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EH

Eve Holding, Inc. (EVEX)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 reflected heavier development spend and a larger net loss as Eve accelerated engineering, supplier engagement, and prototype work; net loss was $64.7M, R&D $45.7M, SG&A $8.2M, and cash consumption $56.9M while cash ended at $242.7M and total liquidity reached $375.5M .
  • Eve announced its first firm order (Revo/OHI) for up to 50 eVTOLs plus TechCare services (~$250M potential value), began collecting PDPs, and added Beta to its propulsion suppliers, preserving design optionality and program agility .
  • The first flight of the full-scale engineering prototype is now expected “in the next few months” and toward the end of the year, with five conforming prototypes planned for certification and Means of Compliance targeted by year-end; certification remains targeted for 2027 .
  • Relative to estimates, revenue was in line with pre‑revenue expectations ($0), while EPS missed Wall Street consensus (actual roughly −$0.21 vs −$0.16*)—primarily due to higher R&D and a non‑cash warrant liability mark‑to‑market of $9.5M . Values retrieved from S&P Global*.
  • Near‑term stock narrative catalysts: firm order conversion and PDPs, supplier optionality with Beta, liquidity sufficiency through 2026, and milestone timing clarity (first flight and certification path) .

What Went Well and What Went Wrong

What Went Well

  • First binding framework agreement: Revo/OHI for up to 50 aircraft plus TechCare services (~$250M potential); “this firm order means that we'll begin to collect pre‑delivery payment” .
  • Supplier strategy strengthened: Eve “bringing Beta Company to complement our suppliers list,” adding propulsion flexibility and FAA‑experienced partner; “Nidec and Beta are complementary” .
  • Ecosystem traction and backlog: Preorder backlog 2,800 aircraft ($14B list value), 14 TechCare customers (~$1.6B potential), and 21 Vector customers, demonstrating multi‑product adoption .

What Went Wrong

  • EPS miss and larger net loss driven by higher R&D and derivative mark: net loss $64.7M; R&D $45.7M YoY increase; $9.5M non‑cash warrant mark—pressuring EPS relative to consensus .
  • Cash use stepped up sequentially: operations consumed $56.9M in Q2 vs $25.3M in Q1—reflecting timing of payables and accelerated program activity .
  • Timeline nuance: first flight framed as “in the next few months” and toward year‑end; conforming prototypes and certification work continue, implying tight execution schedule to maintain a 2027 certification target .

Financial Results

Income Statement Trend and EPS vs Estimates

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD Millions)$0.0 $0.0 $0.0
Net Income (Loss) ($USD Millions)$(36.4) $(48.8) $(64.7)
Diluted EPS ($USD)$(0.13)*$(0.16) $(0.21)*

Values for EPS marked with * retrieved from S&P Global.

Estimates Comparison (Q2 2025)Consensus*Actual*
Revenue ($USD Millions)$0.0*$0.0*
Primary EPS ($USD)$(0.16)*~$(0.21)*

Values retrieved from S&P Global*.

Operating Expenses

Metric ($USD Millions)Q2 2024Q1 2025Q2 2025
Research & Development (R&D)$36.3 $44.7 $45.7
SG&A$5.4 $7.9 $8.2
Change in fair value of derivative liabilities$2.1 gain $3.3 gain $9.5 loss

Cash and Liquidity

Metric ($USD Millions)Q1 2025Q2 2025
Cash, Cash Equivalents & Financial Investments$287.6 $242.7
Total Liquidity$410.3 $375.5
Cash Consumption (Quarter)$25.3 $56.9

Segment Breakdown

  • Not applicable: Company is pre‑revenue and does not report segment revenues .

KPIs and Program Metrics

KPIValueSource
Preorder Backlog (Aircraft)~2,800
Preorder Backlog (List Value)~$14.0B
TechCare Customers14 (servicing ~1,100 aircraft; ~$1.6B potential)
Vector (Urban ATM) Customers21
Revo/OHI Firm OrderUp to 50 aircraft + services (~$250M potential)
PDPs (Pre‑delivery payments)Collection begins with firm order
Prototype First Flight Timing“Next few months” / toward end of year
Certification Target2027
Conforming Prototypes5 planned (option for a 6th)
Supplier UpdateBeta added; Nidec remains engaged

