EVTL

Image source: The Motley Fool. Thursday, Aug. 13, 2026 at 8:30 a.m. ET Chief Executive Officer - Stuart Simpson Chief Test Pilot - Simon Davies Chief Commercial and Strategy Officer - Michael Cervenka Investor Relations Lead - Gillian Levine Operator: Good morning. My name is Jill, and I will be your conference moderator today. At this time, I would like to welcome everyone to the Vertical Aerospace Second Quarter 2026 Business and Strategy Update Call. [Operator Instructions] I will now turn the call over to Gillian Levine, Investor Relations Lead at Vertical Aerospace. You may begin your conference. Gillian Levine: Good morning, and welcome to Vertical Aerospace's First Half 2026 Business Update Call. Before we begin, I would like to remind you that during today's call, we will be making forward-looking statements. These statements involve risks and uncertainties that may cause actual results to differ materially. Any forward-looking statements we make are based on assumptions as of today, and we undertake no obligation to update them as a result of new information or future events. We have posted an accompanying presentation to the Investor Relations section of our website, which contains additional information and cautionary language regarding forward-looking statements. For a more complete discussion of the risks and uncertainties affecting our business, please refer to the financial results and other materials filed with the SEC today. Today's call will be led by Stuart Simpson, our Chief Executive Officer. Stuart will be joined by Simon Davies, our Chief Test Pilot; and Michael Cervenka, our Chief Commercial and Strategy Officer. Following prepared remarks, we will open the call for questions. With that, I will hand it over to Stuart. Stuart Simpson: Thank you, Gillian, and good morning, everyone. The first half of 2026 has been one of the most important periods in Vertical's history. In April, we completed the first two-way piloted transition flight under the oversight of the U.K. Civil Aviation Authority and have since completed multiple transition flights. In June, our final full-scale prototype began piloted flight testing, doubling our flight test capacity. And this week, it also completed piloted transition. In July, we took that progress out of the test environment and into the public arena at the Farnborough International Airshow, where we made history as the first eVTOL flight demonstration at the airshow. At Farnborough, the industry did not just see an aircraft complete a single carefully staged flight. It saw Vertical fly in a real operating environment in front of regulators, customers, aerospace partners, government leaders and investors and then repeat that performance every day throughout the week. That distinction matters. It shows the maturity of our platform and moves to discussion from whether technology can work to whether it can be operated consistently, integrated safely and ultimately commercialized at scale. Farnborough also reinforced the core principle we have long embraced. Successfully commercializing a new class of aircraft requires more than an advanced airframe. It requires a coordinated ecosystem spanning certification, operators, airspace integration, infrastructure, manufacturing, export finance and long-term capital. Over the past several months, we have made meaningful progress across every one of those areas. Today, Simon will share the pilot's perspective on Farnborough and the progress of that flight test program. Michael will then explain how we are building the broader ecosystem around Farnborough. And I will close with the significance of the U.K. government support, our financial position and the key milestones ahead. Before I hand over to Sai, we would like to share a short film on Farnborough. [Presentation] Gillian Levine: Thank you, Stuart. That video really showcases the superb capabilities of our aircraft. For those of you who haven't yet logged into our webcast, I would encourage you to do so after the call to take a look. Farnborough was not only a remarkable week for the Vertical team, but for the entire aviation industry. On day one of the show, we completed the first ever eVTOL flying display at Farnborough, a historic milestone. We flew a complete transition flight, taking off vertically, accelerating smoothly with the forward propellers tilting forward, lift transferring to the wing and the aircraft cruising like an airplane. We reversed that sequence for landing, demonstrating the defining capability of a tilt rotor aircraft, operating like a helicopter to take off and land without the need for a runway and cruising efficiently like an airplane. And the most important point from the cockpit was the aircraft behaved exactly as designed. We then repeated this every day of the show with the team delivering the same controlled performance with changing weather headwinds, tailwinds, crosswinds, normal for urban operations in front of 140,000 people. Farnborough is a challenging environment to display even a certified aircraft, but for a flight test team and a prototype aircraft to deliver five consecutive days with this kind of repeatability is a strong indicator of system maturity. Being able to show the entire aviation community and the public what we've achieved in person was an incredible and emotional moment. What wasn't visible at the airshow was the journey to get to Farnborough. Following the CAA's expansion of our permit to fly, we once again moved beyond our home flight test environment at Cotswold Airport and into public airspace, flying to RAF Brize Norton, RAF Benson, Blackbushe Airport and Farnborough Airport, so two military bases and two civil airports. This required our pilots, engineers and operations team to plan and execute the movement of a new type of aircraft through real airspace and real airport environments. We work with air traffic control, air field operators and our regulator, operated away from our normal support base and demonstrated the procedures, discipline and coordination that routine commercial operations will require while adding to our knowledge of the operating environment for Valo as we proceed towards certification. Getting to this moment was only possible from the culmination of a much broader and rigorous operational campaign that began in 2024. For over two years, we have systematically expanded the aircraft capabilities from tethered hover to vertical lift to wing-borne flight and ultimately, full piloted transition. Every stage has been conducted with a pilot and under the close oversight of the U.K. Civil Aviation Authority as we continue to mature both the aircraft and our flight test organization. Meanwhile, back at our flight test center, our second full-scale prototype is now continuing through its own piloted flight test campaign. Having two aircraft in the program allows us to increase the cadence of testing and demonstrations. And importantly, this aircraft is also intended to support hybrid electric flight testing, which we'll discuss further on this call. For me, the conclusion from Farnborough is straightforward. The aircraft flew as a mature, reliable platform into multiple airports in changing conditions. The team demonstrated disciplined operations away from our home environment, and we repeated that performance in public across the entire week. We will now carry all the learning and information from this experience forward as we progress Valo towards Critical Design Review and Certification. Michael, over to you. Michael Cervenka: As Si mentioned, Farnborough demonstrated the maturity of both our aircraft and our flight test program. Today, we're the only eVTOL company flying transition with a pilot on board with two full-scale aircraft under the direct oversight of a civil aviation regulator. That matters because this kind of flying gives us invaluable real-world operational experience, helping our pilots, engineers and flight test teams refine the procedures and knowledge that will support certification and entry into service of Valo. Farnborough also demonstrated the breadth of the ecosystem forming around Valo. During the week, we announced progress across commercial demand, market development, autonomy, airspace integration and charging, from welcoming Sigma Air Mobility part of Luxaviation Group as a new customer to working with GACA to lay the foundations for Valo's future entry into Saudi Arabia. We do not view these as a collection of stand-alone announcements. Each addresses an important part of turning a successful aircraft platform into a scalable aerospace business. Rather than take you through every announcement individually, I would like to focus on three that particularly demonstrate how this ecosystem is coming together. Our autonomy partnership with Near Earth, our work on next-generation charging through ECLiPSE and our role in integrating eVTOL aircraft into European airspace through VERTI-GO. First, autonomy and defense, where our differentiated platform and key partners provide Vertical with a unique strategic advantage. Valo has been designed from the outset as a common aircraft platform that can serve both commercial and defense markets with electric and hybrid electric propulsion and over time, increasingly autonomous capabilities. This approach allows us to address a broader range of missions without developing an entirely separate aircraft for each use case. This shortens development time lines, reduces operating costs and enables capabilities to be delivered faster to customers. At Farnborough, we announced a partnership with Near Earth Autonomy to support our one-platform strategy to compete in defense and commercial markets. Near Earth brings more than a decade of experience delivering autonomous aviation programs involving organizations, including the U.S. Marine Corps, U.S. Army, Honeywell and Leonardo S.p.A. Importantly, Near Earth's autonomy technology is designed to integrate with Honeywell's Anthem avionics system, which is already at the heart of Valo. That common digital architecture provides what we believe is a faster and lower risk route to introducing autonomous capabilities than developing a separate platform or rebuilding the aircraft core systems. Over time, this could expand Valo's potential across missions, including logistics, resupply, medical transport and distributed defense operations. The U.K. Ministry of Defense has also confirmed its interest in our hybrid electric and autonomous capabilities, reinforcing the relevance of this common platform strategy. Meanwhile, our hybrid program is progressing well. Our hybrid propulsion system is already in integration testing on the dedicated HYPER rig at Cotswold Airport. The rig allows us to validate the turbine generator, electrical systems, control architecture and fault responses before they are installed in an aircraft ahead of hybrid electric flight testing in the first half of 2027. The second area is battery technology and charging infrastructure. Vertical made a deliberate decision to develop proprietary battery capability in-house. We source cells from leading suppliers that design the battery management system and integrate those cells into aerospace-grade battery packs at our Vertical Energy Center. This gives us control over the performance and continued development of one of Valo's most critical systems. It also creates a meaningful recurring revenue opportunity. With aircraft batteries currently expected to be replaced approximately once a year, every Valo delivered has the potential to generate battery revenues throughout its operating life, expanding the lifetime value of each aircraft beyond the initial sale. This battery technology will only be commercially viable if aircraft can recharge quickly, manage heat efficiently and return to service without costly bespoke ground infrastructure. That is why we are developing a charging solution. And at Farnborough, this got a further boost. We announced ECLiPSE, a U.K. government-supported program led by Vertical in partnership with the University of Bath and InnCat to develop next-generation high-power charging and liquid cooling infrastructure for electric aircraft. The objective is to improve charging performance while reducing system size, installation complexity and long-term operating costs. Our solution is much more compact, allowing for broad deployment and much more cost efficient versus other options coming to market. Faster, more efficient charging should enable greater aircraft utilization and improve the economics for operators. Importantly, the infrastructure developed for ECLiPSE is intended to be vehicle agnostic. Whilst it will support Valo, it is being designed for use across different electric aircraft platforms, helping establish the common infrastructure needed for the wider electric aviation market to scale. The third area is certification and airspace integration. Vertical benefits from a well-defined certification pathway through the U.K. CAA and EASA. Both regulators have established dedicated (SC)-VTOL standards with published certification requirements and defined means of compliance. This gives us clear criteria against which Valo is being designed, tested and ultimately assessed. This approach is also expected to enable swift portability across regions. Beyond CAA and EASA, we have active certification validation projects with four other regulators, the U.S. Federal Aviation Administration, FAA, National Civil Aviation Agency of Brazil, ANAC, and the Japan Civil Aviation Bureau, JCAB, and most recently signed an MOU with GACA. Certifying the aircraft, however, is only part of bringing a new category into commercial service. The industry must also establish the procedures that will allow eVTOL aircraft to operate safely and routinely alongside existing airspace users. That is where Project VERTI-GO