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]

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 nearly $8 million [21][20] - Cash flow from operations consumed $25 million, which is lower than previous quarters due to a temporary working capital gain [21][22] - The company ended Q1 2025 with $288 million in cash, down $15 million from the end of 2024, but total liquidity was $411 million [22] 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 [20] - The total preorder backlog remains at approximately 2,800 aircraft, valued at around $14 billion, with contracts secured for aftermarket services potentially generating $1.6 billion in revenue [18][19] Market Data and Key Metrics Changes - The company has secured contracts with 14 different customers for its EVE TechCare suite, covering around 1,100 aircraft, which is about 40% of the preorder backlog [19] - The order book includes customers from various sectors, including air mainliners, regional airliners, helicopter operators, ride-sharing platforms, and leasing companies [18] Company Strategy and Development Direction - The company is focused on developing its eVTOL technology and has reached significant milestones, including ground tests and preparations for initial flights [5][6] - The assembly line for the conforming prototypes is set up at Embraer's facility, with plans to start assembly in the second half of 2025 [16][17] - The company aims to create a comprehensive ecosystem for urban air mobility, engaging with partners in infrastructure and energy [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting ambitious targets for prototype assembly and certification campaigns, with initial flights expected in 2026 [20][22] - The company is focused on maintaining a solid cash position and is comfortable with its financial guidance for the year [21][22] Other Important Information - The company is actively engaged with suppliers, with a noticeable increase in activity related to the production of parts for the conforming prototypes [15] - The IronBird simulator is being used to integrate and troubleshoot various systems, which is crucial for the certification campaign [12][13] Q&A Session Summary Question: R&D spending expectations - Management indicated that R&D spending is expected to remain around $44 million per quarter for the rest of the year [26][27] Question: Certification aircraft build timeline - The conforming prototype is on schedule, with the facility ready to receive tooling for assembly [29][30] Question: Services contract backlog details - The $1.6 billion backlog includes battery replacements and repairs but does not account for future upgrades [34][35] Question: Order book and customer engagement - The order book remains stable, with ongoing customer engagement and a focus on developing the first operational city [40][41] Question: Cash consumption guidance - Cash consumption is expected to be closer to the lower end of the $200 million to $250 million range for the year [43][44] Question: Prototypes and cash consumption - Most cash is allocated to R&D, with the focus on development rather than immediate prototype costs [51][52] Question: Service and maintenance business segment - The company is preparing for seamless operation and support for the first aircraft, with training solutions already in development [55][56] Question: Software progress for services - The software side is actively being developed to ensure user-friendliness and operational efficiency [62] Question: Future financing options - The company has multiple funding options available, ensuring sufficient liquidity for upcoming years [65][66]

Product Development & Testing - The full-scale prototype is preparing for its first flight, with ground tests ongoing [2, 4] - Pusher motors have been successfully tested and installed, and lifters are undergoing testing and shipment for installation [3] - Continuous enhancement is being achieved through the use of Iron Bird, rigs, and simulation [3, 10, 13, 16] - Suppliers are increasingly engaged for conforming vehicles [3, 21, 23] Infrastructure & Manufacturing - Infrastructure is being prepared for conforming prototypes at the Embraer site in São José dos Campos, Brazil [30, 31] - A hangar is ready for tooling, machinery, and equipment to assemble conforming prototypes [33] Commercial & Financial - The company has pre-orders for approximately 2800 eVTOL aircraft, valued at around $14 billion based on the current list price [35] - Potential revenue from Services & Support (EVE TechCare) is estimated at $1.6 billion with 14 customers in 8 countries [35] - Air Traffic Control (VECTOR) has 21 customers in 10 countries [35] - Research & Development (R&D) expenses for 1Q25 were $44.7 million, compared to $27.5 million in 1Q24 [36] - The company anticipates total cash consumption between $200 million and $250 million for 2025 [38]

