Q3 2025 Eve Holding Inc Earnings Call

Good day and welcome to the eve holding Inc. Third quarter 2025 earnings conference call.

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Oh, now I turn the conference over to Lucio Aldworth, Director of Investor Relations at Eve. Please go ahead.

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 third quarter 2025 earnings conference call our CEO Johan B and CFO Eduardo Coto are joining me on the call today and after their prepared remarks, we will open the call for questions at which point Louis Valentini. Our chief technology officer will also 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 side at IR Dove are mobility.com. So please feel free to download it and follow along.

Let me first mention that today's conference call includes statements about events or circumstances that have not yet occurred.

Future financial performance. These forward-looking statements are based on current expectations and involve risks and uncertainties that could.

Financial results may differ substantially from those expressed or implied in this conference call, and we undertake no obligations 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 Johan.

Thank you, Lucio. Good morning, everyone. And welcome to the 2025 third quarter conference call.

We had a strong third quarter marked by several key achievements. And we continue to advance the programs development at a steady pace.

We are in the final stages of testing our engineering prototype before it flights campaign starts.

We announced an additional supplier for our commercial aircraft. The eve 100 with a contract with Amber are for the landing gear.

Additionally, the Aaron bird has begun to operate, and is already contributing to the testing of the actual Hardware, that will equip our aircraft.

Our schedule remained unchanged with an expected type certification and entering the service in 2027.

Starting with slide 3, we have now received from Beta Technology Company all of the electrical motors for our engineering prototype. They have been previously tested and specially designed equipment and installed in their respective nacelles.

As mentioned previously, we had already performed integration tests between the prototype and the remote pilot station, which we also call the RPS, to make sure that there is successful communication via the dedicated radio link.

As a reminder, this prototype will be remotely controlled with a pilot sitting in the RPS and this is the white truck at the far end of the right picture.

We are running the last set of tests to make sure that electrical power units were properly integrated with the inverters battery and other systems and subsystems in the vehicle.

Therefore, we're confident and starting soon, our flight campaign with our first flight by the end of this year or early next year,

Slide 4 is about the selection of our 22nd primary system supplier.

Embraer will produce landing gear for our aircraft embryo comes with a strong landing gear manufacturing, Heritage for their commercial and executive Jets as well as military aircraft.

The landing gear was introduced as a result of a constant interaction between Eve and its customers, understanding how the aircraft will be operated.

Now, the wheels on are Eevee to will be used for taxing and repositioning the aircraft.

This means greater Energy Efficiency, when compared to the hovering?

The landing gears also provide the capability of maneuvering, the aircraft on the ground, eliminating, the use of ground support equipment, for the purpose, facilitating operation, and reducing time on ground.

The next slide number 5 shows, what is now our functional iron bird cockpit? As a reminder, the iron bird is a deconstructed evil in which we integrate all the different actual components on our evil into a physical system to make sure that all systems work together properly.

This is the interface through which the pilot will control the entire system.

As you can see, the simulator has approximately a 270° view and is connected with all the different rigs of the vehicle system and components. For instance, the joystick is connected to actuators and motors in another adjacent room.

And they react physically to all pilots' commands.

All of these are connected to the avionics and the flight control computers with our fifth generation fly by wire control laws.

The motors are connected to the battery with its own thermal management system.

As much as possible, all wires and cables, replicate the composition width and length of the actual harness that will be on our av tool.

This assures, a representative result of the simulation, allowing the iron bird to be used as a tool for vehicle development, flight days, clearance of a new feature and product Evolution as well as optimize the test campaign.

Of these assets.

So not only does the iron bird help us to better integrate and understand how all the system work together and troubleshoot potential problem on the ground. But it also has an important role for the aftermarket benefits.

Iron bird will help us. So improve the system and component maturity. And these are important input for successful entry into service and inefficient maintenance program.

In total, we have logged more than 10,000 hours of tests in these weeks.

Another Advantage is that the Aaron bird is also help us to expedite and reduce the cost related to our certification campaign.

Keep in mind that some tests can be performed on the ground 24 by 7. Such as electrical systems circuit breakers, Etc, and the iron. Bird becomes a very valuable development and certification tool.

