Q4 2025 Eve Holding Inc Earnings Call
Speaker #1: All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0.
Speaker #1: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1, on a touch-tone phone.
Speaker #1: To withdraw your question, please press star, then 2. Please note this event is being recorded. I would now like to turn the conference over to Lucio Aldworth, Director of Investor Relations.
Speaker #1: Please go ahead.
Speaker #2: Thank you, Operator. Good morning, everyone. This is Lucio Aldworth, the Director of Investor Relations at Eeve, and I wanted to welcome everyone to our fourth quarter and full year 2025 earnings conference call.
Speaker #2: Our CEO, Johann Bordais, and CFO, Eduardo Couto, are joining me on the call today. After their prepared remarks, we will open the call for questions, at which point Luis Valentini, our Chief Technology Officer, will also join us to address more technical questions.
Speaker #2: We have a deck with a few slides and additional pictures and videos that showcase our achievements in the quarter, including of course the initial stages of the test flights and of our full-scale prototype.
Speaker #2: The deck is available on our website at ir-airmobility.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.
Speaker #2: These are primarily based on our current expectations and projections regarding future events and financial trends that will affect our business and future economic performance.
Speaker #2: These forward-looking statements are based on current expectations and involve risks and uncertainties that could cause financial results to differ substantially from those expressed or implied in this conference call.
Speaker #2: 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, which are available on our website.
Speaker #2: With that, I will now hand over the presentation to our CEO, Johann.
Speaker #3: Thank you, Lucio. Good morning, everyone, and welcome to the fourth quarter 2025 conference call. This was a very special quarter for us, as many of you have seen, we concluded the first flight of our engineering prototype last December after we completed an extensive series of ground tests on all of its systems.
Speaker #3: Although the first flight was short and lasted about a minute, we are evolving quickly into other phases of the flight campaign. We are going to show more data further in the presentation.
Speaker #3: We have performed a total of 28 flight and accumulated more than an hour of flight time. The prototype has recently completed a 2-week scheduled load calibration test, in preparation for continued expansion of the flight envelope that is part of the upcoming phases in the campaign and is ready to resume flight testing.
Speaker #3: In parallel, we continue highly engaged with the INAC on the final terms of the certification plans and also suppliers from whom we are already receiving some of the components of the first conforming prototype.
Speaker #3: Going into the more details, as you can see on the pictures slide 3, we successfully conducted our first flight on December 19. This was obviously a major milestone for us.
Speaker #3: It confirmed that not only the proof-of-concept of the configuration, but also the integration of key systems, including the fifth-generation fly-by-wire and the fixed pitch lifter rotors.
Speaker #3: During the flight, we exercised the control laws verified the integration of the 8 lifters and assessed the energy management, the aircraft dynamic response, and the noise footprint.
Speaker #3: The prototype behaved as predicted by our models, and we will, with this data point, expand the envelope and progress toward transition to wing-borne flight.
Speaker #3: The next phases will be conducted in the discipline matter ramping up to around 300 flights throughout 2026 and building the knowledge required for top certification.
Speaker #3: This brings us to the next slide, number 4. As you can see, we quickly engaged into a consistent and intense flight campaign, so far we have flown our aircraft 28 times with a total of an hour and 6 minutes of accumulated flight time.
Speaker #3: As mentioned previously, the high-quality of the flights, with important test points being validated in each of every flight, allow us to continue progressing and expanding the envelope of the flights.
Speaker #3: We are now performing longer flights at higher altitudes. Also, we are now performing on-air maneuvers with side-to-side movements some horizontal displacement and rotation on its own axis.
Speaker #3: Some of the videos available on our website will show you these maneuvers. Lastly, weather permitting, and please keep in mind that this is the rainy season in Brazil.
Speaker #3: Our aircraft is being put on the test twice a day. To date, there were 7 different days in which we could fly twice. At the current pace, we should be in position to make around 300 flights as planned for the year.
Speaker #3: Flight number 5, details a bit better what the flight campaign will look like for the prototype this year. In total, we are planning our four distinct phases, each building up on knowledge and experience gained in the previous one.
Speaker #3: The first stage is hover and some maneuvers. This is critical phase to validate characteristics of vertical flight, which was the first for us. In this phase, the prototype performed vertical takeoff and landing.
