EVE (NYSE:EVEX) highlighted progress on its eVTOL development program during its fourth quarter and full-year 2025 earnings call, emphasizing early flight-testing milestones, continued work with Brazil’s civil aviation regulator, and an expanded supplier push as it prepares certification-conforming prototypes.
Engineering prototype advances flight campaign
CEO Johann Bordais said the company completed the first flight of its engineering prototype on Dec. 19 after an extensive series of ground tests. The initial flight lasted about a minute, and Bordais said it confirmed both the configuration’s proof of concept and the integration of key systems, including the company’s “fifth generation fly-by-wire” and fixed-pitch lifter rotors.
By the time of the call, Eve said it had performed 28 flights and accumulated 1 hour and 6 minutes of flight time. Management described increasing test complexity, including longer flights, higher altitudes, and in-air maneuvers such as side-to-side movements, horizontal displacement, and rotation. Bordais noted the rainy season in Brazil can affect cadence, but said the aircraft is being flown “twice a day” when weather permits, and the company expects to be positioned to reach around 300 flights during 2026 as planned.
Bordais added that the prototype recently completed a two-week scheduled load calibration test in preparation for continued flight-envelope expansion and was ready to resume flight testing.
Four-phase test plan and upcoming failure testing
Management outlined a four-phase flight campaign for the engineering prototype. Bordais said the initial hover and maneuver phase—focused on validating vertical flight characteristics—has been completed. The company is now moving into transition flights, initially below 30 knots, using the pusher motor and beginning synchronization of the lifters; this “partial transition” phase is expected to conclude by the end of the first half of the year.
The third phase, cruise flight, is expected to move beyond transition speed so the wing provides lift in wing-borne flight. Eve described a landing sequence in which the aircraft slows below transition speed and the lifters engage automatically for vertical control while a remote pilot station maneuvers the aircraft vertically to landing. Bordais said Eve is planning to complete the cruise phase early in the second half of the year, gradually expanding speed, altitude, and distances.
The final phase involves introducing failures—such as unplanned motor shutdowns—to validate and refine safety procedures and pilot protocols.
In Q&A, CTO Luiz Valentini said the “300 flights” figure is intended as a reference point to communicate the scale and intensity of testing, and that actual flight counts and specific test types may adjust as the campaign progresses. He described flight testing as a gradual process that feeds information back into the design of the certification vehicle, noting that additional testing can be required as characteristics are tuned or performance opportunities are explored.
Certification work and supplier activity
Valentini said Eve continues to work with ANAC on certification, including “means of compliance” discussions. He said some work is focused on noise regulations that are still being discussed with ANAC and the FAA, as well as updates driven by a new FAA advisory circular. Eve is modifying elements previously agreed with ANAC to align more closely with FAA requirements, which he said should streamline future FAA validation after an ANAC type certificate. Valentini said the work is “some rework now” but does not materially affect the critical design review (CDR) because it does not change the product itself; it changes the way compliance will be demonstrated.
On suppliers, management described an uptick in activity and said Eve is already receiving some components for the first certification-compliant prototype. Bordais cited tooling and composite material work underway, including tooling for doors, propellers, and wing components. He highlighted a folding mechanism for the propeller as a “notable achievement,” explaining that Eve introduced a four-blade system to reduce vibration and sound emissions and that folding is intended to reduce drag and improve aerodynamics.
Valentini said suppliers for critical systems are already engaged, including electrical systems, propulsion, and flight controls computers being developed with Embraer, and said there are “no significant components to be sourced at this time.”
Asked about the six ANAC conforming aircraft, Bordais said these prototypes are for testing only and will not be delivered to customers. He said long-lead items are being manufactured and some tooling is already in production, with assembly expected to proceed as additional parts become available.
Orders, backlog, and ecosystem buildout
Eve discussed a firm order signed in early February with AirX, which management called its second binding contract. The agreement includes two firm aircraft and options for another 48. Bordais described Japan as an important market and said Eve believes Japan can absorb as many as 390 eVTOLs to transport 3 million passengers per year, citing use cases such as airport shuttles, ecotourism, and point-to-point commuting.
Management reported a total pre-order backlog of around 2,700 aircraft with a total value “close to $13.5 billion” based on 2025 list price. This includes non-binding letters of intent from 27 customers and firm orders from Revo and AirX, according to the company. Eve also said it has contracts with 14 customers for its TechCare aftermarket suite, which management said could generate up to $1.6 billion in revenue over the first few years of operations. The company reported 21 customers for its Vector air traffic management solution.
During Q&A, Bordais addressed a small contraction in the LOI backlog, describing it as a normal dynamic for non-binding commitments. He specifically cited Blade, saying the change was related to Joby’s purchase of Blade and a shift in strategy regarding eVTOL OEM relationships.
Management also discussed its approach to converting LOIs to firm orders as it moves closer to entry into service. Bordais said Eve is now at a point where conversion becomes more important as the company approaches first deliveries, and described internal sales and operations planning to align production slots and customer readiness. He also emphasized the importance of ecosystem preparation—such as infrastructure, local approvals, and operating procedures—alongside aircraft readiness.
Liquidity, 2025 spending, and 2026 cash consumption outlook
CFO Eduardo Couto said Eve ended 2025 with liquidity of $541 million, including $390 million in cash and $150 million in undrawn credit facilities with Brazil’s development bank (BNDES). He added that, after a new syndicated bank loan secured early this year, total liquidity increased to $641 million. Couto said the syndicated loan provided $150 million and that liquidity grew by $100 million net because Eve refinanced $50 million of an existing loan to extend amortization and better match expected cash flow needs as the company approaches certification and entry into service.
Couto said operations consumed $175 million in 2025, but noted a $21 million working-capital gain in the fourth quarter because some Embraer engineering payments slipped into the first quarter of 2026. He said that if those invoices had been paid in 2025, cash consumption would have been $196 million, close to the low end of the company’s $200 million to $250 million guidance range.
For the fourth quarter, Eve reported R&D investment of $59 million and SG&A of $8 million. For the full year, R&D was $195 million and SG&A was $31 million. Eve reported a net loss of $64 million for the fourth quarter and $224 million for the full year.
Looking ahead, management expects cash consumption to intensify as flight testing ramps and as the company increases supplier engagement and begins assembling six certification-conforming prototypes. Eve guided to 2026 operational cash consumption of $225 million to $275 million. In response to questions, Couto said the cash burn is expected to be “mostly R&D,” with SG&A targeted to remain around prior-year levels near $30 million, and CapEx anticipated to be about $20 million to $30 million related to the plant. He also said cash consumption may be lighter in the first half and heavier in the second half as work on conforming vehicles progresses.
Couto said the company believes its liquidity is sufficient to cover capital needs “well into 2028.”
On production readiness, Bordais said Eve’s industrialization plan is modular. He said Eve selected the Taubaté site—an Embraer site where Eve is paying rent—and has begun pre-infrastructure refurbishment. Bordais said the first production module is planned for 120 vehicles per year, with scalability up to 480 vehicles per year, after which additional facilities may be needed, potentially outside the initial site and possibly abroad depending on market needs.
About EVE (NYSE:EVEX)
Eve Holding, Inc (NYSE: EVEX) is the publicly traded parent of Eve Air Mobility, a company dedicated to developing sustainable urban air mobility solutions. Through its engineering and design capabilities, Eve focuses on creating electric vertical takeoff and landing (eVTOL) aircraft tailored for short-haul passenger and cargo transport in densely populated areas.
The company’s flagship offering is an eVTOL aircraft designed to deliver clean, quiet and efficient point-to-point service, backed by an integrated digital platform for air traffic management.
