash provided by investing activities | $45,278 | $19,235 | $26,043 | | Net cash provided by financing activities | $20,479 | $28,993 | $(8,514) | - Net cash used by operating activities increased by **$14.0 million**, while net cash provided by investing activities increased by **$26.0 million** due to higher redemptions of financial investments. Net cash provided by financing activities decreased by **$8.5 million** due to lower debt borrowings[146](index=146&type=chunk)[147](index=147&type=chunk)[148](index=148&type=chunk) - The Company secured a grant of up to **$16.5 million** from Finep for an eVTOL project, with a total project investment of up to **$35.0 million** including Eve's required company contribution[154](index=154&type=chunk) [Critical Accounting Estimates](index=24&type=section&id=Critical%20Accounting%20Estimates) Explains that financial statement preparation involves management estimates and assumptions based on historical experience and other reasonable factors - The preparation of financial statements requires management to make estimates and assumptions that affect reported amounts, which are based on historical experience and various other reasonable factors[157](index=157&type=chunk) [Credit Risk](index=24&type=section&id=Credit%20Risk) Addresses the company's exposure to concentrations of credit risk from cash, cash equivalents, and financial investments held at major financial institutions - The Company's cash, cash equivalents, and financial investments are held at major financial institutions in the US and Brazil, exposing it to concentrations of credit risk, though management believes these institutions are financially sound[158](index=158&type=chunk) [Emerging Growth Company Status](index=24&type=section&id=Emerging%20Growth%20Company%20Status) Details the company's status as an "emerging growth company" under the JOBS Act and the implications for accounting standards and disclosure requirements - Eve is an "emerging growth company" and has elected to use the extended transition period for new accounting standards and reduced disclosure requirements under the JOBS Act[159](index=159&type=chunk)[160](index=160&type=chunk) - The Company will lose its emerging growth company status by **December 31, 2025**, and will then be subject to SEC's internal control over financial reporting auditor attestation requirements (Sarbanes-Oxley Act Section 404(b))[161](index=161&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=25&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details Eve Holding, Inc.'s exposure to market risks, specifically interest rate risk and foreign currency risk. It outlines the impact of fluctuations in Brazilian interest rates (CDI) on cash equivalents and variable interest rates (SOFR) on debt, as well as the effects of Brazilian real exchange rate variations on assets and liabilities [Interest Rate Risk](index=25&type=section&id=Interest%20Rate%20Risk) Analyzes the company's exposure to interest rate fluctuations, particularly concerning Brazilian CDI-indexed cash equivalents and variable-rate debt tied to SOFR - The Company is exposed to interest rate risk from Brazilian CDI-indexed cash equivalents and variable-rate debt (SOFR)[162](index=162&type=chunk)[166](index=166&type=chunk) - As of June 30, 2025, approximately **$0.8 million (0.3%)** of consolidated cash and financial investments were indexed to the CDI rate; a hypothetical **100 basis point change** would impact annual interest income by approximately **$8 thousand**[163](index=163&type=chunk) - Variable-rate debt, primarily from Citibank, represented **32% ($50.0 million)** of total long-term debt as of June 30, 2025; a hypothetical **100 basis point increase** in interest rates would increase annual interest expense by approximately **$0.5 million**[166](index=166&type=chunk) [Foreign Currency Risk](index=25&type=section&id=Foreign%20Currency%20Risk) Examines the company's exposure to foreign exchange gains and losses, particularly from assets and liabilities denominated in Brazilian reais - The Company's operations are exposed to foreign exchange gains and losses, particularly those denominated in Brazilian reais (labor costs, taxes, local expenses, financial investments)[167](index=167&type=chunk) - As of June 30, 2025, less than **1% of total assets** and **14% of total liabilities** were denominated in Brazilian reais, which has experienced frequent and substantial variations against the US Dollar[167](index=167&type=chunk)[168](index=168&type=chunk) [Item 4. Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Management evaluated the effectiveness of Eve Holding, Inc.'s disclosure controls and procedures as of June 30, 2025, concluding they were effective. There were no material changes in internal control over financial reporting during the three months ended June 30, 2025 [Management's Evaluation of Disclosure Control and Procedures](index=25&type=section&id=Management's%20Evaluation%20of%20Disclosure%20Control%20and%20Procedures) Reports on management's assessment of the effectiveness of the company's disclosure controls and procedures as of the end of the reporting period - Management, including the principal executive officer and principal financial officer, concluded that the Company's disclosure controls and procedures were **effective** as of June 30, 2025[171](index=171&type=chunk) [Changes in Internal Control over Financial Reporting](index=26&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) States whether there have been any material changes in the company's internal control over financial reporting during the most recent fiscal quarter - There were no changes in internal control over financial reporting during the three months ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting[172](index=172&type=chunk) [PART II OTHER INFORMATION](index=26&type=section&id=PART%20II%20OTHER%20INFORMATION) Presents additional information not covered in the financial statements, including legal proceedings, risk factors, and exhibits [Item 1. Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) Eve Holding, Inc. is generally subject to various claims in the ordinary course of business, none of which are currently expected to have a material adverse effect. However, a shareholder derivative action was filed on March 3, 2025, alleging breach of fiduciary duty related to the 2024 Private Placement, with proceedings currently stayed - A shareholder derivative action was filed on March 3, 2025, against EAH, directors, and officers, with Eve Holding as a nominal defendant, asserting breach of fiduciary duty claims related to the 2024 Private Placement[173](index=173&type=chunk) - The proceedings are stayed pending the Delaware Supreme Court's resolution of overlapping constitutional questions regarding recent amendments to 8 Del. C. § 144 in an unrelated action[174](index=174&type=chunk) [Item 1A. Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the Risk Factors previously disclosed in the Company's 2024 Form 10-K, but additional factors or changes to existing ones could still materially affect the business - There have been **no material changes** to the Risk Factors disclosed in the Company's 2024 Form 10-K[175](index=175&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=26&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities or use of proceeds to report for the period - No unregistered sales of equity securities and use of proceeds to report[176](index=176&type=chunk) [Item 3. Defaults Upon Senior Securities](index=26&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities to report for the period - No defaults upon senior securities to report[177](index=177&type=chunk) [Item 4. Mine Safety Disclosures](index=26&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the Company's operations - Mine Safety Disclosures are not applicable to the Company[178](index=178&type=chunk) [Item 5. Other Information](index=26&type=section&id=Item%205.%20Other%20Information) There is no other information to report for the period - No other information to report[179](index=179&type=chunk) [Item 6. Exhibits](index=26&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including corporate governance documents, economic grant agreements, amendments to service and supply agreements, and certifications - Includes Second Amended and Restated Certificate of Incorporation and Bylaws[181](index=181&type=chunk) - Economic Grant Agreement with Finep (May 14, 2025) and amendments to Master Services Agreement and Supply Agreement are filed[181](index=181&type=chunk) - Certifications of CEO and CFO pursuant to Sarbanes-Oxley Act Sections 302 and 906 are included[181](index=181&type=chunk) [Signatures](index=28&type=section&id=Signatures) The report is signed by Johann Bordais, Chief Executive Officer, and Eduardo Couto, Chief Financial Officer, on August 6, 2025 - Report signed by Johann Bordais (Chief Executive Officer) and Eduardo Couto (Chief Financial Officer) on August 6, 2025[185](index=185&type=chunk)

Core Insights - The demand for next-generation air transport solutions, particularly eVTOL aircraft, has significantly increased due to urban congestion and new transportation technologies, attracting investor interest in companies like Eve Holding and Joby Aviation [1][2]. Company Analysis Eve Holding (EVEX) - Eve Holding, a spin-off from Embraer, is utilizing its parent company's aerospace expertise and has completed various tests for its eVTOL aircraft, with flight tests expected to start soon [2]. - The company has a growing backlog of Letters of Intent (LOIs), including a recent agreement for up to 54 eVTOLs, indicating strong commercial demand in markets like Brazil and the U.S. [4]. - Eve anticipates the commercialization of its eVTOL services to begin in 2026, with initial revenue generation from eVTOL sales expected in 2027 [5]. - As of March 31, 2025, Eve had $0.06 billion in cash, no short-term debt, and $0.14 billion in long-term debt, suggesting financial viability in the near term [6]. - Eve has outperformed Joby in earnings surprises, beating estimates twice in the past four quarters [10][17]. Joby Aviation (JOBY) - Joby Aviation's growth is supported by strategic partnerships and a strong certification timeline, with recent progress in aircraft certification [7]. - The company has partnered with Virgin Atlantic to launch air taxi services in the UK, starting from London Heathrow and Manchester [7]. - Joby has conducted successful piloted flights in Dubai and plans to launch commercial operations there early next year [8]. - The company is expanding its production capacity in Marina, CA, aiming to produce up to 24 aircraft per year, and is also ramping up operations in Dayton, OH [9]. - Joby has not beaten earnings estimates in any of the past four quarters, indicating challenges in financial performance [19]. Market Comparison - The eVTOL market shows significant potential, with both Eve and Joby being key players, but challenges remain regarding industry viability and public acceptance [20][21]. - Eve Holding currently holds an edge over Joby Aviation, with a Zacks Rank of 3 (Hold) compared to Joby's 4 (Sell) [22].