Speaker #3: The flights gradually evolved to a longer times and also higher altitude, but remained at a fixed position with some maneuvers with the use of the lifter propulsion system only.
Speaker #3: This phase is now completed, and we're moving to transition flights when we will start to flight the aircraft originally. Initially, at the speed below 30 knots, and using our pusher motor and perform initial synchronization lifters.
Speaker #3: Because during this phase, the lifters will be powered at all time, we sometimes refer to the partial transition, and we expect to conclude it until the end of the first semester.
Speaker #3: The third phase is what we call the cruise flight, in which, after the takeoff of the aircraft, we'll move beyond the transition speed. At this point, the air moving through the wing will produce all the lift required to maintain the aircraft airborne.
Speaker #3: For the landing procedure, we will gradually slow the aircraft below the transition speed; the lifter will be engaged automatically to maintain vertical control and the pilot in the remote pilot station, the RPS truck, will maneuver the aircraft vertically to its landing site.
Speaker #3: In a nutshell, this is the same set of maneuvers from the takeoff to cruise, but in a reverse order. All of which controlled by our fixed fifth-generation fly-by-wire.
Speaker #3: As in previous phase, speed altitude and distances will be all increased gradually and we plan on completing this phase early in the second semester.
Speaker #3: Last but not least, we will introduce the failure into the system, such as unplanned motor shutdown to test how the system reacts to validate and refine the safety procedures and the protocol of the pilot.
Speaker #3: Now the slide number 6 shows the level of engagement with our suppliers. We regularly meet them and visit their sites, and there has been noticeable upstick in activity recently.
Speaker #3: We have some of the component for the first of our series of certification compliant pilot and some composite materials of other systems are already being manufactured.
Speaker #3: As for the doors, propellers, and the wing tooling. Importantly, we can see the mechanism that is designed to fold the propeller in its full form.
Speaker #3: This is notable achievement because we introduced the four-blade system to reduce vibration and some emission more recently and the folding mechanism is necessary to reduce drag and improve aerodynamic profile as much as possible.
Speaker #3: We are also working with our suppliers to conclude the critical design review. What we call also CDR, to freeze the specification of each component and release the drawing from them to start manufacturing each part.
Speaker #3: This as the name suggests is a critical phase of the design process and will kickstart the production process for the remaining component of our certification compliant vehicles.
Speaker #3: Flight number 7 gives more details about the latest firm orders we signed early February with Japan AIREX. This is our second binding contract and includes two firm aircraft and the option for another 48 aircraft.
Speaker #3: This is a very important market for us, with strong potential. As a reminder, we believe that Japan can absorb as many as 390 EV tolls to transport 3 million passengers per year.
Speaker #3: There are multiple use case from the airport shuttle Ecotourism or point-to-point commute, and it's many large cities. AIREX already operates in 10 of them.
Speaker #3: So it is a strategic partner for Eve. Slide 8 shows our total pre-order backlog that stands around 2,700 aircraft for a total value close to $13.5 billion.
Speaker #3: Based on the list price 2025. This includes non-binding letters of intent, from 27 different customers. As well as Revos and AIREX firm orders. Out of the 27 customers, we also secured contract with different customers, 14 total, for our Eve Take Care suite of the aftermarket product and services, which could bring up to $1.6 billion in revenue to Eve over the first few years of operations.
Speaker #3: 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.
Speaker #3: Now, I would like to invite our CFO, Edu, to review the financial results and some of the 2026 coming milestones.
Speaker #2: Thanks, Johan. Eve ended last year with a very comfortable financial position. Our liquidity reached $541 million, at the end of 2025, with $390 million in cash and another $150 million in undrawn credit facilities with the Brazilian Development Bank, BNDS.
Speaker #2: These are important to help preserve our cash position. Also, when adding a new loan secured early this year with a syndicate of banks, total liquidity is even higher, now at $641 million.
Speaker #2: This is the highest cash level ever for Eve. And although the syndicated loan brought $150 million, our liquidity grew by $100 million, because we refinanced $50 million of an existing loan to extend our amortization schedule better matching our cash flow needs as we approach certification and entry into service.
Speaker #2: Last year, and as you can see on slide 9, our operations consume $175 million but I wanted to note that we had a 21 million working capital gain last quarter.
Speaker #2: As some of our engineering payments to Embraer slipped into the first quarter of this year. If these invoices had been paid in 2025, our cash consumption would have been $196 million.
