Q2 2025 Eve Holding Inc Earnings Call
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Operator: It is now my pleasure to turn the conference over to Lucio Aldworth, Director of Investor Relations at Eve. Please go ahead.
Later, you will have the opportunity plus questions during the question and answer session.
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It is now my pleasure to turn the conference over to Lucio Aldworth director of Investor Relations at <unk>. Please go ahead.
Thank you operator, good morning, everyone. This is <unk> the director of Investor Relations at <unk> and I wanted to welcome everyone to our second quarter 2025 earnings Conference call.
Lucio Aldworth: Thank you, operator. Good morning, everyone. This is Lucio Aldworth, the Director of Investor Relations at Eve, and I wanted to welcome everyone to our Q2 2025 earnings conference call. Our CEO, Johann Bordais, and CFO, Eduardo Couto, are joining me on the call today, and after their prepared remarks, we will open the call for questions, at which point Luiz Valentini, our Chief Technology Officer, will join us for more technical questions. We have a deck with a few slides and additional pictures that show our achievements in the quarter as well as the testing phase of our full-scale prototype. The deck is on our site at ir.eveairmobility.com, so please feel free to download and follow it along. Let me first mention that today's conference call includes statements about events or circumstances that have not yet occurred.
Johan <unk> and CFO, a blood glucose joining me on the call today and after their prepared remarks, we will open the call for questions at which point, we saw in television our Chief Technical Officer will join us for more tactical questions wherever back with a few slides and additional pictures that show our achievements in the quarter as well.
As the testing phase of our full scale prototype the deck is on our site at IR E Air mobility Dotcom. So please feel free to download and follow along.
Well, let me first mention that todays conference call includes statements about events or circumstances that have not yet occurred. These are largely largely based on our current expectations and projections about future events and financial trends affecting our business and our future financial performance. These forward looking.
Lucio Aldworth: These are largely based on our current expectations and projections about future events and financial trends affecting our business and our future financial performance. These forward-looking statements are based on our current expectations and involve risks and uncertainties that could cause financial results to differ substantially from those expressed or implied in this conference call, and we undertake no obligation to update publicly or revise any forward-looking statements because of new information, future events, or other factors. For a more detailed list of these risks and uncertainties, please refer to our SEC filings available on our website. With that, I will now turn the presentation over to our CEO. Johann?
Statements are based on our current expectations and involve risks and uncertainties that could cause actual results to differ substantially from those expressed or implied in this conference call and we undertake no obligation to update publicly or revise any forward looking statements because of new information future events.
Thanks.
Or other factors.
For a more detailed list of these risks and uncertainties. Please refer to our SEC filings available on our website.
I will now turn the presentation over to our CEO Johan.
Thanks, Lucio good morning to all and welcome to our second quarter 2025 conference call.
Johann Bordais: Thanks, Lucio. Good morning to all and welcome to our Q2 2025 conference call. We had a very exciting Q2 with several important developments and we continue to advance our program development. In a nutshell, and we will talk about it in more details in the call, we unveiled our full-scale mock-up at the Paris Air Show in June with a new propeller configuration. We also announced our first firm order and signed additional LOIs. Last but not least, we are announcing today that we are bringing BETA Technologies to complement our suppliers list. BETA comes in with a proven and mature solution to the distributed propulsion of the eVTOL with the same lift and cruise aircraft configuration, and this will give Eve operating flexibility and optionality in our program. Our schedule remains unchanged with expected type certification and entry into service in 2027.
We had a very exciting second quarter with several important developments and we continue to advance our program development in a nutshell.
We'll talk about it in more details in the call we unveiled our full scale woke up at the Paris Air show in June with a new propel reconfiguration, we also announced our first firm order and sign additional annualize.
Last but not least we are announcing today that we are bringing better company to complement our suppliers' list better comes in with a proven and mature solution to the distributed.
Propulsion of the EV toll with the same lift in cruise aircraft configuration, and this will give eve operating flexibility and optionality in our program.
Our schedule remains unchanged with expected type certification and entry into service in 2027.
Starting with slide two our EV <unk> continues to advance and we redesigned the wing with a more aerodynamic profile for a more efficient crews. We are now offering a taxi wheeled version of the aircraft will facilitate grun operation and taxing and congested lending sites.
Johann Bordais: Starting with slide 2, our eVTOL continues to advance, and we redesigned the wing with a more aerodynamic profile for a more efficient cruise. We are now offering a taxi wheel version of the aircraft to facilitate ground operation and taxiing in congested landing sites. The DNA of our eVTOLs unchanged with 8 lifters and a pusher designed for short routes and a pilot and 4 passengers. Flying should be very simple with a single pilot control side stick supported by Embraer's 5th generation of the fly-by-wire. This is a proven technology that improves passenger comfort and safety. Now, slide 3 and 4 shows a few pictures of our full-scale mock-up that was unveiled at the Paris Air Show last June. This is a true representation of our commercial aircraft and features comfortable full flex configuration seatings for 4 passengers with a 32-inch pitch and external baggage compartment.
The DNA of our EV til is unchanged with eight lifters and a pusher designed for short routes and a pilot in four passengers flying should be very simple with a single pilot controls side stake supported by an <unk> fifth generation of the fly by wire.
This is a proven technology that improves passenger comfort and safety.
Now slide three and four shows a few pictures of our full scale mockup.
That was unveiled at the Paris Air Show last June this is a true representation of our our commercial aircraft and features comfortable full flex configuration settings for four passengers with a 32 inch pitch and external baggage compartment.
This makes it the ideal for short.
Johann Bordais: This makes it the ideal for short urban flight up to 60 miles, including trips to and from airports. The reception from customers, partners, government officials, and also stakeholders was extremely positive, reflecting the strong interest and the support to our vehicle design and attributes, which clearly demonstrate our aviation and certification DNA. Now, moving to slide 5. I am very happy to bring here our first LOI conversion of a letter of intent into a firm order from Revo. This is a helicopter operator with active helicopter airport shuttle and point-to-point operations in São Paulo region already.
Urban slide up to 60 miles, including trips to and from airports.