Moving on to slide number 6 together with our customers and authorities, we are also developing a strong network of Partners in different areas, such as infrastructure and energy to address 1 of the many challenges ahead of uh, the Urban Air Mobility, which is to create a whole new ecosystem. Besides simply developing an aircraft.

On the certification side, we participated in IO assembly in Canada, along with enact, the Brazilian Air Force, and other government officials, along with representative of several other certifying authorities throughout the world.

This reinforces our confidence level that we have the right approach to certify our aircraft with inac as a primary certifying Authority.

Besides that we are increasing our presence in the Middle East. With an agreement to support the adoption and growth of EV tools in the region with the Kingdom of Bahrain.

The agreement positioned Bahrain, as a regional hub for eligible Aviation and will accelerate its regulatory operational and infrastructure ecosystem for evitals the agreement also calls for Eve to possibly conduct test flight in the region in 2027.

Slide 7 shows, our total pre-order backlog that stands around 2,800, aircraft for a total of value close to 14 billion dollars based on the list price of 2025.

This includes non-binding letters of intent from 28 different customers as well as revos for order.

Out of the 28 customers, we also have secure contract with 14 different customers for Eve, take care Suite of aftermarket product and services, which could bring up to 1.6 billion USD in Revenue to Eve over the first few years of operation.

As you can see, we also have 21 different customers for our air traffic management, solution, vector.

And I believe this reflects the Market's leading value proposition, we bring to our customers.

Now, I would like to invite our CFO, Edu, to review the financial results and the 2025 milestone checklist.

Thanks Johan Eve has successfully concluded, a new funding race of 230 million through a registered direct offering in August. This Equity placement has not only improved our cash position to its highest level ever but also extended our cash Runway to about 2 and a half years. We're very comfortable with our current liquidity and estimated is sufficient to fund our operations and R&D expenses through 2027.

The offering was anchored by three strategies and long-standing investors, the Brazilian Development Bank (BNDES) and our controller, Breyer, showing strong investor support and commitment to our project. Additionally, we had more than 30 U.S. and Brazilian institutional investors participating. In this round, the strong institutional participation expanded, our public float increased, and Environ now has 72% of our total equity, down from 82%. Eve's daily trading volume on the New York Stock Exchange is averaging $7 million per day.

Now, moving to slide 10.

Third quarter in line with previous quarters, including R&D and sgna. If reported a net loss of 47 million in the third quarter. 2025, we also recognized again related to the fair value of our outstanding warrants, which is a non-cash game.

Moving to cash flow, our operations consumed around 60 million in the quarter reflecting higher program, activity and overall engagement with engineering and other R&D functions to progress our evolvement.

With 143 million, in cash consumption in the first 9 months of the year, we are on track to hit the low end of our guidance of total cash. Consumption between 200 to 250 million for the full year of 2025 reflecting our cost discipline simple business model and advantages of leveraging in Breyer's capabilities.

Finally only liquidity we ended the quarter with 412 million in cash. Again the highest ever cash level for ease including an awarded Grant and a undraw bnds credit lines. Total liquidity is now at 534 million this is standby facilities. Continue to help Eve to preserve a solid cash position.

Now going to slide 10, we remain on track to deliver our Milestones this year. As Johan detailed earlier, our first full scale, prototype is concluding final tests and installations to start to perform its initial flights in the upcoming months. In parallel, we continue talks with anak, Brazil certification, authority, to detail. The certification plans, we expect it to be published by the end of the year to begin certification tests.

We continue engage with suppliers working on the initial parts of our conforming prototypes. And in parallel, we have started to receive the necessary equipment and tooling to produce the certification Vehicles. Lastly, our cash consumption for the years in good shape and inline to reach the low end of our guidance of 200 to 250 million with that. We conclude our remarks, and I would like to open the call for questions. Operator, please proceed.

Yes, thank you. We will now begin the question and answer session.

to ask a question, you may press star then 1 on your telephone keypad,

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At this time, we will pause momentarily to assemble the roster.

And the first question this meeting is being recorded. This meeting is being transcribed.