Financial Performance - Eve reported a net loss of $48.8 million in Q1 2025, compared to a net loss of $25.3 million in Q1 2024, primarily due to increased R&D expenses of $44.7 million versus $27.5 million in the prior year[4]. - Research and development expenses for Q1 2025 were $44.7 million, compared to $27.5 million in Q1 2024, reflecting a 62% increase[64]. - The net loss for Q1 2025 was $48.8 million, compared to a net loss of $25.3 million in Q1 2024, indicating a 93% increase in losses year-over-year[64]. - Total current assets decreased from $312.8 million at the end of 2024 to $297.6 million by March 31, 2025[65]. - Total liabilities increased from $194.3 million at the end of 2024 to $228.0 million by March 31, 2025[65]. Cash Flow and Liquidity - Total cash consumption in Q1 2025 was $25.3 million, a decrease from $35.9 million in Q1 2024, with total liquidity reaching $410.3 million, sufficient to support operations through 2026[5][6]. - Eve plans to consume between $200 million and $250 million in total cash in 2025, compared to $141.2 million in 2024 and $94.7 million in 2023[33]. - Cash and cash equivalents at the end of Q1 2025 were $59.5 million, up from $56.2 million at the beginning of the period[68]. - Total liquidity as of March 31, 2025, is $410.3 million, a decrease from $428.6 million on December 31, 2024[74]. - Cash and cash equivalents increased to $59.5 million from $56.4 million in the same period[74]. - Net cash used by operating activities improved to $(24.9) million for the three months ended March 31, 2025, compared to $(35.8) million for the same period in 2024[75]. - Net cash provided by investing activities was $18.5 million for the three months ended March 31, 2025, compared to $(2.1) million in the prior year[75]. - Net cash provided by financing activities significantly increased to $93 million from $14.7 million year-over-year[75]. Development and Production - The company is advancing its eVTOL development, with the first full-scale prototype assembly completed and extensive ground tests currently underway[8][9]. - Eve has secured a Master Service Agreement with Embraer, which significantly drives R&D costs and engineering engagement for the development of its eVTOL aircraft[4]. - The company is preparing its first production site in Taubaté, Brazil, with an investment plan to achieve a capacity of 480 units per year[26][29]. - Eve plans to initiate a certification campaign for its eVTOL prototypes even before the Means of Compliance are published by ANAC, aiming for a faster certification process[23][25]. - The company has begun testing lifter motors and other systems to ensure readiness for the upcoming flight test campaign, with ANAC supervising these tests[42][43]. Market and Orders - Eve's order pipeline totals approximately 2.8K units, with a non-binding backlog value of about $14 billion[54]. - The current client base consists of 28 customers, with no single client representing more than 14% of the total order book[55]. - The Americas account for nearly two-thirds of Eve's backlog, with North America at 47% and South America at 18%[56]. - Eve has secured non-binding contracts for service solutions worldwide with 14 customers, representing 41% of the order book[57]. - Potential revenues from non-binding service contracts are estimated at $1.6 billion during the first few years of vehicle operation[59]. Regulatory and Industry Impact - The FAA issued a Special Federal Aviation Regulation that simplifies pilot training for eVTOLs, positively impacting the Urban Air Mobility market[18]. - Eve is focused on advancing the Urban Air Mobility ecosystem with a comprehensive approach, leveraging Embraer S.A.'s aerospace expertise[77]. Corporate Information - The company is listed on the New York Stock Exchange under the ticker "EVEX" since May 10, 2022[77]. - Forward-looking statements indicate optimism about future growth, but are subject to significant risks and uncertainties[78]. - The company does not assume any obligation to update forward-looking statements unless required by law[78]. - Investor relations can be contacted via email at investors@eveairmobility.com for further inquiries[79].

