EVEX-WT — Eve Holding, Inc.

Summary of Q1 2026 Earnings Call for Eve Holding, Inc. (EVEX-WT)

1. Key Financial Results and Metrics

• Cash Position: Ended Q1 2026 with a record cash balance of $441 million and total liquidity of $578 million.
• Cash Burn: Reported cash consumption of $69 million for the quarter, which includes $11 million in service payments from Q4 2025. Excluding this, cash burn was $57 million, aligning with the low end of guidance of $225 million to $275 million for 2026.
• R&D Investment: Invested $59 million in R&D primarily for eVTOL development.
• Net Loss: Recorded a net loss of $69 million for the quarter.

2. Strategic Updates and Business Highlights

• Flight Testing: Achieved significant progress with 59 flights totaling nearly 2.5 hours in the air for the engineering prototype, validating critical systems and performance metrics.
• Prototype Development: Transition flight testing is planned for Q3 2026, with ongoing preparations including software updates and structural tests.
• Certification Efforts: Engaging with global authorities (ANAC, FAA, EASA) to advance certification processes, with a timeline suggesting certification and service entry in 2028.
• Backlog: Maintained a strong preorder backlog of approximately 2,700 aircraft, valued at about $13.5 billion. Engaged with customers for aftermarket services and air traffic management solutions.

3. Forward Guidance and Outlook

• Cash Runway: The current cash position supports operations through 2028 without needing additional funding, bolstered by a recent $150 million loan.
• Synergies: Targeting $100 million to $150 million in synergies with Embraer over the next three years to reduce cash burn.
• Flight Campaign Goals: Aiming for 300 test flights in 2026, with flexibility to adjust based on testing needs.

4. Bad News, Challenges, or Points of Concern

• Cash Burn: While cash burn is currently on track, the high expenditure remains a concern, especially as the company approaches critical testing and certification phases.
• Certification Timeline: Although there is greater visibility into certification timelines, the complexity of achieving compliance with regulatory bodies poses ongoing risks.
• Market Competition: The urban air mobility sector is competitive, and maintaining a cost-effective production model while ensuring safety and reliability will be crucial.

5. Notable Q&A Insights

• Synergies with Embraer: CFO Eduardo Couto elaborated on potential synergies, indicating they encompass operational efficiencies across various areas, including R&D and SG&A.
• Flight Test Confidence: CTO Luiz Valentini expressed confidence in the upcoming transition flight tests, emphasizing careful preparation and integration of systems.
• Binding Orders: CEO Johann Bordais noted that the company currently has two binding orders and is focused on converting more of the backlog into firm contracts.
• Vector Air Traffic Management: Bordais confirmed that the Vector system is being actively evaluated for integration into Brazil’s airspace, indicating readiness to support urban air mobility operations.

Overall, Eve Holding is making significant strides in its flight testing and certification processes, while managing its financial position and exploring strategic synergies. However, challenges remain in cash management and competitive positioning as the company moves towards commercial operations.