The reception from our customers partners government officials and also stakeholders was extremely positive, reflecting the strong interest and the support to our vehicle design and attributes, which clearly demonstrate our aviation and certification DNA.
Now moving to slide five I am very happy to bring here, our first LOI conversion of a letter of intent into a firm order from Raimo. This is L. A helicopter operator with active helicopter airports shuttle and point to point is being.
Being recorded on powder reading or being transcribed as a reminder, sunpower is the largest enthusiast helicopter market in the world with over 400 aircraft and more than 2000 daily flights.
Operator: This meeting is being recorded. This meeting is being transcribed.
Johann Bordais: As a reminder, São Paulo is the largest and busiest helicopter market in the world with over 400 aircraft and more than 2,000 daily flights. The city offers a great potential market for eVTOLs, and Revo will launch operations in São Paulo region with our aircraft. We're very proud of this partnership. Besides that, Revo also signed a contract for our TechCare aftermarket services. In total, the contract for 50 aircraft and services has a total potential value of $250 million. We expect that to start producing revenues in 2027. This firm order means that we'll begin to collect pre-delivery payment.
<unk> offers a great potential market for <unk>, and Revel will announce operations infill.
And so Paulo region with our aircraft, we're very proud of this partnership.
Besides that Revel also signed a contract for our tech care aftermarket services. So in total the contract for 50 aircrafts and services as a total potential value of $250 million we.
<unk> that the start producing revenues in 2027.
Now this firm order means that we'll begin to collect pre delivery payment. This will bring cash in the door and help to fund the assembly of the aircraft.
Johann Bordais: This will bring cash in the door and help to fund the assembly of the aircraft. We are going to collect a substantial amount of PDPs until the delivery date, very much in line with market practices, but for competitive reasons, we are not disclosing other specific terms of this contract. Slide 6 shows two additional LOIs we signed during the Q4 for a total of 104 eVTOLs. These are two new customers with services in Brazil, the United States, and Costa Rica who are also subscribing to the TechCare services, so they do appreciate the value proposition of our product and aftermarket offering. This is actually a great way to introduce the next slide. On slide 7, it shows the total pre-order backlog that now stands at approximately 2,800 aircraft for a total value close to $14 billion based on the list price.
We are going to collect a substantial amount of PDP until delivery date very.
Very much in line with market practices, but for competitive reasons, we're not disclosing other specifics terms of this contract.
Slide six shows two additional LOI, we signed during the quarter for a total of 140 <unk> tools.
These are two new customers with services in Brazil, the United States and Costa Rica were also subscribing to the tech care services. So they do appreciate the value proposition of our product and aftermarket offering.
This is actually a great way to introduce the next slide on slide seven it shows the total preorder backlog that now stands at approximately.
2800 aircraft for a total value of close to $14 billion based on the list price.
This now includes non binding letters of intent from 28 different customers as well as the firm order from Raimo <unk>.
Johann Bordais: This now includes non-binding letters of intent from 28 different customers as well as the firm order from Revo. These orders are from over 9 countries and different businesses, from mainlines to regional airline helicopter operators, ride-sharing platform, and leasing companies. Because maintenance and support guarantees the proper aircraft operation, we are highly focused on providing the best-in-class services and support to eVTOL's operators. Therefore, we have also secured contracts with 14 different customers for our Eve Tech Care suite of aftermarket products, which could bring up to $1.6 billion in revenue to Eve over the first few years of operations. Importantly, Eve Tech Care customers have placed LOIs to service around 1,100 aircraft, or about 40% of our pre-order book.
These orders are from over nine countries and different businesses from men lines, two regional airline helicopter operators ride sharing platform and leasing companies.
And because maintenance and supports guarantees the proper aircraft operation. We are highly focused on providing the best in class services and support to EBIT told as operators. Therefore, we have also secured contracts with 14 different customers for our eats take care suite of aftermarket products.
Which could bring up to $1 $6 billion in revenue to ease over the first few years of operations in.
Importantly, if take care customers have placed Hello wise to service around 1100 aircraft or about 40% of our preorder book.
As you can see we also have 21 different customers.
Johann Bordais: As you can see, we also have 21 different customers for our air traffic management solution called Vector, and I believe this reflects the market-leading value proposition we bring to our customers. Beyond that, together with our customers and authorities, we're also developing a strong network of partners in different areas such as infrastructure and energy to address one of the many challenges ahead for the urban air mobility, which is to create a whole new ecosystem besides simply developing an aircraft. Now, going to slide 8 and 9, you can see our more recent program advancement. Our full-scale engineering prototype is undergoing the last set of ground tests before it initiates its flight campaign.
Our air traffic management solution called vector.
I believe this reflects the market leading value proposition, we bring to our customers.
Beyond that together with our customers and authorities. We're also developing a strong network of partners in different areas, such as infrastructure and energy to address one of the many challenges ahead for the urban air mobility, which is to create a whole new ecosystem. Besides simply developing an aircraft.
Now going to slide eight and nine you can see our more recent program advancement.
Our full scale engineering prototype is undergoing the last set of ground test before it initiated flight campaign.
You may remember that we have already tested and installed the push of a motor a few months back and after extensive test on the list or is that the facilities of our suppliers. We have now started installing the first units in fact, the top picture here shows the propeller spinning on its first test on the prototype we are scared.
Johann Bordais: You may remember that we have already tested and installed the pusher motor a few months back, and after extensive tests on the lifters at the facilities of our suppliers, we have now started installing the first units. In fact, the top picture here shows the propeller spinning on its first test on the prototype. We are scheduled to receive the remaining motors shortly. In parallel, we signed with BETA an agreement to test their propulsion electrical motors on our prototype. Nidec continues committed and involved with our eVTOL, and they bring engineering and production expertise, while BETA comes in with a startup mindset and adds agility to our program with a proven and tested track record of lift and cruise eVTOL flights, along with their strong relationship with FAA.
To receive the remaining motors shortly.
In parallel we signed with better in agreement to test their propulsion electrical motors on our our prototype.
Need that continues committed and involved with our EV Tau and they bring engineering and production expertise.
