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Archer's post-earnings rally was driven by a dual catalyst: an all-stock acquisition of three Boeing units and a Q2 revenue beat of over 150%. Archer Aviation (ACHR) reported Q2 FY2026 after the close on August 10, and the stock rose 8.5% the following day. Only part of that traced to the quarter itself. What changed is that a company that has yet to certify its own aircraft agreed to buy a profitable drone maker with revenue across 35 countries, and it is paying with equity rather than cash. The deal covers three Boeing-owned businesses, Wisk Aero, Insitu, and SkyGrid, in an all-stock transaction management expects to close by the end of 2026, with Boeing taking a roughly 20% stake plus warrants. Insitu matters immediately: management says it is profitable today, with over $200 million in annual revenue across 35 countries. Archer's own revenue over the trailing twelve months is about $7 million. The stock followed the deal rather than the industry: the move came on August 11, the first trading day after the report, while peers JOBY fell 4.4% and EVEX was flat over the same span. Set against that, the reported quarter was small. Revenue was $5 million, more than triple the prior quarter, and management credits the increase to growing operations at Hawthorne Airport in L.A. The $0.25 loss per share matched consensus and was two cents narrower than a year earlier; revenue came in ahead of estimates. Midnight, the air taxi, still has to clear certification before it scales: management says Archer is in the fourth and final phase of FAA type certification, has flown more than 150 piloted test flights, and is targeting about 250 charging sites by 2030. Q2 adjusted EBITDA was a loss of $177 million against $1.6 billion of liquidity, and paying Boeing in shares leaves that liquidity intact, at the cost of roughly a fifth of the company. Preserving cash matters most when a balance sheet is still funding development rather than being funded by it, and defensible balance sheets are one of the things the Trefis High Quality Portfolio insists on in its holdings. How fast that liquidity goes out is what the spend guide addresses. For Q3 2026 management guided the adjusted EBITDA loss to $170 million to $200 million, the same range guided for Q2, spend that already carries the Midnight flight test program, the hybrid aircraft Archer is developing with Anduril and ZEE, its aviation foundation model. Once the acquisitions close, management says cash burn stays relatively flat from where it is today. That is the commitment from this report a shareholder can most directly check. The reason to own Archer has changed shape: it was a bet on certifying Midnight, and it is now also a bet that a certification company can run an acquired drone manufacturer on the same spending. Options price ACHR at an implied volatility of 80%, in the 65th percentile of its trailing year, so the market is not treating the outcome as settled either. A pop like this is the payoff for holding through the uncertainty, and it is also how sizeable positions quietly get bigger. A position that has grown large enough to matter is worth sizing deliberately rather than by accident. What a position that size would do to your net worth is exactly what the Trefis Wealth team computes, with the same rules-based systematic discipline that runs our High Quality Portfolio. Request a free vulnerability audit of your biggest positions.

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 8:00 a.m. ET Director of Investor Relations - Lucio Aldworth Chief Executive Officer - Johann Christian Jean Bordais Chief Financial Officer - Eduardo Couto Chief Flight Prototype Engineer - Marcelo Basile Need a quote from a Motley Fool analyst? Email [email protected] Operator: Greetings and welcome to the Eve Holding's Second Quarter 2026 Earnings Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Lucio Aldworth. Please go ahead. Lucio Aldworth: Thank you, Operator. Good morning, everyone. This is Lucio Aldworth, the Director of Investor Relations at Eve. And I want to welcome everyone to our second quarter of 2026 earnings conference call. Our CEO, Johann Bordais; and CFO, Eduardo Couto, are joining me on the call today. After their prepared remarks, we're going to open the call for questions, at which point Marcelo Basile, our Chief Flight Prototype Engineer, will also join us to address more technical questions. We'll have a deck with a few slides and additional pictures that showcase our achievements in the quarter, including, of course, the more recent stages of the test flight of our full-scale prototype. The deck is available on our site at ir.eveairmobility.com. Please feel free to download and follow along. And in fact, we just published on our Investor Relations website a video of our most recent transition flight, and we encourage all investors and analysts to watch it. Let me first mention that today's conference call includes statements about events or circumstances that have not yet occurred. These are primarily based on our current expectations and projections regarding future events and financial trends that will affect our business and future economic performance. These forward-looking statements are based on current expectations and involve risks and uncertainties that could cause financial results to differ substantially from those expressed or implied in this conference call. We undertake no obligation to update publicly or revise any forward-looking statements because of new information, future events, or other factors. For a more detailed list of these risks and uncertainties, please refer to our SEC filings, which are available on our website. Now I'll turn over to our CEO, Johann Bordais. Johann Christian Jean Bordais: Thank you, Lucio. Good morning, everyone, and welcome to our second quarter 2026 conference call. We had a good quarter with several milestones demonstrating steady progress. After the inaugural flight of our engineering prototype last December, we went through a series of hover flights. We concluded a planned ground test period of 3 months of software upgrade, and which led to us to resume our flight campaign towards full transition by the end of this year. These 3 major phases validate not only our building block concept by extensively testing every part, but also the integration of critical systems such as fly-by-wire and fixed pitch lifter rotors. In parallel, we continue our rig testing of different components for our commercial aircraft and interact with certification authorities and partners. Lastly, we will go through the new LOI agreements announced at the Farnborough Airshow. The Slide 3 details some of the tests we performed between May and July in preparation for transition. As I mentioned previously, we uploaded new software to optimize the synchronization between the lifters and the pusher to sustain lift during all the phase of flight. We also made sure that pusher, avionics, actuators, flight control, and other systems were tested again on the ground, this time with motors powered on and the aircraft anchored on the ground. On slide 4, we wanted to show you some additional details of the vibration test we performed on the ground. Because our wing-borne flights bring to the aircraft different pressure points, vibration, or aerodynamic loads, we attached a shaker device to the lifters to simulate and assess resulting oscillation in the entire aircraft. Slide 5 shows the progress of our accumulated flights. With successful completion of our ground test, we cleared the prototype to get back in the air and start transition flights. In total, our prototype flew 66 times and logged 2 hours 46 minutes of airtime. Importantly, the prototype now enters a new phase with partial transition. This is when we gradually accelerate the aircraft by engaging the pusher, but still maintain the lifters powered on for the lift. The pusher was engaged at first with low RPMs and then powered up to around 1,200 RPMs, allowing the aircraft to fly forward at 30 knots speed, which is about 35 miles per hour. In the coming weeks, speed will progressively increase to 60 knots and then to 80 knots to 90 knots to complete the full transition. At that moment, the lifters will be powered off and all lift will come from air passing through the wing, flying like an airplane. This is the aircraft's ultimate mission, take off vertically, transition to wing-borne flight, and then transition back to vertical flight for landing procedures. Slide 6 shows some pictures and has a link of a video of one of the latest transition flights. The video is also on our website and social media platform. Now, more than quantity, our flight campaign also demonstrates quality. Every flight is diligently planned to test and validate specific aircraft components or flight metrics. And in total, we have validated 150 test points. It is precisely these validations that allow us to move ahead with confidence. Moving to slide 7, we can see here part of our physical infrastructure that supports our entire program development with more than 15,000 accumulated hours of testing. We continue testing different components separately in specific rigs to continue optimizing their individual performance and have now deployed the second Iron Bird dedicated to flight control system integration. As a reminder, our first Iron Bird is a deconstructed eVTOL in which we integrate all the different actual components of an eVTOL into a physical system to make sure all the systems work properly together. This is part of our testing process that should expedite the testing and the certification efforts, which also reduce the program cost. In parallel, on slide 8, we continue to advance our certification process with Brazilian certification authority, ANAC. The means of compliance are almost completed with ANAC. These are the tests that need to be successfully performed on different components to certify the aircraft. Interestingly, few suppliers have already started testing some of the components that have means of compliance aligned already with ANAC. Separately, ANAC opened a new consultation with industry stakeholders on updated airworthiness certification base, reflecting the requirements alignment with FAA. This is another important step in the Eve 100 certification process and contributes to the development of a robust regulatory framework for eVTOLs. Following the consultation period, which ends on August 18, ANAC will review the comments received and assess the potential refinements on the criteria. In addition, ANAC published a Proposed Noise Certification Criteria for the Eve 100, which is the result of an extensive engagement between Eve and ANAC drawing on existing aviation noise regulations. Lastly, we applied through ANAC for Type Certification validation by EASA, and it is expected to certify our aircraft for European markets 12 to 15 months after ANAC and FAA. On slide 9, we continue to prepare readiness of necessary infrastructure for safe operation and eVTOLs. We have partnered with Hitachi, a global technology leader in electrification, to ensure that vertiports can be reliably connected to a power grid and equipped to handle the high-demand, high-frequency operations. This includes enabling sufficient power capacity, managing fast charging cycle, and integrating new demand in existing energy system. In Florida, we also partnered with Florida Department of Transportation focused on delivering insight in the infrastructure, operational procedures, and airspace navigation procedures needed to enable the safe and efficient integration of UAM into Florida's transportation network. On slide 10, you can see the time line to certification. As