Q3 2025 Vertical Aerospace Ltd Earnings Call & Business Update
Good morning. My name is van and I will be a conference operator. Today at this time I would like to welcome everyone to Vertical Aerospace 2025 third quarter earnings call
Allies have been placed on mute to prevent any background noise.
After the speaker's remarks, there will be a question and answer session.
If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, press star 1 again,
thank you.
Now let's turn the call over to Jillian. Levin IR lead at vertical Aerospace you may begin your conference.
Good morning all. I'm delighted to welcome you to Vertical Aerospace, third quarter business and strategy update calls.
Before we get started, I would like to remind you that during today's call, we'll be making forward-looking statements.
These statements involve risks and uncertainties that may cause actual results to differ materially.
Any forward-looking statements. We make are based on assumptions as of today. We undertake no obligation to update. These statements as a result of new information or future events.
We posted an accompanying, slide deck to our investor relations website at investors.com vertical aerospace.com, which contains detailed information on forward-looking statements.
For more complete discussion, about these risks and uncertainties, we have filed our 2025 third quarter financial statements with the SEC earlier today, please. Now let me hand it over to our chairman Donnell flattery.
Good morning, and thank you all for joining. The vertical Aerospace, third quarter business update, call,
Be before we get started though, I wanted to share with you a never-before-seen image of our new certification aircraft design and doesn't it look cool. We look forward to formally unveiling. The full-scale aircraft on December 10th in London.
And please reach out directly to our IR team. If you would like to join us on what will be a very special occasion.
I'm delighted to lead the call today with our Chief Executive, Stuart Simpson. My name is Donald Slattery, and I am the Chair of Vertical Aerospace.
I worked in the global Aerospace industry, now for nearly 4 decades.
And along the way. Founded 2 of the top 3 aircraft lezzers in the world today including Avalon
I want to share with you why. We believe vertical Aerospace is a leader in the Evol sector.
We want to update you on our progress and, importantly, outline the top priorities going forward for myself and the management team.
On slide 4.
You will see we have 6 items to cover today.
Stuart and I do our job.
you should walk away from this call with Clarity on several key areas and in particular around our flight test program and aircraft design
And we will also spend time on framing the valuation Gap that exists between ourselves and our competitors.
Turning to slide 5.
We've spoken extensively.
About the fourth and the final stage of our flight test program, the piloted transition flight and why this maneuver is so critical.
So, rather than just tell you, we'd like to show you what this entails.
So, let's take a look at this video.
Transition brings vertical lift and forward flight together.
This allows the VX4 to operate without a Runway.
After takeoff, above 15 ft, the front propellers dropped by 90° as the speed built.
At around 80 knots the rear propeller stove to improve aerodynamics.
Once the aircraft moves from a hover to wingborne State, significant lift is being generated by the wing just like a regular plane.
This means less power is needed from the propellers and the battery system making wingborne mode fast and more efficient.
At around 850 RPM the design of the propellers. Renders, the aircraft almost silent from the ground.
As the aircraft reaches, the end of the flight speed is decreased to around 18 knots and the transition process begins in reverse.
At the point.
The test is complete and the technology proven.
So what you saw there?
Is a demonstration of end to end pilot of transition.
And transition flight is the critical de-risking step for the VX4 development and our certification program.
It represents the most material milestone in our history. And importantly this is a key Point. All under the oversight of the UK, CAA our home regulator
Plus the video showed this Final Phase transition is actually the culmination of a 5-stage test like Campaign, which I'm glad to say will begin later this week subject to receiving final permits to fly from the UK CIA.
And we expect these stages to be completed across 11 test flights in total.
Once all 5 stages are completed.
Vertical will be the first Evol OEM of our aircraft's size to have completed this step under UK CIA regulatory oversight.
This is an industry first and it is materially ahead of all of our competitors bar 1.
Turning to slide 7.
Verticals approach has always been.
Starts slow to finish Fast.
From day 1, we have maintained a transparent measurable and clear work scope.
