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EH

Eve Holding, Inc. (EVEX)·Q3 2025 Earnings Summary

Executive Summary

  • EVEX remains pre-revenue but delivered operational milestones: final integration of the engineering prototype, Iron Bird functional cockpit, Embraer selected to produce landing gear, and first flight targeted by year-end or early 2026, with type certification and entry-into-service still expected in 2027 .
  • Net loss was $47.0M in Q3, with operations consuming ~$60.0M; management reiterated FY25 total cash consumption guidance of $200–$250M and expects the low end, supported by cost discipline and leveraging Embraer’s capabilities .
  • Liquidity strengthened by the $230M August equity raise; management says runway is ~2.5 years and sufficient to fund operations and R&D through 2027, ending Q3 with BRL 412M cash and BRL 534M total liquidity inclusive of undrawn facilities and grants .
  • Wall Street EPS beat and EBITDA miss: EPS actual -$0.1634 vs -$0.18 consensus (beat), EBITDA -$51.5M vs -$46.6M consensus (miss); revenue remains zero given pre-revenue status. Values marked with * retrieved from S&P Global.
  • Near-term stock reaction catalysts: first flight commencement, publication of ANAC means of compliance, continued LOI conversions and PDP inflows (Revo first firm order), and progress on supplier integration and Middle East ecosystem initiatives .

What Went Well and What Went Wrong

What Went Well

  • Engineering prototype nearing flight campaign; “first flight by the end of this year or early next year” with Iron Bird cockpit now functional, enabling integrated system testing and faster certification preparation .
  • Supplier progress: Embraer selected as the landing gear supplier (22nd primary supplier), finalizing major systems and enhancing ground maneuvering and operational efficiency for the eVTOL .
  • Funding runway enhanced: “new funding raise of $230,000,000… extended our cash runway to about 2.5 years… sufficient to fund operations and R&D expenses through 2027” (CFO) .

What Went Wrong

  • EBITDA underperformed consensus; actual -$51.5M vs -$46.6M consensus*, reflecting higher program activity and testing-related R&D intensity .
  • Cash consumption elevated near ~$60M for Q3 and likely similar in Q4 as program development accelerates, implying FY26 burn could be ~$250M absent offsets (CFO) .
  • Continued pre-revenue status delays top-line visibility; despite backlog (~2,800 aircraft, ~$14B list value), commercialization remains contingent on certification and early operations post-2027 .

Financial Results

Quarter-over-Quarter and Year-to-Date Metrics

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Millions)N/A*N/A*N/A*
Net Income ($USD Millions)-48.784*-64.685 -46.866
Diluted EPS - Continuing Ops ($USD)-0.160661*-0.21297 -0.1634*
EBITDA ($USD Millions)-52.521*-53.770*-51.545*
Cash from Operations ($USD Millions)-24.878*-55.645*-53.975*
Cash and Equivalents ($USD Millions)59.510 41.534 65.845

Notes:

  • Diluted EPS Q3 2025 actual shown from estimates tool for direct comparison to consensus; GetFinancials shows -0.143665 for Q3 .
  • Values marked with * retrieved from S&P Global.

Actual vs Estimates (Q3 2025)

MetricConsensusActualSurprise
EPS ($USD)-0.18*-0.1634*+0.0166 (Beat)
EBITDA ($USD Millions)-46.569*-51.545*-4.976 (Miss)
Revenue ($USD Millions)0.0*0.0*In line

Values marked with * retrieved from S&P Global.

KPIs and Operating Metrics

KPIQ1 2025Q2 2025Q3 2025
Total Preorder Backlog (units)~2,800 ~2,800 ~2,800
Backlog Value ($USD Billions, list)~$14.0 ~$14.0 ~$14.0
TechCare Contracts (customers)14 14 14
Vector ATM Customers21 21 21
Firm Orders0 50 (Revo) 50
PDP StatusN/APDPs begin with firm orders (Revo) Continued PDP inflows