I mentioned previously, we are now in the transition phase. We are around 30 flights away to full transition. Meanwhile, we are conducting a critical design review with our suppliers for each system and component that will be featured in our coming conforming prototype. This will allow us to release drawings and continue manufacturing components within the required specs to produce and test our conforming vehicle in 2027. With that certification, an entry to service is expected for 2028. Considering that we will need to fly our conforming prototype for around 12 months after the first crewed conforming prototype flight planned for the second half of 2027. On slide 11, we had a successful outcome at the Farnborough Airshow. We met with several industry leaders, customers, and partners, and we met several investors at the show. We also announced 2 new LOIs for a total of 46 aircraft from Moov for operations in Cape Verde and Shearwater, a Bay Point Capital Company, a new lessor in our backlog. This is a good segue into slide 12, which shows a total pre-order backlog of approximately 2,700 aircraft valued at about $13.5 billion at the list price, including the two new LOIs signed this quarter and announced at the Farnborough Airshow. And now, I hand it over to our CFO, Edu, for the second quarter of 2026 financial review. Eduardo Couto: Thank you, Johann. On slide 13, Eve ended second quarter 2026 with $403 million in cash and total liquidity of $531 million, which includes $128 million in an undrawn credit facilities. We believe the current level of liquidity is enough to support operations through 2028 without new funding. Importantly, we have already started to capture some of the synergies and cost avoidance we had identified and announced in the first quarter. Again, we have worked extensively with Embraer to find new ways to reduce our cash burn until certification and our initial review indicates we can achieve $100 million to $150 million in potential synergies in the next 3 years supporting our cash runway. In the first semester of 2026, total cash burn was $118 million and our total consumption for the year should remain close to the midpoint of our guidance between $225 million and $275 million. Now moving to slide 14, just to highlight some of our numbers, research and development in the second quarter '26 was $29 million. This is lower than around $55 million in previous quarters and it reflects better than initially expected agreements with some of our suppliers and program development updates. Going forward, we expect R&D levels to return to around $50 million per quarter. SG&A has been mostly stable at $8 million as we continue to capture synergies and control costs on general and administrative expenses. Including R&D and SG&A, net loss was $34 million in the second quarter 2026. Finally, as mentioned previously, we ended the quarter with $403 million in cash and $531 million in total liquidity. Cash consumption in the second quarter was $49 million and in the first 6 months of the year was $118 million. This shows some of the early benefits of synergies with Embraer and reinforces our confidence that our current financial position is sufficient to fund our operations until 2028. With that, we conclude our remarks and I would like to open the call for questions. Operator, please proceed. Operator: [Operator Instructions] Our first question will come from Savi Syth with Raymond James. Savanthi Syth: Maybe it was really helpful to get some of the forward color on R&D. I was curious if you could share how we should think about CapEx into the second half as well? And how much, if any, of that $100 million to $150 million synergies have been realized or are in the run rate for this year? Eduardo Couto: Yes. Hi, Savi. Good to talk to you. So the synergies we're implementing, right, we did have a lot of workshops to make sure we are as efficient as possible in terms of cash burn until certification and make sure we keep our cash burn not only this year, but until certification, right, in 2027 and 2028 as efficient as possible. We identified this $100 million to $150 million in synergies for these 3 years. We are already capturing that. So, I think that is -- when we say we are confident to stay in the mid-range of our guidance, it's already capturing part of those synergies. I believe one -- little, less than 1/3 of those synergies come this year and the rest comes in '27 and 2028. Regarding CapEx, for the manufacturing, that's another area that we have been doing a lot of studies how to be more efficient. We are going to be able or we are studying to use the existing Embraer facilities as much as possible so that we can only invest in manufacturing facilities as later as possible. So probably this year, we're talking about $20 million in CapEx investments. Next year, this number should go higher, something around $50 million, and probably another $30 million, $40 million in 2028. So, overall, we're going to be investing around $100 million to have, I would say, a modular production capacity, and we can grow this capacity, of course, as demand grows. So that's kind of what we're planning. Savanthi Syth: That's helpful color and great capacity discipline there. If I might, just on the flight timing, it looks like maybe full transition flights have slipped a bit into 4Q from 3Q. And kind of thinking when those will be done. Just wondering if that impacts the timing of when you start building certification conforming aircraft or if those 2 things aren't really connected? Johann Christian Jean Bordais: Yes, Savi, this is Johann. Yes, both are connected, obviously. But the full transition flight is planned by the end of this year, right? We'll see exactly -- we've resumed the flight campaign. We're thrilled about it. We just made, as we announced yesterday also the transition with turning on the pusher. So it should be 30 to 40 flights until we really complete the full transition. This is when we'll go to the 90 knots, and then we'll turn off the lifters. So yes, by the end of this year, we'll see how it goes. Obviously we'll have some more information in the next quarter. And then it really triggers also the conforming prototype, the first one. We'll be debuting the assembly. We already have parts of suppliers that are ready and then shipping out to us. And then we'll start the assembly, and then the assembly will be finalized next year. And then second half will be the first flight of the conforming prototype. Operator: Our next question comes from Andres Sheppard with Cantor Fitzgerald. Andres Sheppard-Slinger: Congratulations on the quarter. Johann, I wanted to start with maybe the transition flight. Congratulations to the team on the beginning of the transition flight campaign, as you mentioned. My question there is just can you remind us, you talked about it a little bit already, but how do you expect this program to ramp up going forward? What do you see as the major validation from the flights? And then can you remind us kind of where we are on the design and build out of the six conforming aircraft, which you'll also be using as part of your flight campaign? Johann Christian Jean Bordais: Thank you, Andres. Thank you for your question. This is important. Obviously, since the very beginning, we elected to have the lift and cruise configuration, which we understand is better for certification purpose, but also for the aftermarket operation for the operator customers. And this is exactly what we're doing with the engineering prototype, separating the vertical flight to the -- from the horizontal flight is what has led us to have this block building, what we call it, a methodology that Embraer has been doing for the last 56 years and has been proving efficient. As we go, we test each component, and this is what we've been doing, right, since the last flight and even prior to this. The first flight that we had on 19th of December, and then we've been having the first phase, which is the hover phase, and then we had the 3 months of upgrading and software integrating also with the pusher that we will turn on. We did turn it on, on the ground first, but now in flight. So this is part of the planned flight campaign. And yes, it's going to take us to the end of the year. So, we like to progress -- like -- I like to say, progress with purpose, right? I mean, we don't want to cut any corners. We know all those tests are important. We've tested more than 150 points of testing, which is very important in our process, and expanding the envelope of flight, right? So -- and then we're learning as we're doing this. With this, we're transferring this to be conforming prototype as much as possible. And this is exactly what we're doing. We're going to be freezing the design of the aircraft by the end of this year. We call the CDR phase with all the suppliers. The 21 suppliers also will be done by the end of this year. And then, like I said, just assembling. Some of them, by the way, the CDRs are done with the suppliers. Some others are not yet. And then we'll transfer this knowledge to the conforming prototype. We'll have 6 conforming prototypes built up next year with the first flight, as I said, it's going to be crewed with a pilot. It's going to be the second half of next year. Six prototypes to go until the certification for 2028, right? It takes about 12 months from the first flight. This is a rule of thumb that we have at Embraer that has been proven also for certification with ANAC. Andres Sheppard-Slinger: Excellent. Thank you, Johann. And maybe just as a quick follow-up. So, at the Farnborough Airshow, you added 2 LOIs to the backlog. So, I guess the question, how significant are these orders? How are you thinking about converting those to binding orders going forward? And what do you see as maybe the main differentiator of the backlog? Johann Christian Jean Bordais: Thanks, Andres. It is important for us, right? I mean, whether it's a new LOI or it's an order conversion, I think it's just important is to move on and also prepare the enter into service. And we do sign those contracts when they make sense. It's just not adding up aircraft numbers to the 2,700 aircraft under LOI and the firm orders -- 100 airplanes under the firm orders with Revo and AirX that we announced early on. But it is to make sense. It's exactly when we have the right mission to fit what the aircraft is meant for. And if you look at Moov, which is the Cabo Verde network and operation, that's exactly what we want, right? It's really to start with the ecotourism going and the whole country is also investing massively in the tourism. And we feel that the eVTOL is definitely needed so they can grow together with the country. And then we also have another one which is important to us is the leasing community with Shearwater, right, recently purchased by the Bay Point Capital Company. And it also shows -- to add up to the other leasing companies that we have, those different models is going to be sold. We sell to a leasing company and then they lease the aircraft to operators or we sell directly to the operators, very similar to what we see in the aeronautical business, which is a rotary aircraft or the fixed-wing aircraft. So as you can see, it's getting interest from the leasing community, which I think is super important for us. Operator: We'll go next to Amit Dayal with H.C. Wainwright. Amit Dayal: With respect to the synergies, Edu, maybe can you elaborate a little bit on what the components of those synergies are? Are these mostly from engineering or is there any IP or infrastructure? Like, can you maybe just give us some color on what the different aspects of these cost synergies and where you are going to capitalize on are? Eduardo