While beta comes in with a startup mindset and adds agility to our program with a proven and tested track record of lifting Cruz <unk> flights along with their strong relationship with the FAA.
As always we're looking for the most optimal.
Johann Bordais: As always, we're looking for the most optimal possible design when it comes to safety, performance, reliability, and cost-effectiveness to deliver the most competitive aircraft to our customers. In that sense, Nidec and BETA are complementary to our eVTOL design. With that, we expect to start flying our prototype in the next few months. Lastly, as I mentioned earlier, we unveiled at the Paris Air Show our full-scale mock-up with a new rotor configuration. The rotor now features four blades. This is a design that generates less vibration and is quieter than the previous configuration. The blades have a fixed pitch and a mechanism to align the blades aligned reduce aerodynamic drag during the cruise phase of the flight. We also have a few pictures of our truck-mounted rig testing in real condition the aerodynamic drag of this new rotor setup.
Possibly design when it comes to safety performance reliability and cost effectiveness to deliver most competitive aircraft to our customers.
In that sense need that can better are complementary to our <unk> design.
With that we expect to start flying hour prototype in the next few months.
Lastly, as I mentioned earlier, we unveiled at the Paris Air show, our full scale mockup with a new rotary configuration.
Rotor now features for blades. This is a design that generate sleds vibration and it's quieter than the previous configuration. The blades have a fixed pitch and a mechanism to align the blades align reduce aerodynamic drag during the cruise phase of the flight.
We also have a few pictures of our truck mounted rig testing in real condition. The aerodynamic drag of this new rotor setup.
As you can see the blades are all in line and this rig helps us to define our load analysis on the entire motor propellers rig and validate the new blade configuration.
Johann Bordais: As you can see, the blades are all aligned, and this rig helps us to define our load analysis on the entire motor propellers rig and validate the new blade configuration. Now, on slide 10, you can see the progress of the final stage of testing the motors for our engineering prototype. As a reminder, the lifters were tested at the Nidec facilities for power output, energy consumption, vibration noise emission, among other metrics. Upon satisfactory results, they were installed into their respective nacelle, integrated into the system that controlled them, and finally spun on the eVTOL for the first time. We are going to follow the similar protocol with the Beta motors that will still arrive and should be ready to fly in the next few months. Finally, on slide 11, we updated our list of primary system and component suppliers currently engaged, including Beta.
Now on slide 10.
You can see the progress with the final stage of testing the motors for our engineering prototype.
As a reminder, the lessors were tested at the <unk> facilities for power output energy consumption vibration noise emission among other metrics and upon taxes factory results. They are they were installed into their respective net sale integrating into the system that control them and finally spun on the EBIT.
For the first time.
We are going to follow the similar protocols, where the better motors that will still arriving and should be ready to fly in the next few months.
And finally on slide 11, we updated our list of primary system and component suppliers currently engaged including better.
We follow a best of breed approach and select partners with aviation experience and that can support our certification efforts. We are very proud of all members of this list and I'm confident that we will have the best TV deal in the market available to the operators with a great design hydro dispatch ability and.
Johann Bordais: We follow a best-of-breed approach and select partners with aviation experience and that can support our certification efforts. We are very proud of all members of this list, I'm confident that we will have the best eVTOL in the market available to the operators with a great design, high dispatchability, and industry-low operating cost. I would like to invite our CFO, Edu, to go over our financials along with a checklist for our 2025 milestones.
<unk> low operating cost.
Now I would like to invite our CFO.
To go over our financials, along with a checklist for our 2025 milestones.
Now moving to slide 13 ease of preparation of company and our financials reflect mostly the costs associated with our program development.
Eduardo Couto: Thanks, Johann. Moving to slide 13. Eve is a pre-operational company, and our financials reflect mostly the costs associated with our program development. That said, I would like to highlight some of our numbers. Eve invested $55 million during Q2 in our program development, including our eVTOL, the Eve TechCare service and support solutions, and Vector, our urban air traffic management software. We continue to accelerate our program development with more engineers from Eve and Embraer, as well as higher engagement with suppliers. That explains the higher R&D expenses in the quarter. We also deployed around $8 million in SG&A during Q2. Including R&D and SG&A, Eve reported a net loss of $64 million in Q2 2025. We also recognized a charge related to the fair value of our outstanding warrants as the value of our shares increased in the quarter.
I would like to highlight some of our numbers you've invested 55 million during the second quarter.
Program development, including our <unk> that care services, and support solutions and vector or urban air traffic management software. We continue to accelerate our program development with more engineers from Eve and Embraer as well as higher engagement with suppliers that explains the higher R&D expenses in the quarter.
We also deployed around $8 million in SG&A during the second quarter, including R&D and SG&A, you've reported a net loss of 64 million in the second quarter 2025.
Also recognized a charge related to the fair value of outstanding warrants the value of our shares increased in the quarter and importantly, this is a noncash expense and does not impact our cash flow or liquidity position.
Eduardo Couto: Importantly, this is a non-cash expense and does not impact our cash flow or liquidity position. Now moving to cash flow. Our operations consumed $57 million in the quarter. This is almost twice the cash consumed in Q1, which had a temporary working capital gain as one of our invoices of around $15 million from Embraer is slipped to Q2. Still, the $83 million consumed in H1 of the year can be considered as a normalized level for our current development stage. We continue comfortable with our guidance for the full year of $200 to 250 million, which reflects our financial discipline, advantages of using Embraer's engineering team, as well as our increased efforts in the program development.
Now moving to cash flow, our operations consumed 57 million in the quarter.
This is almost twice the cash consumed in the first quarter, which had a temporary working capital gain as one of our voices of around 50 million from Embraer as lift through the second quarter still.
The 83 million consuming the first six months of the year can be considered as a normalized level for our current development stage, we continue comfortable with our guidance for the full year of 200 to 250 million, which reflect solid financial discipline advantages of using the Embraer engineering team as well.
It was our increased efforts in the program development.
Finally on liquidity, we ended the second quarter with 242 million in cash, including an additional disbursement of the credit line with the Brazilian development bank of $11 million.