We are the only team in the industry with extensive aerospace certification experience.
Our senior team has certified over 30 aircraft or propulsion systems, bringing Decades of invaluable learning and experience.
As you may know, we have flown under a permit to fly, oversight by the UK CAA
It's important. You understand this because it requires rigorous oversight ongoing demonstration of compliance routine, inspections and Joint accountability with our regulator
Direct oversight by the FAA.
This strengthened oversight means that we have front-loaded our certification process with over 3 and a half thousand hours of CAA export review.
1, prerequisite for type certification in the UK and Europe is being awarded design organization approval.
Which we received in 2023.
This approval of The Regulators confidence. In our engineering, our design and our development processes.
And our successful 2025 audit confirms the caa's continued confidence in our operations.
This level of regulatory engagement in turn allows for high confidence in our 2028 certification timeline.
An importantly.
The expected cost to achieve that certification.
Now, turning to slide 8.
at our Capital markets day, last September, we highlighted that once an aircraft reaches certification,
There are really only 2 metrics that become permanent.
Aircraft comfort and reliability.
And the profitability of our customers, The Operators.
We are confident in our certifications us.
but when looking Beyond certification, it is evident that our aircraft offers the most versatile Evol in the market,
so today,
I want to focus on our unique passenger comfort and operator profitability. These are the factors that will ultimately Drive multi-decade commercial success.
The reality is all of our competitors are physically constrained by the size of their aircraft.
And this provides vertical with a unique competitive advantage.
I'm truly delighted to share for the very first time, the internal renders of our certification aircraft
As you will see on these slides, our cabin space is the biggest and the most spacious in the industry.
We have over 70% increased passenger cabin volumes versus our competitors.
Our aircraft was designed from day 1 with passenger and pilot comfort in mind.
As you will see, the aircraft is divided into 3 distinct compartments.
The passenger cabin, the pilot cockpit and the luggage hold.
And you will see each 1 has a separate entry and exit ensuring safety and comfort.
We have a cockpit that is 50% larger than our competitors.
And our luggage compartment is 200% larger than certain of our competitors.
This allows us to check in 70, 70, 70 pounds of baggage.
Uh, as personal baggage for each passenger.
This makes our aircraft ideal for airport, the Central Business direct transfer.
Simply put when you step back, no other evols matches this combination of comfort space and practicality. Not 1.
On slide 11.
You will also see that the VX4 is unique in its ability to scale from 4 to 6 passengers.
This flexibility was designed also from day 1 and it sets our aircraft apart in the market as no other competitor can scale to 6 passengers.
This will make the VX4 the preferred aircraft for operators globally.
Now, turning to slide 12. What? I've just described qualitatively puts it into clear metrics financially.
Serving 6 passengers rather than 4 allows, our operators to increase Revenue by 50%.
And more than doubled, an annual operating profit potential.
Scaling to 6, passengers reduces the cost per seat, mile by 30%.
And obviously, significantly improves margins.
With the potential for gross margins to range between 56%.
The reality is, these unit, economics are transformative for our operators, and the underpin are strong industry-leading order books.
The step back here. And the key message is actually pretty simple.
Post certification. What matters is safety? Which obviously we deliver to the highest standards and passenger comfort and operator, economics.
Which the VX4 uniquely provides.
I'll now hand over to our CEO Stewart Simpson who will provide more detail on our cost to certification and some of the key cost components security.
Thank you, Don.
6 years ago, we made a strategic choice to focus on being a pure play, OEM and to largely avoid vertical integration.
We Source our parts from Tier 1 Aerospace. Manufacturers globally. Each 1 with Decades of Certification history.
We are the only OEM with proven Tier 1 Aerospace suppliers on safety. Critical systems, including flight control computers.
This model is efficient, cost-effective and positions, vertical, as the best Steward of capital.
Turning to slide 14 our cost to certification is Guided by confident in the UK daa process and timeline.
The key components are first, 550 million dollars of people and operating expenses.