Couto: Yes. When we talk about the synergies, we break that in 3 pockets. One pocket is the Eve structure, where we look at everything that we do at Eve and see things that Embraer already does on the parent level, right? And we analyze what we have to do at Eve, but -- and also what could have been done by Embraer, right? So this is more on the administrative side, right, general expenses, and we have been able to find things that Embraer is doing, they can do for us, so we don't have to have a dedicated team at Eve doing that. So this is one type of synergy we do on the Eve structural level, what could be done by Embraer, what could be done -- what needs to be done by Eve. The second thing is the master service agreement with Embraer. Embraer has this big pool of engineers that has been working for us. They do a lot of activities for us. We are the whole time, taking a look on that, how we can be more efficient, what transactions we can pay. Sometimes we can pay things directly to the suppliers of Embraer, so it doesn't need to go through Embraer so that we can save some money. So a big work on this service agreement with Embraer. And the third pocket is industrialization, right? As I said, we want to be as efficient as possible. Embraer has a lot of existing assets and a lot of investments that were already done that we don't need to do it again. So we were discussing what is the most efficient way to produce our eVTOLs, so that we don't need to duplicate infrastructure investments that Embraer has already done. So those are the three pockets. Eve structure, the Embraer service agreement, and the industrialization. Johann Christian Jean Bordais: I will give 2 concrete examples of exactly what Edu has mentioned here on those 3 pillars of synergies. The first one is on the organization, as you mentioned. This is something that we have at Eve, 176 employees, Eve'rs, that's how we call ourselves. And then we also have the MSA with Embraer that involves about 800 people. So if you think about it, that's 1,000 people, organized. But the way we were organized before, we would have some mirror organization, right, like program, for example. And then we figured, we could get more synergy by having one program on one side, which comes with the responsibility, right, and ownership which belongs to Eve. But on the other part, as Edu did mention, some other team would go to Embraer because of the volume of people that they have, they could get some work with maybe less people and then direct some workforce to other projects within Embraer. So we've seen those gains. That's the first tangible example. The second one, which I think also is important, is on the certification program. As you remember, last year we did announce that we would put the landing gears and wheels on our vehicle. Well, the conforming prototype will have those landing gears and it allows us to move around the prototype in Gavião Peixoto faster. And with that in mind, what we could come up with Embraer is use the existing facilities and hangars that they have instead and maybe add up about a couple of containers in the kind of startup style, let's say. And then it will allow us, we have the FATO and vertiport and it will avoid some cost avoidance on the building of a brand new hangar that we had originally planned. So those are substantial savings that, it's a reflection of a direct synergy with Embraer. Amit Dayal: And then going forward, can you -- can this continue to add up for you guys? I know the range is $100 million to $150 million now, but in the future can you potentially find more areas of cost synergies? Eduardo Couto: Oh yes, I think the focus right now is the synergies related to the certification, right, until we get certification in 2028. But when we think about, for instance, services and support, right? Embraer has a lot of MROs and a lot of facilities spread worldwide that we can also leverage, and don't need to invest. So the focus now is certification synergies. But once we enter into service, there is a lot that we can use from existing assets that Embraer already has. Amit Dayal: Understood. Just one last question guys. This partnership with Hitachi, is this more for Eve's operational execution and infrastructure or are you targeting the general eVTOL infrastructure opportunity with this partnership? Johann Christian Jean Bordais: Yes, thanks, Amit. Since the beginning, we strongly believe in the agnostic way, right? This is the way how we're going to be creating the UAM. If we are able to have different types of UAM in different vertiports, and this is what we want. We want to scale up the UAM, and we'll do this only if we standardize, whether it's the electrification, whether it's the BTMS, which is the Battery Thermal Management System, and so on, right? Same thing with the FATO. And I think this is what we're looking for, and this non-exclusive partnership with Hitachi is exactly going in this direction. I mean, it's a great partner, into the electrification around the world already on many industries, and they're naturally coming to the eVTOL world, and their knowledge will be paramount to make sure that we can spread, with their system or any other system, spread the UAM. Operator: [Operator Instructions] And we'll go next to Austin Moeller with Canaccord Genuity. Austin Moeller: For TechCare, how should we think about the process of revenue generation on the $1.4 billion in MRO contracts? What kind of work might need to be performed on these aircraft in their first year after delivery to customers? Johann Christian Jean Bordais: Thanks for the question. This is -- since the beginning, the inception of Eve, we think about 3 pillars, which is the vehicle itself. This is about the customer support and services, strong from the Embraer experience, obviously, and network, Edu mentioned it, right? The MRO, for example, but not only, it's all about the spare parts, about the training of pilots and mechanics and so on, right? Technical services and you name it. So, and then the third one is the vector is about the UATM. When it comes to TechCare, it's the name of our solution, the suite of solutions, technical solutions, that we have. It's a fly-by-the-hour program. But it's based on this system, well-known in the industry. But what happened is that during our negotiation with the suppliers, with our partners, the 21, 22 suppliers that we have, it's a lifecycle contracts that we have. So not only it's for the prototype -- conforming prototype, but also contracts for the production of the Eve-100, but it's also for the customer support and services. And we want to be the face to the customer. This is something that the model that customers have been asking us. We're going to be creating a new category of aircraft and a new segment of aviation. And they want to make sure that we're committed, and this is exactly the spirit of Eve. Just to make sure that we are embedded in the operation, right? They want two things. They want to make sure our operators will want to have the availability of the vehicle when needed, really ready for the mission, and also the operating costs. The best way to do this when it comes to customer support and services is for you to be the face of the customer, right? And that's how we're going to be doing. So it's basically MRO, material availability with an exchange program, and the repair, also a network, right, that we do this with the best customer, and the training, remembering that we do have a contract with ECTS, which is a joint venture between CAE and Embraer, that today do all the Phenom and also the E2s and yes, the end of the technical services. On top of this, very important, we also are piggybacking on the Ahead Pro, which is a prognostic service that Embraer provides to their customers that we will have. So with sensors all throughout the machine, the eVTOL, then we'll be able to see what's the prognosing the maintenance of the aircraft. When it comes to the aircraft and the needs, it's an electrical vehicle. So it's definitely less maintenance task. But again, I mean, this type support program, it's all about predicting the future. Like, Murphy is really keen on trying to break those machines, and when it breaks where it shouldn't. And then with that TechCare services, we will return the operation as fast as possible. And this is what the operator wants. Austin Moeller: Okay, and can you comment on the component or part level differences between the 6 cert-conforming prototypes that you expect to start building this year and will be completing different tasks? Johann Christian Jean Bordais: You mean, compared to the current engineering prototypes? Eduardo Couto: No, no. I think the difference between the 6, right? Johann Christian Jean Bordais: Right. Between the 6, okay. Eduardo Couto: Are you talking about the difference between the 6, the conforming prototypes, or are you talking the difference between the conforming prototype and the engineering prototype, Austin? Austin Moeller: The 6 conforming prototypes. Johann Christian Jean Bordais: Okay. Yes, we do have Basile here on the line that can give you a little bit more detail. Marcelo Basile: I can help on that. Good morning, this is Marcelo Basile. And the difference of those prototypes are related to what the matters of certification we have ahead. So the first one will be related to the envelope expansion and we're dealing with handling quality performance. The second one, you'll be going deep on the handling -- on some tasks regarding also in performance. The third vehicle, you'll be dealing with systems and most likely propulsion and the electrical system. The fourth system -- the fourth aircraft, you'll be dealing as well, going deep on systems, but with focus on avionics. The fifth prototype is more related to interior cabin systems. It will be the first one that will have aircraft with full cabin implemented. And the sixth one will be dedicated to the function and reliability testing, basically are the most close to the series prototypes, series aircraft, and this airplane will be compliant with the functional reliability, basically it's the last thing that we have before entry to service under the type certification achievement. Operator: [Operator Instructions] Moving on to Andre Madrid with U.S. Bancorp. Unknown Analyst: Looking at, the supply chain, can you maybe give us an update there? And also, as you're going through production, your conforming prototypes, do you think there's room to add additional suppliers still? Johann Christian Jean Bordais: Yes, good question. Supply chain, we do have 22. I keep saying we have 21, 22 because as a matter of fact, there's a few of them remaining, but there's what we call the off-the-shelf type of components like an ELT or those type of things that there's not much of a negotiation or customization to our vehicle. It's something that comes with the aircraft and needs to be on the aircraft. But all those contracts were closed and negotiated back. The first contract was on the battery and the -- back in 2023 and with the battery and the engines. We are going through this development phase, right? So back and forth with requirements that we have and we send it to the suppliers and then they answer back. We make changes as we're evolving also and testing the vehicle. But like I said previously, we will have to freeze the design of the aircraft, the Eve-100, by the end of this year. We can accept afterwards minor changes, right? But for certification and for exactly all the test phases that Basile actually mentioned on the sixth vehicle, then we really need to have this configuration frozen by the end of this year. So this is what we're going to be doing with all the suppliers. It's