Eve Holding, Inc. (EVEX)·Q1 2025 Earnings Summary

Executive Summary

• Pre-revenue development quarter; net loss widened to $48.8M on higher R&D tied to prototype testing and Embraer MSA; EPS was $(0.16) vs $(0.09) in 1Q24 .
• Cash consumption improved to $25.3M (benefited by ~$18M q/q rise in related party payables), ending cash/investments at $287.6M and total liquidity of $410.3M; management reiterated funding runway through 2026 (CFO referenced ~$411M) .
• 2025 guidance maintained: total cash consumption $200–$250M, with CFO now expecting usage “probably closer to the low end” as the year progresses .
• Program milestones on track: full-scale engineering prototype progressing through ground tests; first flight targeted in 2025; five conforming certification prototypes to begin assembly in 2H25; Taubaté site prep (480 units/yr modular capacity) advancing with estimated $80–$90M customization .

What Went Well and What Went Wrong

• What Went Well

  • Prototype and test progress: “we are confident that we will begin flying our prototype this year,” after successful pusher motor runs and lifter motor testing on dynamometers .
  • Liquidity and runway: CFO reiterated “total liquidity of $411 million…sufficient to sustain our operations through 2026,” aided by BNDES facilities and recent draws .
  • Services & software build-out: 14 TechCare customers (~1.1k aircraft coverage) and 21 Vector customers; training JV (ECTS) received first data package to start pilot/mechanic training development .

• What Went Wrong

  • Loss expansion: net loss rose to $48.8M (from $25.3M) as R&D increased to $44.7M to support testing, supplier engagement, and Embraer MSA work .
  • Derivatives tailwind moderated: gain from derivative liabilities fell to $3.3M vs $6.3M in 1Q24, providing less offset to operating loss .
  • Burn likely to step up from adjusted 1Q level: CFO noted an invoice timing benefit; normalized burn would have been ~$40M in 1Q, with a modest acceleration expected in later quarters despite staying toward low end of guide .

Financial Results

Summary vs Prior Periods and Estimates

Notes: Free Cash Flow and Total Liquidity are non-GAAP as defined by the company . Estimates marked with * from S&P Global; Values retrieved from S&P Global.

Segment Breakdown

• Not applicable; company is pre-revenue and financials primarily reflect R&D and SG&A during development .

Key KPIs

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “We are confident that we will begin flying our prototype this year.” – CEO, Johann Bordais, on prototype progress and staged hover/transition testing .
• “Our total liquidity is $411 million…sufficient to sustain our operations through 2026.” – CFO, Eduardo Couto, on funding runway and BNDES facilities .
• “R&D was $44 million in the quarter. I believe it should stay at this level, probably not accelerate further.” – CFO on expected R&D pace .
• “The conforming prototype…we’re starting to build this year and will fly next year, [and] will have a pilot.” – Management on certification aircraft .
• “We already…gave the first data package to ECTS so they can start building up the training solution.” – CEO on services/training readiness .

Q&A Highlights

• R&D cadence: Expect roughly steady quarterly R&D (~$44M) as supplier engagement and engineering intensity remain high .
• Burn profile: 1Q benefited from ~$15M invoice timing; adjusted burn ~$(40)M and likely to modestly accelerate, but still toward low end of $200–$250M FY guide; liquidity supports 2025–2026 .
• Certification prototypes: Assembly targeted to begin late 2025; majority of spend still in R&D vs parts/tooling; first pilot-in-command flights expected 2026 .
• Battery path: Engineering prototype battery differs from commercial configuration but leverages same supplier/technology to de-risk manufacturability .
• Services pipeline: $1.6B TechCare non-binding contracts include replacement/repair but not upgrades; training and software tools co-developed with operators .

Estimates Context

• Q1 2025 revenue consensus: $0.0 with 4 estimates; actual revenue $0.0 (in-line)* .
• Q1 2025 EPS consensus: unavailable; actual GAAP EPS $(0.16)* .
  Notes: *Values retrieved from S&P Global.

Key Takeaways for Investors

• Execution is on track: 2025 first flight of the engineering prototype, conforming prototype assembly starts 2H25, supporting a 2027 certification target narrative; no timeline slippage flagged this quarter .
• Cash discipline with adequate runway: Liquidity of $410.3M and burn leaning to low end of $200–$250M guide sustains operations through 2026; multiple financing levers available for 2027 needs .
• Losses will remain elevated near term: R&D intensity is necessary to push through flight test, supplier part deliveries, and certification prep; derivative gains may be smaller tailwinds vs prior periods .
• Services and software are strategic differentiators: 14 TechCare and 21 Vector customers provide early monetization vectors and ecosystem stickiness ahead of aircraft deliveries .
• Manufacturing readiness advancing: Taubaté buildout and modular 480 units/yr plan underpin scale-up; BNDES support reduces capex burden versus greenfield .
• Near-term trading implications: Stock likely reacts to milestone cadence (first flight video/tests, supplier part arrivals, ANAC MoC publication); confirmation of low-end burn trajectory could be a sentiment stabilizer .
• Medium-term thesis: Converting LOIs (~2.8k units, ~$14B list) to firm orders with PDPs, plus services revenue ramp, will be critical de-risking steps as certification approaches .

Disclosures and Notes

• Non-GAAP measures: Free Cash Flow and Total Liquidity are company-defined; see reconciliations and definitions in filings .
• Minor discrepancy: Management cited ~$411M liquidity on the call vs $410.3M in the 8‑K exhibit; difference reflects rounding/presentation .