Vertical Aerospace (EVTL) Sidoti Small-Cap Virtual Conference 2025 summary

Industry landscape and market opportunity

• Industry shakeout has favored companies with strong physics and funding, with $1.8 billion invested in sector leaders in the past six months.

• The global market for advanced aircraft is projected to reach a trillion dollars, with significant demand outside the US in mega cities like Seoul, São Paulo, and Tokyo.

• Regulatory evolution is accelerating, with the UK government targeting operational infrastructure and regulations by 2028.

• Over 350 infrastructure projects are already operational, with 1,200 expected by 2028.

• The market problem centers on urban congestion, with current solutions like helicopters limited by noise, safety, and environmental concerns.

Company positioning and competitive advantages

• Second globally to fly a full-scale piloted tilt rotor aircraft, with a clear, globally transferable certification path under CAA and EASA.

• Aircraft offers highest safety standards, capacity for six people plus luggage, and is capital efficient as a focused OEM.

• Pure play OEM model leverages tier one aerospace suppliers, reducing certification risk and operator risk.

• Spends 75% less than competitors, with a focused team of 350 in the UK, attracting top global talent at lower costs.

• Has spent $1 billion less than competitors in the last three years, yet is further ahead or on par with industry leaders.

Financial and operational milestones

• Balance sheet was cleaned up in December, eliminating a $260 million floating rate convertible loan and raising $90 million, securing funding for the year.

• Publicly committed to certification in 2028, 150 aircraft delivered by Q3 2030, and a 200-aircraft annual exit rate, ramping to 700+ with cash break even in 2030 and margins above 40%.

• Aircraft and battery sales are expected to contribute equally to revenue, with recurring high-margin battery sales over a 20-year airframe life.

• Annual cash burn to certification is projected at $110–$125 million, significantly lower than peers.

• Battery technology offers potential for second-life applications and broader market opportunities.