Core Insights - Eve Air Mobility has signed a Letter of Intent with Aerosolutions and Bluenest by Globalvia for the sale of up to 50 eVTOL aircraft and access to TechCare services, marking a significant step in developing an Advanced Air Mobility ecosystem in Costa Rica [1][4] Group 1: Partnership and Collaboration - The collaboration aims to accelerate the introduction of safe, sustainable, and efficient air mobility in Costa Rica, particularly in the Pacific region, connecting airports to premium resorts and eco-destinations [2][3] - The partnership will focus on reducing travel times and congestion in key tourist regions like Guanacaste, enhancing Costa Rica's reputation as a leader in sustainable tourism [4][2] Group 2: Infrastructure Development - Bluenest by Globalvia will develop vertiport infrastructure to enable safe and efficient eVTOL operations, facilitating seamless intermodal connections between air and ground transport [3][5] - The partners will conduct workshops on vertiport development, airspace integration, pilot training, and operational planning to ensure successful AAM deployment [4][5] Group 3: Aircraft Technology - Eve's eVTOL aircraft features a lift+cruise configuration with eight propellers for vertical flight and fixed wings for cruising, ensuring high performance and safety [6] - The company is advancing its eVTOL development through comprehensive testing of the prototype to evaluate operational and safety features [6] Group 4: Company Background - Eve Air Mobility is focused on accelerating the Urban Air Mobility ecosystem, leveraging Embraer's aerospace expertise and offering a comprehensive support network [7] - Bluenest by Globalvia aims to be a key player in advanced air mobility infrastructure, connecting air routes with ground mobility [8]

Core Insights - The eVTOL industry is experiencing significant growth due to urban congestion and the need for sustainable transport, with Archer Aviation Inc. and Eve Holding Inc. as key players [1][4]. Company Overview - Archer Aviation is nearing the commercial rollout of its Midnight aircraft, aiming for air taxi services in major cities by the end of 2025, focusing on rapid FAA certification and infrastructure development [2][4]. - Eve, a spin-off from Embraer, is preparing for flight tests of its eVTOL aircraft, with service expected to begin in 2026 [3][10]. Financial Position - Archer Aviation reported cash and cash equivalents of $1.04 billion and long-term debt of $0.74 billion as of Q1 2025, indicating a strong solvency position [5]. - Eve Holdings had $0.06 billion in cash and long-term debt of $0.14 billion as of the same date, suggesting short-term viability but reliance on future revenue generation [6]. Growth Catalysts - Archer Aviation's collaborations, including a recent agreement with Indonesia's PT. IKN, enhance its market position and aim for commercial use of the Midnight aircraft [7][8]. - Eve's growing backlog of Letters of Intent (LOIs), including a recent agreement for up to 54 eVTOLs, indicates rising interest in its technology [9][10]. Market Challenges - Both companies face challenges in a capital-intensive industry, with success dependent on aircraft design, certification, and market demand for urban air mobility [11][12]. - Public acceptance of eVTOLs may be hindered by safety perceptions, noise concerns, and pricing compared to traditional transport options [12]. Performance Metrics - Archer Aviation's stock has seen a 194% increase over the past year, while Eve's stock has risen by 40.8% [16]. - Both companies currently exhibit negative Return on Equity (ROE), indicating inefficiencies in profit generation from equity [17]. Future Outlook - Archer Aviation is positioned to generate revenues sooner due to its regulatory progress and infrastructure partnerships, while Eve is expected to commercialize its services between 2026 and 2027 [21][22]. - Despite shared industry risks, Archer Aviation currently holds an advantage in market entry and global expansion strategies [22].