Eduardo Couto: Finally, on liquidity, we ended Q2 with $242 million in cash, including an additional disbursement of the credit line with the Brazilian Development Bank of $11 million. These standby facilities continue to help Eve to preserve a solid cash position throughout the year. The total liquidity of $375 million at the end of the quarter includes our cash, all undrawn standby facilities, as well as a $50 million grant we announced during the quarter. We view our liquidity as sufficient to sustain our operations through 2026. Now, going to slide 13. We remain on track to deliver our milestones this year. As Johann detailed earlier, our first full-scale prototype is concluding the final tests and installations to start to perform its initial flights in the next few months. We now expect a first flight towards the end of the year.
Standby facilities continued to help EEP to preserve our solid cash position throughout the year with total liquidity of 375 million at the end of the quarter includes our cash all undrawn standby facilities as well as a 50 million grant we announced during the quarter we.
Our liquidity is sufficient to sustain our operations through 2026.
Now going to slide 13, we remain on track to deliver our milestones this year as Johan detailed earlier, our first full scale prototype is concluding the final stats installations through start to perform its initial flights in the next few months. We now expect the first flight towards at the end of the year.
As similar to <unk>, we also perform tests with the beta motors in our engineering prototype in the upcoming months before the first flight.
Eduardo Couto: As similar to Nidec, we also perform tests with the BETA motors in our engineering prototype in the upcoming months before the first flight. In parallel, we continue in talks with ANAC to detail the means of compliance, which are the specific tests that need to be conducted during the certification campaign. We expect those to be published by the end of the year, at which point we'll be able to begin our certification campaign. Also, we continue highly engaged with suppliers, working on the initial parts of our conforming prototypes. In parallel, the site to assemble these aircraft is starting to receive the necessary equipment and tooling. Lastly, our cash consumption in the year, despite the better H1, should stay in the guidance of $200 to 250 million, probably closer to the low end of the range.
In parallel we continually in talks with ANAC to detail the means of compliance which are the specific task that needs to be conducted during the certification campaign. We expect those to be published by the end of the year at which point, we will be able to begin our certification campaign.
Also we continue highly engaged with suppliers working on the initial parts of our conforming prototypes and in parallel the sites to assemble these aircrafts are starting to receive the necessary equipment and tooling.
Lastly, our cash consumption in the year. Despite the better first semester should stay in the guidance of 200 to 250 million probably closer to the low end of the range with that we conclude our remarks and I would like to open the call for questions. Operator. Please proceed.
Eduardo Couto: With that, we conclude our remarks, and I would like to open the call for questions. Operator, please proceed.
Thank you.
At this time I would like to ask a question. Please press the star one on your telephone keypad.
Operator: Thank you. At this time, if you would like to ask a question, please press star 1 on your telephone keypad. You may withdraw your question by pressing star 2. Once again, to ask a question, please press star 1 on your telephone keypad. We'll take our first question from Savanthi Syth with Raymond James. Please go ahead. Your line is open.
We draw your question by pressing star two.
Once again to ask a question. Please press star one on your telephone keypad.
And we will take our first question from Savi <unk> with Raymond James. Please go ahead. Your line is open.
Hey, good morning, everyone.
<unk>.
Savanthi Syth: Hey, good morning, everyone. Maybe a question for you, just on a kind of housekeeping side, just on the cash consumption, you're progressing well right now, especially maybe tracking below that $200 to 250, and you also do have the grants that you got recently. Is it fair to assume that it'll be close to the lower end and maybe below, and you can consider the grants as well?
And maybe a question for you David just on that.
Kind of housekeeping side, just on the cash consumption of Eric you're progressing.
Well right.
Right now, especially like maybe tracking below that 250.
Also do you have the grants that you got recently is it fair to assume that it will be close to the lower end and maybe below and you can consider the grants as well.
Hey, Hi, Savi.
We continue to monitor right our expenses very closely we are very diligent where we spend our money and we make sure we leverage right. All the resources that we have from Embraer. So that we don't need to duplicate costs.
Eduardo Couto: Hey. Hi, Savi. We continue to monitor our expenses very closely. We are very diligent where we spend our money, and we make sure we leverage all the resources that we have from Embraer so that we don't need to duplicate costs. With that, we have been able to optimize our expenses. In H1, we burn around $85 million, a little less than $85 million. H2 should be a little more. That's the reason we are guiding towards the low end of the range. Maybe $200, maybe slightly below. There's a lot of investment on the development. We're going to continue to advance. We're going to be doing a lot of tests. We're excited. Yeah, I believe we are leveraging more from Embraer, and because of that, we have been able to optimize our cash consumption.
With that we have been able to optimize our expenses right in the first half.
We burn around the 85 million little less than $85 million.
Second half should be a little more so that's the reason we are guiding to.
Towards the end of the <unk> the low end of the range right, maybe 200, maybe slightly below.
But you know we.
There's a lot of investments on the development.
We're going to continue to advance we're going to be doing a lot of that so we're excited but yes. I believe we were leveraging more from embraer and because of that we have been able to optimize our cash consumption.
Very helpful. Thank you and then maybe if I can ask on the AD.
Savanthi Syth: Very helpful. Thank you, Edu. Then maybe if I can ask on the engineering flight testing, looks like maybe it's slipping a little bit, now late 2025, early 2026, which is not surprising, but you also mentioned kind of moving forward with building certification-conforming aircraft. I'm guessing those are just building the long-range components. How long do you think you need to fly the engineering prototype before you can finalize the design and can really start assembling the certification aircraft?
Engineering flight testing looks like maybe it's slipping a little bit late.
<unk> 25, early 26, which is not surprising but you also mentioned kind of moving forward with building certification conforming aircraft, but I'm guessing those are just building that kind of a long range components.
How long do you think you need to fly the engineering prototype before you kind of finalized the design in and can really start assembling the certification MACRA.
This is Louis Ellington, you so with respect to the flight of the confirming prototypes we are still.
Luiz Valentini: Savi, this is Luiz Valentini. With respect to the flight of the conforming prototypes, we are still planning that for next year, towards the end of next year also. We still have time to perform the conforming flight test prototype campaign, which is composed of a development phase and also a certification phase, leading us to certification still in 2027. This engineering prototype plan and development is parallel to this path of developing the conforming prototypes with the schedule I mentioned, then leading to the certification in 2027.
