EHang (EH) Q1 2025 earnings summary

Executive summary

• Achieved a major regulatory milestone with the first Air Operator Certificates for human-carrying, pilotless eVTOLs in China, enabling commercial operations and marking the start of commercialization.

• Q1 2025 revenues reached RMB 26.1 million, with 11 EH216 series units delivered and a gross margin of 62.4%.

• Continued strong R&D investment, with over 700 patents and the VT35 long-range eVTOL model in advanced testing and certification, planned for unveiling in Q3 2025.

• International expansion ongoing, with over 66,000 safe pilotless flights in 19 countries, including demo flights in Spain and Mexico, and preparations for commercial operations in Thailand.

• Expansion of Yunfu production base and new Hefei factory planned to double capacity to 1,000 units annually by year-end, supported by strategic partnerships.

Financial highlights

• Q1 2025 revenue was RMB 26.1 million, down year-over-year and sequentially, mainly due to lower EH216-S deliveries (11 units) caused by seasonal factors and order deferrals.

• Gross profit reached RMB 16.3 million, with gross margin improving to 62.4% (up from 61.9% in Q1 2023 and 60.7% in Q4 2023), driven by higher average selling prices.

• Adjusted operating loss was RMB 42.6 million, up 239.5% year-over-year, and adjusted net loss was RMB 31.1 million, compared to adjusted net income of RMB 36.4 million in Q4 2024.

• Cash, restricted deposits, and short-term investments totaled RMB 1.11 billion as of March 31, 2025.

• Operating expenses increased 2.9% year-over-year but fell 31.6% sequentially, reflecting ongoing hiring and R&D investment but improved cost control.

Outlook and guidance

• Full-year 2025 revenue guidance maintained at RMB 900 million, with management confident in a strong rebound in Q2 and significant growth in the second half as deferred orders convert to deliveries.

• Large orders from multiple provinces are expected to drive batch deliveries starting Q2.

• VT35, a next-generation long-range eVTOL, is undergoing flight testing and planned for unveiling in Q3 2025.

• Ongoing cost and expense management, with a 40% operating expense growth target for 2025.