Core Insights - Eve Air Mobility has signed a Letter of Intent (LOI) with Future Flight Global to collaborate on electric Vertical Take-Off and Landing (eVTOL) aircraft for the Brazil and United States markets, enhancing Eve's existing backlog of LOIs [1][2] - The partnership aims to leverage Eve's eVTOL technology and certification process to provide efficient and sustainable air travel, addressing urban mobility challenges in high-demand markets [2][3] - Future Flight Global plans to utilize its operational expertise to expand Eve's market share, particularly in Brazil, and aims to transform urban mobility globally by deploying eVTOL aircraft [2][3] Company Overview - Eve Air Mobility is focused on accelerating the Urban Air Mobility (UAM) ecosystem, supported by Embraer's 55-year aerospace expertise, and is listed on the New York Stock Exchange under the tickers "EVEX" and "EVEXW" [4] - Future Flight Global is a pioneer in advanced air transportation, delivering innovative and sustainable mobility solutions, and aims to lead the third aerospace revolution [5] Market Outlook - The announcement follows Eve's Global Market Outlook, which highlights growth and demand in the urban air mobility sector over the next twenty years, driven by urban growth and traffic congestion [3]

Core Insights - Eve Air Mobility has signed a binding framework agreement with Revo and its parent company Omni Helicopters International to purchase up to 50 eVTOL aircraft, marking a significant step in urban air mobility [1][2] - The agreement signifies a transition from development to execution for Eve, enhancing its position in the UAM market and demonstrating confidence in its technology [2][4] - Revo will be the launch operator for Eve's eVTOLs in São Paulo, with the first delivery expected in Q4 2027, aiming to provide a sustainable and efficient urban transport solution [2][3] Company Overview - Eve Air Mobility is focused on advancing the Urban Air Mobility ecosystem, leveraging Embraer's aerospace expertise and offering a comprehensive support network for eVTOL operations [6] - Revo, founded in January 2024, aims to provide a seamless door-to-door travel experience in São Paulo, integrating aerial and ground transportation [10] - Omni Helicopters International is the largest provider of air mobility solutions in Latin America, with a diverse portfolio catering to various customer segments [7][8] Strategic Importance - The partnership between Eve, Revo, and OHI is a strategic collaboration aimed at revolutionizing urban mobility and enhancing connectivity in congested cities [4][5] - The eVTOL aircraft will enable Revo to offer a fully electric and sustainable service, significantly reducing travel time between key locations in São Paulo [3][5] - The agreement includes access to Eve's TechCare package, which provides operational support to maximize fleet performance [4]

Core Insights - The Global Market Outlook by Eve Air Mobility projects a $280 billion passenger revenue opportunity and a fleet of 30,000 eVTOL aircraft by 2045, driven by urban population growth, traffic congestion, and sustainability commitments [1][4][5] Market Demand and Growth Drivers - The demand for Urban Air Mobility (UAM) is fueled by urban congestion, with over two billion additional people expected to live in cities by 2050, highlighting the need for alternative transportation [5][7] - Critical use cases for eVTOLs include Urban Point-to-Point, Airport Shuttle, and various service sectors such as tourism and medical services [5] Regional Market Analysis - Significant growth is anticipated in the Asia-Pacific region due to dense megacities and a rising middle class, while North America shows promise from substantial investments and an established aviation ecosystem [6] - Europe may experience slower growth due to regulatory challenges, whereas Latin America presents opportunities for addressing urbanization and renewable energy needs [6] - The Middle East is an early adopter focused on innovation, and Africa's market is driven by urban population growth and tourism enhancement [6] Technological and Operational Considerations - The report emphasizes the importance of high safety standards and a comprehensive regulatory environment for the successful operation of UAM [8][12] - Air traffic management will be crucial for integrating airspace and supporting high-density operations [12] Upcoming Developments - Eve Air Mobility will unveil a full-scale mockup of the Eve-100 aircraft at the 2025 Paris Air Show, showcasing design enhancements aimed at improving safety, accessibility, and performance [3]