This is where the benefit of our OEM model really comes from allowing a lean and cost-effective model.
Additionally, being based in the UK, we have significantly lower cost than us-based competitors.
Second 225 million of non-recurring costs.
Largely fixed through contracts with Tier 1 suppliers.
75% quoted or contracted and 25% estimated.
As a reminder, these are 1-time, upfront costs to our partner, suppliers, that cover. The initial design and development of the 2 parts of the VX sport.
Along with tooling costs to build our certification and production aircraft.
These suppliers are leaders in their respective categories and understand certification.
And we get to benefit from leveraging, their engineers and iPads.
Finally, 75 million of capex to cover investment in our initial production facilities at Coxwell airport, and an extension of our vertical Energy Center where we assemble batteries.
As we raise that our Capital markets day in September, it is in our DNA to bring Clarity to an opaque industry.
We are the only OEM in the space with published financial and operating metrics through 20 to 35.
This speaks volumes to our business strategy and path to certification.
July 15 shows that through. Q3 2025. Our spend was in line with expectations and we maintain our full year, guidance of 110 to 125 million US dollars.
This is 75% below, our main competitors.
Our cash position is at 123.4 million. As of the end of the third quarter,
as of today, our cash position is 117 million.
Our ATM facility put in place in September 25, contributors 7.2 million in the third quarter and 16.4 million year to date.
Over the next 12 months, we anticipate spending 235 million.
We'll provide more granular 2026. Spend forecasts at a full year earnings call.
Moving to slide 16.
Vertical clearly executes on its goals.
Operational. Milestones for 2025, including our piloted wingborne, test flight flying real world, use cases, earning further Doha privileges from the CIA and initiation of our production that are completed.
First, piloted transition has been discussed earlier today and will be completed within weeks.
Second, the build of our third prototype is progressing. Well, and again, we'll be completed in week lightly at the beginning of December. And flying shortly thereafter
In 2026, this third aircraft is what will be retrofitted with the hybrid powertrain to begin hybrid flight tests.
Moving to slide 7 you will see our high-level certification timeline.
First point to note is that we have already completed the preliminary design review or PDR with 75% of our components. Already locked in for the certification aircraft.
The next step is CDR expected in mid 2026.
This will lock in the final 25% of the components for the final aircraft design and the supply chain.
allowing us to move towards certification and then Mass manufacture
We will not be tweaking, landing gear or propellers.
This is the final aircraft and enables us to begin delivering the 7 certification aircraft that we will test through to 2028 certification.
Of course this CDR is a significant milestone for the company but also for our suppliers and customers as well.
I'll now hand back to today.
Thank you so much, George.
So, let's turn to slide 18.
now, the first thing you will note on this slide,
Is a lot of red X's.
And I'm often asked.
Why does vertical trade at such a discount to its peers?
The Gap is simply startling.
Vertigo's market cap.
is 3% of company, a
and 6% of Company B.
In our opinion, this Gap is entirely unwanted. So let me try and frame this for you from our perspective.
On almost every valuation metric. That matters.
Be its technology.
Capital efficiency.
Real tangible. Certification progress.
Or customers.
Practical outperforms.
If you look at the key value drivers down, the left hand side of this page.
It's obvious that Vertical has achieved or exceeded all of these metrics.
Yes, our valuation remains detached from reality.
However, we believe upcoming Milestones, including pilot of transition will act as a significant Catalyst to our share price.
The Turning slide 19.
In our year end and Q4 updates, we will lay out a very clear set of objectives for 2026.
However, as a step back, I see, 2 key priorities for me as chair.
The first is to conclude a partnership and investment with a global strategic player and secondly, working with the team to significantly grow our order book.
if you turn to slide 20,
Here you can see the scale and depth and quality of our customer base.
We have 1 of the industry's largest order books.
Globally Diversified.
Importantly.
We are the only Evol OEM that has a tier 1 Global lessor on its program.