Currently, uh, the first question comes from Savvy Cipher from and James.

Hey, good morning everyone. Um, I yeah. Just, you know, congrats on the progress and and um, financing deals but I was kind of curious about the bar in updates, uh, yesterday. Um, just could you talk a little bit more about how that would work? Um, you know, it looks like a 2027 you'll be doing work. There is that flight testing using the engineering prototype or maybe the certification aircraft that you're building and at is about like a part of that agreement.

Great, Savvy. Thank you. Yeah, we're thrilled about this announcement that we did, uh, with the brain. With the Ministry of Transportation talk to communication. It was also on Sunday, right where, uh, it was, uh, it was, it was talked about at the Gateway golf investment Forum. Uh, very important we've been, uh, we've been in talks with the, um, with the Middle East and the UAE, you know, for some time is now and nothing, this is really proves that, you know, we're bringing the solution that they're looking for, uh, this is, uh, a Sandbox that will will work, you know, to accelerate the Readiness of the uh, regulatory aspect the operational. The infrastructure also the ecosystem, um, we going to be starting

Different fronts. Uh, like I mentioned, you know, looking at the virta ports and looking at the operation and, uh, when it comes to the testing, uh, we look at the possibility of of maybe starting some, uh, some test flights right in 2027. It's not defined yet, but this is, you know what we're definitely working on. Uh, maybe using a prototype. This is something that, uh, we're we're thinking about but definitely, you know, uh, for the operation in 28, uh, in the region.

And and does that come with uh does that come with any Revenue stream? Or it's just kind of more of a a demonstration.

Demonstration we haven't defined exactly the scope and how it's going to be right at this stage. Yeah, we expect to get orders right Savvy as we start to fly in um, in uh and go to the region. We expect for more. There's PDP is also the traditional type of sale right? Traditionally with other with other customers.

That makes sense. I appreciate that. And then just on on the, uh, Cash Flow side. Just wanted to clarify again. Congrats on getting that deal across, uh, last month or a couple of months ago. But um, is the 2. You know, that this current spend still the thought process that this is kind of the level of spend for 2026 as well.

Yeah, we're consuming around 60 million, right? We we consume that in the third quarter, 6 million uh probably fourth quarter should be around 6 million as well and we make close the year around 200.

For next year, if we keep that pace, which I think is, uh, I would say reasonable.

We may consume a little bit more right than 200, so something maybe around, 250, we're still working on the details for 2026 and uh we still don't have a guidance. Uh, we may provide something by uh, by the fourth quarter results. But uh, I think it's reasonable to expect to keep that pace.

Thank you.

Thank you. And the next question comes from, Andre Shepard with cancer. Fest, Gerald.

Hey guys, uh, good morning. Congratulations on the quarter and all the great progress and and thanks for taking our questions. Um, I wanted to maybe follow up from saubees, uh, first call just on the expansion to the Middle East. Um, hoping maybe we can give us a bit more detail there, so you know, you're targeting Commercial Services in in 20, uh, 28 and then further expansion in in 2029, but I'm curious, you know, just giving the regions, maybe more leniency towards the certification process. Is, is there an opportunity here or perhaps to commercialize? Ahead of FAA certification. Is that something that being explored or or what's overall the the strategy here in the region? Thank you.

Uh thanks Andre. Um that's that's a good question. Obviously you know our primary uh Authority is anik and this is will start for us. Just went with anik. And then uh uh, with the bill agreement that they have will be FAA now, uh, anak has been also in contact and have agreements, you know, with all other authorities in the world and uh, it wouldn't be different look like, we know we've done at the Ember are for many, many years, uh, where they would accept the anik, uh, certification. So, uh, it's actually independent of what was, you know, will happen at the FAA, right? Uh, but I'll, I'll add also, uh, valent.