going to happen by the end of this year. And then it's -- those contracts are -- it's one also of the big synergy and knowledge that we're gaining from the Embraer team. For the last 56 years, they've been negotiating this contract and it's a lifecycle contract. Like I said, it's not for only the production. It's really to make sure that all throughout the life of and the operation of the eVTOL, our eVTOL, then they will be supporting us and ramping up, right? So we do have clauses -- important clauses that allow to increase the ramp up and the production, for example, based also on the experience of Embraer. And we know that Embraer has been very good to manage and really a spirit of partnership throughout the pandemic. But after the pandemic, with our suppliers, and that's the same methodology that we're using, locating people also at suppliers to follow up with the development and the engineering teams. So this is how we -- that's the DNA of our relationship with the suppliers. Operator: And this now concludes our question and answer session. I would like to turn the floor back over to Lucio Aldworth for closing comments. Lucio Aldworth: Thanks, Carrie, and thank you everyone who joined the call today. As you saw, we achieved several important milestones this quarter, and we're going to continue evolving quickly and forward, and all of our achievements are going to be much more clearly visible to all in the investment community. We look forward to meeting you in the next upcoming event we're going to be participating. And as always, if you have any questions, don't hesitate to reach out to me or my team. Thank you and have a good day. Operator: Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines and have a wonderful day. Before you buy stock in Eve, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Eve wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Eve (EVEX) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Eve Holding, Inc.? Here are five stocks we like better. Eve resumed flight testing of its eVTOL prototype and has begun partial transition flights, reaching 30 knots. It targets full transition by the end of 2026, crewed conforming-prototype flights in late 2027, and certification and entry into service in 2028. The company ended the second quarter with $403 million in cash and $531 million in total liquidity, which management believes can fund operations through 2028. Second-quarter cash burn was $49 million, while full-year cash consumption is expected at $225 million to $275 million. New letters of intent for 46 aircraft increased Eve’s stated preorder backlog to roughly 2,700 aircraft worth $13.5 billion at list prices, although only about 100 orders are currently firm. Eve also expects $100 million to $150 million in cost synergies and avoidance through its relationship with Embraer over the next three years. Amazon Bets Big on BETA: Why Analysts See 50% Upside EVE (NYSE:EVEX) said its full-scale engineering prototype has entered partial transition flight testing as the electric vertical takeoff and landing aircraft developer targets full transition by the end of 2026 and certification and entry into service in 2028. Chief Executive Officer Johann Bordais said the company resumed its flight campaign after completing a planned three-month ground-test period focused on software upgrades and system integration. The work included testing the synchronization of the aircraft’s lifter rotors and pusher propeller, as well as ground testing of avionics, actuators and flight-control systems with motors powered on. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Flying Cars and Rising Bars: The 2026 eVTOL Breakout Begins The prototype has completed 66 flights and logged 2 hours and 46 minutes of airtime, according to Bordais. Eve has validated 150 test points during the program and accumulated more than 15,000 hours of component and systems testing across its development infrastructure. The aircraft is now conducting partial transition flights, in which it accelerates forward by engaging its pusher while the lifter rotors remain powered. Bordais said the pusher initially operated at low revolutions and was subsequently increased to about 1,200 RPM, enabling forward flight at 30 knots, or roughly 35 miles per hour. → Financials Hit Record Highs as the AI Trade Unravels—Can They Keep Leading? Don’t Miss These 3 Hidden Aerospace Gems Before They Take Off In the coming weeks, Eve plans to increase speed progressively to 60 knots and then to 80 to 90 knots. Full transition will occur when the lifter rotors are powered off and lift is generated by air flowing over the wing, allowing the aircraft to operate like a conventional airplane. Bordais said the company expects to need approximately 30 to 40 additional flights to complete the full transition, with timing still targeted for the end of the year. He said the company does not intend to “cut any corners” in the testing campaign, which is designed to expand the flight envelope while transferring findings into the certification-conforming aircraft program. → Why Rare Earth Processing Could Be the Real 2027 Opportunity Marcelo Basile, Eve’s chief flight prototype engineer, said the company expects to build six conforming prototypes next year. The first will focus on flight-envelope expansion, handling qualities and performance. Other aircraft will support testing of propulsion, electrical systems, avionics, cabin systems, and function-and-reliability requirements. The sixth prototype will be the closest to a series-production aircraft, he said. Eve plans the first crewed conforming-prototype flight for the second half of 2027. Bordais said the company expects the conforming aircraft to fly for about 12 months before certification, supporting its 2028 entry-into-service target. The company said its means-of-compliance process with Brazil’s civil aviation authority, ANAC, is nearly complete. These requirements outline the tests needed to demonstrate that aircraft components meet certification standards. Some suppliers have already begun testing components for which compliance methods have been aligned with ANAC, Bordais said. ANAC has opened an industry consultation on an updated airworthiness certification basis that Eve said reflects alignment with the Federal Aviation Administration. The consultation ends Aug. 18. ANAC also published proposed noise certification criteria for Eve’s E100 aircraft following engagement with the company, according to Bordais. Eve has applied through ANAC for type-certificate validation by the European Union Aviation Safety Agency. Bordais said EASA certification is expected 12 to 15 months after approvals from ANAC and the FAA. On the supply chain, Bordais said Eve has approximately 22 suppliers, with major contracts negotiated since 2023, beginning with the battery and propulsion systems. The company is conducting critical design reviews with suppliers and expects to freeze the aircraft design by the end of 2026, allowing only minor changes afterward. Eve also announced partnerships with Hitachi and the Florida Department of Transportation. The Hitachi relationship is intended to address vertiport electrical-grid connections, charging cycles and integration of new energy demand. The Florida partnership will focus on infrastructure, operating procedures and airspace navigation needed to integrate urban air mobility into the state’s transportation network. Chief Financial Officer Eduardo Couto said Eve ended the second quarter with $403 million in cash and total liquidity of $531 million, including $128 million of undrawn credit facilities. The company believes its liquidity is sufficient to fund operations through 2028 without additional funding. Second-quarter cash consumption was $49 million, while cash burn for the first half totaled $118 million. Eve expects full-year cash consumption to remain near the midpoint of its previously stated $225 million to $275 million range. Research and development expense was $29 million in the second quarter, down from roughly $55 million in prior quarters due to supplier agreements that were more favorable than expected and program-development updates. Couto said R&D spending is expected to return to about $50 million per quarter going forward. Selling, general and administrative expense was $8 million, and net loss was $34 million. The company identified $100 million to $150 million in potential synergies and cost avoidance over the next three years through its relationship with Embraer. Couto said slightly less than one-third of those savings is expected this year, with the remainder expected in 2027 and 2028. Cost-saving efforts include shifting certain administrative activities to Embraer, improving the master services agreement covering engineering resources, and using Embraer facilities and industrial assets to avoid duplicative investments. Eve expects approximately $20 million of capital expenditures this year, around $50 million next year, and $30 million to $40 million in 2028, for roughly $100 million of total investment in modular production capacity. At the Farnborough Airshow, Eve announced two new letters of intent covering 46 aircraft: one from Moov for operations in Cape Verde and another from Shearwater, a Bay Point Capital Company affiliate and new leasing customer. The additions brought Eve’s stated preorder backlog to about 2,700 aircraft, valued at approximately $13.5 billion at list prices. Bordais said the company has about 100 firm aircraft orders from Revo and AirX, while the broader backlog includes letters of intent. He said Eve is pursuing both direct sales to operators and sales to leasing companies, which can then lease aircraft to operators. Eve Holding, Inc (NYSE: EVEX) is the publicly traded parent of Eve Air Mobility, a company dedicated to developing sustainable urban air mobility solutions. Through its engineering and design capabilities, Eve focuses on creating electric vertical takeoff and landing (eVTOL) aircraft tailored for short-haul passenger and cargo transport in densely populated areas. The company’s flagship offering is an eVTOL aircraft designed to deliver clean, quiet and efficient point-to-point service, backed by an integrated digital platform for air traffic management. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "EVE Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