Planning that for.
Next year.
Towards the end of next year also so we still have time to perform the conforming flight test prototype campaign, which is composed of a development phase and also certification phase.
<unk> us to certification.
Still in 2027, so the.
This engineering prototype plan and development is parallel to this path of developing the confirming prototypes with the schedule I mentioned, then leading to the certification in 2007.
And maybe can I ask all the kind of the design changes reflected in this engineering prototype that will kind of go directly onto the certification aircraft that Youre building.
Savanthi Syth: Maybe can I ask, are the design changes reflected in this engineering prototype, or that will go directly onto the certification aircraft that you're building?
Yes. So at this point, we don't have any significant changes with respect to this testing that it do and Johan mentioned at the beginning of the call. The other modifications such as optimization on the wings and things like that those are already part of the engineering prototype configuration, there or not.
Luiz Valentini: Yeah. At this point, we don't have any significant changes with respect to this testing that Edu and Johann mentioned in the beginning of the call. The other modifications, such as optimization on the wings and things like that, those are already part of the engineering prototype configuration. They're not I'm sorry, on the conforming prototype configuration. They're not on the engineering prototype, because this is a vehicle that is already assembled. These most recent changes are not on them, which for us is not significant because, as we mentioned before, this engineering prototype helps us to calibrate our models and helps us in estimates. It doesn't have the same configuration as the conforming prototypes.
I'm sorry on the confirming prototype configurations. They are not on the engineering prototype because this is a vehicle that has already assembled so these most recent changes.
Not on them, which for us is not significant because as we mentioned before this engineering prototypes helps us too.
Calibrate our models and helps us an estimate so it doesn't have the same configuration as the conflicting.
Considering the confirming prototypes.
Understood. Thank you.
Savanthi Syth: Understood. Thank you.
Thank you.
Our next question comes from Andres Sheppard with Cantor. Please go ahead. Your line is open.
Operator: Thank you. Our next question comes from Andres Sheppard with Cantor. Please go ahead, your line is open.
Hey, everyone. Good morning, congrats on the quarter, thanks for taking our questions.
Andres Sheppard: Hey, everyone. Good morning. Congrats on the quarter. Thanks for taking our questions. Hi, Johann, hi, Edu, and hi, Lucio. Congrats on the unveiling of the aircraft and on the first binding order. Certainly exciting there. Quick question, just maybe following up on Savanthi Syth's question regarding the test flight campaign, maybe a different way of asking is can you just maybe give us a sense of how you're envisioning this ramping up, starting with hover flights and then what are the plans to ramp up the test flight campaign, and is the plan still to deploy 5 prototypes for conforming test flights? If so, what's the timeline for that? Thanks.
Hi, Johann how you're doing in hydro <unk>.
And congrats on the unveiling of the aircraft and the first binding order so certainly exciting there.
Quick question, just maybe following up on <unk> question regarding the test flight campaign, maybe a different way of asking is can you just maybe give us a sense of kind of how you are envisioning this ramping up starting with hoverflies and then kind of what are the plans to kind of ramp up the test flight.
Campaign and is the plan still to deploy five prototypes for conforming test flights and if so kind of what's the timeline for that thanks.
Sure.
Yeah. Thanks, Andreas So the plan is still the same so starting from the end of your question. We're still planning to five prototypes. There's still some discussion on the amount of touch points that will be on each one and if we should bring in another six prototypes. So that's still something that may change in the future, but we're still planning to grow with.
Luiz Valentini: Yeah, thanks, Andreas. The plan is still the same. Starting from the end of your question, we're still planning the 5 prototypes. There's still some discussion on the amount of the test points that'll be on each one and if we should bring in another 6 prototypes. That's still something that may change in the future, but we're still planning to go with the 5 prototypes and the timeline we had previously. With respect to the steps on the flight test campaign, we are still very much in line with the concept of building maturity on the building blocks we have for the vehicle. We will definitely spend some time focusing on the hover flight of the vehicle, since this is one of the building blocks on which we don't have as much previous experience in comparison to others such as cruise flight, right?
The five prototypes in the timeline, we had previously with respect to the steps on the flight test campaign.
<unk>.
Still very much in line with the concept of building maturity on the building blocks, we have for the vehicle. So we will definitely spend some time focusing on the hover flight of the vehicle. Since this is one of the building blocks on which we don't have as much previous experience in comparison to others such as crew.
Slide where we bring the experience of Embraer and previous projects right. So we will spend some time focusing on Hubbard played in.
Luiz Valentini: Where we bring the experience of Embraer in previous projects, right? We will spend some time focusing on hover flight. That relates to the controllability of the vehicle, the power needed, the management of the systems, temperatures, power, things like that. Transition between hover and cruise is also an important phase. It's a very short one for the vehicle, but it's very important that it's executed smoothly, both in terms of, let's say, technical aspects, but also for the comfort and the user experience of the passengers. Finally, after that, move to cruise, where again, we believe we have more maturity based on previous experience of other projects.
And that relates to the controllability of the vehicle the power needed the managing and management of the systems temperatures power things like that and then transition between hover and crews is also an important phase. So there is a short one for the vehicle, but it's very important that is executed.
Smoothly both in terms of let's say technical aspects, but also for the comfort and the user experience of the passengers.
And then finally after that move to cruise.
Again, we believe we have more maturity based on previous experience of other projects.
Got it Super Super helpful. I appreciate that color and maybe just as a quick follow up if I may.
Andres Sheppard: Got it. Super helpful. I appreciate that color.
Luiz Valentini: Okay.
Andres Sheppard: Maybe just as a quick follow-up, if I may, just regarding the order book. Curious on how you're thinking about it. Is the plan to continue to build up the order book? Is it to begin converting some of those LOIs into binding orders? Should we expect any PDPs from the order book? Just any granularity there or thoughts will be helpful. Thanks.
Just regarding the order book I'm curious on kind of how youre thinking about it.
Is the plan to continue to build up the order book.
Again, converting some of those otherwise into binding order.