comes in. VERTI-GO is a major European Union-funded program led by Honeywell Aerospace under the SESAR joint undertaking, the EU's flagship program for modernizing European airspace. Its 12-partner consortium brings together aircraft manufacturers, regulators, air navigation service providers, airports and technology companies to develop the operating procedures required to integrate piloted eVTOL aircraft and remotely operated cargo aircraft into shared European airspace. Vertical has been selected as the program's piloted eVTOL demonstration partner with demonstration flights planned between Malaga and Marbella in Spain. This builds on the work we have already undertaken with NATS, the U.K.'s air navigation service provider through the U.K.'s Future Flight Challenge. We see VERTI-GO as Europe's counterpart to the U.S. eVTOL integration pilot program. It connects the defined U.K. and European aircraft certification pathway with the practical work required to introduce these aircraft into real aviation networks, moving the industry beyond demonstrating that an aircraft can fly and towards proving how it can operate safely, repeatedly and at scale. Taken together, Near Earth, ECLiPSE and VERTI-GO demonstrate the broader strategy. We are developing the aircraft autonomy, charging infrastructure and operating framework in parallel so that Valo can enter service as part of a functioning and scalable aviation ecosystem. Stuart, back to you. Stuart Simpson: Thank you, Michael. The ecosystem Michael described is particularly visible here in the U.K., where government support now spans technology development, manufacturing, defense, future flight policy and export finance. As Vertical progresses from aircraft development to industrialization, building the manufacturing capability to support certification, production and long-term growth becomes increasingly important. During Farnborough, we announced that Vertical is in advanced discussions with the U.K. government on a broad package to support that next phase, anchoring the first of our planned global production facilities in the U.K. This will build on our near-term manufacturing investments, including our early aircraft assembly facility at Cotswold Airport and expanded Vertical Energy Center due to open in the third and fourth quarters this year while providing the foundation for future production at scale. The proposed U.K. government package includes a further grant of up to $30.5 million in connection with the down selection of U.K. sites for aircraft assembly and battery manufacturing. When finalized, that would bring support awarded to Vertical from the U.K. government to approximately $100 million. The support is broader than a single grant. The Ministry of Defense has confirmed its interest in our platform, hybrid electric and autonomous capabilities. We have also signed a nonbinding MoU with U.K. Export Finance to establish a framework for potential export lift and customer financing support. We continue to work with Innovate U.K. and other government programs as we move from prototype development towards industrial scale up. We are progressing the U.K. site down selection and will announce a result within the next six months. Locating design and production approvals within the same CAA regulatory framework will ensure close coordination as we move through certification into production. This is not only important for Vertical. Our first full-scale final assembly and battery manufacturing facilities are expected to support around 700 direct highly skilled jobs by 2030 with wider benefits across the U.K. aerospace supply chain. It reinforces the U.K.'s ability to design, certify, manufacture and export a new generation of aircraft. Let me now turn to funding and our financial position at the close of the first half of 2026. I want to separate three things clearly: cash on our balance sheet, the makeup of our recent financing package and approach we take to deploying our available capital. That distinction is important for investors and how we manage the program. Following period end and building on the significant technical and commercial progress achieved during the first half, including our historic public flight demonstrations at Farnborough, we announced a financing package expected to provide approximately $100 million in gross proceeds from a combination of new and existing investors. We deliberately structured the recent financing using three complementary sources of capital. First, we raised $35 million through an underwritten offering to a group of new and existing investors. Second, Mudrick Capital accelerated $40 million under its existing convertible note facility. This comprises a recently completed $5 million draw and the accelerated funding of the remaining $35 million available under that facility. This represents further support from our largest shareholder. Third, we drew $25 million under our existing preferred equity facility with Yorkville, providing an additional source of near-term capital while preserving further potential capacity under the broader financing framework. As of today, 13th August 2026, we have available cash and cash equivalents on our balance sheet of approximately $134 million. And following receipt of all the financing commitments, which are expected on or around today, we anticipate having available cash of $148 million. The construction of the package was deliberate. Our first objective was to secure a meaningful amount of capital upfront rather than relying exclusively on smaller incremental draws that would remain dependent on future market conditions and trading volumes. Our second was to balance external equity investment with continued support from our largest shareholder and capital available through our existing facilities. Finally, we wanted to preserve flexibility across a range of future funding sources, including our remaining facilities, strategic investment, government support and other capital market opportunities. We also believe this was the appropriate time to act. Over the last six months, Vertical has completed piloted two-way transition with two full-scale prototypes, demonstrated the aircraft publicly at Farnborough International Airshow through five successful flights in five days, expanded its commercial and defense partnerships and secured increased support from the U.K. government. The financing allows us to convert that operational momentum into the financial capacity required to maintain program pace as we move into the next phase of certification and industrialization. This is, therefore, not simply about extending the runway. The capital supports a defined set of milestones that create significant program value. These include achieving Critical Design Review, which will establish the certifiable design baseline for Valo, progressing towards the build and test of certification conforming aircraft, opening our expanded Vertical Energy Center, which will triple our battery production capacity over time and developing our future U.K. production capabilities. Finally, retrofitting our third prototype aircraft to begin hybrid electric flight testing during the first half of 2027. Together with our existing cash resources and facilities, the package is expected to extend our cash runway through towards the end of third quarter 2027. It gives us greater resilience and clearer visibility over the delivery of these milestones while allowing us to engage with potential strategic and other funding partners from a stronger operating position. Over the next 12 months, we currently expect net cash outflows from operations of approximately $150 million. The principal uses of cash are directly linked to the program milestones discussed previously, with the completion of CDR being the next major milestone. During the first half, net cash used in operating activities was $112 million, reflecting our investment in flight testing, Critical Design Review, supplier activity, manufacturing readiness, our battery program and hybrid development. In the first quarter, we announced a broader financing framework of up to $850 million, inclusive of a $50 million equity raise. Following completion of the latest transactions, we will have raised or accessed approximately $185 million in aggregate gross proceeds from these facilities since March, comprising $85 million of equity, $50 million of convertible notes and $50 million of preferred equity. We would continue to have approximately $700 million of potential capacity under the Yorkville preferred equity and equity line facilities. Importantly, this represents potential future financing capacity, not cash on the balance sheet or unconditional liquidity, and remains subject to applicable conditions, limitations and market environment. However, it is committed capital. In summary, our approach to capital allocation remains disciplined. We will continue to evaluate the most appropriate mix of equity, strategic capital, government support and flexible financing. I'll close by setting out milestones investors should use to measure our progress. First is the aircraft level Critical Design Review, which we expect to complete by the end of 2026. This CDR will establish the certifiable design baseline for Valo, aligning the aircraft suppliers certification plans and enables the build and test of certification-ready aircraft. It is the next major gating milestone in the program. Second is industrial readiness. As mentioned, we are targeting the early production of aircraft assembly facility to come online during the third quarter of 2026, the expanded Vertical Energy Center during fourth quarter. Once fully operational, the expanded energy center will triple battery production, supporting our proprietary aerospace battery program and the batteries required for certification aircraft, while also building the foundation for future production and aftermarket opportunities. Third is hybrid. Integration testing is underway on our hybrid rig HYPER. We expect to select the long-term turbo generator supplier during the latter half of 2026 and to begin flight testing the hybrid electric prototype in the first half of 2027. This program extends the capability of the Valo airframe into longer-range civil, defense, logistics and special mission applications. Fourth is certification. Following the rebaselining announced in July, we expect to achieve type certification of Valo in 2029 through the U.K. CAA and the AAA pathway. The framework is established, the certification requirements and means of compliance are defined, and we remain in close engagement with both regulators. I can't stress this enough. Valo's U.K.-European pathway is being designed from the outset for global reach. Once Valo is certified by the U.K. CAA and the EASA under the (SC)-VTOL safety framework, which targets airliner level of safety for commercial eVTOL operations, the next step in the United States and other jurisdictions will be validation of that type certificate through existing bilateral and local processes rather than starting from scratch in each market. As Michael mentioned, our goal is for U.K. and EU certification to act as a foundation for rapid validation in the U.S. and other key regions, enabling Valo to enter service as a truly global aircraft with a consistent safety and performance standard, not just a single market product. The progress we've made during the first half of the year gives us real confidence in the road ahead. We've delivered major flight test milestones, expanded our flight test capability, demonstrated the aircraft in real operating environments, advanced our hybrid program, strengthened our industrial, commercial and technology partnerships, received confirmation of MoD interest in our platform, hybrid and autonomous capabilities and secured further U.K. government support now totaling over $100 million to build the manufacturing capability that will underpin certification and production. Throughout today's presentation, you've heard that our strategy extends beyond building a great aircraft. We're building the ecosystem, industrial capability and partnerships needed to bring an entirely new category of aviation into commercial service. None of this would be possible without the extraordinary dedication of our team. Every milestone we've discussed today reflects the commitment and expertise of colleagues across the business, and I'd like to thank them for everything they've achieved so far this year. As always, we remain committed to maintaining an open dialogue with our investors. We'll be attending several investor conferences over the coming weeks, including Jefferies, Deutsche Bank and H.C. Wainwright, and we look forward to meeting many of you there. If you'd like to arrange a meeting, please contact your sales representative or our Investor Relations team. Thank you for your continued support, and we're happy now to take your questions. Operator: [Operator Instructions] Your first question comes from the line of Chris Pierce with Needham. Christopher Pierce: I guess just to sort of get right into it, I guess, how do you, the technical progress you guys have shown versus the market disconnect versus your peers, like what do you think closes that gap? Is it strategic? Is it something outside of sort of investor expectations? Like, and is this something you spend time thinking about given the liquidity situation? Or is it just head down, execute, keep flying, keep sort of moving the ball forward? Stuart Simpson: Chris, thank you very much for the question. Look, of course, we think about it, and we would love to get that gap closed, and I think we will. The first thing is we will just continue, as you say, to keep our heads down and execute flawlessly. Everything we set out almost two years ago in Flight Path 2030, we've delivered on. And in fact, we've delivered more