MELBOURNE, Fla., Aug. 4, 2026 /PRNewswire/ -- Eve Holding, Inc. ("Eve") (NYSE: EVEX and EVEXW / B3: EVEB31) reports its second quarter 2026 earnings results. Financial Highlights Eve Air Mobility is an aerospace company dedicated to developing an eVTOL (electric Vertical Takeoff and Landing) aircraft and the Urban Air Mobility (UAM) ecosystem. This includes aircraft development, Services & Support solutions like Eve TechCare® and Eve Vector®, an Urban Air Traffic Management system. Eve is pre-operational. We do not expect meaningful revenue, if any, during the aircraft development phase. Financial results during this period are expected to be driven mostly by program development costs. Eve reported a net loss of $34.2 million in 2Q26 versus $64.7 million in 2Q25. The reduction in net loss in 2Q26 was mainly due to lower Research & Development expenses. These costs and activities are necessary to advance our suite of UAM products and services, including the Master Service Agreement (MSA) with Embraer. R&D expenses were $28.9 million in 2Q26 compared to $45.7 million in 2Q25 and reflect better than expected supplier contract negotiations and program development updates. The decrease came despite continuous supplier engagement and R&D activity – including eVTOL development and allocation of Embraer engineering resources to our project. R&D continues to demand additional program development activities and testing infrastructure. The MSA primarily drives our R&D costs with Embraer, which performs several critical activities for Eve. Selling, General & Administrative (SG&A) was relatively flat yoy, at $8.3 million in 2Q26 ($8.2 million in 2Q25). The number of direct Eve employees remained unchanged yoy at 185 contributors, and despite the c.8% appreciation of the Brazilian Real versus the US Dollar, personnel and outsourced expenses decreased by about 5% yoy – Eve is already capturing some of the additional cost savings and synergies identified with Embraer. This decrease was offset by higher depreciation charges, reflecting the growth of Eve's fixed-asset base. Eve's total cash consumption in 2Q26 was $49.4 million – vs. $56.9 million in 2Q25, despite continuous design & development activities, with some MSA-related payments deferred to the beginning of the third quarter. Including this payment, Eve's full year 2026 cashflow consumption is expected to reach the mid-range of our guidance at $250 million as we start to capture additional synergies with Embraer. Eve's Cash, Cash Equivalents, and Financial Investments totaled $403.3 million at the end of 2Q26. Total liquidity – including undrawn credit lines with the Brazil's National Development Bank (BNDES) and a grant, reached a $531.3 million. We believe this funding is sufficient to support our operations and program investments through 2028. For additional information, please access the full 2Q26 Earnings release, available at the Investor Relations website ir.eveairmobility.com Webcast details Management will discuss the results on a conference call on Tuesday, August 04, 2026, at 8:00 AM (Eastern Time). The webcast will be publicly available in the Upcoming Events section of the company website: www.eveairmobility.com To listen by phone, please dial 1-877-407-0752 or 1-201-389-0912. A replay of the call will be available until August 18, 2026, by dialing 1-844-512-2921 or 1-412-317-6671 and entering passcode 13761886. Webcast access here About Eve Holding, Inc. Eve is dedicated to accelerating the Urban Air Mobility ecosystem. Benefitting from a start-up mindset, backed by Embraer S.A.'s more than 50-year history of aerospace expertise, and with a singular focus, Eve is taking a holistic approach to progressing the UAM ecosystem, with an advanced eVTOL project, comprehensive global services and support network and a unique air traffic management solution. Since May 10, 2022, Eve has been listed on the New York Stock Exchange, where its shares of common stock and public warrants trade under the tickers "EVEX" and "EVEXW". In December 2025, the Company was listed on the B3, Brazilian Stock Exchange, under the ticker EVEB31. The information on, or accessible through, any website referenced herein is not incorporated by reference into, and is not a part of, this release. For more information, please visit www.eveairmobility.com Forward Looking Statements Certain statements contained in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by words such as "may," "will," "expect," "intend," "anticipate," "believe," "estimate," "plan," "project," "could," "should," "would," "continue," "seek," "target," "guidance," "outlook," "if current trends continue," "optimistic," "forecast" and other similar words or expressions. All statements, other than statements of historical facts, are forward-looking statements, including, but not limited to, statements about the company's plans, objectives, expectations, outlooks, projections, intentions, estimates, and other statements of future events or conditions, including with respect to all companies or entities named within. These forward-looking statements are based on the company's current objectives, beliefs and expectations, and they are subject to significant risks and uncertainties that may cause actual results and financial position and timing of certain events to differ materially from the information in the forward-looking statements. These risks and uncertainties include, but are not limited to, those set forth herein as well as in Part I, Item 1A. Risk Factors and Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations of the company's most recent Annual Report on Form 10-K, Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations and Part II, Item 1A. Risk Factors of the company's most recent Quarterly Report on Form 10-Q, and other risks and uncertainties listed from time to time in the company's other filings with the Securities and Exchange Commission. Additionally, there may be other factors which the company is not currently aware of that may affect matters discussed in the forward-looking statements and may also cause actual results to differ materially from those discussed. The company does not assume any obligation to publicly update or supplement any forward-looking statement to reflect actual results, changes in assumptions or changes in other factors affecting these forward-looking statements, other than as required by law. Any forward-looking statements speak only as of the date hereof or as of the dates indicated in the statement. View original content:https://www.prnewswire.com/news-releases/eve-holding-inc-reports-second-quarter-2026-results-302841618.html

This article first appeared on GuruFocus. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Eve Holding Inc (NYSE:EVEX) successfully resumed its flight campaign and initiated partial transition flights, with the pusher engaged at up to 1,200 RPM and forward speeds of 30 knots, marking a key technical milestone. The company reported a strong liquidity position with $403 million in cash and $531 million in total liquidity, which management believes is sufficient to fund operations through 2028 without new funding. Eve Holding Inc (NYSE:EVEX) identified $100 million to $150 million in potential synergies with Embraer over the next three years, with early benefits already reflected in reduced cash burn and R&D expenses. The company expanded its pre-order backlog to approximately 2,700 aircraft valued at $13.5 billion, including two new LOIs announced at the Farnborough Air Show from MOVE and Shearwaters. Eve Holding Inc (NYSE:EVEX) made significant progress on certification, with means of compliance nearly completed with ANAC, and new partnerships with Hitachi and the Florida Department of Transportation to advance infrastructure readiness. Eve Holding Inc (NYSE:EVEX) pushed back the timeline for completing full transition flights to the end of 2026, indicating potential delays in the flight test program. The company's R&D expenses in Q2 2026 were unusually low at $29 million due to one-time supplier agreements, but management expects costs to return to around $50 million per quarter, signaling higher future cash burn. Eve Holding Inc (NYSE:EVEX) still faces significant certification hurdles, with European certification (EASA) expected only 12 to 15 months after ANAC and FAA approvals, delaying entry into key markets. The company's cash burn remains substantial, with $118 million consumed in the first half of 2026, and total consumption for the year is still projected between $225 million and $275 million. Eve Holding Inc (NYSE:EVEX) has not yet achieved full transition flight, and the conforming prototype's first crewed flight is not expected until the second half of 2027, leaving a long runway to certification and service entry in 2028. Warning! GuruFocus has detected 3 Warning Signs with EVEX. Is EVEX fairly valued? Test your thesis with our free DCF calculator. Q: Can you elaborate on the components of the $100 million to $150 million in synergies with Embraer and how much has been realized in the current run rate?A: Eduardo Coto (CFO) explained that the synergies are broken into three pockets: Eve's structure (leveraging Embraer's administrative functions), the Master Service Agreement (optimizing the pool of Embraer engineers and direct supplier payments), and industrialization (using Embraer's existing assets to avoid duplicating infrastructure investments). He noted that less than one-third of the synergies will be captured this year, with the remainder coming in 2027 and 2028. This supports the company's confidence in staying within the mid-range of its cash burn guidance. Q: How should we think about the process of revenue generation on the $1.4 billion in MRO contracts, and what kind of work might be performed on these aircraft in their first year after delivery?A: CEO Johan Borde detailed the "TechCare" suite, which is a fly-by-the-hour program. He emphasized that Eve has life-cycle contracts with its 21-22 suppliers, covering not just production but also customer support and services. The model is designed to make Eve the face to the customer, ensuring aircraft availability and managing operating costs. This includes MRO, material availability with exchange programs, training (via the ECTS joint venture with CAE and Embraer), and leveraging Embraer's "HeadPro" prognostic service to predict maintenance needs. Q: Can you provide an update on the transition flight campaign and how it impacts the timing of building the certification conforming aircraft?A: CEO Johan Borde confirmed that the full transition flight is planned by the end of this year. The prototype has resumed its flight campaign, with the pusher now engaged, and they are approximately 30-40 flights away from completing the full transition (reaching 90 knots and turning off the lifters). This milestone is directly connected to the conforming prototype timeline, as the design will be frozen by the end of the year, allowing assembly to begin and the first crewed conforming prototype flight to occur in the second half of 2027. Q: What are the major validations from the transition flights, and can you remind us where we are on the design and build-out of the six conforming aircraft?A: CEO Johan Borde highlighted that the lift-and-cruise configuration is proving efficient for certification and aftermarket operations. The building-block methodology, tested over 150 points, is being transferred to the conforming prototypes. He confirmed that the Critical Design Review (CDR) with all 21 suppliers will be completed by the end of this year, freezing the design. Six conforming prototypes will be built next year, with the first crewed flight scheduled for the second half of 2027, followed by approximately 12 months of testing before certification in 2028. Q: How significant are the new LOIs from the Farnborough Air Show, and how are you thinking about converting them to binding orders?A: CEO Johan Borde stated that the new LOIs (46 aircraft from MOVE in Cape Verde and Shearwaters, a Bay Point Capital company) are important for preparing entry into service. He emphasized that Eve signs contracts when they make sense, fitting the right mission for the aircraft. The MOVE deal aligns with ecotourism growth in Cape Verde, while the Shearwaters deal adds to the leasing community, a crucial model for the industry. These add to the total pre-order backlog of approximately 2,700 aircraft valued at about $13.5 billion. Q: Can you share how we should think about CapEx into the second half and the manufacturing strategy?A: CFO Eduardo Coto explained that Eve is studying ways to use existing Embraer facilities as much as possible to delay investments in manufacturing. He projected CapEx of around $20 million this year, increasing to roughly $50 million next year, and another $30-40 million in 2028. The total investment of around $100 million will provide a modular production capacity that can be scaled as demand grows. Q: Can you comment on the component or part-level differences between the six cert conforming prototypes?A: Marcelo Basili (Chief Flight Prototype Engineer) detailed the distinct roles of each prototype: the first is for envelope expansion and handling qualities; the second focuses on handling qualities and performance; the third deals with systems, likely propulsion and electrical; the fourth focuses on avionics; the fifth is for interior cabin systems with a full cabin; and the sixth is dedicated to function and reliability testing, being the closest to the series aircraft. Q: Can you give an update on the supply chain and whether there is room to add additional suppliers?A: CEO Johan Borde confirmed that contracts with the 22 suppliers are closed and negotiated, with the first contracts (battery and engines) signed back in 2023. He noted that the design will be frozen by the end of this year, after which only minor changes can be accepted. The contracts are life-cycle agreements, including clauses to increase production ramp-up, and Eve is embedding people at supplier locations to follow development, leveraging Embraer's 56 years of supply chain management experience. Q: This partnership with Hitachi, is this more for Eve's operational execution and infrastructure or are you targeting the general eVTOL infrastructure opportunity?A: CEO Johan Borde clarified that Eve strongly believes in an agnostic approach to scale up Urban Air Mobility (UAM). The partnership with Hitachi is aimed at standardizing electrification, battery thermal management systems (BTMS), and vertiport infrastructure. This is not just for Eve's own operations but to enable the broader eVTOL ecosystem, ensuring that different OEMs can operate at various vertiports, which is essential for scaling the industry. Q: Can you potentially find more areas of cost synergies in the future beyond the current $100-150 million range?A: CFO Eduardo Coto indicated that the current focus is on synergies related to certification through 2028. However, once Eve enters service, there is significant potential to leverage Embraer's existing MRO facilities and global network for services and support, which would provide additional cost synergies and avoid the need for new investments. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

The engineering prototype successfully completed 59 flights, validating 130 performance points and confirming that predictive models for flight behavior are reliable and precise. Management utilized a 'building block' approach to design and testing, breaking complex systems into smaller units to ensure maturity before full aircraft integration. Performance results for motor thrust and battery performance exceeded internal expectations, while noise and vibration levels aligned with initial projections. The company is leveraging its relationship with Embraer to implement a lean philosophy, targeting significant operational efficiencies across R&D, SG&A, and industrialization. Strategic engagement with helicopter operators at VERTICON aims to position eVTOLs as a short-term commercial opportunity for early adopters in urban air mobility. The preorder backlog of 2,700 aircraft provides a diverse customer base across missions like sightseeing, organ transportation, and last-mile logistics. Certification and entry into service are now targeted for 2028 to allow for 12 months of flight testing with conforming vehicles starting in 2027. Management expects to achieve $100 million to $150 million in incremental synergies with Embraer between 2026 and 2028, extending the cash runway without new funding. The transition flight phase will begin in Q2/Q3 2026, progressively increasing speeds until the aircraft reaches wing-borne flight above 85 knots. Production of conforming prototypes is scheduled to begin in early 2027, with a target cadence of delivering one prototype per month up to six units. The 2026 cash burn guidance remains at $225 million to $275 million, excluding the impact of newly identified potential synergies. Ground effect behavior during flight tests deviated slightly from models, though loads remained within expectations and helped refine engineering simulations. The company formally applied for a type certificate with EASA, expanding its regulatory engagement beyond Brazilian (ANAC) and U.S. (FAA) authorities. Binding agreements now include Pre-Delivery Payments (PDPs), with management anticipating collections of 30% to 40% of aircraft value prior to delivery. A new 5-year $150 million loan raised in January 2026 contributed to a record total liquidity position of $578 million. Synergies stem from a workshop involving 200 people across four areas: Eve's structure, Embraer services, supplier activities, and industrialization. The $100 million to $150 million reduction is expected to lower the previously planned cash burn over the 2026-2028 period. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management believes they have reached agreement on approximately 90% of the means of compliance with ANAC, the primary certification authority. Agreement has also been reached on noise certification requirements, which are critical for urban operations despite not being part of the core certification basis. The next few weeks will focus on ground tests for flight control surfaces and airframe structural integrity to prepare for the larger flight envelope. The transition phase is critical for maturing the Eve-100 design before building the final certification prototypes. Vector is designed to manage vertiports and air traffic; the first module has already been successfully tested by customer Revo during the Sao Paulo Grand Prix. The software leverages the DNA of Atech, an Embraer company that developed the existing air traffic management system for all of Brazil. Management maintains the $5 million list price is sustainable due to the simplicity of the 'lift plus cruise' design and long-term supplier contracts. Contracts include inflation adjustment formulas to control costs for both production and the aftermarket lifecycle. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

Flight-test progress and certification outlook: The engineering prototype has completed 59 flights (nearly 2.5 hours) and validated ~130 performance points including an autoland feature, and Eve is moving from hover testing to ground integration and transition flights with certification and entry into service now more likely in 2028. Strong commercial interest and Vector development: Eve reports a pre-order backlog of ~$13.5 billion for ~2,700 aircraft and has two binding orders totaling about $500 million, while its Vector air-traffic-management module has been delivered and tested with customers like Revo. Healthy liquidity and cost plans: Eve ended Q1 with a record cash balance of $441 million and total liquidity of $578 million, which management says should fund operations through 2028; Q1 cash consumption was $69 million and 2026 burn is guided to $225–$275 million, with planned Embraer synergies of $100–$150 million over three years. Interested in Eve Holding, Inc.? Here are five stocks we like better. Amazon Bets Big on BETA: Why Analysts See 50% Upside EVE (NYSE:EVEX) executives on the company’s first-quarter 2026 earnings call highlighted progress in flight testing for its full-scale engineering prototype, ongoing certification work with regulators, and a strengthened liquidity position that management said should fund operations through 2028. CEO Johann Bordais said the quarter marked an important period following the “inaugural flight” of Eve’s engineering prototype last December. Since that first flight, Bordais said the prototype has completed 59 flights and logged “nearly two and a half hours in the air,” including multiple days with two flights, while completing all planned hover-phase objectives. → 3 Emerging Markets ETFs to Maximize Exposure to High-Potential Countries Flying Cars and Rising Bars: The 2026 eVTOL Breakout Begins Bordais emphasized that the test program is focused on both pace and depth of validation. He said Eve’s engineers have already validated 130 different performance points, with the aircraft reaching 215 feet above ground and moving forward at 30 knots. He added that the company has begun introducing more complex in-air maneuvers and fully tested an “autoland feature” controlled by the fly-by-wire system. According to Bordais, the flight campaign has produced “meaningful knowledge gain,” including confirmation that predictive models are “reliable and precise.” He said ground effect behaved somewhat differently than expected, but loads remained within expectations, and the team is using deviations to refine its engineering models. Bordais also said results for motor thrust and battery performance were better than expected, while noise and vibration met expectations. → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches Don’t Miss These 3 Hidden Aerospace Gems Before They Take Off Looking ahead, Bordais said the company has completed the hover phase up to 30 knots “successfully on schedule” and expects a period in the remainder of the second quarter focused on software uploads and ground testing ahead of transition flights. He said Eve plans to upload refined flight-computer software and conduct final ground tests on the pusher and actuators, along with mandatory structural ground tests and layup activities needed for the transition phase. CTO Luiz Valentini, responding to analyst questions, described a shift from frequent flying to a period of ground-based integration and structural testing meant to prepare the aircraft for “the larger envelope of flight” as the program moves from Q2 to Q3. He said the company is “confident” based on how the vehicle has performed relative to expectations, while noting that transition introduces new learning as envelope expansion continues. → Tyson Foods' Total Returns: Tasty Treats for Income Investors? Bordais also outlined a gradual transition approach, beginning with partial transitions and progressively increasing speed, with lifter rotors engaged to provide vertical support. At the end of the transition phase, he said Eve plans to accelerate to a full transition speed above 85 knots, at which point the aircraft becomes wing-borne with lifter motors off. After transition testing, Bordais said the company expects to introduce controlled failures, such as motor shutdowns, to observe system behavior and refine safety procedures and pilot protocols. On broader timelines, Bordais said the company now has greater visibility into certification planning for conforming vehicles and that “certification and entry to service are more likely in 2028,” citing a need to fly conforming vehicles for 12 months to complete certification tests. He said the added visibility increases confidence and lowers risk in the updated schedule and allows incorporation of engineering-prototype learnings into the conforming prototype, including targets tied to range, noise, reliability, payload, and operating cost. Management described ongoing engagement with regulators. Bordais said Eve recently hosted a demonstration at Embraer’s Gavião Peixoto facility in Brazil for Brazilian authorities, including the president of Brazil. He added the company met with Brazil’s ANAC and the U.S. FAA at its Melbourne, Florida office to discuss certification timelines, met with Japan’s JCAB and ANAC to strengthen cooperation between agencies, and formally applied for an eVTOL type certificate with EASA. Valentini provided an update on the “means of compliance” discussions, saying Eve has proposed all means of compliance to ANAC within its certification plans and is discussing them “one by one.” He said the company believes it is “around 90%” agreed on the means of compliance and noted agreement on noise certification requirements, which he said