This is a unique competitive Advantage giving us access to Avalon's global distribution capability.
Our relationship with Bristol.
The preeminent helicopter operator globally is also strategically compelling.
As it's the industry's only ready to fly partnership.
Enables by their global aoc's.
Now, our order book has been effectively closed for 2 years.
Targeting high-value geographies and end markets.
And it will not surprise you that a key Focus for me. And the team will be to secure the first sale of our hybrid aircraft which begins testing a Stewart said in 2026.
Now, finally turning to slide 21.
now, that we are within weeks to completing a successful pilot of the transition
We and the board. Now, believe this is the moment to close an investment with a strategic industrial partner.
to tangibly support our Rams from certification to commercialization,
our ideal partner is a global player in Aerospace Automotive or the defense sector.
Unquestionably. There is significant strategic investor interest in the sector.
And betas successful IPO this morning is a clear demonstration of this and let me on behalf of the team. Congratulate Kyle Clark and his team on their success.
We had started to go are an active dialogue. Led by me with several potential Partners globally,
And I am confident.
That we will conclude a transaction shortly.
If we are successful, this partnership will be transformational both for the business.
Finally turning to slide 22.
The industry-leading aspects of our aircraft and why we believe vertical airspace is the absolute best security of your valuable capital.
With that, I'm going to hand back to the operator, and we will open the call to questions. Thank you.
At this time, I would like to remind everyone in order to ask a question. Press star, then the number 1 on your telephone keypad,
please limit your questions to 1 and 1 follow-up.
Your first question comes from the line of Austin Moeller from canaccord genuity, please go ahead.
Hi, good morning. Um, so my first question, where are we at on aircraft 3 production and the development of the hybrid powertrain for early, 26 flight testing,
Hi morning. Uh Austin, thank you for the question. Um aircraft 3 production is exactly in line with plan and as I said earlier, will be completed in the first couple of weeks of December. So we're really pleased. We are exactly uh on plan with that in terms of the hybrid. Again we're exactly in line with our plan for that. Everything is coming together for the aircraft to be flying in the middle of next year. So really pleased with everything that the team has been doing and we're on track on both of those. Yeah. And after let me add to that as well and I think this is important for people to understand.
A lot of our competitors are talking about hybrids but the reality is, none of them have an airframe currently that works for a hybrid.
Vertical is the only OEM that has an airframe that can take a gas combustion, engine immediately without any amendments, or adjustments to the airbrush. That's the most important.
So we are a major first mover in in the slightest Campaign which was started, Stuart said, middle of next year.
Okay, and then just you talked about the uh hybrid powertrain aircraft and potentially getting an order there sooner, announcing an order there. Soon, if we think about the defense Market when might the UK mod or NATO mods be interested in procuring aircraft uh for a troop transport, it seems like there's a lot of opportunity there to sell this to European allies, given the 5% spending commitment in the low Acoustics and thermals of the aircraft.
Yes, I think you're spot on Austin. So, you know, the step back here is that the defense budgets in Europe? Uh, are going to be at 7 to 8 decades 8 decade highs. Okay? We as you can, well, imagine are in direct dialogue with every major government. In Europe about this aircraft and the interest in the Aeroplane is exceptional.
So we'll be working super hard going into 2026 to secure the first order and I'm confident that we'll achieve that.
Excellent, thank you for all the details. I'll hand it back there.
Thanks Austin. Thanks Austin.
Our next question comes from the line of address. Shepard from Cantor. Please go ahead.
Hey everyone, uh, good morning. Uh, congratulations on the quarter and and thanks for taking our questions.
Um, I was wondering if you could maybe talk a little bit about your manufacturing, uh, strategy. You know, I I will you be pursuing kind of a large OEM agreement partnership there to kind of help as you begin to ramp up the kind of the high scale manufacturing process or or kind of what what's the strategy there? Thank you.