than that, all in the right time and frankly, with less money than we said we would spend. I think that demonstrates what vertical is all about. We do what we say. We are efficient, and we are making tremendous progress. That being said, we've had this discussion around strategic partners. We have great strategic partners that we've been working with for many years. Honeywell among them, they've been deeply embedded in this program for six years, key part of us doing transition. American Airlines, along with our other customers, help define the aircraft and make it the market-leading proposition that it is. As you know, there is this ongoing desire to find other strategic partners. And I think when we find the right one of those that's truly accretive to the business, we will get a stock price re-rating and a and that market disconnect will start to close. So we do think about it. We will keep executing and we, of course, continue to look for other partners. Hopefully, that gives you a bit of a feel for it, Chris. Christopher Pierce: And then just on the nonfinancial side, I guess, how should we think about the order book after Farnborough, sort of what are you seeing? Is that something that's something that could kind of drive some momentum as well? Is it sort of, what should we expect the rest of this year as far as order book? Stuart Simpson: Yes. Good question, Chris. We, as you know, we've had our order book closed for a long time. I think we did one small announcement, but very high profile over the last few months. But in general, we're very, very selective with the customers that we engage with. But Farnborough was a wonderful showcase for us to have the five flawless flights outside every day to demonstrate the capability and inside to have the Valo on show showcasing how different it is in the category and how it can define the category has been extraordinary. So we've got a lot of conversations ongoing. I'll probably do some announcements post CDR because at that time, that gives us a more solid foundation for discussion with customers because that Critical Design Review, that aircraft Critical Design Review will let us confidently say, look, this is the mass of the aircraft. This is the payload. This is the range. And actually, that can really help with customer discussions. So I'd expect to see some announcements probably towards the end of this year and into the start of next year. That's probably the way to think about it, Chris. Operator: Your next question comes from the line of Laura Li with Deutsche Bank. Xinran Li: So first, I want to ask about the timeline because could you elaborate a little bit more? What are the main factors behind this shift from 2028 to 29? And how should we think about the associated cash needs from now and then? Because I think you used to say something around like $200 million gap. And how should we think about that now? Stuart Simpson: Thanks, Laura. So the certification time line we talked about just before Farnborough and nudging that out from '28 to '29, really a reflection on a couple of things. We were a little bit late on transition kind of a quarter late. But what that really meant was it tied up our engineering team still focusing on transition rather than turning all that resource on to the certification aircraft, the VX4. So as you know, part of what we really pride ourselves here on at Vertical is being very clear and transparent to the market, and we felt it was appropriate just to nudge that out to 2029. But we're confident that we can do that. We've got a clear line of sight to it. As you know, we're working very closely with the Civil Aviation Authority and EASA. They are deeply involved in our program, understand the steps we've got to take and are both supportive of this time line to 2029. In terms of cash needs, cash needs remain around $700 million, and we're comfortable and confident we will be able to achieve that. So hopefully, that gives you what you were looking for, Laura. Xinran Li: I have one follow-up on the Vertical project with Honeywell. Could you provide more details on this vertical project, like how you expect it to be structured and how the road map look like? I think you just announced some demo in Spain, but how you are like prioritizing which markets come next or like where do you see more demand out there? Stuart Simpson: Yes, of course. Look, we've been, I think the distinction I would draw here, the eIPP in America is great. I'd love to see the competitors flying because it's bringing the industry to life. Of course, we've been flying under regulatory oversight here every single flight we do. So we're very used to having that level of scrutiny. With regard to the flying with Honeywell, I'll just pass that over to Michael Cervenka, who can give you some color commentary on it. Michael Cervenka: Thanks, Stuart. So I think, firstly, just to talk through what it involves, it brings together aircraft manufacturers, and navigation providers, airports, regulators and technology partners to develop procedures for shared European airspace. As I mentioned, it's the European equivalent to the FAA eIPP program, and we're the piloted demonstration partner. As you point out, we're going to be doing planned flights between Malaga and Marbella. And so firstly, clearly, there's a brilliant set of use cases in that area. But it's also about understanding the operating procedures within the European air space, getting kind of wider public and stakeholder engagement. So, this doesn't count towards certification, but I think it's a really important part about going beyond certification into operational proving. Operator: Your next question comes from the line of Louie DiPalma with William Blair. Louie Dipalma: Can you further discuss your defense partnership with Near Earth autonomy and the hybrid development of Valo? And how much of a priority is the hybrid form factor for the U.K. Ministry of Defense? Stuart Simpson: Of course, I will just touch on the hybrid before passing it to Michael. So look, we're very excited about hybrid. We signed it off 2.5 years ago. It's been running on the bench. We now have a new gas turbine running on the bench, and we'll be installing that powertrain in the current Aircraft 3 in Q1 next year and flying that. And the joy we have relative to others is our larger airframe is a direct carryover from the electric aircraft to the hybrid. What it means is, and this is one of the reasons we have a lot of interest in it, our time to market is really accelerated versus others. So we're very, very excited about it. And over the next 6 months, we'll also announce our certification and industrialization partner for that hybrid program. So who is going to provide the gas turbine. With that, Louie, I'll pass over to Michael for a bit more in depth on the Near Earth. Michael Cervenka: Maybe just to add a little bit more on hybrid. So as Stuart says, really, we've got three aircraft from one-platform. So we've got the pure civil battery-powered aircraft. That remains our core focus. That's the CDR that Stuart talked about happening in November this year. And then hybrid really opens up two options for us. One is a civil variant, which looks incredibly competitive against some of the intermediate single and light twin helicopter market. So that's about a 400 helicopter a year market, and then it opens up defense options. The rig work that we've been doing has really been all of the technology proving around the integration of a hybrid system. So essentially on our aircraft in the battery variant, we have eight batteries. For hybrid, we removed four of them and replace that with a gas turbine system. Key steps in that are firstly, understanding the power management. So when are you taking power from the gas turbine, the batteries and how are you managing all of that. Then the other important bit is managing all of the electrical architecture, safety systems and so on. So all of that technology-proving integration and derisking, we've been doing through the series of rig tests. And then it's a relatively small step from that to then integrate it onto the aircraft. In fact, we've just now got two aircraft having plan transition. So I think that really demonstrates the capability, and what we're seeing is certainly on the defense side, as Stuart has mentioned, some real interest in that platform. It is quite different. It is the only eVTOL platform that has the size and capability to fit in a gas turbine system with incredible payload and range, but also brings together Valo's tilt rotor system with all of the maneuverability, redundancy and noise profile advantages. So we see this having a wide range of applications from dispersed logistics, medevac, surveillance reconnaissance, electronic warfare and so on, where we've got some real differentiation. So I think that's super exciting. Just to reiterate, battery is the core, but this is a relatively easy step for us to keep this program running in parallel, if you like. Just on autonomy, so Near Earth, I mean, we've been talking to you for quite some time. You may be aware that Honeywell is an investor in Near Earth. Near Earth has got phenomenal capabilities that they've built up over more than a decade. And in that, they've taken some existing legacy helicopters, which are really complex because, of course, they are manually flown. So both Bell and Leonardo helicopters, they put flight control systems and then autonomy on top of that. So that's a really big complex step. And they through some U.S. DoD programs, they've actually acted as a prime where they've demonstrated the ability to fly autonomous logistics missions into unprepared space. And you can imagine all of the complexities to do that and do that safely. The real beauty we've got for Valo is that autonomy system from the beginning was designed to run on the Anthem avionics suite that we have on our aircraft. So rather than having to bolt on additional boxes, essentially that can run on the compute that's already being certified for Valo, and it provides a really easy step. Now how we see that playing out is autonomy is a very big topic, and we haven't got time to go into detail, but there are clearly a wide range of defense applications where this is proving the technology is already there. So we'll have to go through the necessary approvals, but this is really an execution challenge. For Civil, we've always had the approach of making the aircraft really as simple and safe to fly and as automated as possible. I think Near Earth and Honeywell and us have a joint interest, strategic benefit, if you like, to maturing these technologies and taking us on that gradual journey towards increased automation towards autonomy and the civil platforms. Louie Dipalma: And is there any projected timeline on when the hybrid aircraft should perform this transition flight? Stuart Simpson: Well, we'll be installing the hybrid into the Aircraft 3, as Michael said, in Q1 or early Q2 next year. And then we'll take it through its normal flight test procedures. So a very, very exciting moment for us because with what we've done, we've already proven that the aircraft can do transition with electric. This really just substitutes in a different powertrain. So there is no huge technology challenge here. We know the powertrain works. We know the aircraft design works. So it's not a major step for us. Operator: Your next question comes from the line of Sameer Joshi with H.C. Wainwright. Sameer Joshi: I just have a question on the cash burn expected over the next 12 months. When we look at the cash from operations for the first half of 2026, it's around GBP 83 million. And for the next three months, we are projecting GBP 110 million. I would just like to see how the last six months are different from the next 12 months? And why is it not sort of GBP 160 million, GBP 170 million for the next 12 months? Operator: Yes. Good question. Thank you for that. Just to confirm, the spend for the first half of this year was $112 million. Now that was a high spend because we had an awful lot going on in the first half this year. So spend is nonlinear in these types of programs. It's pretty lumpy, and this first half was particularly busy. Supplier payments to underpin drive towards the CDR, the aircraft level CDR that we're doing in Q4 this year. We have a lot of spend associated with getting to and through Farnborough. We did some battery investment. And we also invested in our near-term manufacturing facilities for both the batteries, VEC2, where we've expanded the capacity threefold and invested in the new facility for pilot production of the aircraft at Kemble. So that just bumped this first half of the year up a little bit. As we look forward to next year, the spend is driven by the milestones that I've talked about. There will be a bit more spend related to the near-term manufacturing facilities. We've then got the aircraft level CDR that we're doing in Q4. Then as we roll into next year, there's a bit of additional spend on installing the hybrid into Aircraft 3 and then flying and demonstrating it. So that's really the difference. It was a bit of an expensive quarter given what we are trying to achieve this year. And then next year, it's not quite as lumpy. So hopefully, that explains it a little bit, Sameer. Sameer Joshi: Yes, that's good. We talked about in response to some questions about the VERTI-GO and in prepared remarks as well. But would you be able to talk a little bit about the ECLiPSE program? Is there any monetary commitment from any party here? How should we look at this progressing over the next 12 to 24 months? Operator: Sorry, could you just repeat that? The line broke up a little bit, Sam. Which program would you like? Sameer Joshi: The ECLiPSE program, the battery program. The battery program, yes, of course. David, maybe you would