Should we expect any PD piece from the order book, just any granularity there or thoughts would be helpful. Thanks.
Jan speaking you Andrea. Thank you. Thank you for your comment about the unveiling of the <unk>.
Johann Bordais: Yeah. Johann speaking here, Andres Sheppard. Thank you. Thank you for your comment and about the unveiling of the mock-up at the Paris Air Show. Well, the order book is definitely what we've been working in the beginning, where we work on this order book with the LOI because we wanted to put the customer, the operator, at the center of what we do. I've been saying this before. This really proves the solution that we're giving to the operators, not only the aircraft, but also the service and support, make sure they can operate reliably. They can also make sure that they fly, they keep flying on a regular basis, and have the most optimal operating cost. Also, UATM is around the corner.
Look up at the Paris Air show.
Well the order book is definitely what we have been working in the beginning what we work on this order book with the other way because we wanted to.
But the customer the operator in the center of what we do and and I've been saying this before I mean, this really improves the solution that we're giving to you up to the operators not only the aircraft, but also the service and support to make sure. They can operate reliably. They can also make sure that they fly to keep flying on the regular.
Basis and have the most optimal.
Operating cost and also uhm.
Around the corner, we will have to we can begin with the with what we have today in the traffic management, but eventually putting thousands of vehicle in the air and the low altitude airspace will need there. So I think customers understand this and they want to engage that's why it starts with LOI basically it says that we're working together with the finding the solution together the partnership.
Johann Bordais: We can begin with what we have today and the traffic management, eventually putting thousands of vehicle in the air and the low altitude airspace, we'll need this. I think customers understand this, and they want to engage. That's why it starts with LOI. Basically, it says that we're working together, we're defining the solution together. They participate in steer co with us where we give them regular feedback on how the product development and also the service support solutions that we're developing for them. Naturally, as you go forward and you get closer to the certification date, then we start converting. It's exactly what happened with Revo. I think it's just important for them to prepare the entrance service. This is why we're 2 years away from the entrance service.
And standard to go with Us, where we give them regular feedback on how the product development and also the service support solutions that were in.
Developing for them and naturally as you go forward and you get closer to the certification date, then, though we we start converting it was exactly what happened with waiver.
Yeah, I think it's important for them to prepare the infant service and this is why we're two years away from entering the service the ecosystem needs to be ready and and with this contract. They can go back to the different stakeholder and say okay. Now. This is real this is happening.
Johann Bordais: The ecosystem needs to be ready. With this contract, they can go back to the different stakeholder and say, Okay, now this is real. This is happening. My first PDPs, and Eve is developing this vehicle, and we need to be ready. We're not looking to add necessarily. We add only when it makes sense, when we have the right partner with the right mission. Okay? This is what we've been working on. Of course, once we have started converting the first one, we'll also have, and if you pay attention to the press release we did at the Paris Air Show, it says São Paulo area, right? The Stellantis customer for São Paulo. You can imagine that we're already working with other customers in Brazil, but also United States, to convert other LOI.
My first PDP.
And Ive is developing this vehicle and we need to be ready. So we're not looking to add the mitsui, we add not only when it makes sense, where we have the right partner with the right mission, Okay and.
This is what we've been working on and then of course once we have start converted the first one.
Also have an issue.
Tension to the press release, we did at the Paris Air show It says.
So Paulo area right. There's the launch customer for example, you can imagine that where we're working with other customers in Brazil, but also in United States to convert other anyway.
Excellent. Thanks, Johann very very clear I appreciate that and congrats on all the recent momentum I'll pass it on.
Andres Sheppard: Excellent. Thanks, Johann. Very, very clear. Appreciate that and congrats on all the recent momentum. I'll pass it on.
Thank you Adam.
Thank you. Our next question comes from Alan Page with Jefferies. Please go ahead. Your line is open.
Johann Bordais: Thank you, Andres Sheppard.
Operator: Thank you. Our next question comes from Sheila Kahyaoglu with Jefferies. Please go ahead. Your line is open.
Hi, guys. Thanks for the question.
I just wanted to touch on some of the changes in the competitive landscape Adobe and blade announced.
Sheila Kahyaoglu: Hi, guys. Thanks for the question. I just wanted to touch on some of the changes in the competitive landscape. Joby and Blade announced that Joby would acquire Blade's passenger business earlier this week. How do you think about how that impacts your competitive dynamic and your positioning, especially given Blade had been part of your 2,800 LOIs? That combined with your partnership with BETA Technologies, how do you envision the ecosystem developing from here?
W Wood acquired Blitz passenger business earlier this week.
How do you think about how that impacts your competitive dynamic and your positioning, especially given blades had been part of your $2 eight.
<unk> thousand LOI.
And.
That combined with your partnership with data how do you envision.
Ecosystem developing from here.
Hello Alan.
We welcome very much this news about.
Johann Bordais: Hello, Sheila Kahyaoglu. We welcome very much this news about Joby investing in Blade. I think this is exactly proving our point, what we've been saying since the beginning. There is this transition happening and the electrification of the vertical flights from the helicopter to eVTOL, and this is the proof of it. We're excited. We think it's a good news because this is what we've been preaching. It's just getting together. There's room for everyone. Joby going and getting a platform, a ride-sharing platform, is positive for all the eVTOL manufacturer. We don't see, and there's some spiritual point. I mean, we don't see that it's going to take out our backlog with the 200 vehicle that we have. We have a good relationship with Blade, and it's the ride-sharing platform, remember?
Toby investing blade I think this is exactly proving our point, what we've been saying since the beginning there's this transition happening in the electrification of the vertical flights from <unk> to <unk>. This is approval of it so.
We're excited we think it's a good news because this is what we've been preaching.
Getting together and there's room for everyone.
Joe will be going and getting a platform ridesharing platform as positive for all the EV.
Manufacturer, we don't see in there is that at a point I mean, we don't see that it's going to take it.
Got to get paid out in our backlog with a two 100 vehicles that we have we have a good relationship with blaze and.
