EVEX-WT — Eve Holding, Inc.

Summary of Eve Holding, Inc. Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Liquidity Position: Eve ended Q4 2025 with $541 million in total liquidity, comprising $390 million in cash and $150 million in undrawn credit facilities. Following a new syndicated loan, total liquidity increased to $641 million.
• Cash Consumption: In 2025, cash consumption was $175 million, slightly below the guidance of $200 million to $250 million. A working capital gain of $21 million in Q4 contributed to this figure.
• Net Loss: The company reported a net loss of $64 million for Q4 and $224 million for the full year.
• R&D Investment: $59 million was invested in R&D in Q4 and $195 million for the full year, primarily focused on eVTOL development.

2. Strategic Updates and Business Highlights

• Flight Testing Milestone: The company successfully completed its first flight of the engineering prototype on December 19, 2025, and has conducted a total of 28 flights accumulating over an hour of flight time.
• Certification Progress: Eve is actively engaging with ANAC to finalize certification plans, with plans for 300 flights in 2026 to gather data for type certification.
• Supplier Engagement: Significant progress has been made with suppliers, including the manufacturing of critical components for certification-compliant aircraft.
• Order Backlog: The total preorder backlog stands at approximately 2,700 aircraft, valued at $13.5 billion, including firm orders from Japan AirX and others.

3. Forward Guidance and Outlook

• 2026 Cash Consumption: Expected cash consumption is projected to be between $225 million and $275 million, primarily driven by increased R&D and supplier engagement.
• Flight Campaign: The company plans to conduct around 300 flights throughout 2026, with a disciplined approach to expanding the flight envelope.
• Order Conversion: There is an expectation for increased conversion of LOIs to firm orders as flight certification progresses.

4. Challenges and Points of Concern

• Payment Deferrals: Some payments to Embraer were deferred, which could indicate potential cash flow management issues, though management stated this was not expected to recur.
• Order Backlog Fluctuation: A slight contraction in the backlog was noted, attributed to a client withdrawing an LOI, raising concerns about customer commitment and market dynamics.
• Regulatory Challenges: Ongoing discussions with ANAC regarding means of compliance may introduce delays in certification timelines.

5. Notable Q&A Insights

• Cash Consumption Breakdown: CFO Eduardo Couto clarified that the majority of the expected cash burn in 2026 will be for R&D, with SG&A remaining stable around $30 million.
• Certification Timeline: Luiz Valentini emphasized that while progress is being made, significant challenges remain in demonstrating compliance for certification.
• Supplier Engagement: All critical components are sourced, and the integration of systems is underway, which is crucial for the development timeline.
• Market Readiness: CEO Johann Bordais highlighted the importance of ecosystem readiness for customers, indicating that operational readiness is as critical as the aircraft's production.

Overall, Eve Holding is making significant strides in its flight testing and certification processes while maintaining a strong liquidity position. However, challenges related to customer order fluctuations and regulatory compliance remain areas of concern.