Speaker #2: In 2025. Given that, our cash consumption in 2025 was very close to the low end of our guidance of $200 to $250 million, and it continues to reflect our robust yet simple structure.
Speaker #2: Cost discipline and the main synergies we enjoy by being part of the Embraer group. Now moving to slide 10, Eve is a pre-operational company and our financial reflect mostly the cost associated with our program development.
Speaker #2: That said, I would like to highlight some of our numbers. Eve invested $59 million during the fourth quarter 2025 in research and development activities and $195 million in the full year.
Speaker #2: The majority was directed towards the development of our EV toll. We also deployed $8 million in SG&A during the quarter and $31 million in the full year.
Speaker #2: Including R&D and SG&A, Eve reported a net loss of $64 million in the fourth quarter 2025 and $224 million for the full year. Finally, we ended fourth quarter with $393 million in cash and $541 million in total liquidity as already discussed.
Speaker #2: We expect cash consumption to intensify this year because of increased development activities. We are now in a full-fledged and intense flight campaign with our engineering prototype.
Speaker #2: We are increasing engagement with suppliers as we progress towards the assembly of our six certification-conforming prototypes. All of these efforts will involve greater engagement with Embraer facilities, and supplier payments.
Speaker #2: In the end, we expect our operations to consume between $225 and $275 million in 2026. We remain in a comfortable financial position and our liquidity is enough to cover our capital needs well into 2028.
Speaker #2: With that, we conclude our remarks and I would like to open the call for questions Operator, please proceed.
Speaker #1: We will now begin the question and answer session. To ask a question, you may press star then 1 on your touch tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys.
Speaker #1: If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. At this time, we will pause momentarily to assemble our roster.
Speaker #1: The first question today comes from Savi Sip with Raymond James. Please go ahead.
Speaker #3: Hey, good morning everyone. Maybe first off, just wondering Edu, if you could give a little bit more color on the cash consumption, just a breakout between how you think that R&D, SG&A, and CapEx generally kind of progressed this year.
Speaker #2: Yeah, sure. Good morning, Savi. The $225 to $275, it's mostly R&D, right? We're trying to keep SG&A at kind of the levels we had last year, right?
Speaker #2: The around 30 million. So the remaining portion is mostly for the development service that we paid to Embraer and all the development activities that we have with suppliers, right?
Speaker #2: A lot of activity on the suppliers. There's also, you know, a structure from Eve, but that's small. CapEx, CapEx should be around 20 to 30 million, specific about the plant.
Speaker #2: But, you know, by far the big chunk of the cash consumption this year is on the development, mostly Embraer and the several other suppliers we have.
Speaker #3: That's very helpful. Appreciate it. I was also wondering, not sure of on the means of compliance. I think originally the thought process was maybe that would be accepted in '25.
Speaker #3: And so just kind of curious what feedback you've received from ANAC on that front and if that has any kind of impact on the timing of the CDR review completion.
Speaker #4: Hey Savi, this is Luis Valentini, good morning. So we have some work currently going on the means of compliance, mostly on two fronts. One is noise for which there is some specific regulation that's still being discussed both with ANAC and the FAA.
Speaker #4: But also with some means of compliance that are related to the certification of the product and many aspects. In the sense that there was not too long ago new AC published by the FAA and we are adapting or modifying some of the means of compliance that we had previously agreed with ANAC to be more in line with this regulation that was issued by the FAA.
Speaker #4: This helps us, although it's some rework now, it helps us in the future when we have the ANAC TC and go into the validation process with the FAA, it'll be more streamlined with the requirements being more similar.
Speaker #4: So it's a work that we had not expected to be doing now, but again, it's something that accelerates in the future the process of validating TC.
Speaker #4: It doesn't have much impact on the CDR because it doesn't change the product. It's just mostly the way of showing compliance with the requirements.
Speaker #3: Makes sense. Thanks, Valentini.
Speaker #1: The next question comes from Andre Sheppard with Canter Fitzgerald. Please go ahead.
Speaker #5: Hey everyone, good morning. Congratulations on all the great progress and thanks for taking our questions. I wanted to maybe just touch on the six ANAC-conforming aircraft that you're building wondering if you could maybe give us an update there.