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Cash ConsumptionFY 2025$200–$250M $200–$250M; “probably closer to the low end” Maintained; bias to low end
Liquidity SufficiencyThroughThrough 2026 Through 2026 (post-Q2); total liquidity $375.5M Maintained
First Flight (Engineering Prototype)2025Mid‑2025 target “Next few months”; toward year‑end Slightly delayed/timing refined
Means of Compliance (ANAC)2025Expected by year‑end Expected by year‑end Maintained
Conforming Prototypes2025–20265 prototypes planned 5 prototypes planned; option to add a 6th Maintained/expanded optionality
Plant CapEx (Taubaté)2025–2026~$100M total; majority in 2026; ~$30M in 2025 Unchanged strategy; continue tooling/site prep Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024)Previous Mentions (Q1 2025)Current Period (Q2 2025)Trend
Order Book & Conversion~2,800 LOIs; diversified customers ~2,800 LOIs; LOI mix detailed First firm order (Revo/OHI); PDPs begin; backlog still ~2,800 Improving (conversion begins)
Supplier StrategyFocus on best‑of‑breed; Nidec noted Supplier engagement intensifying Beta added to propulsion; Nidec remains Strengthening (optionality)
Prototype & Flight TestFirst flight mid‑2025 target Hover/transition test plan detailed First flight “next few months”/toward year‑end; hover→transition→cruise cadence Timing refined/slightly delayed
Certification PathANAC basis published; MoC by YE 2025 Harmonization work with FAA/EASA MoC still by YE; conforming prototypes late 2025–2026; certification 2027 Steady progress
TechCare & VectorServices portfolio launched 14 TechCare; 21 Vector LOIs TechCare contracts strengthen; aftermarket revenue potential reiterated Maintaining traction
Liquidity/Funding$430M liquidity; 2025–2026 covered $410.3M liquidity; sufficiency through 2026 $375.5M liquidity; sufficiency through 2026; Aug 14 registered direct raise $230M announced Adequate; expanded with equity raise

Management Commentary

  • “We unveiled our full scale mock up at the Paris Air Show... announced our first firm order... bringing Beta Company to complement our suppliers list... schedule remains unchanged with expected TAP certification and entering the service in 2027” .
  • “This firm order means that we'll begin to collect pre‑delivery payment... We expect that to start producing revenues in 2027” .
  • “Nidec continues committed... Beta comes in with a startup mindset and adds agility... strong relationship with FAA” .
  • CFO: “Eve invested $55M during the second quarter... SG&A around $8M... net loss of $64M... operations consumed $57M... total liquidity of $375M... sufficient... through 2026” .

Q&A Highlights

  • Cash burn and guidance: Management expects FY 2025 cash use toward the low end of $200–$250M, leveraging Embraer resources; Q2 cash use reflected timing and accelerated testing .
  • Flight test cadence and prototypes: Five conforming prototypes remain the plan; hover and transition phases prioritized before cruise, with potential for a sixth prototype .
  • Competitive landscape: Joby‑Blade transaction viewed as supportive of eVTOL ecosystem; Eve maintains multi‑OEM relationships and does not see it impacting backlog .
  • Supplier differences: Beta vs Nidec motors differ in cooling, architecture, controls, and integration; battery development with BAE unchanged; tip speed/noise requirements maintained .
  • Funding outlook: Liquidity sufficient into mid‑2027 with standby facilities and grants; options include shelf equity and long‑term loans given Embraer affiliation .

Estimates Context

  • Q2 2025: Revenue in line with consensus ($0.0*); EPS missed (actual roughly −$0.21* vs consensus −$0.16*), driven by higher R&D and a $9.5M non‑cash warrant fair‑value charge . Values retrieved from S&P Global*.
  • FY 2025: Consensus EPS −$0.6076*; with R&D intensity and milestone timing, sell‑side may fine‑tune quarterly cadence though the full‑year range appears consistent with heavier development spending . Values retrieved from S&P Global*.
  • Target Price Consensus Mean: $7.75* currently, indicating constructive medium‑term expectations tied to program execution milestones*. Values retrieved from S&P Global*.

Key Takeaways for Investors

  • Conversion matters: The Revo/OHI firm order and PDPs validate demand and begin cash inflows ahead of 2027 entry into service—track further LOI conversions in Brazil/U.S. .
  • Supplier optionality de‑risks propulsion: Adding Beta alongside Nidec maintains design flexibility and could support schedule robustness; monitor Beta/Nidec integration test results .
  • Execution milestones drive narrative: First flight timing (hover/transition/cruise) and publication of Means of Compliance by YE 2025 are key stock catalysts—watch testing cadence updates .
  • Liquidity runway adequate: $375.5M total liquidity through Q2 and the Aug 14 $230M registered direct raise bolster funding into certification—reducing near‑term financing overhang .
  • Estimates likely stick to pre‑revenue: EPS can remain sensitive to non‑cash derivatives and R&D phasing; expect quarterly variance but a consistent FY loss path aligned with accelerated development .
  • Ecosystem breadth is strategic: TechCare and Vector traction (14 and 21 customers, respectively) underpin services optionality and potential earlier revenue streams than aircraft deliveries .
  • Competitive dynamics supportive: Multi‑OEM platform relationships and industry consolidation steps (e.g., Joby‑Blade) may validate demand; Eve’s backlog breadth and Embraer support remain differentiators .

Footnote: Values marked with * retrieved from S&P Global.