Need to give you a little bit more insight. Yeah and thank you Johan and good call. Ugh, good question. Andre is this is this doesn't change the path that we have of certifying first with anik and then validating with other authorities. As Johan mentioned, we we work to expedite this process by aligning or, or promoting alignment of not only vehicle characteristics and understanding by all of the authorities. But also supporting AAC and all that we can, and, and their arrangements and agreements for their certification basis to be accepted by other authorities. So, so we, we support the process of having these authorities, except the AAC certification basis and, and that is done in a way to shorten the time that we have their validation, once we have the enact type certificate,

Got it. Okay, that's super helpful. Appreciate it. And maybe, just a, as a quick follow-up just on your, uh, uh, test flight program. Um, just to make sure I, I have it, right? So we are targeting first, uh, test flight, I think before year ends, and then to kind of ramp up the program all throughout next year, starting with hopper flights, and then, uh, to and then heading towards the a transition you just, can you break break that down for us? Just what is that flight path? Look like just a timing again and just confirm what that looks like for this year and next year, thank you.

Validate parameters of our analysis today. So we still have some, uh, some some calibration. Some knowledge that we expect to gain from the hover flights themselves. So, for example, we believe that we'll be able to gain more insight on the noise of the vehicle once we start flying the hover. So even, uh, you know, the hover test uh, phase has significant information for us but then, uh, evolving towards the transition is also important for us because even though it's a short, uh, phase of flight, it has a significant, let's say a physical phenomena happening. So it's important that we get that very well, not only for engineering and certification, but also for the comfort and for the user experience inside the vehicle, right? And then, in the end, we'll also perform a cruise flight. So fixed wing airplane flights with this engineering prototype. But that's the, the let's say the working of the vehicle in which we have more confidence from the

background that we bring for previous embryo programs. So, so that's the progress that we, we, we are expecting to make, uh, all that to happen next year.

Wonderful, very helpful. Thanks again. Um I'll pass it on.

Thank you. And the next question comes from Eagan, McDermott with Jeff.

It's good morning and thanks for taking my question.

Um,

Maybe on the supplier, with Emperor signing on to provide the landing gear. Could you remind us of what other suppliers or component agreements you still need to secure?

And maybe a higher level, what kind of advantages does your extensive supplier? Net worth provide compared to peers who have more vertically integrated approach?

So thank you for the question. So this is really the last main system that we have introduced to the vehicle with respect to Bringing new suppliers in. So we don't want to expect to have any other supplier for any major aspect of the vehicle coming in uh, from now on on the program.

And then we've been working with on the second part of your questions with suppliers that we believe bring a differential to our program, given their background on Aviation products, uh, and their knowledge on certification of these products. So, for example, uh, the fact that we are working on the battery supply with Dae, we believe that puts us, uh, on a good path for certifying this system, which is 1 of the, the critical systems of the vehicle, right? So as we mentioned, uh, previously, we believe that the the the list of supplies

That we assembled, uh, was a list that for our program optimized, not only the maturity that they bring to our project, uh, and the background that they have on the vehicle but then optimizes what what we have in terms of integration of these systems, uh, on the vehicle from the previous experience of embroiderer projects.

Does that answer your question?

It does. Yeah. Thank you.

And and maybe 1 follow-up or slightly related question. But um in terms of the motor uh when it comes to performance test, could you provide an update of you know what your monitoring

Better in terms of performance testing. And are you going to continue to do all sorts of motors, from Nida can beta, or is there any intention to source?

What the lifter and Pusher from 1 supplier.

and what would be your priorities and, and making such a decision if so

the performance scale, or

Yeah. So as we mentioned last time, we the the flight test of the engineering prototype is part of a process for us to optimize the vehicle characteristics. And that goes through choosing. What are the right systems and components to compose the vehicle, right? So we are still on that path that we mentioned on the last call to, uh, understand the the opportunities that we have for.

supply of of the motors both lifters and Pusher and then based on the choices that we have

Support for spare parts and all of that. So it's really, um, a complete set of, uh, parameters that we analyzed to to, you know, that will eventually lead to the choice of the supplier for these components.

Very helpful. Thank you.

Thank you. And the next question comes from some, some, your joy with HC Rite.

Hey, uh, good morning. Thanks for taking my questions. Uh, I just sent a couple questions, uh, first on the cache, uh, burn expectations for this year. Um, I think I heard that you were expecting to be closer to the lower end, uh, of the 200 to 250 million, uh, dollars. Uh, is there, uh, reason for that were there some programs that were slowed down or, uh, what was the or, or where were you more efficient when you uh, expected to be?