Speaker #5: How are you thinking about timing for those? You know, different phases, different steps. And I guess if I could just combine that, are those the ones ultimately to deliver to REBO?
Speaker #5: As part of that first delivery. Thank you.
Speaker #4: Yeah. Hey Andres, thanks for the call. So thanks for the question. So the prototypes will not be delivered. These will be only for testing.
Speaker #4: The point that we are in them right now is that we have some of the long lead time items already being manufactured. So you saw there one of the slides show some of the parts already being started in production.
Speaker #4: And also some of the tooling for, you know, some of the composite parts already being made. That's part of the, let's say, the initial production so then when we have more parts like these, we can start assembling components and then go to the final assembly of the prototypes.
Speaker #4: These will be used only for certification, campaign, as I mentioned, development and certification, right? But not for delivering to customers.
Speaker #5: Got it. Okay. That's very helpful. And then Johan, I'm wondering if we could maybe get an update on the service and support and maintenance segment.
Speaker #5: Any sense of when you might target to kind of begin ramping that up and maybe emphasize that a bit more? Just curious on kind of what the strategy there is.
Speaker #5: Thank you.
Speaker #6: No, thanks, Andres. Just a very beginning of Eve's solution. It's not only the product, but it's also the customer support and services. We know how important it is to make sure that we have a clear vitrine to start with, especially with REBO, as you can imagine, we're focusing on this intrinsic service.
Speaker #6: But all the others, we're recently announced that the last week of BERTCON partnership with BERTPORT and also Altair and Australia. So as you can see, this is part of the whole ecosystem building, customers want to make sure that the OEM is involved, want to make sure that they'll have the availability and the right operating cost.
Speaker #6: So we have this duty to be engaged and it's exactly what we're doing with each of our customers. And it's almost CD per CD, right?
Speaker #6: I mean, it's really operation and per operation. So this is what we're really focusing on and this is why you see more and more announcement related to this ecosystem readiness.
Speaker #5: Excellent. Thanks again for taking our questions and congrats on all the progress. We'll pass it on.
Speaker #6: Thanks, Andres.
Speaker #1: The next question comes from Ellen Page with Jefferies. Please go ahead.
Speaker #7: Hi, good morning. Thanks for the question. You announced the AREX order firm order for two aircraft in February. Congrats on that second customer and the firm order book.
Speaker #7: How do you think about the pace of further firm orders as you kind of progress through flight certification? And also can you just level set us on your current expectations for certification and entry into service?
Speaker #6: Thanks, Ellen. This is Johan. Since the very beginning, we've announced this, we've made LOIs. We understood that at the time it was very important to sign LOIs.
Speaker #6: Not so much about the number of aircraft, obviously it comes with it because it reflects, you know, the need of each operator in their own respective region.
Speaker #6: But also, you know, showing that we had the right solution. And that's the trust that the customers are putting by sending in LOIs to say, look, you know, you come up with the aircraft, you're certified, you have the right customer support, the right suite of solution as vector for ATM, right?
Speaker #6: Different modules. Then I'm in. I believe in this, you know, urban air mobility fully electrical. And I'm in. And this is what we've built over the years that the last five years.
Speaker #6: And I think this is now, you know, we're at the crossroad right now where we need to convert because we're two years away, you know, from the first delivery.
Speaker #6: Obviously, we're starting to do what we call the SOIP, right? Which is, you know, really see, you know, what are the sales, you know, where the slots of the production.
Speaker #6: You know, we'll come in the first ramp up of production. So this is natural and this is exactly what happened with REBO. But it's not so much because of, you know, getting the aircraft ready for production.
Speaker #6: It's also because the customer needs to really gauge engage the get the authorities, the partners for the ecosystem to be ready, right? It takes time to get the power line, for example, to the VERTOPORT.
Speaker #6: Transforming ELIPAD to a VERTOPORT. Get the right authorities or authorization for firefighters, for VERTOPORT and ramp operation. So this is also, you know, needed for the operators and then they can come back to the local authorities to look, you know, I've signed a contract.
Speaker #6: We need to get ready also. You also need to get ready as much as the OEM. Otherwise, we'll be delivering a vehicle that, you know, that we want to make sure that it has the right operation support.
Speaker #6: So this is natural. We elected REBO. REBO, it elected us to start the operation in São Paulo. I always say, you know, Brazil and São Paulo is the place where the UAM will be showing, you know, what is a true OEM operation, especially when you have a customer like REBO that already is doing urban air mobility with helicopters, right?