It's the ridesharing platform remember I mean, it's like and then I'm going to make a joke a little bit here, but slightly over asking their drivers to drive on a Toyota is right. I mean, it's just that you need all the Oems you need various OEM for the REIT mission each of the <unk> as its mission and same thing for the early adopters that are multi OEM latest.
Johann Bordais: I mean, it's like, and then I'm going to make a joke a little bit here, but it's like Uber asking their drivers to drive only Toyotas, right? I mean, it's just you need all the OEMs. You need various OEM for the right mission. Each of the eVTOL has its mission, and same thing for the helicopter. They're multi-OEM. Blade is a multi-OEM today. We don't see it as an issue today for us.
Multi OEM today.
So we don't see it as a.
Hi.
As an issue today for us.
Great. Thank you.
I'll pass it on.
Sheila Kahyaoglu: Great. Thank you. I'll pass it on.
Thank you.
We will move next with Austin Muller with Canaccord. Please go ahead. Your line is open.
Operator: Thank you. We will move next with Austin Moeller with Canaccord. Please go ahead. Your line is open.
Hello. Good morning, just my first question here what is the difference in performance between the motor that's being acquired from beta and the one that you were using and testing previously and are you still sourcing a battery pack from VA or is that going to change.
Austin Moeller: Hello, good morning. Just my first question here. What is the difference in performance between the motor that's being acquired from BETA and the one that you were using in testing previously? Are you still sourcing a battery pack from BAE, or is that going to change?
Hi, Austin, so with respect to the battery nothing changes there were still developing with B E.
Luiz Valentini: Hi, Austin. With respect to the battery, nothing changes there. We are still developing with BAE and still in the same requirements, same products, same line we were before. On the differences between the motors from Quebec and from Beta, there are mainly differences with respect to cooling system, for example. There is a little bit on the architecture of the motor. The size of the motor is a little bit different between the two solutions. The control is different, and there is some differences on the way that it integrates into the vehicle, and so how it communicates and how some of the protections are made. Basically, these are differences that we believe that warrant us a phase of testing, so we can, with these differences, find what is best for the vehicle as a whole.
And still on the same requirements and product line, we were before on the differences between the motors from the back end from data.
Mainly differences.
With respect to cooling system. For example, there is a little bit on the architecture of the motor. So the size of the motor is a little bit different between the two solutions.
Control is different and there are some differences on the way that it integrates into the vehicle and so how we communicate and how some of the protections. There made basically these are differences that we believe that one of our phase of testing. So we can with these differences find what is best for them.
Equal as a whole so we optimize the global solution based on these differences that the systems bring to us and so by doing this step we are looking for a solution that is best for the vehicle overall and Thats why we believe this phase of testing, we will increase our maturity moving forward.
Johann Bordais: We optimize the global solution based on these differences that the systems bring to us. By doing this step, we are looking for a solution that is best for the vehicle overall, and that's why we believe this phase of testing will increase our maturity moving forward for the flight test campaign.
For the flight test campaign.
Okay.
Are you able to comment on the speed of the new rotor blades and do you expect additional design changes to the aircraft before building the conforming units for ANAC to evaluate.
Austin Moeller: Okay. Are you able to comment on the tip speed of the new rotor blades, and do you expect additional design changes to the aircraft before building the conforming units for ANAC to evaluate?
Yes, so thats a very good point, because the tip of the blade tip speed is one of the main parameters that dictate the noise that is emitted by the vehicle, which again is one of the important characteristics of the vehicle when we think of bringing them into urban areas.
Luiz Valentini: Yeah. That's a very good point because the blade tip speed is one of the main parameters that dictates the noise that is emitted by the vehicle, which again, is one of the important characteristics of the vehicle when we think of bringing them into urban areas, and the way we relate to the communities where the vehicles will be operated, right? This change of motors that we are testing, they don't affect the tip speed. We're maintaining the requirement for tip speed.
Way, we relate to the communities, where the vehicles will be operated right. So this change of.
Motors that we are testing it.
Don't affect the speed and so we're maintaining the requirement for speed. So that we maintain the level of noise of the vehicle.
Luiz Valentini: That we maintain the level of noise of the vehicle, and keep that at a level that is low enough not to significantly impact the areas where we will be operating. In that sense, there is no change. Then just completing your question with respect to changes that will be brought to the conforming prototypes, of course, we will bring any learnings that we believe are relevant through this phase of testing with the engineering prototype to the certification vehicle and to the vehicle that will go into service. That is one of the objectives is to bring these solutions that we optimize into this vehicle as much as we can to the vehicle that will be certified and go into service.
And keep that at a level that is low enough not to significantly impact the areas, where we will be operating.
So in that sense. There is no change and then just completing your question with respect to changes that will be brought to the conforming prototypes of course, we will.
Bring any learnings that we believe are relevant through this phase of testing with the engineering prototype to the certification vehicle and to the vehicle that will go into service. So that's one of the objectives is to bring this these solutions that we optimize into this vehicle as much as we can to the vehicle that will be certified and go into service.
Great. Thank you for filling me in.
Mhm.
Austin Moeller: Great. Thank you for filling me in.
Luiz Valentini: Welcome.
Thank you.
Our next question comes from Marcelo Motta with Jpmorgan. Please go ahead. Your line is open.
Operator: Thank you. Our next question comes from Marcelo Motta with JPMorgan. Please go ahead. Your line is open.
Hi, everyone. Thanks for taking the question.
Marcelo Motta: Hi, everyone. Thanks for taking the question. It's just one. It's regarding capital needs. You mentioned that you feel very comfortable until the end of 2026, and, as you mentioned in previous calls, you have been exploring the options for 2027. You guys have this shelf registration that was filed during the quarter to raise money. The sector had been doing pretty well. Just wondering if you can comment anything about that, or how you see the current state of the sector and what else do you think could improve, or what are the current risk, and what type of de-risk would you be expecting to be more optimistic about the outlook for eVTOL. That's it. Thank you.
One is regarding you know kept Tony you mentioned that you feel very comfortable and through the end of 2006 and.
As we mentioned in previous calls you know you have been exploring the options for 27, you guys have the shelf registration that was filed.