Uh, in terms of the cash for this year, you're right. We believe we're going to be closer to the low end of the guidance range of $200 million to $250 million, pretty much because we're trying to optimize our cash consumption the whole time. We contract expenses, we make sure we're spending money the right way, we try to increase payment terms, and have some working capital gains. We are always discussing with suppliers payment terms.

Uh, there is a lot of work that is done by Amber as well that we have on the service agreement. So there are different uh Pockets, right of cash consumption that we're always trying to optimize we leverage a lot existing infrastructure, existing capabilities, things that the Ember group already has in order to have this, you know, uh more optimized cache burn and we're going to continue to do this way, okay.

Okay. Okay, got it. Thank you. Uh, and then just a broader question. Uh, of course you have uh, like a 14 billion, uh, uh, sort of backlog or uh

Of orders, uh, including from the EU Tech care and Vector. Uh, offerings. Um, how are you continuing to engage with these customers because, uh, the flights, uh, are ring. The commercial flights are not, uh, until 2027, uh,

What kind of, what level of interaction do you have that with them? Uh, do you have a feedback from them on design? Uh, uh, interior design and stuff like that.

Yeah, thanks for this question, you on speaking? Uh this is the essence of how Eve was built on is really based on workshop with our customers uh that we have those Workshop, whether it's on the HMI like a human machine interface. Workshop that tells you know how the pilots interact and what we need to have.

Or whether it's all the co-ops that we've been doing since the very beginning, whether it's in Rio or Chicago, or in London, uh, this is really Building Together is like, what will be the, uh, Urban Air Mobility, uh, environment and on top of operation. And that, it shapes, not only the vehicle and this is why you can see Over The Last 5 Years, uh, you know, how the vehicle has evolved, uh, outside but also inside and, um, you know, with a cabin and and those, uh, full Flex cabin concept, where you can, you know, you can in 1 day, you can change, you know, within a couple of hours, you can change your configuration, whether it's a full cargo or, you know, removing the first row putting in the, uh, Club configuration, um, for, for, for the operation. So, this is something that we've been doing since the very beginning and that's what led us to have the 28 customers and, you know, the largest uh, pre-order backlog because we bring not only the vehicle, but the whole solution, whether it's the full Suite, a strong from the Amber,

Uh, Heritage, uh, you know, where the 4,000 people that are around the world. The customers understand that we have the DNA and what it takes to support an operation, not only just certify and deliver the first airplane, but but make sure that you guarantee A dispatch reliability rate or or, you know, a schedule reliability which which exactly what the customers want to make sure the the asset is available and it has the uh, most competitive operating cost. And uh, and this is the 2 hours that we have an effect.

Bringing Aviation DNA, uh, that, uh, that, that really pushes the customer to elect Eve.

Thanks for that color, John.

Thanks for taking my questions.

Thank you.

Thank you. And the next question comes from Andrea Madrid with btig.

Good morning, Johan edu, uh, appreciate the question.

When you think about scaling production moving forward where might you anticipate the largest bottlenecking or I guess maybe put more broadly, are there any risks that you see throughout your supply chain currently?

No, we believe the the way we are going to be doing the, the manufacturing, right? The industrialization of the if you is going to be modular, right? We start with uh we're going to have basically 3, uh modules, right? The first 1 120, EV tawes per year, 120 uh doing in the Brazilian Factory. Um then we can go from 120 to 240 just with an extra shift, right? The first 1 has 2 shifts the to get it. The 240, we go to the third shift, uh then we can double the 240 to 480, um, with some additional tooling and and Equipment, uh, nothing major for

The for the 240, probably going to be investing around the hundred million dollars.

For the 480 150. Um, so we have all of that mapped

The suppliers as Valentini mentioned, right? We have very good suppliers, they have production capabilities, a lot of production capabilities as well. Uh, and we keep them informed of our production plans as, as we ramp up production. Uh, we believe supplies will be ready also to, to, to ramp up their their supply. So we're not Envision any major challenge, uh, to get it this this 500, uh, if it falls per year, uh, of course, you know uh to deploy all those EVS in the market and so on. Um, we may need some local assembly. But uh, but in terms of the production of of the itself, we're confident on this is initial 500 EVS per year capability.