Non-GAAP/Adjustments

  • Q3: non-cash gain related to warrant fair value (CFO) .
  • Q2: $9.5M non-cash charge due to private warrants mark-to-market .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Cash ConsumptionFY 2025$200–$250M Low end of $200–$250M reiterated Maintained / tilted lower
First Engineering Prototype Flight2025/early 20262025 start End-2025 or early-2026 start Slightly later window, still near-term
Means of Compliance Publication (ANAC)2025By end of 2025 By end of 2025 Maintained
Type Certification20272027 2027 Maintained
Entry into Service20272027 2027 Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3)Trend
Certification & Testing TimelineEngineering proto flight in 2025; conforming proto assembly in 2H25; conforming flight in late 2026; TC 2027 First flight end-2025 or early-2026; TC and EIS remain 2027 Stable timeline; near-term first flight window widened slightly
Supplier FinalizationBeta added for motors; Nidec and Beta complementary; battery via BAE Embraer selected for landing gear; 22 primary suppliers; major supplier adds complete Advancing; major systems locked
Funding/LiquidityLiquidity sufficient through 2026; exploring 2027 options $230M equity raise; runway ~2.5 years; sufficient through 2027; BRL 412M cash, BRL 534M total liquidity Strengthened
Backlog & Commercialization~2,800 LOIs; first firm order from Revo; PDP to begin Backlog stable ~2,800; PDP flows expected; ongoing customer workshops on operations Stable with initial conversion
Regional ExpansionMarket development across Brazil, US, etc. Bahrain agreement to support ecosystem; potential 2027 test flights; 2028 operations in region Expanding
Regulatory AlignmentANAC primary; harmonization/validation globally ANAC-led certification; alignment and bilateral validations emphasized Ongoing alignment
Production Ramp StrategyFive conforming prototypes planned; assembly site prep Modular industrialization to 500 eVTOLs/yr; capex ~$100M to move to 240/yr, ~$150M to 480/yr (additional tooling) Scaling plan clarified

Management Commentary

  • “We are in the final stages of testing our engineering prototype… confident in starting soon our flight campaign with our first flight by the end of this year or early next year.” — CEO .
  • “Our schedule remained unchanged with an expected type certification and entry to service in 2027.” — CEO .
  • “The Iron Bird… has logged more than ten thousand hours of test… [and] helped us to expedite and reduce the costs related to our certification campaign.” — CEO .
  • “Total preorder backlog… around 2,800 aircraft for a total value close to $14,000,000,000… 14… TechCare customers… could bring up to USD 1,600,000,000 in revenue… 21… Vector customers.” — CEO .
  • “Funding raise of $230,000,000… extended our cash runway to about 2.5 years… sufficient to fund our operations and R&D expenses through 2027.” — CFO .

Q&A Highlights

  • Middle East/Bahrain: Sandbox to accelerate regulatory/operational readiness; potential test flights in 2027; operations targeted in 2028; may generate orders/PDPs . ANAC remains primary; validation via bilateral agreements to shorten timelines .
  • Cash burn cadence: ~$60M in Q3; Q4 similar; FY25 likely near ~$200M; FY26 could be ~$250M as development steps up (guidance to be provided with Q4) .
  • Supplier landscape: Landing gear supplier completed; motors under evaluation between Nidec/Beta; criteria include performance, cost, scalability, and lifecycle support .
  • Production ramp: Modular plan to 500 eVTOLs per year; shift-based and tooling expansions mapped; suppliers informed to coordinate ramp .

Estimates Context

  • Q3 EPS beat and EBITDA miss: Actual EPS -$0.1634 vs -$0.18 consensus (beat), EBITDA -$51.5M vs -$46.6M consensus (miss). Values marked with * retrieved from S&P Global.
  • Revenue consensus is $0.0* given pre-revenue phase; management continues to frame financials as development costs rather than revenue generation .
  • Estimate revisions likely modest: cost discipline and funding runway support EPS modestly vs prior expectations; higher program/testing activity can pressure EBITDA. Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Near-term catalyst: commencement of engineering prototype flight campaign (end-2025/early-2026) and ANAC means-of-compliance publication by year-end, which should validate schedule and de-risk the path to TC .
  • Funding de-risked: $230M raise bolsters runway to ~2.5 years and supports operations through 2027; expect financing mix (grants, long-term loans) to complement runway without urgency .
  • Commercial traction: backlog stable at ~2,800 units with first firm order (Revo) and PDP inflows; focus on converting strategic LOIs aligned to initial cities/operations rather than inflating LOI count .
  • Supplier maturity: 22 primary suppliers finalized with Embraer landing gear; Beta/Nidec motor testing to optimize performance and lifecycle costs; battery via BAE unchanged — key for certification readiness .
  • Production plan: clear modular ramp to 500 units/year with mapped capex/tooling; supplier alignment reduces ramp risk; potential local assembly for market deployment .
  • Risk monitor: elevated cash burn near-term as testing and engineering intensify; EBITDA may remain below consensus during heavy development phases; watch FY26 cash guide .
  • Strategic region build-out: Bahrain sandbox, broader ANAC harmonization and validation strategy, and ecosystem partnerships (infrastructure/energy) are positioning for scalable UAM operations .

Values marked with * retrieved from S&P Global.