During the quarter, you know tool to raise money to the sector has been doing pretty well. So just wondering if you can comment anything about that or how do you see the current.
State of the of the sector and what al spoofing could improve or one out of the current threes can what type of the the risk would you be expecting to be more optimistic about the the upfront part of it though that's it. Thank you.
Thanks, Martin for the question had to do here.
Eduardo Couto: Thanks, Motta, for the question. It's Edu here. We continue to feel very good, right, in terms of cash. Only the cash we have in hands gives us more than around 18 months, right? We have plenty of cash to get at the end of 2026. If you add the standby facilities we have already signed, the recent grant that we raised, that gives us probably, we're talking about almost $400 million, which gives us 2 full years, right? Probably until, I would say, mid-2027. The position is good. We still need some resources, right, to get certification. We have different options, right? You mentioned the S-3, the shelf registration we have, we also have interesting discussions in terms of long-term loan ones, right? Similar facilities to what we already have been drawing from BNDES and also from Citibank. Different from some other players, right?
We continue to feel very good right in terms of cash only the cash rehabbing hands gives us.
More than around 18 months right. So we have plenty of cash to get at the end of 2026, if you add the standby facilities as we have already signed the recent grants that we raise that gives us.
Probably we're talking about almost 400 million, which gives us a true four years right so probably until.
I would say meet the 'twenty to 'twenty seven.
So the position is good we still need some resources rights to get the certification.
We have different options right you mentioned, yes, three the shelf registration we have but we also have interesting discussions in terms of long term lower ones right.
Similar facilities to what we already have been drawing from from band is an awesome from Citi Bank. So I have a different from some other players right given the.
The strength of the group right being part of the Emera group, we have I would say more options in terms of funding and we are analyzing we oh, we're not in a hurry, but you know we we we need to assess the best option and and execute at the right time.
Luiz Valentini: Given the strength of the group, right, being part of the Embraer group, we have, I would say, more options in terms of funding. We are analyzing. We are not in a hurry, but we need to assess the best option and execute at the right time.
Thank you though.
Marcelo Motta: Thank you, Edu.
Thank you.
Our next question comes from Andrew <unk> with BTG. Please go ahead. Your line is open.
Operator: Thank you. Our next question comes from Andre Madrid with BTIG. Please go ahead. Your line is open.
Hey, good morning, Thanks for taking my question.
Andre Madrid: Hey, good morning. Thanks for taking my question. Quick one on the eVTOL landscape. We've seen a number of partnerships between eVTOL names and defense contractors emerge for the development of defense use cases. Could we see Eve pursuing similar partnerships?
Quick one on the.
On the EBITA landscape I mean, we've seen a lot a number of.
Partnerships between the Vitol names and defense contractors emerge from.
The development of it.
Defense use cases could we see pursuing similar partnerships.
Andre This is sorry got mixed up with the microphone here.
Johann Bordais: Andre, yeah, this is Johann. I'm sorry, got mixed up with the microphone here. Well, since the beginning of Eve, it's a matter of focus, and we're really working on the UAM. It's the 100, 150 km market we see. By the way, we released our market outlook at the Paris Air Show. We were the first OEM to put our experience out there and all the discussion that we've been having with all the stakeholders. We do confirm that we believe that the UAM will go for urban dense position area. This is also, Raul was confirming what we're saying. It's a matter of focus. At the same time, we always look. This is also one of the advantage of having Embraer, that can bring the technology development analysis and all the bandwidth to look at different technologies.
Yeah.
Well since the beginning some.
So my real focus and we're really working on the MSG 150 kilometers market.
And then by the way we believe we are.
Released our market outlook at the Paris Air show and.
We were the first OEM to.
With our experience out there and all the discussion that we've been having with all the stakeholders and and we do confirm that we believe that the OEM will go for urban dense listen area and this is also revel is confirming what we're saying so.
It's a matter of focus at the same time, we always look and this is also one of the advantage of having embraer.
That can bring the technology development analysis and all the bandwidth we will look at different technologies and we're looking at the possibility of.
Johann Bordais: We're looking at the possibility of getting into a hybrid solution for the vehicle, not changing the core structure of the vehicle, and for specific markets. Defense could be one of them. To remind you that we do have an LOI with BAE Systems, which also looking at different markets as defense, whether it's in the US or UK. Yes, we are looking into this, but the focus is still to be certifying the vehicle that we're offering, the fully electrical.
Getting into a hybrid.
Solution for the vehicle not changing.
The core structure of the vehicle and therefore specific markets defense could be one of them, but to remind you that we do have.
While with VA.
System.
And which also looking at different market as defense, whether it's in the U S or U K and so.
So yes, we are looking into this but the focus is still mostly.
Certifying the vehicles that we're offering a fully electric.
Got it got it very helpful. I'll leave it to one thanks so much.
Andre Madrid: Got it. Very helpful. I'll leave it to one. Thanks so much.
Thank you.
And this will conclude our Q&A session I will now turn the call over to Lucio Aldworth for closing remarks.
Operator: Thank you. This will conclude our Q&A session. I will now turn the call over to Lucio Aldworth for closing remarks.
Thank you Nick and thanks, everyone, who joined the call today as you can see we accomplished several important milestones in the past quarter were fully engaged moving faster there is a whole lot more to come in the next few quarters.
Lucio Aldworth: Thank you, Nikki. Thanks everyone who joined the call today. As you can see, we accomplished several important milestones in the past quarter. We're fully engaged, moving fast, and there's a whole lot more to come in the next few quarters. We're going to keep updating you guys on our progress throughout the next few quarters, and we look forward
So we're going to keep updating you guys on our progress throughout the next few quarters and we look forward to meet you in the upcoming events, we're going through and as always if you have any questions. Please don't hesitate to reach out to me or my team.
Lucio Aldworth: to meet you in the upcoming events we're going to attend. As always, if you have any questions, please don't hesitate to reach out to me or to my team. Thanks. Have a great day. Thank you.
Thanks and have a great day. Thank you.
Thank you.
This does conclude today's program. Thank you.
Operator: Thank you. This does conclude today's program. Thank you for your participation. You may disconnect at any time.
You for your participation you may disconnect at any time.