Eve Holding (EVEX) Q3 2024 earnings summary

Executive summary

• Achieved key milestones in eVTOL development, including unveiling and assembly of the first full-scale prototype, with flight testing targeted for late 2024 or early 2025.

• Regulatory progress with ANAC publishing eVTOL certification basis in Brazil and FAA issuing supportive SFAR in the U.S., advancing certification pathways.

• Launched TechCare, an integrated services platform, expanded training partnerships, and completed successful Vector air traffic software simulation.

• Maintained a robust pre-order backlog of 2,900 aircraft ($14.4B) and growing services contracts ($1.6B).

• Urban air traffic management solution (Vector) trialed in São Paulo with local operator Revo.

Financial highlights

• Net loss for Q3 2024 was $35.8M, up from $31.2M in Q3 2023; nine-month net loss was $97.5M, up from $88.4M in 9M23.

• R&D expenses for Q3 2024 were $32.4M, SG&A $8.4M, with total operating expenses at $40.8M.

• Cash flow from operations consumed $34M in Q3 and $101M in the first nine months of 2024.

• Raised $236M since July 2024 through equity, BNDES credit, and bank loans, boosting pro forma liquidity to $445M.

• Ended Q3 with $280M in cash, $305M in total liquidity, rising to $445M including new financing.

Outlook and guidance

• First engineering prototype flight expected in late 2024 or early 2025, with conforming prototypes in 2026 and type certification targeted for 2027.

• Cash burn guidance for 2024 remains $130M-$170M, with currency tailwinds helping to stay at the low end.

• CapEx for the Brazilian facility to peak in 2026, with $20M expected in 2025 and total investment of $80M-$90M for half capacity.

• Management expects continued net losses and negative operating cash flows until commercial operations begin, with first eVTOL sales anticipated in 2027 and services in 2026.