EVTL — Vertical Aerospace Ltd.

Summary of Vertical Aerospace (EVTL) Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Cash Position: As of December 31, 2025, cash and cash equivalents stood at $93 million, with short-term liquidity estimated at approximately $85 million.
• Annual Spend: The company reported a spend of $110 million to $125 million for FY 2025, significantly lower than competitors.
• Projected Cash Burn: Anticipated cash burn for the next 12 months is estimated between $190 million to $200 million, which includes expenditures for manufacturing and certification processes.
• At-the-Market (ATM) Facility: Remaining capacity of approximately $78 million.

2. Strategic Updates and Business Highlights

• Valo Aircraft Development: The Valo eVTOL aircraft is positioned as a market leader with unique features such as modularity and safety architecture. The company is nearing completion of flight testing and certification processes.
• Battery Technology: Vertical Aerospace emphasizes its proprietary battery systems as a key differentiator, with plans to expand battery manufacturing capabilities through a new facility.
• Partnerships and Collaborations: The company has established critical partnerships, including a supplier agreement with Evolito for electric propulsion units (EPUs) and ongoing discussions with military entities regarding hybrid aircraft applications.
• Global Initiatives: Participation in government-backed programs in the U.K. and Europe to support eVTOL ecosystem development.

3. Forward Guidance and Outlook

• Certification Timeline: The company expects to complete critical design review (CDR) for Valo by mid-2026 and aims to have the aircraft certified by 2028.
• Production Plans: Plans to begin assembly of the first preproduction Valo aircraft later in 2026, with a focus on ramping up manufacturing capabilities.
• Market Expansion: Continued efforts to engage with military and commercial customers, with expectations for significant growth in the hybrid eVTOL market.

4. Bad News, Challenges, or Points of Concern

• Regulatory Delays: The transition to full piloted flight testing has faced delays primarily due to adverse weather conditions and regulatory processes, which have extended timelines longer than initially anticipated.
• Capital Needs: While the company has a solid cash position, it acknowledges the need for ongoing capital raising to support operations and growth, with discussions ongoing but no immediate urgency.
• Competitive Pressures: The company faces competition from other eVTOL manufacturers, and while it believes it has a superior product, the market remains dynamic and competitive.

5. Notable Q&A Insights

• Regulatory Hurdles: Questions about the pilot transition highlighted that weather has been a significant factor in delays, with the company working closely with the U.K. CAA to mitigate risks.
• Strategic Partnerships: Discussions with potential strategic investors are ongoing, with successful transition to full piloted flight seen as a catalyst for deeper engagement.
• Military Opportunities: Interest in hybrid military applications is growing, with the company positioned to capitalize on defense market opportunities, particularly in light of current geopolitical conditions.
• Production and R&D Plans: The company is confident in its production ramp-up and R&D plans, with a focus on ensuring that all components are ready for certification and production.

Overall, Vertical Aerospace is making significant progress in its development of the Valo eVTOL aircraft while navigating regulatory challenges and preparing for future capital needs. The company maintains a positive outlook for the coming years, with a strong focus on execution and market readiness.