is not part of the certification basis but is important for certification and operation. Valentini added that alignment work is primarily handled with ANAC as the primary certification authority, with engagement continuing with the FAA. Valentini also described how flight-test data is being fed back to suppliers to optimize systems toward Eve-100 product requirements, citing battery temperature behavior as an example of data used to support supplier development and integration decisions. Bordais said Eve’s pre-order backlog stands at approximately 2,700 aircraft valued at about $13.5 billion at list price. He added that the company has letters of intent with 14 customers for aftermarket services and support and 21 potential customers for its air traffic management solution, Vector. On commercial strategy, Bordais said the company is “very comfortable” with the current customer mix and is focused on engaging customers to move from LOIs to firm contracts while also working with customers and local authorities to prepare for entry into service. He said certification is “really the starting line,” with the operational phase and utilization expected to be central to the broader urban air mobility rollout. Asked about binding orders, Bordais said Eve currently has two: Revo and AirX, each for up to 50 aircraft under firm arrangements, which he described as totaling “$500 million under a binding agreement.” He said the agreements include pre-delivery payments (PDPs) and milestones tied to product development. CFO Eduardo Couto provided additional detail on PDP cadence, saying initial down payments are received when binding agreements are signed and that further payments are expected 18, 12, and six months prior to delivery. He said Eve anticipates receiving 30% to 40% of an aircraft’s total value before delivery, with the balance paid at delivery, consistent with commercial and executive aviation practices. On Vector, Bordais said the company’s approach is modular and that urban air mobility operations can begin using existing air traffic management systems, with more robust solutions needed as operations scale. He said Eve delivered the first Vector module to Revo, which was tested successfully at the Grand Prix of São Paulo late last year. He added that Eve plans to move from vertiport management to fleet-level functionality and then to “certifiable software” with ANAC and DECEA, and noted Embraer-owned Atech’s role in developing Brazil’s existing air traffic management software and in developing Vector with Eve. Couto said Eve ended the first quarter with a “record cash position” of $441 million and total liquidity of $578 million, which includes about $136 million of undrawn credit from the Brazilian Development Bank. He attributed the higher liquidity to a new five-year, $150 million loan raised in January and said the company believes the added liquidity “should support operations through 2028 without new funding.” Couto said Eve is also working with Embraer to reduce cash burn from 2026 to 2028. He said an initial review suggests $100 million to $150 million in incremental synergies over the next three years and that actions have already begun to be implemented. In response to analyst questions, Couto said the synergy work spans four areas discussed in a workshop involving more than 200 people: Eve’s internal cost structure, services Embraer provides to Eve, third-party suppliers, and industrialization. He added that the synergies are expected to affect both R&D and SG&A, including efficiencies tied to development, general expenses, third-party consultants, and industrialization for conforming prototypes and production. Bordais linked the effort to Embraer’s “lean philosophy” and Kaizen-style continuous improvement. For first-quarter results, Couto said Eve spent $59 million on R&D and $7 million on SG&A, resulting in a net loss of $69 million. Cash consumption was $69 million, though Couto said this included about $11 million of payments that were expected in the fourth quarter of 2025; excluding that item, he said cash consumption was $57 million, in line with the low end of guidance. Couto reiterated 2026 expected cash burn of $225 million to $275 million, excluding the potential synergies under implementation. Addressing a question on accounts payable timing, Couto said Eve ended 2025 with $21 million due in the fourth quarter, paid $11 million, and that invoices totaling $10 million “slipped to the right” into first-quarter invoicing, resulting in the carryover dynamics seen in quarterly cash consumption. Valentini also said the company continues to use “300 flights as a reference” for the engineering prototype test campaign, while noting the number could change based on testing needs such as vehicle modifications or evaluating different propellers or lifters. Eve Holding, Inc (NYSE: EVEX) is the publicly traded parent of Eve Air Mobility, a company dedicated to developing sustainable urban air mobility solutions. Through its engineering and design capabilities, Eve focuses on creating electric vertical takeoff and landing (eVTOL) aircraft tailored for short-haul passenger and cargo transport in densely populated areas. The company’s flagship offering is an eVTOL aircraft designed to deliver clean, quiet and efficient point-to-point service, backed by an integrated digital platform for air traffic management. The article "EVE Q1 Earnings Call Highlights" was originally published by MarketBeat.

MELBOURNE, Fla., May 5, 2026 /PRNewswire/ -- Eve Holding, Inc. ("Eve") (NYSE: EVEX and EVEXW / B3: EVEB31) reports its first quarter 2026 earnings results. Financial Highlights Eve Air Mobility is an aerospace company dedicated to developing an eVTOL (electric Vertical Takeoff and Landing) aircraft and the Urban Air Mobility (UAM) ecosystem. This includes aircraft development, Services & Support solutions like Eve TechCareﾮ and Eve Vectorﾮ, an Urban Air Traffic Management system. Eve is pre-operational. We do not expect meaningful revenue, if any, during the aircraft development phase. Financial results during this period are expected to be driven mainly by program development costs. Eve reported a net loss of $68.8 million in 1Q26 versus $48.8 million in 1Q25. The higher net loss in 1Q26 was mainly due to increased Research & Development expenses. These costs and activities are necessary to advance our suite of UAM products and solutions, including the Master Service Agreement (MSA) with Embraer. R&D expenses were $59.1 million in 1Q26 compared to $44.7 million in 1Q25. This increase reflects the intensifying R&D activity, including eVTOL development, greater engagement with suppliers, and the allocation of Embraer engineering resources to our project. R&D also required additional program development activities and more testing infrastructure. The MSA primarily drives our R&D costs with Embraer, which performs several critical activities for Eve. Selling, General & Administrative (SG&A) decreased to $7.2 million in 1Q26 versus $7.9 million in 1Q25. This was mostly due to higher payroll-related costs associated with employee Restricted Stock Units (RSUs) recognized in the prior year. The decrease came despite an 11% appreciation of the Brazilian Real versus the US Dollar and a higher number of direct employees at Eve. Our staff now stands at approximately 200, compared to roughly 180 in 1Q25 Eve's total cash consumption in 1Q26 was $68.6 million, compared to $25.4 million in 1Q25. This reflects the greater intensity of our design and development activities. In 1Q26, cash consumption included an $11 million payment under the MSA with Embraer, that had been deferred from the previous quarter. Excluding this payment, adjusted cash consumption in 1Q26 was $57 million. Eve's Cash, Cash Equivalents, and Financial Investments totaled $441.1 million at the end of 1Q26. This is our highest cash balance ever. Total liquidity, including undrawn credit lines with the Brazil's National Development Bank (BNDES), also reached a record level of $577.7 million, driven by a new 5-year syndicated loan of $150 million issued in January 2026. We believe this funding is sufficient to support our operations and program investments through 2028. For additional information, please access the full 1Q26 Earnings release, available at the Investor Relations website ir.eveairmobility.com Webcast details Management will discuss the results on a conference call on Tuesday, May 05, 2026, at 8:00 AM (Eastern Time). The webcast will be publicly available in the Upcoming Events section of the company website: www.eveairmobility.com To listen by phone, please dial 1-877-407-0752 or 1-201-389-0912. A replay of the call will be available until May 19, 2026, by dialing 1-844-512-2921 or 1-412-317-6671 and entering passcode 13760047. About Eve Holding, Inc. Eve is dedicated to accelerating the Urban Air Mobility ecosystem. Benefitting from a start-up mindset, backed by Embraer S.A.'s more than 50-year history of aerospace expertise, and with a singular focus, Eve is taking a holistic approach to progressing the UAM ecosystem, with an advanced eVTOL project, comprehensive global services and support network and a unique air traffic management solution. Since May 10, 2022, Eve has been listed on the New York Stock Exchange, where its shares of common stock and public warrants trade under the tickers "EVEX" and "EVEXW". In December 2025, the Company was listed on the B3, Brazilian Stock Exchange, under the ticker EVEB31. The information on, or accessible through, any website referenced herein is not incorporated by reference into, and is not a part of, this release. For more information, please visit www.eveairmobility.com Forward Looking Statements Certain statements contained in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by words such as "may," "will," "expect," "intend," "anticipate," "believe," "estimate," "plan," "project," "could," "should," "would," "continue," "seek," "target," "guidance," "outlook," "if current trends continue," "optimistic," "forecast" and other similar words or expressions. All statements, other than statements of historical facts, are forward-looking statements, including, but not limited to, statements about the company's plans, objectives, expectations, outlooks, projections, intentions, estimates, and other statements of future events or conditions, including with respect to all companies or entities named within. These forward-looking statements are based on the company's current objectives, beliefs and expectations, and they are subject to significant risks and uncertainties that may cause actual results and financial position and timing of certain events to differ materially from the information in the forward-looking statements. These risks and uncertainties include, but are not limited to, those set forth herein as well as in Part I, Item 1A. Risk Factors and Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations of the company's most recent Annual Report on Form 10-K, Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations and Part II, Item 1A. Risk Factors of the company's most recent Quarterly Report on Form 10-Q, and other risks and uncertainties listed from time to time in the company's other filings with the Securities and Exchange Commission. Additionally, there may be other factors which the company is not currently aware of that may affect matters discussed in the forward-looking statements and may also cause actual results to differ materially from those discussed. The company does not assume any obligation to publicly update or supplement any forward-looking statement to reflect actual results, changes in assumptions or changes in other factors affecting these forward-looking statements, other than as required by law. Any forward-looking statements speak only as of the date hereof or as of the dates indicated in the statement. Investor Relations Lucio Aldworth Caio Pinez [email protected] https://ir.eveairmobility.com/ Media: [email protected] View original content:https://www.prnewswire.com/news-releases/eve-holding-inc-reports-first-quarter-2026-results-302761800.html