Yeah, it's a good question. Andrew right? And and 1, we've we've thought about extensively over the years so you can apply different approaches to this. You can do this sort of, let's build, the big huge factories. Let's spend a lot of money doing that and hopefully we can fill them at some point in the future. Or you can take a more prudent uh, more risk adjusted approach which is what we've done.
Okay, so you should expect to see our manufacturing cadence as follows: Phase 1 in the UK, as we've outlined, and Stuart can give some color on that. Phase 2 is the turbocharged phase. And, as I mentioned in my remarks, one of the key criteria for selecting an industrial partner with us is their ability to turbocharge our production capacity for this aircraft. What does that mean?
What that means in Practical terms is by the middle of the next decade. We will have 3 manufacturing facilities 1 of the United States covering North and South America, which will be a major Market 1 in Europe.
And 1 in Asia.
And I suspect by the middle of next year. We'll be coming back to the markets with probably quite significantly. Ramped up production forecasts for this for this aircraft given the demand that I am seeing globally. I mean I spend my time talking to Airline CEOs globally who are waiting to order our aircraft but they want the aircraft to earlier. And right now we are production constrained under our current forecasts. So clearly the objective is to build more airplanes faster and more efficiently.
Jar, do you want to touch on the the immediate plans? Because I think it's important. Yeah, of course, uh, morning Andreas. Thanks for the question. Uh, as I mentioned at the Capital Market day and just touched on here. Uh, 75 million will be spending gets our initial capacity up and running that takes us through 2030. That is expanding our
At the Cox world's airport where we'll be assembling the aircraft and expanding our facility at the vertical Energy Center, where we'll be assembling batteries uh hand in hand with that we're in deep discussions. With the UK government about where we locate the major UK facilities, the battery geguri Giga Factory and uh production facility for the aircraft of several hundred, uh, aircraft a year then. Exactly as donor says, we will be ramping that across the US facility and into Asia. Yeah, so that's where we're at. We'll, we'll make a decision on the European, um, location during the first quarter of next year and whilst, you know, George touched on it being in the UK, it's highly likely to be in the UK, but I wouldn't say we've made that decision yet. What we're seeing is pretty significant inbound from other European countries, who are Keen for us to base their on question of the week, high quality jobs and a lot of them. But the, but from the markets perspective that decision will be made during q1 next year.
Wonderful. Thank you. Appreciate all that color. Um, and maybe just as a quick follow-up. Um, you know, I I think a lot of your peers are pursuing, uh, the the Middle East as a viable Market, you know, some of them even potentially targeting commercialization there over the next 6 months, it doesn't seem like vertical is emphasizing or or prioritizing this region so curious to get your thoughts. There is this another potential geography to to pursue is this an opportunity, perhaps in the more
Nearer term or is the goal to kind of stay focused on on Europe and the UK and and ramp up from there. Thank you.
Okay, well, let me let me help uh break that this down into its components because it is a really important Point, first of all, GCC or the Middle East is broadly. Defined is an extremely important Marketplace.
And for those of us, for those of you that follow us closely, you will see that we had a very significant day in Saudi Arabia, a couple of weeks ago and Stuart Simpson was was there with the UK government as part of the fee. So on question, with the Middle East is really important but here's where it's not important.
Searches.
We do not believe there is any real validity in an eval OEM seeking out some fanciful early stage certification in the Middle East. It's not real, it's not tangible and it's not portable globally, that's the reality and that is based on my 4 Decades of experience in this industry.
Now, you will have noted this morning that suddenly uh, the authorities in the Middle East. Or there's at least news reports saying oh sorry we don't expect to give quote unquote certification until late 26. And you just referenced there that our competitors are talking about commercial operator commercial operations. As soon as the end of this year, it isn't happening. It is fancy people and it is not certification.
Wonderful. Thank you so much. I'll pass it on.
Thanks Andreas.
Our next question comes from the line of Edison you from Deutsche Bank. Please go ahead.