Speaker #6: And then AREX, it's another consequence of a market where you can see that authorities governments private initiatives understand that and they see the future and the urban air mobility and they believe in it.
Speaker #6: And now they know that it's time to also convert. So this conversion rate is natural. We have 2,700 vehicle signed under LOI. It can go up and down.
Speaker #6: I've said it, you know, in previous calls that we're not looking for more LOI unless it really makes sense for Eve in strategic region or a specific customers or mission fit.
Speaker #6: And also, you know, really the focus is to start having those conversion happening together with the aftermarket and ecosystem preparation. I think this is the key because we want to really make sure it becomes a vitrine, right?
Hi, everyone 2 quick question, the first, if you can provide some additional color regarding this, uh deferral of payments to to embri. You know why that happened? You know, we haven't seen that before on the earnings, so just wondering if, uh, something that could happen, you know, in the coming quarters and the second is also a little bit more color on on the backlog. I mean, if we are corrected there was a, a very small contraction in the number of orders and in the value. So just wondering, you know, what was the driver for 1 of the clients, you know, to uh, to take its Loi out? You know, if it was related to I don't know timing of evolution of, you know, any Milestone that you need to to reach or if it was maybe a financial issue with the client. I mean, whatever you can tell us, that would be appreciated. Thank you very much.
Thanks, uh, M. Let me take first, the the payments trainer the way we pay train barrier is the invoices every quarter, right? Once the quarter ends, they take around, uh, 15 days to, you know, get all the the expenses, then they send us an invoice.
And we have, um, 45 days to pay. So that means, you know, uh, we end up paying very and for instance, for the fourth quarter of last year, uh, we end up paying at the end of the following quarter, which is the 45 days, plus the 15 days that they, they take to send us the invoices, um, in the, in the fourth quarter, right? Which was actually the, the invoice of the third quarter, uh, it took us a little bit longer and we ended up paying at the beginning of January. So there's, there's nothing. Um, special. And I was, as I said, sometimes it slips a little bit. We, we have to do some, uh, we have to check all the all the expenses everything. But it's, uh,
It was unusual. We we do not expect to see other invoices sleeping but um in the fourth quarter there was this 20 million and as I said, we already paid in the beginning of January.
Yes, Marcelo for a second question. Uh, this is, uh, like I said, I mean, you know, we we we started to sign Louis in almost, uh, in when we started the company, you know, uh, 4 or 5 years, uh, ago. So, uh, it's really natural that you, you know, see the LOI, especially when it's Loi, um, you know, the company is actually moving, sometimes they change their strategy sometimes. Uh uh some of them go bankrupt or start up, you know, they see.
An opportunity in UAM. Uh, and um, and and then they, you know, they go bankrupt or or sometimes they also happen, you know, the reduction of the backlog of the pre-order backlog. Uh, it's uh, you know, with blade, uh, since Toby did purchase, uh, in the web blade. And uh, and then they obviously have another strategy when it comes to the, uh, OEM or EV toll. So, uh, like I said, it's, it's natural. It goes up and, and, and down when it comes to Loi. But now, we're focusing. Really on the, uh, order conversion and moving forward, uh, to, uh, to start, you know, looking at the first slots also and, and getting the, uh, the customers, uh, ready their, you know, get their ecosystem ready. So, uh, so quite natural.
Uh, deadline, right? Uh, so, uh, and then you need, you can give us a little more insight, sure. So just complimenting in your hands, um, answer earlier to, to Ellen about the timeline. Um, it's we we see on the, the presentation today that we have significant significant progress, uh, in the project, right? That goes both on the work, with the suppliers, on the definition of the product. And advancing, what we see our characteristics that will be on the, on the final vehicle. Uh, and at the same time on the certification, I mean, the development flight test campaign that we've been doing with the engineering prototype. So these um, are aspects that we see that the project is moving very strongly and and we're excited about that at the same time. Uh, we still have significant challenges moving ahead. I mentioned earlier how we were working with the authorities on set setting, the means of compliance, uh, and we feel that's going well, but then there's another stage that come afterwards which is act.