like to comment on that. David King: Yes. Thank you for the question, Sameer. The ECLiPSE program is sponsored by the United Kingdom government, and that's to work with them to develop a high-power charging system. So as Michael said in his remarks, we have a proprietary battery system at Vertical Aerospace, and that's our core. We've invested in our Vertical Energy Center to develop the technologies. Now to build this ecosystem. I really like the way that Michael explained this because we're developing and certifying this aircraft halo, but we're essentially flying formation in developing the ecosystem at the same time so that the ecosystem elements and the certification can land on parallel runways at the same time so that we will hit the ground running literally in entry into service in 2029. So part of the ecosystem is the charging systems. Now what we have at Vertical, which is really exciting from my perspective is this proprietary charging system that provides high-power charging and cooling in a small footprint at a very cost-efficient manner. So through the ECLiPSE program, we are working with the United Kingdom government to develop that with the intent of being able to set up the ecosystem in the United Kingdom, but that also gives us this advancement of this proprietary capability. Michael Cervenka: And maybe if I can just add one point. Some of this came about actually, we obviously, fundamentally, we're not going to operate the aircraft. Our strategy is to be an OEM, but we work with that wider ecosystem in terms of how the aircraft get deployed. And included in that are a lot of the infrastructure players. And the feedback we were getting from them was the options they had available to them were really too expensive and too large. And fundamentally, we don't want that barrier to enable Valo and other electric aircraft to be deployed successfully all over the world. So we've taken it upon ourselves to kind of fill that gap with a really compelling offering. Sameer Joshi: Supplying batteries is also, I mean, I think it is a value proposition that seems to be lost with the investor community. But in terms of financing this ECLiPSE program, is the U.K. government committing any resources? And how much, what resources are expected from vertical? Stuart Simpson: So the U.K. government are committing resources to it. We know that. This is why we announced it. We've already got funding for that and the funding within our budget, the numbers that I talked about earlier. So we will be executing against that as we go forward. It's not huge numbers, Sameer. It's a pretty small amount of money that you need to execute this. We've actually been working on it for some time. So this is really just tidying up the last little bit of it. So it's not a huge cash drain going forward. Operator: Your next question comes from the line of Andres Sheppard with Cantor Fitzgerald. Andres Sheppard-Slinger: It was great to see the team at Farnborough and more importantly, it was great to see the aircraft fly at Farnborough. So congrats on that as well. Stuart, I want to maybe come back to defense and hybrid. I know you've talked about it extensively in your remarks. But I guess my question here is, how are we thinking about commercialization here? And is there perhaps an opportunity to accelerate the defense and/or the hybrid, perhaps even ahead of the civil side since obviously has a more progressive certification process. Just curious how you're thinking about that, if perhaps there's an opportunity to maybe, again, accelerate defense opportunities. Operator: Yes, of course, Andres. So a huge thank you to you, Andres, as well. I think the panel that you hosted at Farnborough was just fantastic. It was great to be on stage with the other CEOs. So thank you for that, just bringing eyes and interest to this industry is fantastic. So thank you. Regarding defense and hybrid, look, you're absolutely right. We could accelerate this and flip and go hybrid first. At the minute, we're not because it's such a close follower. We are well down the road with Valo as an all-electric. We're progressing extremely well with the hybrid powertrain. We already know it works. We'll demonstrate it next year in an aircraft. But should the U.K. government come in or indeed any other military come in and say, look, we really want this now. We can absolutely pull that forward and deliver that either in parallel with the 2029 time line for the electric or potentially even earlier depending on certification requirements. So really good question, Andres. Thank you. Andres Sheppard-Slinger: Maybe just as a quick follow-up. Coming back now to the Project VERTI-GO or the eIPP European equivalent. I think Michael mentioned this is not necessarily tied to certification, but it does help as validation towards that certification process. So I guess my question here is, how are you thinking about, or what are you hoping to achieve with this program? Is it a revenue generator down the line? Is it validation for the technology? Is it eyes to the industry? Is it all the above? Or just how are you thinking about it? And what are you hoping to get out of it? Operator: Well, I will say one word and then hand it to Michael, but this will be an outstanding opportunity to demonstrate the capability of the aircraft in an amazing high-profile area of Spain. And then Michael, maybe if you want to add a bit more. Michael Cervenka: Yes. So I think that there's a lot of parallels with eIPP in terms of a lot of the things you talked about in terms of why you would do this. And the big bit is demonstrating the capability, demonstrating how this fits within the ecosystem, helping accelerate the wider stakeholders that are needed to bring these aircraft into operation. Like eIPP, it doesn't generate revenue itself, but there is one distinct difference, which is eIPP is not a funded program. So all of the U.S. payers participating in eIPP are doing it so entirely at their own expense, whereas this particular program actually is grant co-funded by the European Parliament. So we have the benefit that we get some of the costs covered. But really, it's around demonstrating and validating the operation of the aircraft in that ecosystem and all the different pieces that need to come together to make that happen. Operator: Your next question comes from the line of Savanthi Prelis-Syth with Raymond James and Associates. Savanthi Syth: Just on the battery and charging solutions you're developing. I know you talked a little bit about this before, but I was curious if there's an opportunity here to kind of sell into some aerospace companies or even airports ahead of kind of the certification? Or do you kind of really need certification before you can kind of start monetizing that? Stuart Simpson: So Savi, absolutely, there's opportunity to monetize before certification. That's one of the reasons we're doing it. We also believe we've got a fantastic technical solution here that's smaller, cheaper, but equally as powerful as other things that are available. But yes, we have got great opportunity to monetize earlier than certification. I guess what do you need to achieve to get to that point? Or what's the timeline look like? We've not gone public with that, but you can book it pre certification. Savanthi Syth: And then just on kind of the Valo aircraft. Just curious how many aircraft you plan on building as you kind of get through 2027 and 2028. And if, going back to VERTI-GO, if you'll be planning on flying the Valo aircraft? Or will you be flying some of the Aircraft 3 or Aircraft 2? Stuart Simpson: Yes. We'll be flying Valo, and we will be ramping up production towards the end of next year, and we will be flying in the Valo in 2028. We'll be building seven of those initially and then some hybrid ones as well. So that's the way to think about that. And we'll certainly be flying Valo at Farnborough in two years. We've gone from having nothing flying there to an amazing year this year with prototype aircraft, and we'll have Valo on full display flying there in a couple of years. very, very exciting. Operator: We have reached the end of our Q&A session. I will now turn the call back to Stuart for closing remarks. Stuart Simpson: So first of all, thank you all for joining and the continued interest in Vertical, hugely appreciated. I'd just like to take a moment to thank the Vertical team for all they've achieved this year. It's been a quite extraordinary first half of the year with everything that we've achieved on a fraction of what others are spending. The next six months will continue to be exciting. We will continue, as someone said, to keep our heads down and execute. We will be opening the VEC2 battery manufacturing facility. We'll open the aircraft pilot production facility at Cotswold Airport. We will do our certification next step with the aircraft level CDR in Q4, which will confirm the commercial viability of the aircraft, the mass, the payload, the range, which facilitates deep discussions with our current and future customers. We will announce the selection of our certification and industrialization partner for the hybrid product. We'll start installing the hybrid into Aircraft 3, and we will announce the location of our full-scale manufacturing facilities for both battery and aircraft. So it's going to be another extremely busy six months for us here at Vertical. And thanks again for all of your interest and support. Look forward to talking to you all soon. Thank you. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Vertical Aerospace, 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 Vertical Aerospace wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and 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 $419,408!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,348,694!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 20, 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. Vertical Aerospace (EVTL) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

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. Achieved a historic milestone as the first eVTOL to perform a public flight demonstration at the Farnborough International Airshow, proving platform maturity through five consecutive days of repeatable performance in a real operating environment. Doubled flight test capacity by introducing a second full-scale prototype, which has already completed piloted transition flights under UK Civil Aviation Authority oversight. Adopted a 'one-platform' strategy to address both commercial and defense markets, utilizing a common airframe that supports electric, hybrid-electric, and increasingly autonomous capabilities. Internalized battery development and manufacturing to control critical systems and capture recurring revenue through annual battery replacement cycles. Leveraged the UK's regulatory and industrial framework to align design and production approvals, ensuring a coordinated path from certification to global export. Maintained a disciplined capital allocation strategy, delivering technical milestones with significantly lower cash burn compared to industry peers. Targeting completion of the aircraft-level Critical Design Review (CDR) by the end of 2026 to establish the certifiable design baseline for the VX4 (Valo). Planning to open an expanded Vertical Energy Center in Q4 2026 to triple battery production capacity in support of certification-conforming aircraft. Scheduled to begin hybrid-electric flight testing in the first half of 2027 using a retrofitted third prototype aircraft to expand mission range and payload capabilities. Anticipating type certification in 2029 through the UK CAA and EASA, serving as a foundation for rapid validation in the U.S. and other global markets. Projecting a cash runway extending through the end of Q3 2027, supported by a recent $100 million financing package and $700 million in potential future capacity. Secured a commitment for an additional $30.5 million UK government grant, bringing total government support to approximately $100 million for manufacturing and battery facilities. Established a partnership with Near Earth Autonomy to integrate autonomous capabilities into the Honeywell Anthem avionics suite already used in the aircraft. Selected as the piloted eVTOL partner for Project VERTI-GO, a European Union-funded program to develop operating procedures for shared airspace. Signed a non-binding MoU with UK Export Finance to establish a framework for future customer financing and export support. Management believes consistent execution of the 'Flight Path 2030' milestones will eventually close the market disconnect. The company is actively seeking additional strategic partners that are truly accretive to the business to trigger a stock price re-rating. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Vertical has been intentionally selective with customers, but expects new order announcements following the completion of the CDR in late 2026. The CDR will provide the definitive mass, payload, and range data required for final commercial negotiations. The one-year shift reflects a slight delay in transition testing which temporarily diverted engineering resources away from the certification aircraft. Both the UK CAA and EASA are aligned with and supportive of the revised 2029 timeline. Management noted that the hybrid-electric variant could potentially be accelerated ahead of the civil version if a military customer or government requires it. The hybrid powertrain is already undergoing rig testing, with aircraft integration planned for early 2027. Vertical sees opportunities to monetize its charging solutions and battery packs prior to full aircraft certification. The ECLiPSE program aims to provide a vehicle-agnostic charging solution that is smaller and more cost-effective than current market alternatives.