Hey, um, thank you for taking out question and, uh, congrats on all this progress. Um, so first question about, uh, we, we saw the, uh, price release about funding both from UK Department of Transport and this, uh, oxcam am Corridor initiative. So could you clarify, like, what portion of that award is like directly, uh, attributable to vertical and, uh, any
Technical Milestones to match before you can access that phone.
Hi. Thank you, Laura. So I think what you're alluding to is the British government desire to promote both Oxford and Cambridge universities which is 2 of the world's leading uh academic and research institutes which both are producing incredible output of new businesses uh and the opportunity to link those 2 through a corridor. Um of innovation. And development is a fantastic. Fantastic initiative of which we're very very proud to be part of um our aircraft will be able to fly between those 2 providing an utterly unique capability. Now in terms of accessing funding it's gone into 1, big bucket and we'll be making our pitch to make sure we can do the demonstrations of that capability over the coming 12 months. Um but it's a phenomenal phenomenal step for the UK, to be able to leverage, those 2 institutions and grow them aggressively over the coming years and we
Will be part of enabling that. So hopefully that gives you a bit of color commentary. Laura.
Okay. Okay. Gotcha.
Um, and also for the, uh,
Uh, 700 million, Capital needs towards certification. So should we do more spending on top of that for the hybrid training, or like, would that be a material amount or like most cost for the hybrid ones already behind?
Well, let's break that into two components, Lord, right? I'm sure we'll answer the components of the 700, as I touched on, and I think it's really important for the market to understand this.
There is a massive future and a massive opportunity on the hybrid side.
There's also a massive cost for our competitors to build a hybrid.
We don't have to incur that material cost because our aircraft is capable of taking that gas turbine without any major changes to the airframe. So we'll be first to the market with our uh, flight testing in the middle of next year, as Stuart touched on. And as a consequence of that will be the first of the market to sell a hybrid.
Um with respect to the incremental costs within the 700, Stuart you might want to touch on that. So Laura the the 700 includes everything. We need to get hybrid program up running and flying over the next 12 months on the back of which is doing all that said we'll we are highly likely to get a sale now that sale will then be able to fund the balance of the program. Now interestingly as Daniel said our air fry,
That this hybrid uh, hybrid powertrain. So the cost to actually take it from concept through certification, are relatively low. So, that's the way to think about it. We've got everything we need for the next, uh, 12 to 15 months,
And, you know, maybe to add to that, a step back. If we think about total cost certification,
By the time our aircraft is certified in the second half of 2028. Our estimate is that we will have invested 1.1 billion US dollars to achieve that milestone.
Our best guess is that our U.S. competitors will have spent a minimum.
And they still won't have achieved the certification of a hybrid aircraft.
So there's a start in reality there on investor capital allocation and getting a return on that invested capital over time, and I think the market should focus in on the efficiency of how we deal with our capital.
Thank you, Laura.
Okay, gotcha. Thank you.
Our next question comes from the line of Chris Pierce from neon. Please go ahead.
Hey, good afternoon, I just have 1 question. Um, you've talked about front-loaded certification, given the regulations needed to get in the air and then building your certification, Plans by the mid 2026. I think they have that, right? So can you just kind of sketch through like what will we hear from you guys? Or what happens over those next 2 years until certification in 2028 is that just consistent flying and feedback or is is there? Like is there a chance for that to be pulled forward? I'm just kind of thinking out loud about where you guys are at and then your comments on front-loaded, I just love that you expand on that.
Yeah, so there's no pulling forward, right? It's there's no fancy for, uh, timelines on certifications. It will take what it will take, and we're highly confident in getting that achieved as we said at the second half of 2028.
In our year-end earnings call, we will present the market, a forensic breakdown by quarter. Starting in quarter, 1 2026, through to conclusion in second, half 28, exactly what you should expect us to be doing each quarter as we go along the certification Journey.
The front-loading piece is really important for people to understand.
And why it's important.
As follows.
In the UK and in Europe.
The process is front-loaded in terms of the amount of interaction, the amount of oversight we have in the process with the regulator when the aircraft is still at early stage prototype development.
