EVEX-WT — Eve Holding, Inc.

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

1. Key Financial Results and Metrics

• Liquidity Position: Ended Q4 2025 with $541 million in total liquidity, including $390 million in cash and $150 million in undrawn credit facilities. Following a new loan secured early in 2026, total liquidity increased to $641 million.
• Cash Consumption: Operations consumed $175 million in 2025, with a working capital gain of $21 million in Q4. Actual cash consumption would have been $196 million without the deferred payments to Embraer.
• 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, primarily focused on eVTOL development.

2. Strategic Updates and Business Highlights

• Flight Testing Milestone: Conducted 28 flights totaling over 1 hour of flight time for the engineering prototype, marking significant progress in the flight campaign.
• Certification Progress: Engaged with ANAC on certification plans and made advancements in supplier relationships, with components for the first conforming prototype already in production.
• Order Backlog: Total backlog stands at approximately 2,700 aircraft valued at $13.5 billion, including firm orders from Japan AirX and various letters of intent from other customers.
• Ecosystem Development: Announced partnerships to enhance service and support, emphasizing the importance of customer support in the urban air mobility ecosystem.

3. Forward Guidance and Outlook

• 2026 Cash Consumption: Expected to increase to between $225 million and $275 million, primarily driven by intensified development activities and supplier engagement.
• Flight Campaign: Targeting around 300 flights throughout 2026, with a structured approach to testing and certification phases.
• Order Conversion: Anticipates a gradual conversion of letters of intent to firm orders as flight certification progresses, with a focus on ensuring operational readiness for customers.

4. Bad News, Challenges, or Points of Concern

• Deferred Payments: Noted a delay in payments to Embraer, which could signal potential cash flow management issues, although management indicated this was an isolated incident.
• Order Backlog Fluctuations: A small contraction in the backlog was reported, attributed to a client withdrawing an LOI, raising concerns about customer commitment and market dynamics.
• Certification Challenges: Acknowledged ongoing challenges in meeting certification requirements, particularly regarding compliance with evolving regulations, which may impact timelines.

5. Notable Q&A Insights

• Cash Consumption Breakdown: CFO Eduardo Couto clarified that the majority of the projected cash burn will be allocated to R&D, with SG&A expected to remain stable around $30 million.
• Supplier Engagement: CTO Luiz Valentini confirmed that all critical components and suppliers are engaged, with no significant sourcing issues anticipated.
• Flight Testing Flexibility: The 300-flight target is a guideline rather than a strict requirement, allowing for adjustments based on testing outcomes and vehicle performance.
• Certification Timeline: Management emphasized the complexity of the certification process and the need for thorough testing to ensure compliance, indicating that while progress is strong, significant challenges remain.

Overall, Eve Holding is making notable strides in its flight testing and certification processes, backed by a strong liquidity position, but faces challenges related to order stability and certification complexities.