Core Insights - Eve Air Mobility is advancing its electric vertical take-off and landing (eVTOL) aircraft program with a focus on safety, operational efficiency, and customer solutions [1][5][8] Group 1: eVTOL Program Development - The company is not prioritizing speed to certification but is focused on providing the best solutions for customers through a methodical testing approach [2][4] - Eve has completed numerous component and systems tests and is preparing for flight tests expected to begin in summer 2025, utilizing five to six prototypes for development and certification flights between 2025 and 2026 [4][3] Group 2: Design and Operational Enhancements - Recent design updates to the eVTOL include lightweight seats, a full-flex cabin design for passenger and cargo configurations, and an aerodynamic wing design optimized for performance and dispatchability [5][6] - The introduction of wheeled landing gear enhances ground maneuverability and operational flexibility, while fixed-pitch lifters and a patented four-blade design improve performance and safety [6][5] Group 3: Integrated Service Solutions - Eve's TechCare service portfolio offers comprehensive support for eVTOL operations, including maintenance, pilot training, battery exchange, and spare parts availability [5][10] - The integration of Vector, an air traffic management solution, under TechCare aims to streamline UAM operations and enhance efficiency [6][7] Group 4: Industry Positioning - Eve Air Mobility is leveraging Embraer's extensive aerospace expertise to build a robust Urban Air Mobility (UAM) ecosystem, focusing on a holistic approach to eVTOL development and service [8][10]

Financial Data and Key Metrics Changes - The company reported a net loss of $49 million in Q1 2025, with R&D expenses at $44 million and SG&A expenses at $8 million [22][21] - Cash position at the end of Q1 2025 was $288 million, down $15 million from the end of 2024, but total liquidity was $411 million, sufficient to sustain operations through 2026 [22][23] Business Line Data and Key Metrics Changes - The company invested $45 million in program development during the first quarter, focusing on eVTOL, service and support solutions, and urban air traffic management software [21] - The total preorder backlog remains at approximately 2,800 aircraft, valued at around $14 billion, with contracts for aftermarket services potentially generating $1.6 billion in revenue [19][20] Market Data and Key Metrics Changes - The order book includes non-binding letters of intent from 28 customers across nine countries, indicating a diverse market interest [19] - The company is actively engaging with customers to develop an ecosystem for urban air mobility, focusing on reliability and operational costs [20][39] Company Strategy and Development Direction - The company is on track to begin flying prototypes in 2025, with a focus on completing the certification campaign for the eVTOL aircraft [24][19] - The assembly line for the conforming prototypes is prepared at Embraer's facility, emphasizing collaboration with suppliers and engineering teams [18][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting ambitious targets for prototype assembly and certification, with ongoing engagement with suppliers and customers [24][19] - The company is focused on ensuring seamless operations and support for eVTOL operators, which is critical for the success of the aircraft [54][53] Other Important Information - The company is developing a strong network of partners in infrastructure and energy to address challenges in urban air mobility [20] - The IronBird simulator is being used to integrate and troubleshoot various systems, which is crucial for reducing costs and expediting the certification process [15][14] Q&A Session Summary Question: R&D spending expectations - Management indicated that R&D spending is expected to remain around $44 million per quarter, with no significant acceleration anticipated [26] Question: Certification aircraft build timeline - The conforming prototype is on schedule, with the assembly site ready to receive tooling, and parts are being prepared for assembly [29][48] Question: Services contract backlog details - The $1.6 billion services contract backlog includes battery replacements and repairs, but not upgrades [34] Question: Free cash flow and liquidity - Cash consumption is expected to be closer to the lower end of the $200 million to $250 million guidance, with sufficient liquidity for operations through 2026 [42][23] Question: Prototypes for certification campaign - The company plans to start assembling parts for the five prototypes towards the end of the year, with most cash still directed towards R&D [50][48] Question: Software development for services - The software side is actively being developed to ensure it meets operator needs and is user-friendly [60] Question: Future financing options - The company has multiple funding options available, including grants and loans, ensuring sufficient funding for upcoming years [62][63]