So we get a lot of input, a lot of guidance, a lot of de-risking from a safety regulatory perspective. And if you look at the slide on 7, which was originally presented at our Capital markets Day by Patrick Kai, the former head of the ASA who sits on our board. But it tries to represent you is a lot of the risk is taken out earlier in the program. Unlike the United States, which is actually diametrically opposite. I mean, we are the only aircraft manufacturer that has a means of compliance. What that means in simple terms is we know exactly what we have to do and when we have to do it to get the aircraft certified. So, key messages, are we will get there on time? There will be no pull forward. This will take until the second half of 2028 to get it done. No, fancy food Ambitions, or throw away. Spend
Comments that we can get there earlier.
Okay. So just to clarify, there'll be a schedule that because of what Esa has in place, or CA investors will be able to see what you need to do, when you will do it, what boxes will be checked Etc on the capitol 2020. So, yeah, to a reasonable level of of details, so that we can measure ourselves against performance and, and, and that you can measure us, sure. Yeah. I mean just giving you the high points on that. Chris,
We do CDR, the middle of next year that locks in 100% of the aircraft design and the supply chain, right? The engineers. Effectively put their pencil down. At that point. That is our final aircraft. No change. An importantly, we've already locked down. 75% off the final aircraft. We already know the design of it, we're showing that on the 10th of December.
The CDR just locks in the supply chain. The design is there
The next aircraft, we build and we've already initiated production by ordering the long, the very long lead time. Items is a certification. Aircraft, it'll be completed in q127 and flying after that, we build 6, others. And they constantly fly hand in hand with oversight from the regulator. So that is the process. And as Donald says, there's no fancy port forward. This is a clear transparent process and we will be
Certifying in 2028.
Okay, thank you.
Yeah, thanks Chris.
Our next question comes from the line of services. Raymond James, please go ahead.
Hey, good morning.
Um, just a, could you talk a little bit kind of given your differentiation of the bigger cabin? Could you talk a little bit about the choices you made versus kind of your competitors that enable that bigger cabin?
Well, the first… Sabi, good morning. Um, the first, and I think the most important, before we ever designed anything—and we, you know, that's taking us back really five years ago.
Um, we spent a great deal of time, and I was intimately involved in this exercise.
Um, speaking with our customers or potential customers globally, what was the best product Market fit?
And there were a few key learnings and, and some obvious learning 1, was that the range wasn't going to be super important for the, at least the initial phase of business use IE from Central business district uh, airport to Central business, district globally. And if you look at the 50, mega cities of the world where these aircraft will be flying, the average range from aircraft to airport into town is about 50 kilometers, plus or minus.
The range wasn't going to be a differentiator.
Size of cabin.
Um was the absolute most important thing. And as a consequence of that, also the ability to check in luggage.
And so that gave us a real engineering challenge 5 years ago. How do you design an aircraft of that size? With the energy density? You need for the batteries at a price point for the competitor to the operator that can make sense. So that was the conundrum. We were dealing with 5 years ago. We have definitely resolved it. So it was a customer-led um, design engineering process. And if you talk to the airbuses and the boeings of the world, they will tell you that is the
The right, and best way to design an aircraft, the reality is today that airplane physically exists. If you come to London on the 10th of December, you will be able to sit in that cabin.
It is comfortable. Uh, it's scalable and if you compare and contrast our cabin to some of our competitors. Um, it is demonstrably bigger.
Helpful. Thank you. And then just on the um, on the battery side. I I don't know if you can get a speed to this, I'd be kind of curious. I know you're several Generations ahead of what is being flowed on aircraft too. And aircraft 3, I wonder if you can kind of talk about
You know how much more development there is uh prior to kind of CDR and and what the kind of the improved capability might be versus kind of what you're flying today.