Interested in Vertical Aerospace Ltd.? Here are five stocks we like better. Flight testing advanced: Vertical Aerospace completed piloted transition flights with two full-scale VX4 prototypes and successfully demonstrated the aircraft’s full transition sequence at the Farnborough International Airshow. Funding extends runway: A financing package expected to generate about $100 million in gross proceeds, combined with existing resources, is intended to fund operations through roughly the third quarter of 2027. The company expects about $150 million in operating cash outflows over the next 12 months. Certification target delayed: Vertical now expects VX4 type certification in 2029, a year later than its prior target, while advancing hybrid-electric, battery infrastructure and manufacturing programs and targeting completion of its aircraft-level Critical Design Review by year-end 2026. MarketBeat Week in Review – 05/18 - 05/22 Vertical Aerospace (NYSE:EVTL) said its first-half 2026 progress included piloted transition flights with two full-scale prototypes, a public eVTOL demonstration campaign at the Farnborough International Airshow, and a financing package intended to support development through the third quarter of 2027. Chief Executive Officer Stuart Simpson said the company completed its first two-way piloted transition flight under oversight of the U.K. Civil Aviation Authority in April and subsequently completed multiple transition flights. A second full-scale prototype began piloted testing in June and completed its own piloted transition this week, he said. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be Vertical Aerospace: Pre-Flight Checks Point to a Breakout At the Farnborough International Airshow in July, Vertical conducted what it described as the event’s first eVTOL flight demonstration. Chief Test Pilot Simon Davies said the aircraft performed a complete transition sequence, taking off vertically, accelerating into wing-borne flight and then reversing the process for landing. Davies said the company repeated the display over five consecutive days in varying weather conditions, including headwinds, tailwinds and crosswinds, in front of an audience of about 140,000 people. The aircraft “behaved exactly as designed,” he said. → Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand eVTOL Investing: Ditch the Taxi, Buy the Blueprint The flight campaign also involved operating outside Vertical’s usual test environment at Cotswold Airport. Davies said the company flew the aircraft to RAF Brize Norton, RAF Benson, Blackbushe Airport and Farnborough Airport after the CAA expanded its permit to fly. The operations required coordination with air traffic control, airfield operators and the regulator, he said. Vertical said having two aircraft in the flight-test program will increase testing and demonstration capacity. The second aircraft is also intended to support future hybrid-electric testing. → On Holding's Price Stumble May Be an Opening for a Company Built to Run Chief Commercial and Strategy Officer Michael Cervenka said Vertical is pursuing a common VX4 platform for commercial and defense uses, with battery-electric and hybrid-electric propulsion options and the potential for increased autonomy over time. At Farnborough, the company announced a partnership with Near Earth Autonomy. Cervenka said Near Earth’s technology is designed to integrate with Honeywell’s Anthem avionics system, which Vertical uses in the VX4. The company said it sees potential applications in logistics, resupply, medical transport and defense operations, while noting that necessary approvals would still be required. Vertical’s hybrid propulsion system is undergoing integration testing on its HYPER rig at Cotswold Airport. The company said the work covers the turbine, generator, electrical systems, controls and fault responses before installation in an aircraft. Vertical expects to select a long-term turbogenerator supplier in the second half of 2026 and begin hybrid-electric flight testing in the first half of 2027. During the question-and-answer session, Simpson said the hybrid powertrain is expected to be installed in Aircraft 3 in the first quarter or early second quarter of 2027. He added that the hybrid program could potentially be accelerated if government or military demand warranted it. Vertical also highlighted its role in Project VERTI-GO, a European Union-funded program led by Honeywell under the SESAR Joint Undertaking. The 12-partner consortium includes aircraft manufacturers, regulators, airports, air-navigation providers and technology companies working on procedures for integrating eVTOL aircraft into European airspace. Vertical was selected as the piloted eVTOL demonstration partner for planned flights between Malaga and Marbella, Spain. Cervenka said the program does not count toward aircraft certification and is not a revenue generator, but is intended to demonstrate operational procedures and support broader stakeholder engagement. Unlike the U.S. eVTOL Integration Pilot Program, he said, VERTI-GO receives grant co-funding from the European Parliament. The company said it is developing proprietary battery packs and battery-management systems while sourcing cells from outside suppliers. Cervenka said batteries are currently expected to be replaced about once annually, creating potential aftermarket revenue in addition to aircraft sales. Vertical also announced ECLiPSE, a U.K. government-supported program with the University of Bath and the National Composites Centre to develop high-power charging and liquid-cooling infrastructure for electric aircraft. The company said the infrastructure is intended to be vehicle-agnostic and designed to reduce charging-system size, installation complexity and operating costs. In response to an analyst question, Simpson said the charging solution could potentially be monetized before VX4 certification, though he did not provide a timeline. He said the ECLiPSE program has U.K. government resources and is included in Vertical’s budget, adding that it is not expected to represent a major cash drain. Vertical said it expects its early aircraft assembly facility at Cotswold Airport to come online in the third quarter of 2026 and an expanded Vertical Energy Center in the fourth quarter. The company said the expanded energy center is expected to triple battery-production capacity over time. The company is also in advanced discussions with the U.K. government regarding support for its first planned global production facility in the country. The proposed package includes a grant of up to $30.5 million related to selecting U.K. sites for aircraft assembly and battery manufacturing. If finalized, Vertical said total U.K. government support awarded to it would reach about $100 million. It expects to announce the site selection within six months. Vertical announced a financing package expected to provide approximately $100 million in gross proceeds. The package includes a $35 million underwritten offering, $40 million accelerated under an existing Mudrick Capital convertible-note facility and a $25 million draw under its Yorkville preferred-equity facility. Simpson said the company had approximately $134 million of cash and cash equivalents as of Aug. 13, 2026, and expected available cash of $148 million following receipt of financing commitments. Vertical said the package, together with existing resources and facilities, is expected to extend its cash runway toward the end of the third quarter of 2027. For the next 12 months, the company expects net cash outflows from operations of approximately $150 million. It reported $112 million in net cash used in operating activities during the first half, which Simpson attributed to flight testing, Critical Design Review work, suppliers, manufacturing readiness, batteries and hybrid development. Vertical said it still has about $700 million in potential capacity under Yorkville preferred-equity and equity-line facilities, but emphasized that capacity is not cash on its balance sheet and remains subject to conditions, limitations and market conditions. The company now expects VX4 type certification in 2029 through the U.K. CAA and European Union Aviation Safety Agency pathway, compared with its prior 2028 target. Simpson said the shift reflected a delay of roughly one quarter in transition testing, which kept engineering resources focused on flight testing rather than certification-aircraft work. He said the company’s estimated cash needs through certification remain around $700 million. Vertical expects to complete its aircraft-level Critical Design Review by the end of 2026. Simpson said the review is intended to establish the certifiable design baseline for VX4, including aircraft mass, payload and range, and support subsequent customer discussions. The company said it expects to make additional order-book announcements following the review and plans initially to build seven VX4 aircraft as production ramps toward the end of 2027. Vertical Aerospace is a United Kingdom–based aerospace manufacturer specializing in the development of electric vertical takeoff and landing (eVTOL) aircraft for urban air mobility. Founded in 2016 by entrepreneur Stephen Fitzpatrick, the company is publicly listed on the New York Stock Exchange under the ticker EVTL. Vertical Aerospace's mission is to deliver zero-emission, high-speed electric aircraft designed to transform short-haul journeys in densely populated areas. The company's flagship model, the VA-X4, is a piloted, five-seat eVTOL craft engineered for quiet operation, low running costs and minimal environmental impact. 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 "Vertical Aerospace Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Intuitive Machines LUNR is slated to release second-quarter 2026 results on Aug. 13, 2026, before market open.The Zacks Consensus Estimate for loss is pegged at seven cents per share, suggesting an improvement from the prior-year quarter’s reported loss of 11 cents. The consensus estimate for sales is pegged at $219.3 million, suggesting an improvement of 335.9% from the prior-year quarter’s reported figure of $50.3 million. Image Source: Zacks Investment Research LUNR’s earnings missed estimates in three of the four trailing quarters, while results were in line with estimates in one quarter. The average negative surprise was 72.62%. Image Source: Zacks Investment Research Our proven model does not conclusively predict an earnings beat for LUNR this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.LUNR has an Earnings ESP of -12.85% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Some stocks in the same sector that have the combination of factors indicating an earnings beat are Vertical Aerospace EVTL and Mercury Systems MRCY. EVTL and MRCY have an Earnings ESP of +15.39% and +6.67%, respectively. Both Vertical Aerospace and Mercury Systems carry a Zacks Rank of 3 at present. Intuitive Machines’ second-quarter 2026 earnings are likely to have benefited from continued progress across its satellite manufacturing, lunar delivery and space infrastructure businesses. The company’s growing production capabilities following the Lanteris acquisition are also likely to have helped improve execution and meet increasing customer demand.The company’s earnings are anticipated to have gained from strong demand across