New Horizon Aircraft (HOVR) Q1 2027 earnings summary

Executive summary

• Pre-revenue development stage, advancing the full-scale Cavorite X7 hybrid-electric demonstrator toward testing and certification readiness.

• Demonstrator completion is targeted around end-Q1 2027, followed by ground, taxi and flight testing; initial aircraft builds are planned as CTOL and VTOL variants.

• Signed LOIs indicate potential purchases of up to 200 aircraft and leases of five, with potential sales value exceeding US$1 billion; LOIs are not binding orders.

Financial highlights

• R&D expense rose to CAD 7.429M from CAD 2.719M YoY, driven by engineering, prototype manufacturing, flight software and analysis; G&A fell to CAD 1.669M from CAD 3.190M.

• Operating expenses were CAD 9.098M, up from CAD 5.909M YoY, as higher engineering and prototype costs more than offset lower G&A.

• Net loss narrowed to CAD 4.071M, or CAD 0.06 per share, from CAD 10.903M, or CAD 0.29 per share; current results included a CAD 3.8M non-cash warrant fair-value gain.

• No revenue was generated; significant revenue is not expected until aircraft design, development and certification are completed.

• Net cash used in operations was CAD 7.213M versus CAD 2.364M YoY; investing cash use was CAD 0.671M, mainly for equipment and tooling.

Outlook and guidance

• Demonstrator completion is targeted by Q1 calendar 2027, with early-2027 ground and taxi testing followed by flight testing; the sequence includes conventional takeoff and landing before vertical operations.

• Early-2030 is a target for first aircraft approval, not a promised date; certification-basis and means-of-compliance work continues with Transport Canada.

• Management expects current liquidity to fund the operating plan for at least 24 months; financial statements state cash is expected to support the plan for at least 12 months from issuance, with additional capital expected beyond that period.

• R&D spending is expected to remain elevated as engineering, integration and testing advance; R&D and G&A expenses are expected to rise with staffing, software and regulatory needs.

• Commercialization is anticipated to begin in 2028 or 2029; full-rate production is described as 200–300 aircraft annually at one facility.