Yeah, thanks Savvy. Um, thanks for the questions. Um, you're you're absolutely right. Uh, the batteries that we have on aircraft 2 that is flying. We are a couple of generations ahead as we look to the certification aircraft. And if I take you back to what I've said, previously about our PDR, we have locked in the battery capability in that. We actually have a choice of a couple of cell suppliers, um, because we have such a deep understanding, we've done over 5 million hours of testing on our batteries. So we have a great Insight on to that. Um, I don't think there's much more I can add on that at the minute.
But we have great confidence, line of sight, through the PDR, through the supply chain, to a battery, a cell, and the battery pack that we build around that sell, that is certifiable and gives us the payload. And the range that we will be putting into the market and meets way over 90% of the customer launch routes. It's a phenomenal engineering achievement. As donor said it delivers exactly what our customers need. In terms of cabin, capacity and Luggage capacity.
Helpful. Thank you.
Savvy.
Our final question comes from the line of Amit dial HC Wayne Wright. Please go ahead sir.
Hello, good morning. Can you hear me?
Yeah, got you. Hey, good morning, everyone. Um, thank you for taking my questions. Uh, also great to see the new design guys. Um, definitely a big differentiator for you. Uh, Donald you commented on concluding, the Strategic partnership, uh, potentially in the very near term, I mean, give me assume this includes, um, you know, some level of investment and can that investment carry you through 20207 or end of 2026 at least.
Um, I can't comment on the specifics on it, but I think it would be reasonable to assume that any conclusion of a transaction with a strategic will carry with it and investment Quantum, that would reassure the market. Let me put it that way.
Okay. Understood also just sticking on that topic, you know?
As a defense needs come up in the Europe um the European market uh the UK Market Etc.
Um you know to develop any Clarity on that. Uh, would probably, you know, be helpful for investors.
Yeah, I mean, thank you. Um, you're absolutely on point there is opportunities for non-dilutive funding for the development of hybrid aircraft. That's exactly how the defense Market Works, uh, as you get into negotiations with the government, so yes, there are plenty of opportunities for that. And as donor said, we're having a lot of incoming and a lot of very good discussions uh across the European Defence industry.
have any specifics emerge in terms of, you know, the aircraft capabilities, Etc, that, uh, you know, those Dental customers may be looking for
Um, I think if you take a step back and look at, look at the aircraft um it provides several things that defense industry is extremely excited about. So first of all you have silent takeoff and Landing which as you can imagine is extremely important. Um, it also has a very low noise signature, so you can't hear the aircraft when it's coming in to land or taking off. Um, and then once it's an altitude, you can fire up the gas turbine to travel up to a thousand kilometers that combination of low noise, signature, and low thermal signature, and near silence is transformative in the military. So, this is what underpins
The incoming that we're getting and really the use cases are endless from Logistics through to troop deployment. Uh, Etc. So yes, we we feel we have got the strongest product in the sector. We can, we will be flying it next year, and we will be selling it next year.
Thank you. Um, a lot of good quality. Appreciate. Um, you know taking my questions. That's all I have is. Thank you. Yeah, thanks Sam.
I will now turn the call back over to the chairman of vertical Aerospace. Donald Slattery for closing remarks.
Okay, thank you, operator. Um, and thanks everybody for joining us this morning and the thoughtful questions. Um, if I were to ask you to take 1 slide away, as you think about our remarks today 6, uh Section 5 slide 18, it's the only slide that matters.
Have a think about that. Think about the, uh, relative performance of this business relative to our competitors. Now, I want to re-extend.
An invitation to come to London.
Canary War to see our physical aircraft and I'm an aerospace geek. I've been in the business for decades, I have seen this physical aircraft that we will be unveiling. It is the simply the coolest thing imaginable. So if you want to see the future of flight and you want to see the vertical VX4, it will blow your mind. So get your tickets, get onto the IR team and come to London.
On the 10th of December, we will also be bringing that aircraft to the United States immediately in q1, uh, to uh, 2026. So thank you all. We look forward to our our next call, in 3 months, time have a great day.
Ladies and gentlemen, that concludes today's call, thank you all for joining. You may now disconnect