Revenue Generation and Commercialization - Eve has not generated any revenue to date as it continues to develop its eVTOL aircraft and other UAM solutions, requiring substantial additional capital for future operations [108]. - The company anticipates commercialization of its eVTOL services and support business beginning in 2026, followed by initial revenue generation from eVTOL sales starting in 2027 [115]. - The UAM market remains undeveloped, and future demand for eVTOL services is uncertain, which could impact revenue generation [115]. - The company has incurred net losses since inception and has not generated any revenue, expecting to continue this trend until sustainable commercial operations commence [134]. - The company expects to continue incurring losses and negative operating cash flows until sustainable commercial operations commence [134]. Partnerships and Market Position - Eve has signed non-binding letters of intent to sell approximately 2,800 eVTOL aircraft and has established partnerships with about 30 market-leading companies across various segments [120]. - The company plans to leverage its strategic relationship with Embraer to accelerate development plans and reduce costs [104]. - The company faces competition from focused UAM developers and established aerospace and automotive conglomerates, which may impact its market entry [117]. Research and Development - Eve is developing a next-generation Urban Air Traffic Management software, "Vector," aimed at enabling safe and efficient eVTOL operations in urban airspace [107]. - Research and development expenses increased by $17.3 million, or 63%, for the three months ended March 31, 2025, primarily due to the Master Service Agreement with Embraer [124]. - The company is focused on developing eVTOL aircraft and related technologies, with significant increases in R&D expenses expected as staffing and development efforts expand [123]. - Research and development expenses increased by $17.3 million to $44.7 million for the three months ended March 31, 2025, primarily due to intensified developmental activities with Embraer [124]. Financial Performance - Total operating expenses for the three months ended March 31, 2025, were $52.6 million, an increase of $18.7 million, or 55%, compared to $33.9 million for the same period in 2024 [122]. - Net loss for the three months ended March 31, 2025, was $48.8 million, representing an increase of $23.5 million, or 93%, from a net loss of $25.3 million in the prior year [122]. - Financial investment income rose by $1.6 million, or 67%, for the three months ended March 31, 2025, due to an increase in the average investment balance [128]. - Interest expense increased by $1.8 million for the three months ended March 31, 2025, primarily due to a larger outstanding debt balance compared to the prior period [130]. - The company reported a net loss of $48.8 million for the three months ended March 31, 2025, compared to a net loss of $25.3 million for the same period in 2024, representing a 93% increase in losses [122]. Cash Flow and Liquidity - Net cash used by operating activities decreased by $10.9 million to $24.9 million for the three months ended March 31, 2025, compared to $35.8 million in the prior year [137]. - As of March 31, 2025, the company had cash and cash equivalents of $59.5 million and total liquidity of approximately $410.3 million, sufficient to fund operations for at least the next twelve months [135]. - The company has cash and cash equivalents of $59.5 million and financial investments of $228.1 million as of March 31, 2025, totaling approximately $410.3 million in liquidity [135]. - Net cash related to investing activities increased by $20.6 million for the three months ended March 31, 2025, driven by increased redemptions of financial investments totaling $107.0 million [139]. - Net cash provided by financing activities decreased by $5.5 million for the three months ended March 31, 2025, mainly due to lower debt borrowings [140]. Financing and Debt - The company plans to utilize a combination of equity and debt financing to fund future capital needs, with no specific sources of additional funding currently decided [135]. - As of March 31, 2025, approximately $122.7 million is available to be drawn under the Company's debt arrangements [141]. - The Company entered into a loan agreement with BNDES for R$490 million (approximately $94.1 million) to support the development of the eVTOL [142]. - A financing agreement with BNDES was established for four lines of credit totaling approximately $87.9 million as of March 31, 2025 [143]. - The Company secured a loan agreement with BNDES for R$200 million (approximately $34.8 million) to support the second phase of the eVTOL project [144]. Regulatory and Economic Environment - The company plans to obtain necessary certifications from aviation authorities such as ANAC, FAA, and EASA to launch its commercial services [118]. - The Brazilian economic environment poses risks, including inflation and currency fluctuations, which could adversely affect the company's operations [111]. - The Company is classified as an "emerging growth company," allowing it to delay the adoption of certain accounting standards until they apply to private companies [149]. - The Company will lose its emerging growth company status no later than December 31, 2025, becoming subject to SEC's internal control over financial reporting auditor attestation requirements [151].

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 ...