commercial, civil and national security space programs. Continued progress on lunar missions, including the IM-3 mission and future CLPS opportunities, along with work on the lunar data relay satellite and other space infrastructure programs, is likely to have contributed to the quarter’s performance.Steady execution of existing contracts, improving production efficiency and a growing contribution from higher-margin services are expected to have supported profitability. LUNR’s shares have surged 57.1% in the past year, outperforming the Zacks aerospace-defense industry’s growth of 5.3% as well as the broader Zacks Aerospace sector’s growth of 7.4%. It also came in above the S&P 500’s gain of 21.7% in the same time frame. Image Source: Zacks Investment Research Shares of Vertical Aerospace and Mercury Systems have lost 83.7% and gained 59.6%, respectively.From a valuation perspective, LUNR’s forward 12-month price-to-sales (P/S) ratio is 3.54X, a premium to its industry's average of 2.66X. This suggests that investors are paying a higher price for the company's expected sales relative to the industry average. Image Source: Zacks Investment Research Among its peers, Mercury Systems is trading at a premium to LUNR. MRCY's forward 12-month price-to-sales ratio is 6.16X. Despite continued investments in satellite production, lunar infrastructure and space network capabilities, Intuitive Machines continues to benefit from strong demand across commercial, civil and national security space markets. Its growing capabilities in lunar delivery, satellite manufacturing, communications and space infrastructure position the company to benefit from rising investments in lunar exploration and national security.The company’s strong backlog, new contract opportunities and growing presence across NASA and national security programs are expected to support future revenue growth. Its expanding space infrastructure capabilities could also create more recurring revenue opportunities over time. However, lunar program execution remains a key risk, as cost overruns and schedule delays on fixed-price missions could pressure margins and cash flow. Intuitive Machines continues to benefit from strong demand across its lunar, satellite and space infrastructure businesses. Investors should stay invested, while new investors may prefer to wait for greater clarity on execution and profitability before taking a more constructive view on the stock. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intuitive Machines, Inc. (LUNR) : Free Stock Analysis Report Mercury Systems Inc (MRCY) : Free Stock Analysis Report Vertical Aerospace Ltd. (EVTL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Firefly Aerospace, Inc. FLY is scheduled to release second-quarter 2026 results on Aug. 11, after market close. The company delivered an earnings surprise of 8.00% in the last reported quarter.Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results. Firefly Aerospace’s second-quarter 2026 earnings are likely to have benefited from continued progress in its launch and lunar businesses. The company is working to increase the frequency of Alpha launches, with strong demand from national security and commercial customers expected to support its launch services business.Demand for lunar services is also expected to support results. Firefly Aerospace continued to make progress on its Blue Ghost lunar program, while customer interest in future lunar missions and larger landers remained strong.The company’s growing focus on national security space programs is likely to have provided another growth driver. Firefly Aerospace is pursuing opportunities in responsive launch, space communications, in-space transportation and space-based data processing for government customers.However, higher costs related to research and development, production expansion and the integration of SciTec are likely to have pressured the company’s bottom line. Continued investments in launch infrastructure and new space technologies are likely to have also weighed on profitability. Firefly Aerospace, Inc. price-eps-surprise | Firefly Aerospace, Inc. Quote The Zacks Consensus Estimate for earnings is pegged at a loss of 50 cents per share, indicating a year-over-year improvement.The consensus estimate for revenues is pinned at $89.6 million, indicating a year-over-year increase of 476.2%. Our proven model does not conclusively predict an earnings beat for Firefly Aerospace this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here as you will see below.Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.Zacks Rank: Currently, Firefly Aerospace carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here. Below, we have mentioned a few players from the same sector that have the right combination of elements to beat on earnings in the upcoming releases:Vertical Aerospace EVTL is set to report second-quarter 2026 earnings on Aug. 13, before market open. It has an Earnings ESP of +15.39% and a Zacks Rank of 3 at present.The Zacks Consensus Estimate for EVTL’s loss is pegged at 39 cents per share, indicating year-over-year improvement. The company delivered an earnings surprise of 4.76% in the last reported quarter.Mercury Systems MRCY is slated to report its fourth-quarter fiscal 2026 results on Aug. 18, after market close. It has an Earnings ESP of +6.67% and a Zacks Rank of 3 at present.The Zacks Consensus Estimate for MRCY’s loss is pegged at 38 cents per share. The company delivered an earnings surprise of 350% in the last reported quarter.Heico HEI is slated to report its third-quarter fiscal 2026 results soon. It has an Earnings ESP of +3.99% and a Zacks Rank of 2 at present.HEI’s long-term earnings growth rate is 16.2%. The Zacks Consensus Estimate for earnings is pegged at $1.50 per share, which suggests a year-over-year rise of 19.1%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Firefly Aerospace, Inc. (FLY) : Free Stock Analysis Report Heico Corporation (HEI) : Free Stock Analysis Report Mercury Systems Inc (MRCY) : Free Stock Analysis Report Vertical Aerospace Ltd. (EVTL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Archer Aviation Inc. ACHR is expected to report second-quarter 2026 results on Aug. 10, after market close.The Zacks Consensus Estimate for earnings is pegged at a loss of 25 cents per share, indicating a year-over-year rise of 7.41%. The Zacks Consensus Estimate for revenues is pinned at $1.95 million. Image Source: Zacks Investment Research Archer Aviation’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one, the average surprise being 7.89%. Image Source: Zacks Investment Research Our proven model does not conclusively predict an earnings beat for Archer Aviation this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.Earnings ESP: The company’s Earnings ESP is -10.20%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: Currently, ACHR carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here. Some stocks from the sector that have the combination of factors indicating an earnings beat are Vertical Aerospace EVTL and Mercury Systems MRCY. Vertical Aerospace and Mercury Systems have an Earnings ESP of +15.39% and +6.67%, respectively. EVTL and MRCY both carry a Zacks Rank #3 at present. Archer Aviation continues to advance its electric air taxi strategy through collaborations with U.S. cities, aviation authorities and international partners to support the commercialization of its Midnight aircraft. Continued progress in FAA certification and preparations for operations under the U.S. eVTOL Integration Pilot Program are also likely to have boosted the company's performance in the to-be-reported quarter.ACHR also continued expanding its commercial infrastructure through the modernization of Hawthorne Airport and preparations for early commercial operations in the UAE. These initiatives are likely to have supported revenue generation and strengthened Archer's second-quarter performance.Archer Aviation also carried on ramping up its manufacturing capabilities and flight-test activities while preparing for commercial operations and scaling production of its Midnight aircraft. These efforts are likely to have aided the company's operational execution in the to-be-reported quarter. However, higher spending on certification activities, flight testing, manufacturing expansion and commercialization initiatives may have increased operating expenses, trimming some of the gains in the to-be-reported quarter. Over the past month, the stock has gained 8.1% compared with the industry’s rise of 7.3%. Image Source: Zacks Investment Research Archer Aviation is trading at a discount relative to the industry, with a trailing 12-month price-to-book of 1.91X compared with the industry average of 6.51X. Image Source: Zacks Investment Research The company’s current ratio is 18.06 compared with the industry’s average of 1.12. A ratio of more than one suggests a healthy liquidity position where the business can meet its immediate financial obligations without selling long-term assets. Image Source: Zacks Investment Research Archer Aviation is steadily advancing its commercialization strategy through continued progress in FAA certification, expanding international opportunities and strengthening manufacturing readiness. Backed by a healthy liquidity position, ongoing flight-test activities and early operating plans in the United States and the UAE, the company remains well positioned to capitalize on the growing advanced air mobility market.However, ACHR remains exposed to certification and commercialization risks, while elevated investments in manufacturing, flight testing and network build-out are likely to keep cash burn and operating losses high until commercial operations scale. Archer Aviation is steadily building the foundation for future growth through continued execution across certification, operational readiness and market expansion. With early deployment plans taking shape and production capabilities advancing, the company remains well positioned to benefit as the electric aviation industry moves toward commercialization. Given its attractive valuation, better price performance and strong liquidity, investors might consider adding ACHR stock to their portfolios right now. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Archer Aviation Inc. (ACHR) : Free Stock Analysis Report Mercury Systems Inc (MRCY) : Free Stock Analysis Report Vertical Aerospace Ltd. (EVTL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Rocket Lab Corporation RKLB is expected to report second-quarter 2026 results on Aug. 10, after market close.The Zacks Consensus Estimate for earnings is pegged at a loss of 3 cents per share, indicating a year-over-year rise of 70%. The Zacks Consensus Estimate for revenues is pinned at $231.6 million, calling for a jump of 60.3% from the year-ago reported figure. Image Source: Zacks Investment Research RKLB’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed in two, the average surprise being 21.79%. Image Source: Zacks Investment Research Our proven model does not conclusively predict an earnings beat for Rocket Lab this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: Currently, RKLB carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank stocks here. Some stocks from the sector that have the combination of factors indicating an earnings beat are Vertical Aerospace EVTL and Mercury Systems MRCY. Vertical Aerospace and Mercury Systems have an Earnings ESP of +15.39% and +6.67%, respectively. EVTL and MRCY both carry a Zacks Rank #3 at present. Higher revenues driven by an increase in launch missions, along with solid contributions from bookings secured in prior quarters, are likely to have supported the Launch Services segment’s top line.Strong growth in spacecraft and satellite manufacturing is also likely to have boosted revenues for the Space Systems segment.Rocket Lab’s second-quarter performance may have benefited from the April 2026 acquisition of Mynaric AG and the May 2026 acquisition of Motiv Space Systems, which expanded its laser communications, space robotics and precision mechanisms capabilities. The deals are likely to have strengthened Rocket Lab’s position in defense, satellite constellations and planetary exploration programs. Mynaric may have supported higher demand for optical communications systems, while Motiv is expected to have enhanced spacecraft production and vertically integrated operations, strengthening the company’s long-term revenue generation prospects.However, elevated operating expenses due to continued investments in the Neutron program and higher research and development spending are likely to have weighed on operating margins, limiting overall earnings growth. Over the past three months, the stock has declined 4.8% against the industry’s rise of 6.9%. Image Source: Zacks Investment Research Rocket Lab is trading at a premium relative to the industry, with a forward 12-month price-to-sales of 38.76X compared with the industry average of 8.74X. Image Source: Zacks Investment Research The image below shows that RKLB stock’s trailing 12-month return on invested capital (ROIC) not only lags the peer group’s average return but also reflects a negative figure. This suggests that the company's investments are not yielding sufficient returns to cover its expenses. Image Source: Zacks Investment Research Rocket Lab is strengthening its growth outlook in 2026, supported by rising defense demand, an expanding launch manifest and a broader portfolio of national security programs.Rocket Lab continues to face execution risks as it advances the Neutron program toward its first launch, with ongoing qualification, engine testing and recovery system development likely to keep operating expenses elevated. Revenues from large Space Systems and government programs remain dependent on milestone execution and supplier deliveries, which could delay backlog conversion, create quarterly fluctuations in profitability and pressure cash flows. Rocket Lab is benefiting from growing demand for launch services, spacecraft manufacturing and national security programs, supported by strategic acquisitions, a robust backlog and expanding vertically integrated capabilities. However, the company remains exposed to execution risks tied to the Neutron program, while revenues from large Space Systems and government contracts continue to depend on milestone execution and supplier deliveries, which could delay backlog conversion and pressure profitability. Elevated operating expenses and continued research and development investments are also likely to weigh on margins in the near term.Given its premium valuation, poor ROIC and continued earnings pressure, investors should avoid this stock at the moment. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rocket Lab Corporation (RKLB) : Free Stock Analysis Report Mercury Systems Inc (MRCY) : Free Stock Analysis Report Vertical Aerospace Ltd. (EVTL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

TransDigm Group Incorporated TDG is slated to report third-quarter fiscal 2026 results on Aug. 4, before market open. The company delivered an earnings surprise of 5.69% in the last reported quarter.Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results. During the fiscal third quarter of 2026, TransDigm completed the acquisitions of Jet Parts Engineering and Victor Sierra. These acquisitions are expected to have contributed to fiscal third-quarter sales by expanding the company's portfolio of proprietary aerospace components and strengthening its aftermarket offerings. Management also noted continued progress in integrating earlier acquisitions, including Simmonds Precision and Servotronics, which is expected to have supported operational performance.Healthy demand in the commercial aftermarket, supported by favorable booking trends and continued aircraft utilization, is likely to have supported revenue growth in the quarter. Ongoing recovery in commercial OEM production and sustained defense demand, backed by a healthy backlog, are also expected to have contributed positively to sales, despite uncertainty surrounding the evolving situation in the Middle East.Overall, higher revenues and a favorable commercial aftermarket mix are likely to have supported margin improvement. Continued focus on operational efficiency, cost discipline and improving performance in recently acquired businesses is also expected to have strengthened profitability, supporting the company's quarterly earnings. Transdigm Group Incorporated price-eps-surprise | Transdigm Group Incorporated Quote The Zacks Consensus Estimate for earnings is pegged at $10.29 per share, indicating a year-over-year increase of 19.5%.The consensus estimate for revenues is pinned at $2.67 billion, indicating a year-over-year improvement of 7.2%. Our proven model does not conclusively predict an earnings beat for TransDigm this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.TDG’s Earnings ESP: TDG has an Earnings ESP of -0.36%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.TDG’s Zacks Rank: TDG currently carries a Zacks Rank of 3.You can see the complete list of today’s Zacks #1 Rank stocks here. Below, we have mentioned a few players from the same sector that have the right combination of elements to beat on earnings in the upcoming releases:CurtissWright CW is slated to report its second-quarter 2026 results on Aug. 5, after market close. It has an Earnings ESP of +0.36% and a Zacks Rank of 3 at present.CW’s long-term (three to five years) earnings growth rate is 14.3%. The Zacks Consensus Estimate for earnings is pegged at $3.62 per share, which suggests a year-over-year rise of 12.1%.ATI INC ATI is slated to report its second-quarter 2026 results on Aug. 6, before market open. It has an Earnings ESP of +1.32% and a Zacks Rank of 2 at present.ATI’s long-term earnings growth rate is 28%. The Zacks Consensus Estimate for earnings is pegged at $1.03 per share, which suggests a year-over-year rise of 39.2%.Vertical Aerospace EVTL is set to report second-quarter 2026 earnings on Aug. 13, before market open. It has an Earnings ESP of +15.39% and a Zacks Rank of 3 at present.The Zacks Consensus Estimate for EVTL’s loss is pegged at 39 cents per share, indicating year-over-year improvement. The company delivered an earnings surprise of 4.76% in the last reported quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Transdigm Group Incorporated (TDG) : Free Stock Analysis Report ATI Inc. (ATI) : Free Stock Analysis Report Curtiss-Wright Corporation (CW) : Free Stock Analysis Report Vertical Aerospace Ltd. (EVTL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Honeywell Aerospace Inc. HONA is scheduled to release second-quarter 2026 results on Aug. 5, after market close. Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results. Following its separation from Honeywell International on June 29, 2026, Honeywell Aerospace began operating as an independent, publicly traded aerospace company. The spin-off is expected to provide several strategic benefits by allowing management to focus exclusively on the aerospace business rather than competing for capital and resources within a diversified industrial conglomerate.Honeywell Aerospace’s quarterly results are expected to benefit from continued strength in commercial aviation. Growth is expected to have been driven by robust demand across both its original equipment and aftermarket businesses. The company is expected to have benefited from sustained demand for maintenance, repair and overhaul (MRO) services as airlines maintained high fleet utilization. Given Honeywell Aerospace’s large installed base of avionics, auxiliary power units, propulsion systems, and other mission-critical equipment, its expanding aftermarket business must have continued to provide a stable source of recurring, high-margin revenues and could remain a key long-term growth driver.Honeywell Aerospace’s defense and space business might have also provided support in the to-be-reported quarter. Demand across defense programs has remained healthy, and management had previously indicated that growth has been constrained more by production and supply-chain challenges than by customer demand. If manufacturing execution and component availability continued to improve during the second quarter, the company might have benefited from higher deliveries across its defense portfolio, potentially providing an additional driver of revenue growth. The Zacks Consensus Estimate for earnings is pegged at $2.07 per share. The Zacks Consensus Estimate for revenues is pinned at $4.67 billion. Our proven model does not predict an earnings beat for Honeywell Aerospace this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: Currently, the company carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here. In the past month, the stock has lost 13% compared with the industry’s decline of 9.9%. Image Source: Zacks Investment Research Investors may consider the following players from the same sector, as these have the right combination of elements to post an earnings beat this reporting cycle.Curtiss-Wright CW is likely to come up with an earnings beat when it announces second-quarter results on Aug. 5, after market close. It has an Earnings ESP of +0.36% and a Zacks Rank #3 at present.The consensus estimate for CW’s second-quarter sales suggests an improvement of 6.2% from the year-ago quarter’s reported numbers. The company delivered an average earnings surprise of 3.8% for the trailing four quarters.ATI INC ATI is likely to come up with an earnings beat when it announces second-quarter results on Aug. 6, before market open. It has an Earnings ESP of +1.32% and a Zacks Rank #2 at present.The consensus estimate for ATI’s second-quarter sales suggests an improvement of 7% from the year-ago quarter’s reported numbers. The company delivered an average earnings surprise of 8.6% for the trailing four quarters.Vertical Aerospace EVTL is expected to come up with an earnings beat when it reports second-quarter results on Aug. 13, before market open. It has an Earnings ESP of +15.39% and a Zacks Rank #3 at present.The Zacks Consensus Estimate for second-quarter earnings is pinned at a loss of 39 cents per share. The Zacks Consensus Estimate for 2026 earnings is pinned at a loss of $1.40 per share. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Honeywell Aerospace inc. (HONA) : Free Stock Analysis Report ATI Inc. (ATI) : Free Stock Analysis Report Curtiss-Wright Corporation (CW) : Free Stock Analysis Report Vertical Aerospace Ltd. (EVTL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