Actually showing compliance with those requirements for certification. And so that involves not only working analysis but also testing ground testing flight testing. That's uh, you know, a big campaign, a big project, a big part of the project that will come next. So, there are significant challenges that are still ahead of us, uh, in finalizing the product characteristics, moving the product to the certification phase and managing to show compliance with our requirements to finalize.
You know, the type certificate insurance. So in summary, we see that there are strong um steps that we were able to uh, to take and and and progress that we are excited about and the last quarter, but still uh, a lot of challenges that are ahead on the road to certification on the timeline that we had, you know, that were still publishing.
The next question comes from, Samir xochi with HC raight, please go ahead.
Hey, good morning. Uh, thanks for taking my questions. Um, the first is about the suppliers, uh, have all the creative, all the critical components been, um, uh, finalized and suppliers for them finalized. Uh, and if not, then, is there a timeline before, which you have to freeze all the suppliers,
So, all of the suppliers for the critical parts, and critical components, and systems are already engaged. They are working with us. So these, uh, I can mention, for example, uh, the electrical system, the proportion. So, you know, lifters and Pusher flight controls computers that we're working with Ember. So, all of the, the suppliers for these systems have been engaged already for quite a while in the project and that's really important for us in the sense that they need to work at a, at an integrated.
Fashion, right? So, uh, the communication for example, uh, between the motors and the vehicle goes through the flight controls computer, you know, also handles communication with the battery. So all of these need to work together and that's why it's important that all of the suppliers have already been on the project and have been working together on these, so no, no significant uh, components to be sourced, uh, at this time.
Uh, and then the second is just, uh, uh, sort of clarification or more insight, uh, of these, uh, 300 times that you are trying to, uh, uh, uh, targeting to, uh, fly this year. Uh, is there a magic to that number in the sense that, uh, would you be able to complete, uh, based on your tests and, uh, results, uh, these flights and uh, let or rather all your uh, objectives and less number of flights? And can this be accelerated, or do you foresee something that you have to test multiple times and require more flights? I just want you to see how this timeline could be pushed forward or back.
Yeah. Well, thanks Samir. So it's the 300 flights. We, we usually mentioned that as, as a reference to help everyone understand the volume of testing that will be done with this speaker, right? So it's it's just a way for us to help everybody gauge. You know, the the level and the intensity of the flights that that
Test campaign. So it's something that happens gradually. And, of course, as we move forward, we may find uh, that that there are some characteristics of the vehicle that require us to do some more extensive testing. Uh, this is something that happens with all of the developments of aircraft. Uh, as you fly you find that there are some characteristics that sometimes need more tuning or you find that there are some opportunities there to uh, extract more performance for example. So you do more testing so it's normal to adjust the number of flights. And, and exactly which types of flights you perform as you go along and the 300 again is just a reference, uh, you know, of the, the, the, the size of the flight test campaign. But we don't hold ourselves so much on that. It's more important to perform the scope and and feed into the project as we move along. This flight test campaign.
So thanks for that color. And good luck for 2026, thanks.
Thank you.
The next question comes from Austin, mer. With canic court, please go ahead.
Hi, good morning, Johan. I need to uh, just so my first question here. Um,
Is the is anak planning. Any equivalent to the EV tool integration pilot program? Or are you planning to participate in something similar in other countries?
Yeah, great question, thank you. I know the, you know, the IP has been the program. Uh, we have his ability. I mean, we definitely support the US government efforts to accelerate the future of air transportation, right? For the evil integration pilot program. Uh, this is 1 of them. Uh, we were, you know, we're a global company and we've been, uh, you know, working in in different countries and, and reflects also, the backlog that we have, and, and, and this is, uh, Not Unusual to have government going through this type of program. And as a matter of fact, uh, whether it's Japan, it's, uh, you know, it's Australia or it's the Middle East or, uh, you know, even in Brazil, uh, we do have the similar program. So we are in a very supportive of this type of uh, of program. Um, we do have our own flight test activity, uh just like Valentine just described, right progressing as part of the anak certification certification progress also with the FAA validation, right? So uh, they do have meetings between FAA and uh and and yeah and
And and and act, right. I'm thinking of because eventually, you know, we will apply there as why. So, uh, um, and, and yeah, we, uh, we've been working also with different states in the United States, uh, you know, but to have a similar type of what we call conops or or, or, you know, pilot program, uh, that will allow to demonstrate, you know, what is a UAM, uh, operation, right? So something that we do in Brazil in the US, but in other many other countries,
Okay. And can you talk a little bit about the the production capacity for aircraft to roll off the line that you have in your existing facilities versus what you plan to scale into? As we get closer to certification capacity,
Okay, hang on, you here. Can you repeat that the question. Sorry, you were
Yes. Um, I was just wondering if you could talk about the production capacity for Ev tools that you have, uh, at your existing facility versus what you plan to scale into uh as you get closer to certification.
