Vertical Aerospace (EVTL) Q1 2025 earnings summary

Executive summary

• Advanced to final phases of piloted flight test program for VX4 eVTOL, targeting certification in UK and EU, with all phases on track for completion in 2025 and a third full-scale prototype assembled.

• Announced a new hybrid aircraft program with a 1,000-mile range, opening new market opportunities in defense, cargo, and long-range commercial missions.

• Expanded long-term partnership with Honeywell for VX4 certification and production, with a projected $1B contract value over the next decade.

• Enhanced board governance with three new directors, bringing deep capital markets and industrial scale-up expertise.

• Pursuing 2030 goals: deliver at least 150 aircraft, reach 200+ unit annual run-rate, and achieve cash break-even with a 40% gross margin as production scales.

Financial highlights

• Net cash used in operating activities for Q1 2025 was approximately $28–30 million (£21m).

• Year-end cash spend guidance remains unchanged at $110–$125 million (£90–100m).

• Closed Q1 2025 with approximately $90 million (£68.8–£69m) in cash and cash equivalents, following a $90 million equity offering.

• Reported a non-cash GBP 396 million credit to P&L due to convertible loan notes, driven by stock price volatility.

• No revenue generated in Q1 2025; company remains in R&D phase.

Outlook and guidance

• On track to complete all phases of piloted flight testing by year-end 2025, with certification targeted for 2028.

• Hybrid aircraft flight testing planned to start in 2026, with commercial and defense opportunities being explored.

• Fully funded through 2025, but additional capital required to continue beyond Q4 2025.

• Expecting a 50-50 revenue split between aircraft and battery sales into the 2030s, with battery gross margins above 40%.

• 2025 milestones include flying full-scale piloted wingborne and transition flights, building a third VX4 prototype, and earning further CAA DOA privileges.