Financial Data and Key Metrics Changes - The company raised $270 million in 2024 through a mix of debt and equity instruments, enhancing its liquidity position to $429 million, which is three times its 2024 cash consumption [10][26][30] - The net loss reported was $40 million for Q4 2024 and $138 million for the full year, with total cash consumption of $141 million [29][30] - Cash position increased from $241 million at the end of 2023 to $303 million at the end of 2024, reflecting a continuous focus on liquidity [31] Business Line Data and Key Metrics Changes - The total pre-order backlog stands at approximately 2,800 aircraft valued at around $14 billion, with non-binding letters of intent from 28 customers across nine countries [21][22] - The Eve TechCare aftermarket service suite has secured contracts with 14 customers, potentially generating up to $1.6 billion in revenue over the first few years of operation [22] Market Data and Key Metrics Changes - The company has 21 customers for its air traffic management solution, Vector, indicating a strong market position [23] - The management emphasizes the importance of developing a robust ecosystem for Urban Air Mobility, which includes partnerships with infrastructure and energy sectors [23][80] Company Strategy and Development Direction - The company is focused on advancing its eVTOL development, with plans to conclude ground tests and initiate flight tests in mid-2025 [32] - The strategy includes leveraging existing infrastructure while developing new vertiports and corridors to support eVTOL operations [80] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the certification process, highlighting ongoing engagement with Brazilian and U.S. certification authorities [32][63] - The company anticipates cash burn between $200 million and $250 million in 2025, primarily focused on eVTOL development [34][40] Other Important Information - The company completed the assembly of its full-scale engineering prototype and is preparing for its first flight [12][18] - The Basis of Certification by ANAC establishes airworthiness criteria for eVTOL in Brazil, marking a critical milestone for the company [11] Q&A Session Summary Question: Can you provide more color on the cash burn for this year? - The company expects cash burn to increase to between $200 million and $250 million, primarily focused on eVTOL development and production facility investments [40][42] Question: Can you discuss the order book and LOIs converting? - The order book decreased slightly to 2,800 aircraft, with management emphasizing the fluid nature of customer commitments tied to certification progress [49][52] Question: What are the differences between the current prototype and the conforming prototypes? - The current prototype is a simplified unmanned vehicle, while conforming prototypes will have the necessary redundancies and safety features for certification [56][57] Question: How many prototypes are expected to be built for certification? - The company plans to build five prototypes for the certification campaign, similar to previous Embraer programs [65][66] Question: Will the CapEx cover the full build of the manufacturing facility? - The total CapEx for the manufacturing plant is expected to be around $100 million, with $30 million allocated for 2025 [71][72] Question: Are you actively marketing the TechCare offering? - The company is actively marketing the Eve TechCare suite, which includes comprehensive support services for eVTOL operators [74] Question: Are there investments being made in infrastructure for eVTOLs? - The company is collaborating with authorities and private companies to ensure the necessary infrastructure is developed to support eVTOL operations [80]

Financial Data and Key Metrics Changes - The company raised $270 million in 2024 through a mix of debt and equity instruments, enhancing its liquidity position to $429 million, which is three times its 2024 cash consumption [10][26]. - The net loss reported for Q4 2024 was $40 million, with a total annual loss of $138 million [29]. - Cash flow from operations consumed $40 million in Q4 and $141 million for the full year, aligning with the guidance range of $130 to $170 million [30]. Business Line Data and Key Metrics Changes - The company invested $34 million in program development during Q4 and $130 million for the full year, primarily focused on eVTOL development [28]. - The total pre-order backlog stands at approximately 2,800 aircraft, valued at around $14 billion, with non-binding letters of intent from 28 customers across nine countries [21][22]. Market Data and Key Metrics Changes - The company has secured contracts with 14 customers for its Eve TechCare suite, potentially generating up to $1.6 billion in revenue over the first few years of operation [22]. - There are 21 customers for the air traffic management solution, Vector, indicating a strong market position [23]. Company Strategy and Development Direction - The company is focused on developing a complete eVTOL solution, including design, manufacturing, sales, and maintenance services [28]. - Plans for 2025 include concluding ground test phases and initiating flight test campaigns, with a goal to have the first flight by mid-2025 [32][34]. Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of certification progress for customer confidence in purchasing vehicles, indicating that the order book is fluid and subject to changes based on market conditions [50][52]. - The company is actively engaging with certification authorities to ensure a harmonized certification process across different regions [63]. Other Important Information - The company completed the assembly of its full-scale engineering prototype and is preparing for flight tests [12][18]. - The Basis of Certification by ANAC has been published, establishing airworthiness criteria for eVTOL in Brazil [11]. Q&A Session Summary Question: Can you provide more color on the cash burn for this year? - The company expects cash burn to increase to between $200 million and $250 million in 2025, primarily focused on eVTOL development and production facility investments [40][42]. Question: Can you discuss the order book and LOIs converting? - The order book decreased from 2,900 to 2,800 aircraft, but the dollar amount remains significant. The company is focused on customer solutions beyond just the vehicle [49][51]. Question: What are the differences between the current prototype and the conforming prototypes? - The current prototype is a simplified unmanned vehicle, while conforming prototypes will have the necessary redundancies and safety levels for certification [56][57]. Question: How many prototypes are expected to be built for certification? - The company plans to build five prototypes for the certification campaign, similar to previous Embraer programs [65]. Question: Will the CapEx cover the full build of the manufacturing facility? - The total CapEx for the manufacturing plant is expected to be around $100 million, with the majority spent in 2026 [71]. Question: Is the TechCare offering actively marketed? - The TechCare offering is being marketed to customers, focusing on ensuring operational availability and optimized operating costs [75]. Question: Are there investments being made in infrastructure for eVTOLs? - The company is working with authorities and private companies to ensure the necessary infrastructure is in place for eVTOL operations [80].

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 ...