EVEX — Eve Holding, Inc.

Summary of Eve Holding, Inc. (EVEX) Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Liquidity: Ended Q4 2025 with $541 million in total liquidity, including $393 million in cash and $150 million in undrawn credit facilities. Following a new loan, total liquidity increased to $641 million.
• Cash Consumption: Operations consumed $175 million in 2025, with a working capital gain of $21 million in Q4. Without this gain, cash consumption would have been $196 million, aligning with the low end of the guidance of $200 million to $250 million.
• Net Loss: Reported a net loss of $64 million for Q4 and $224 million for the full year.
• R&D Investment: Invested $59 million in R&D during Q4 and $195 million for the full year.

2. Strategic Updates and Business Highlights

• Flight Testing: Successfully completed the first flight of the engineering prototype on December 19, 2025, with a total of 28 flights and over 1 hour of flight time accumulated. Plans to conduct approximately 300 flights in 2026, progressing through various testing phases.
• Supplier Engagement: Increased activity with suppliers for components of the first conforming prototypes, with tooling and critical design reviews underway.
• Order Backlog: Total backlog stands at approximately 2,700 aircraft valued at $13.5 billion, including new firm orders from Japan AirX for two aircraft and options for 48 more.
• Service Offerings: Secured contracts for the Eve TechCare Suite, potentially generating $1.6 billion in revenue.

3. Forward Guidance and Outlook

• Cash Consumption for 2026: Expected to increase to between $225 million and $275 million, primarily due to intensified development activities and supplier engagement.
• Certification Timeline: Progressing towards certification with expectations to complete the first conforming prototypes and continue flight testing. Challenges remain in meeting compliance requirements with regulatory bodies.

4. Bad News, Challenges, or Points of Concern

• Payment Deferrals: Noted a delay in payments to Embraer, which may indicate potential cash flow management issues, although management stated it was an isolated incident.
• Order Contraction: A slight reduction in the backlog was observed, attributed to changing strategies of some clients, including a withdrawal of an LOI by one customer.
• Regulatory Challenges: Ongoing discussions with ANAC regarding means of compliance may introduce delays in the certification process.

5. Notable Q&A Insights

• Cash Consumption Breakdown: CFO Eduardo Couto clarified that the majority of the expected cash burn in 2026 will be on R&D, with SG&A maintained around $30 million.
• Certification Process: CTO Luiz Valentini emphasized the importance of demonstrating compliance with regulatory requirements, which could impact timelines.
• Supplier Readiness: All critical components are engaged, with no significant sourcing issues reported.
• Conversion of LOIs: CEO Johann Bordais expressed optimism regarding the conversion of LOIs to firm orders, indicating increased customer interest as flight testing progresses.

Overall, while Eve Holding demonstrated significant progress in its flight testing and supplier engagement, it faces challenges related to cash flow management, regulatory compliance, and maintaining order backlog stability. The company remains optimistic about its future, with a strong liquidity position to support ongoing development.