BWX Technologies, Inc. BWXT is scheduled to report second-quarter 2026 results on Aug. 3, 2026, after market close. The company delivered an earnings surprise of 21.74% in the last reported quarter.Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results. Higher revenues from naval nuclear propulsion programs, supported by steady production on the Virginia-class and Columbia-class submarine programs, as well as early work on the next Ford-class aircraft carrier, are likely to have boosted the overall top-line performance of BWXT’s Government Operations segment. Growth in defense fuels enrichment and High-Purity Depleted Uranium (HPDU) programs, along with improved manufacturing efficiency, is also expected to have supported this segment’s performance.Higher demand for commercial nuclear components and services is expected to have boosted the top-line performance of BWXT’s Commercial Operations segment. Strong growth in its medical business, along with continued contributions from the Kinectrics acquisition, is also likely to have supported this segment’s revenues.However, higher corporate expenses due to restructuring initiatives and business transformation efforts are likely to have offset some of the positives in the to-be-reported quarter. BWX Technologies, Inc. price-eps-surprise | BWX Technologies, Inc. Quote The Zacks Consensus Estimate for BWXT’s second-quarter sales is pegged at $891.8 million, which indicates an increase of 16.7% from the prior-year number.The consensus estimate for earnings is pegged at $1.01 per share, which indicates a year-over-year decline of 1%. Our proven model predicts an earnings beat for BWX Technologies this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here.Earnings ESP: BWX Technologies has an Earnings ESP of +0.66%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.Zacks Rank: BWXT currently carries a Zacks Rank of 3.You can see the complete list of today’s Zacks #1 Rank stocks here. CurtissWright CW is slated to report its second-quarter 2026 results on Aug. 5, after market close. It has an Earnings ESP of +0.36% and a Zacks Rank of 3 at present.CW’s long-term (three to five years) earnings growth rate is 14.3%. The Zacks Consensus Estimate for earnings is pegged at $3.62 per share, which suggests a year-over-year rise of 12.1%.ATI INC ATI is slated to report its second-quarter 2026 results on Aug. 6, before market open. It has an Earnings ESP of +1.32% and a Zacks Rank of 2 at present.ATI’s long-term earnings growth rate is 28%. The Zacks Consensus Estimate for earnings is pegged at $1.03 per share, which suggests a year-over-year rise of 39.2%.Vertical Aerospace EVTL is set to report second-quarter 2026 earnings on Aug. 13, before market open. It has an Earnings ESP of +15.39% and a Zacks Rank of 3 at present.The Zacks Consensus Estimate for EVTL’s loss is pegged at 39 cents per share, indicating year-over-year improvement. The company delivered an earnings surprise of 4.76% in the last reported quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BWX Technologies, Inc. (BWXT) : Free Stock Analysis Report ATI Inc. (ATI) : Free Stock Analysis Report Curtiss-Wright Corporation (CW) : Free Stock Analysis Report Vertical Aerospace Ltd. (EVTL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Ferrovial SE? Here are five stocks we like better. Ferrovial reported a strong first half of 2026, ending with approximately €1.3 billion in net cash. Cash generation benefited from €329 million in construction operating cash flow and €378 million in infrastructure dividends. North American highway assets drove growth, with 407 ETR revenue up 18.7% and EBITDA up 24.4%, while Dallas-Fort Worth managed lanes and I-66 also posted strong EBITDA gains. Traffic was weaker at some assets, including 407 ETR in the second quarter and I-77 during the first half. Construction revenue and backlog expanded, with the order book reaching a record €18 billion, but the New Terminal One project at JFK was delayed to March 2027 and is subject to €500,000-per-day liquidated damages following the missed June 2026 target. Vertical Aerospace Presents Its Blueprint for Sector Leadership Ferrovial (NASDAQ:FER) reported what Chief Executive Officer Ignacio Madridejos described as a strong first half of 2026, led by revenue growth at its North American highway assets and continued expansion in construction. The company ended the period with a net cash position of approximately €1.3 billion, excluding infrastructure projects. Madridejos said cash generation was supported by €329 million in construction operating cash flow and €378 million in dividends received from infrastructure projects. Cash uses included a €63 million final equity injection into New Terminal One at New York’s JFK Airport, as well as €398 million for cash dividends and treasury-share purchases. → This Tiny AI Supplier Could Be More Important Than the Chipmakers The 407 ETR toll road in the Toronto area increased first-half revenue by 18.7% from a year earlier, with toll revenue up 20.2% following toll-rate increases implemented on Jan. 1. Traffic rose 1.8% during the half, aided by targeted commercial promotions, while EBITDA increased 24.4%. Second-quarter traffic at the 407 ETR declined 2.7% year over year, however, reflecting softer economic activity, less rehabilitation work on alternative highways and adverse weather, according to Madridejos. The company recorded a Schedule 22 provision of C$5.5 million in the first half, compared with C$45.2 million in the prior-year period. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? The 407 ETR paid C$500 million in dividends in the first half, and a further C$550 million distribution was approved for the third quarter. Chief Financial Officer Ernesto López Mozo declined to provide guidance on future dividends from the asset. Madridejos said the company has shifted its approach at the 407 ETR toward combining toll pricing with selective promotions to maximize EBITDA, manage congestion and reduce Schedule 22 payments. He said promotions will remain part of the company’s strategy even independently of Schedule 22 requirements, though Ferrovial does not plan to disclose the share of traffic generated through promotions. → Innovative ETF Strategies That Are Paying Off This Summer Ferrovial’s Dallas-Fort Worth managed lanes also posted revenue and EBITDA growth despite construction disruptions, weather and higher revenue-sharing payments. Revenue per transaction increased by 18.9% at North Tarrant Express, 11.7% at LBJ and 17.3% at NTE 35W during the first half. North Tarrant Express adjusted EBITDA rose 14.7%, while traffic declined 2% in the first half amid capacity-improvement work. LBJ transactions increased 2.9%, and adjusted EBITDA rose 15.2%. NTE 35W transactions increased 0.4%, while adjusted EBITDA rose 18.6%. Madridejos attributed the improvement in revenue per transaction largely to enhanced camera-recognition technology that improved classification of heavy vehicles, which pay higher tolls. Mandatory-mode events at North Tarrant Express and NTE 35W also contributed. He said the technology was implemented across the assets during 2025, meaning comparisons in the second half will increasingly include the effect. Construction on the I-635 East feeder corridor near LBJ is nearing completion, with new managed lanes on I-635 expected to be completed in the first quarter of 2027. Madridejos said the company expects construction-related impacts in the area to be largely resolved by then. Elsewhere, I-66 revenue increased 17.9% in the first half, with traffic up 8.5% and adjusted EBITDA rising 20.4%. I-77 traffic declined 5.2%, reflecting lower congestion, difficult comparisons with 2025 and adverse weather. Its adjusted EBITDA fell 5.4%, partly due to a step-up in the revenue-share band, although revenue per transaction increased 11.8%. At New Terminal One at JFK, Ferrovial submitted a remedial plan setting March 2027 as the targeted date for Phase A beneficial occupancy. The project was approximately 92% complete at the end of the first half, with systems integration, testing and commissioning representing the primary remaining work. Madridejos said the updated schedule was based on the best information currently available and was prepared with the contractor. He said liquidated damages of €500,000 per day began in July following the prior June 2026 target date, although the contractor may challenge the damages if it believes delays were not its responsibility. The terminal had commitments from 32 airlines, including 24 executed agreements and eight letters of intent. Ferrovial completed its equity commitments with the €63 million first-half injection, bringing its total investment in the project to €1.041 billion. At Dalaman Airport in Turkey, total passengers declined 8.1% to 1.8 million during the first half, primarily due to lower international traffic amid the Middle East conflict. Adjusted EBITDA fell 13.7% from the year-earlier period. Ferrovial’s construction division increased reported revenue by 7.1%, or 9.7% on a like-for-like basis, while maintaining its 3.5% adjusted EBIT margin. Budimex reported a 6.9% adjusted EBIT margin, while Webber’s like-for-like revenue grew 24.2% and its adjusted EBIT margin reached 3.4%, supported by operating leverage. The construction order book reached a record €18 billion, up 2.8% on a like-for-like basis from December 2025. The figure excludes about €2.6 billion of additional pre-awarded contracts awaiting financial close as of June. Construction operating cash flow was €329 million, compared with negative cash flow in the prior-year period, driven mainly by prepayments and compensation received in North America. López Mozo said some collections and payments had been delayed into the first half, while noting that the business has historically experienced positive working-capital seasonality toward year-end. Ferrovial submitted bids for managed-lane projects on I-24 in Tennessee and I-285 in Georgia, with decisions expected in the third quarter. Its bid for the D35 Highway availability project in the Czech Republic was identified as the most cost-effective, with technical evaluation ongoing. The company also said it has acquired power land in Alcobendas, Madrid, and Warsaw, Poland, for data-center development. Madridejos said the initial Madrid phase is expected to provide about 75 megawatts of IT capacity, with a first portion of nearly 45 megawatts. He said Ferrovial expects to use leverage, potentially bring in partners and recycle capital after assets are constructed and leased. Ferrovial’s Horizon 24 strategic plan concludes this year, and management said it is developing a new plan but has not decided when or how it will communicate it externally. Ferrovial, SA is a Spanish multinational infrastructure company headquartered in Madrid that develops, constructs, operates and maintains transport and urban infrastructure. Its core activities include the design and construction of large civil engineering projects, the development and operation of transport concessions such as toll roads and airports, and the provision of urban and industrial services and maintenance. The company typically operates through long-term concession and public-private partnership models, combining construction expertise with asset management and operations. Within its operating model, Ferrovial's business spans construction contracting, concession management and services. 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 "Ferrovial Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.