Yeah nice. Thank you. Sister very beginning. We are, you know, Eve has um a modular approach when it comes to uh industrialization. We do have a brown field operation, we elected the ataba side, which is a current, currently a side of Amber are which actually technically is not anymore because we're paying the rent. So it's our side where it started to uh you know, some uh some pre uh, premium structure refurbishment. Uh and um and then we are actually planning to go for a first module, which is going to go. Sorry, it's modular. Like I said with a 120 vehicle per year, we can go up to 480 vehicle per year, right? Uh but beyond that number. Then we will have to go. And and to another facility right, uh, more than likely not not in in the, on the same site, uh, somewhere else, where uh, even abroad, uh, where the market will be, uh, will be, you know what, with the center of gravity, right? Uh, for G risk purposes,
Great. That's really interesting. Thank you.
Thank you.
Very Madrid with btig. Please go ahead.
Good morning everyone. Thanks for taking my question.
Looking ahead. I mean, as you guys move through the test, flight campaign,
What do you expect the pace of conversion of Louis to firm orders to be? Or do you have any expectations at all?
Ever since we sign up the um contract and convert it with Revo, and more recently at the Singapore Air Show with axe. We've seen the interests of customers, you know, uh increase, right? Uh, from either the 1i under contract or or some new customers, right? We actually engaging in negotiation, not even to go through a Loi but directly to, uh, a firm order. And I think it's, uh, it's to find the right balance between being able to show them, uh, you know how the the program is progressing, right. Um, and and also, you know, is it the right moment for them to engage and, uh, to get a vehicle? And when is that going to be right, and to get the slots. Uh, so for 2028 and then there's a ramp up. Uh, as I just mentioned about production, we can accelerate, we can go a little slower. We have this full flexibility, so it's, uh, it's a ratio that we have, you know, that we're looking at. What is, what needs to be done? It's the what we call internally the siop. All right, it's
Sales inventory and operation the process where we have the sales team together with production and procurement, uh, and finance obviously. And and looking at how is this ramp focused going to look like? So, uh, we're not disclosing any more information on it right now, uh, but we do expect that, you know, with the, uh, up to 300 flights as the Valentini Mansion as a Target, right? Uh, and then we're progressing, also the, uh, getting the confirming prototype, the 6 for Prototype, which 1 of them, by the way will be, uh, a demonstrator, which I think also, it's a great tool to have, you know, to, uh, uh, demonstrate to customers. And, and they brings usually also brings a lot of conversion of the time, right?
Got it, got it. And then if I could follow up, I know you've been helpful in aligning, the, you know, your expected cash burn, through the year for 26, but I mean, can you maybe just
You know, peel back a little bit more and explain the exact Cadence quarter to quarter.
Yeah, we're expecting in terms of cash burn Andre, we're expecting 225 to 275, right? It's uh, it's an increase versus the 200 million we burned last year. The increase uh, goes mostly to more uh development activities, right? Um not only within bra, but also with uh, several suppliers.
we expect generally it's, um,
It's not evenly spread over the quarters, maybe a little bit less in the first half.
and um, as we
as we continue to progress on the confirming Vehicles, right? It may be a more.
Uh, heavy on the second half, but, you know, it will be spread, maybe a little bit bit more second, half than first half.
Yeah, got it. Got it. That's very helpful. Thank you.
This concludes our question and answer session.
I would like to turn the conference back over to Lucio aldworth for any closing remarks.
Thank you Betsy and everyone who joined the call today. Uh, as you can see, we accomplished several milestones at this past quarter, we're fully engaged. And there's much more to come as you. Just saw our upcoming achievements, will be more clearly visible to the investment community. So the next few months will be very exciting for us. We're going to continue to update you on all of our progress through the next few quarters. Um, again this could be very exciting 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. Thank you and have a great day.
The conference is now concluded. Thank you for attending today's presentation. You may now disconnect
