Vertical Aerospace (EVTL) Q4 2024 earnings summary

Executive summary

• Achieved significant technical milestones, including over 30 piloted test flights and completion of thrust-borne flight campaign, with wing-borne flight targeted in the next 3–6 months and a robust 2025 piloted prototype campaign underway.

• Advanced Flightpath 2030 strategy aims for sector leadership, certification in 2028, and market leadership by the end of the decade.

• Business model focuses on engineering, assembling, selling, and servicing aircraft, with high-margin battery-as-a-service revenue and capital-efficient OEM operations.

• Secured $220M in refinancing, including a $90M public offering, and restructured convertible loan notes to fund operations through 2025 and de-risk certification.

• Order book diversified across Americas, Europe, and Asia, with c.1,500 pre-orders and plans to reopen for new orders post-certification.

Financial highlights

• FY 2024 net cash used in operating activities was £46M ($58M), including a £28M ($34M) Rolls-Royce settlement.

• Cash and cash equivalents at FY 2024 year-end were £23M ($28M); January 2025 equity raise added £74M ($90M) gross proceeds.

• Projected net cash use for 2025 is £90M–£100M ($110M–$125M), reflecting a gradual ramp-up in spend to de-risk certification.

• GBP 688M non-cash financing cost recorded due to convertible loan note restructuring.

• Share price at 31 December 2024: $12.58; valuation: £524M.

Outlook and guidance

• Certification targeted for 2028 under UK CAA and EASA regulations, with operational milestones for 2025 including piloted wing-borne and transition flights, and building a third prototype.

• Cash break-even expected in 2030, with spending efficiency highlighted as a competitive advantage.

• Expansion into high-margin services like battery-as-a-service, vertical cloud, and pilot training planned over the next 2–3 years.

• Funding in place to support 2025 goals, including acceleration of spending to de-risk certification timeline.