Got it, got it. I'll, I'll, I'll.

No. Sorry. Yeah. I just want to compliment another aspect of the uh, you know what? We've done with our 22 primary, uh, suppliers is uh, those contracts. It took us a year, but each of them you know, it's based on the strong experience of uh Supply Chain management the embroiderers bringing. And uh and we know on the conventional Aviation, I mean that this it is a challenge that, you know, we get to cope with and that we've been, uh, really learning from

And all the contract that we're negotiated or lifetime agreement, right? Not only these, for the, the the Prototype, not only for the production, but also for the, after market. So giving all this, you know, we've we've taken the best breed of, you know, negotiation and learning, remember are. And then, we've negotiated this contract where 1 example. I mean, it's not single Source program, right? Uh, those are condition that we had, uh, with the suppliers and it allows us also to de-risk, uh, you know, uh, the ramp up or the production, um, different flows that we can have. So, uh, and also another 1 that we've, uh, taken to the next level is also we, we are the face of the customer on the after market, that's another angle. There's to make sure that, you know, we are in touch with our customer and constant basis, and guarantee what I told you, um, you know, from the suppliers and then it goes through us. And then we support the customers on the, uh, the special availability or, or operating cost, right? So, those are really

Advantageous and uh, strong learning that we've had from the past that, you know, that for someone from a company that's done it for 56 years.

Not incredibly helpful caller. Thank you so much.

Thank you, Andre.

Thank you, and the next question customer with canaccord.

Hi, good morning, Johan and edu. Um, So based on when you said about Bahrain is anak looking to form, similar dual cert Partnerships with uh for Ev tolls. With other countries, similar to the relationship that they have with the FAA. Once the means of compliance are published

We've been, um, trying to, as much as we can, work on the certification basis so that if we don't have a full harmonization, we have good alignment of the requirements. So that means from early on engaging with these authorities to understand their expectations in terms of the requirements for the vehicle and then developing the vehicle in a way that we will be able to show compliance with those requirements, right? So we start talking to these authorities about what we believe will be important markets for our Eve. And then start building this alignment on the certification basis. That's something that Eve does in parallel. As I mentioned earlier, we promote and we try to support as much as we can the work that is done directly between authorities, from AAC to other authorities in the world, and bilateral agreements that they have within the authorities, and also agreements that they have with respect to validation.

Of type certificates, for example, right? So we support that and we try to steer that and we do that by giving information to the authorities, uh is steer that to where we believe we should focus uh with respect to What markets are most important for our vehicle. So it's a very similar process to what we're doing with the Bahrain certification Authority is to connect with these authorities in the world, build early engagement and then

Also promote the connection between the authorities to again, shorten the time that we have for validation once the TC from annick is issued.

Great. And can we talk about what stage we're at on assembly for each of the conforming prototypes right now and how close any of them might be to finishing assembly?

Yeah. So, for now we are, um, we still on the definition of, of much of the design of these prototypes. There are some more long lead parts that are already being manufactured by the suppliers. So those have already, uh, have uh, uh, drawings released and are also already in production by the suppliers. We will receive start to receive those parts next year and then assemble the prototypes next year. So so far we are not assembling we are still working with uh the manufacturing of the more long lead uh items.

And also designing the ones that are let's say shorter to manufacture, which then we expect to start manufacturing next year.

Great. Thanks for all the details.

Austin.

Includes our question and answer session. Uh, I would like to return the conference to Lucio Edward for any closing comments.

This meeting is no longer being transcribed. This meeting is no longer being recorded Milestones this past quarter. We're fully engaged in moving fast and there's much more to come. Uh, so we're going to continue updating you on our progress through the next few quarters, which uh will be very exciting. Uh, and we look forward to meeting 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 our team. Thanks and have a good day.

Thank you. The conference is all concluded. Thank you for attending today's presentation. May. I'll just connect your lines