Eve Air Mobility posts Q2 loss of USD11.8m in first earnings report since going public

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.

Eve Urban Air Mobil­i­ty: A Win­ning Stock or a Dis­ap­point­ing Dud?

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

https://eveairmobility.com/

(News Source: https://www.onlineev.com/)