Eve, the Embraer-backed eVTOL Aircraft developer, announced last week a loss of USD11.8million for its Q2 earnings, as it ramps up analysis, growth, gross sales, advertising and staffing, reports onlineev.com. This is the company’s first quarterly report since going public in May.
Q2 financial highlights
: Eve reported a net loss of USD11.8 million in Q2 2022 versus USD2.4 million Q2 2021, primarily driven by higher R&D expenses and selling, general & administrative (SG&A) costs, as the eVTOL project continues to advance and its team of collaborators grow. In the 1H 2022, Eve reported a net loss of USD21.3 million, USD16.7 million higher than the USD4.6 million net loss in the 1H 2021.
: During the first half of 2022, Eve’s operations consumed USD13.2 million of free cash flow, versus USD5.1 million in 1H 2021. The 1H 2022 free cash flow reflects an USD11.2 million working-capital gain, most of which is due to higher accounts payable with Embraer.
: On the finance side, net cash provided by financing activities reached USD329.1 million during 1H 2022 with the net proceeds from listing on the New York Stock Exchange.
: At the end of Q2 2022, Eve had USD330.8 million in total liquidity (cash, equivalents and financial investments) versus USD14.4 million at the beginning of the quarter. Eve’s significantly higher cash position comes primarily from the capital raise in May 2022, and was partially offset by development expenses and transaction costs. As of the end of Q2, Eve did not have any debt on its balance sheet.
: Its management team continues to monitor the capital markets for debt financing options to bring additional cash resources to Eve at attractive terms. Before service is commenced, Eve may also seek incremental capex lines via corporate loans, to help fund its manufacturing and production facilities.
: As Eve continues to advance its eVTOL development, the company expects to transition part of its non-binding orders into firm contracts. Those firm orders may result in significant cash advances and inflow to the company through down payments that tend to occur several months prior to final eVTOL delivery.
New Seat Configuration
An Eve spokesperson commented, “As we proceed to advance our eVTOL growth, Eve expects to transition a part of its non-binding orders into agency contracts. These agency orders might lead to important money advances and influx to the company by means of down funds that are likely to happen a number of months previous to ultimate eVTOL supply.”
On the completion of Q2, Eve had Letters of Intent (LoI) for 1,910 eVTOLs, designed for flight over cities. That number has increased to 2,060 by early August. Eve has LoIs with 22 clients in 10 nations on six continents. That equates to a USD6 billion non-binding backlog.
At the recent Farnborough Airshow, Eve unveiled a brand new seat configuration in addition to the craft’s inside. The company has redesigned the plane to have “a standard wing and an empennage”. In previous designs, there was a canard and a wing. The brand new design, nonetheless, options eight rotors, offering vertical take-off and touchdown functionality in addition to a comfortable in-flight experience.
The inside mock-up at Farnborough showed a single pilot seat at the front, with 4 passenger seats behind it – two forward-facing and two rear-facing. Eve aims to begin a commercial service by 2026.
For more information
(News Source: https://www.onlineev.com/)