This article first appeared on GuruFocus. Liquidity: $541 million at the end of 2025, with $390 million in cash and $150 million in undrawn credit facilities. Total Liquidity (Post-Syndicated Loan): $641 million. Cash Consumption (2025): $175 million, with a $21 million working capital gain in the last quarter. Cash Consumption Guidance (2025): Close to the low end of $200 million to $250 million. Research and Development Investment (Q4 2025): $59 million. Research and Development Investment (Full Year 2025): $195 million. SG&A Expenses (Q4 2025): $8 million. SG&A Expenses (Full Year 2025): $31 million. Net Loss (Q4 2025): $64 million. Net Loss (Full Year 2025): $224 million. Cash Consumption Guidance (2026): Expected between $225 million and $275 million. Warning! GuruFocus has detected 3 Warning Signs with EVEX. Is EVEX fairly valued? Test your thesis with our free DCF calculator. Release Date: March 17, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Eve Holding Inc (NYSE:EVEX) successfully conducted the first flight of its engineering prototype, marking a major milestone in its development process. The company has accumulated over an hour of flight time with 28 flights, demonstrating progress in its flight test campaign. Eve Holding Inc (NYSE:EVEX) has a strong financial position with $641 million in liquidity, including cash and credit facilities. The company secured a firm order from Japan AirX for two aircraft, with options for an additional 48, highlighting market interest and potential. Eve Holding Inc (NYSE:EVEX) has a substantial preorder backlog of approximately 2,700 aircraft, valued at around $13.5 billion, indicating strong demand for its products. The company anticipates increased cash consumption in 2026, estimated between $225 million and $275 million, due to intensified development activities. Eve Holding Inc (NYSE:EVEX) reported a net loss of $224 million for the full year 2025, reflecting the costs associated with its program development. There are significant challenges ahead in finalizing product characteristics and managing the certification process, which could impact timelines. The company experienced a slight contraction in its preorder backlog, attributed to changes in customer strategies and market conditions. Eve Holding Inc (NYSE:EVEX) faces uncertainties related to regulatory compliance and certification, which could affect its entry into service timeline. Q: Can you provide more details on the cash consumption breakdown for this year, particularly between R&D, SG&A, and CapEx? A: Eduardo Siffert Couto, CFO: The cash consumption of $225 million to $275 million is primarily for R&D. We aim to maintain SG&A at last year's level, around $30 million. CapEx is expected to be about $20 million to $30 million, mainly for the plant. The majority of cash consumption will be for development activities with Embraer and suppliers. Q: What feedback have you received from ANAC regarding the means of compliance, and does it affect the timing of the CDR review completion? A: Luiz Valentini, VP of Engineering & Technology: We are working with ANAC on noise regulations and adapting our means of compliance to align with new FAA regulations. This rework will streamline future validation processes with the FAA. It doesn't impact the CDR as it doesn't change the product, just the compliance demonstration. Q: Could you update us on the six ANAC conforming aircraft and their timeline? Are these the ones to be delivered to Revo? A: Luiz Valentini, VP of Engineering & Technology: The prototypes are for testing and certification, not delivery. We have started manufacturing long lead-time items and tooling for composite parts. These prototypes will be used for development and certification, not for customer delivery. Q: What is the strategy for ramping up the service, support, and maintenance segment? A: Johann Bordais, CEO: From the start, we've focused on providing a complete solution, including customer support and services. We're working closely with Revo and other partners to ensure ecosystem readiness. This involves city-specific operations and partnerships, as seen with recent announcements at VERTICON. Q: How do you view the pace of firm orders as you progress through flight certification, and what are your expectations for certification and entry into service? A: Johann Bordais, CEO: We've transitioned from LOIs to firm orders as we approach delivery. The focus is on converting orders and preparing the ecosystem. We expect to deliver the first vehicles in two years, with ongoing engagement with customers and authorities to ensure readiness. Q: Can you provide more details on the deferral of payments to Embraer and the slight contraction in the order backlog? A: Eduardo Siffert Couto, CFO: The payment deferral was due to timing; invoices are typically paid at the end of the following quarter. The backlog contraction is natural, with some LOIs changing due to strategic shifts or financial issues of clients. We're focusing on order conversion and ecosystem readiness. Q: Have all critical components and suppliers been finalized, and is there a timeline for freezing suppliers? A: Luiz Valentini, VP of Engineering & Technology: All critical components and suppliers are engaged and working with us. This includes systems like electrical, propulsion, and flight control. No significant components remain to be sourced. Q: Regarding the 300 flights planned for this year, is there flexibility in this number, and can the timeline be adjusted? A: Luiz Valentini, VP of Engineering & Technology: The 300 flights are a reference for the intensity of testing. The actual number may vary based on vehicle characteristics and testing needs. The focus is on achieving the scope and feeding insights into the project. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus. Liquidity: $541 million at the end of 2025, with $390 million in cash and $150 million in undrawn credit facilities. Total Liquidity (Post-Syndicated Loan): $641 million, the highest cash level ever for Eve. Cash Consumption (2025): $175 million, with a $21 million working capital gain in the last quarter. Cash Consumption Guidance (2025): Close to the low end of $200 million to $250 million. Research and Development Investment (Q4 2025): $59 million. Research and Development Investment (Full Year 2025): $195 million. SG&A Expenses (Q4 2025): $8 million. SG&A Expenses (Full Year 2025): $31 million. Net Loss (Q4 2025): $64 million. Net Loss (Full Year 2025): $224 million. Cash Consumption Guidance (2026): Expected between $225 million and $275 million. Warning! GuruFocus has detected 3 Warning Signs with EVEX. Is EVEX fairly valued? Test your thesis with our free DCF calculator. Release Date: March 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Eve Holding Inc (NYSE:EVEX) successfully conducted the first flight of its engineering prototype, marking a significant milestone in its development process. The company has accumulated over an hour of flight time across 28 flights, demonstrating progress in its flight campaign. Eve Holding Inc (NYSE:EVEX) has a strong financial position with $641 million in liquidity, including cash and credit facilities. The company secured a firm order from Japan AirX for two aircraft, with options for an additional 48, highlighting market interest and potential. Eve Holding Inc (NYSE:EVEX) has a substantial preorder backlog of approximately 2,700 aircraft, valued at $13.5 billion, indicating strong demand for its products. The company's operations consumed $175 million in 2025, with expectations for increased cash consumption in 2026 due to intensified development activities. Eve Holding Inc (NYSE:EVEX) reported a net loss of $224 million for the full year 2025, reflecting the costs associated with its program development. There are significant challenges ahead in finalizing product characteristics and managing the certification process, which could impact timelines. The company experienced a slight contraction in its preorder backlog, attributed to changes in customer strategies and market conditions. Eve Holding Inc (NYSE:EVEX) anticipates increased cash burn in 2026, with a forecasted consumption of $225 million to $275 million, primarily driven by R&D and supplier engagement. Q: Can you provide more details on the cash consumption breakdown for this year? A: Eduardo Siffert Couto, CFO: The cash consumption of $225 million to $275 million is primarily for R&D. SG&A is expected to remain around $30 million, similar to last year. CapEx is projected to be between $20 million to $30 million, mainly for plant-related expenses. The majority of cash consumption will be for development activities with Embraer and other suppliers. Q: What feedback have you received from ANAC regarding the means of compliance, and does it affect the CDR review completion? A: Luiz Valentini, VP of Engineering & Technology: We are working with ANAC on noise regulations and adapting to new FAA regulations. This alignment will streamline future validation processes with the FAA. It doesn't impact the CDR as it doesn't change the product, just the compliance demonstration. Q: Can you update us on the six ANAC conforming aircraft and their role in deliveries? A: Luiz Valentini, VP of Engineering & Technology: The prototypes are for testing and certification, not for delivery. We are manufacturing long lead-time items and assembling components for these prototypes, which will be used solely for development and certification. Q: How do you view the pace of firm orders as you progress through flight certification? A: Johann Bordais, CEO: We are transitioning from LOIs to firm orders as we approach delivery. The focus is on converting orders and preparing the ecosystem for operations. The conversion rate is natural as we engage with customers and authorities to ensure readiness for urban air mobility. Q: Can you provide more color on the deferral of payments to Embraer and the slight contraction in the backlog? A: Eduardo Siffert Couto, CFO: The payment deferral was due to timing in processing invoices, which was unusual and not expected to recur. Johann Bordais, CEO: The backlog contraction is natural due to changes in customer strategies or financial situations. We are focusing on order conversion and ecosystem readiness. Q: Have all critical components and suppliers been finalized? A: Luiz Valentini, VP of Engineering & Technology: Yes, all critical components and suppliers are engaged and working with us. This includes systems like electrical, propulsion, and flight control, ensuring integrated operations. Q: Is there flexibility in the number of test flights planned for this year? A: Luiz Valentini, VP of Engineering & Technology: The 300 flights are a reference for the campaign's intensity. The actual number may vary based on testing needs and vehicle characteristics. The focus is on achieving development goals rather than a fixed number of flights. Q: What is the production capacity for eVTOLs at your current facility, and how do you plan to scale it? A: Johann Bordais, CEO: We have a modular approach with an initial capacity of 120 vehicles per year, scalable to 480. Beyond that, we may consider additional facilities, potentially abroad, based on market demand. For the complete transcript of the earnings call, please refer to the full earnings call transcript.