Summary of Eve Holding's Q2 2026 Earnings Call

1Key Financial Results and Metrics:

Cash Position: Ended Q2 2026 with $403 million in cash and total liquidity of $531 million, including $128 million in undrawn credit facilities.

Cash Burn: Total cash burn for the first half of 2026 was $118 million, with Q2 cash consumption at $49 million. Full-year cash burn is expected to be between $225 million and $275 million.

R&D Expenses: Q2 R&D expenses were $29 million, down from approximately $55 million in previous quarters, attributed to improved supplier agreements. Future R&D spending is expected to return to around $50 million per quarter.

Net Loss: Reported a net loss of $34 million for Q2 2026.

2Strategic Updates and Business Highlights:

Flight Testing Progress: The company resumed flight campaigns after a three-month ground test period, logging 66 flights and 2 hours 46 minutes of airtime. The prototype is entering a new phase of partial transition, with plans to reach full transition by the end of 2026.

Certification Efforts: Advancements in the certification process with Brazilian authority ANAC are ongoing, with a focus on compliance and noise certification criteria. Type Certification validation with EASA is also in progress, expected 12-15 months post-ANAC and FAA certification.

Infrastructure Partnerships: Collaborated with Hitachi for vertiport electrification and partnered with the Florida Department of Transportation to integrate UAM into Florida's transportation network.

Backlog Growth: Announced two new Letters of Intent (LOIs) for a total of 46 aircraft, bringing the total pre-order backlog to approximately 2,700 aircraft valued at $13.5 billion.

3Forward Guidance and Outlook:

Cash Runway: Current liquidity is projected to support operations through 2028 without the need for new funding.

Synergies: Expected to achieve $100 million to $150 million in potential synergies over the next three years, with a third of those realized in 2026.

CapEx Plans: Anticipated capital expenditures of $20 million in 2026, increasing to approximately $50 million in 2027, as the company prepares for production.

4Bad News, Challenges, or Points of Concern:

Flight Transition Delays: Full transition flights have been pushed to Q4 2026, which may impact the timeline for building certification-conforming aircraft.

Ongoing Cash Burn: Despite synergies, the company continues to experience significant cash burn, necessitating careful management of expenses.

Supply Chain Risks: While contracts with suppliers are in place, any disruptions in the supply chain could impact production timelines and costs.

5Notable Q&A Insights:

R&D and CapEx: CFO Eduardo Couto provided clarity on R&D spending and CapEx plans, indicating a focus on efficiency and leveraging existing Embraer facilities to minimize costs.

Transition Flight Program: CEO Johann Bordais emphasized the importance of thorough testing and validation, stating that the full transition is critical for the conforming prototype assembly.

Synergy Breakdown: Couto detailed the three pockets of synergies: Eve structure, Embraer service agreements, and industrialization efficiencies, highlighting ongoing efforts to streamline operations.

MRO Contracts: The company discussed its $1.4 billion in MRO contracts, emphasizing the importance of customer support and services as a revenue stream post-delivery. Overall, Eve Holding demonstrated solid progress in its flight testing and certification efforts while maintaining a strong liquidity position, though it faces challenges related to cash burn and potential delays in its transition timeline.