EHang Holdings Q1 FY26 earnings call EH

Management framed Q1 2026 as the critical shift from certification to commercial operation. EHang holds TC, PC and AC for the EH216-S and remains, per management, the only global eVTOL company with all three certificates plus operator licenses. The 'first half' (four certificates) is done; the 'second half' is the harder commercial-operation race. Two OC-certified operators in Hefei and Guangzhou are running routine internal trial operations while working with the CAAC on the 'last mile.' Management stressed the day of public ticketed service 'will not be far away' but gave no firm date, and the CAAC has imposed 'higher and more detailed' standards given this is the world's first pilotless human-carrying eVTOL commercial project.

The revised Civil Aviation Law passed in January 2026 and takes effect July 1, 2026, formally recognizing the low-altitude economy for the first time. The CAAC established a new low-altitude safety bureau, and the NDRC + CAAC formed a two-tier governance model. China's market-regulation administration plus 10 departments issued a low-altitude-economy standard-system development guide targeting a basic standard framework by 2027. The sector has featured in China's government work report for three consecutive years and is designated one of six emerging strategic pillar industries under the 15th Five-Year Plan. Management argues clearer rules accelerate rather than slow the industry and reinforce EHang's first-mover moat as a standards contributor.

Q1 revenue of RMB 25.7M was roughly flat YoY (RMB 26.1M) but down sharply from RMB 177.6M in Q4 2025, reflecting only 4 EH216-S deliveries amid Chinese New Year seasonality and customer delivery timing. The aerial-media/formation-drone business grew to ~40% of revenue at ~50% gross margin, while human-carrying carries a higher and rising margin, keeping blended gross margin at 62.5%. Management targets a full-year ~60% human-carrying / ~40% non-human-carrying mix, with firefighting and inland-waterway logistics aircraft slated to launch later in 2026 as additional drivers.

EHang made securing overseas VTCs (validation of type certificates) its top 2026 priority, planning to leverage China's bilateral airworthiness agreements with 32 countries. Thailand is the flagship market: 5 vertiport locations identified, first route survey complete, hardware adapted (batteries, outboard air conditioning) for hot/humid tropical conditions, and a dedicated overseas team spanning R&D, commercial, airworthiness and communications. The company completed its first human-carrying flight in Mexico and holds trial flying permits in Thailand, Japan, South Korea, the Middle East and Spain. Overseas revenue is targeted at up to ~10% of total, contingent on Thailand's commercial permit.

The VT-35 — a longer-range pilotless human-carrying eVTOL for intercity/regional mobility — entered the certification-basis definition stage, with EHang and the CAAC in in-depth discussions on special conditions, safety objectives and performance requirements. Critical ground and flight tests are advancing, and the VT-35 avionics system entered detailed design ahead of certification-prototype manufacturing. In parallel, EHang is developing non-human-carrying firefighting and logistics aircraft (5 VT-35 units were delivered in Q4 2025). New products aim to broaden the addressable market.

EHang developed a dedicated battery cooling vehicle that shortens battery cooldown time and, in field tests, doubled EH216-S utilization by enabling more daily charging/flight cycles in hot climates. A new cabin air-conditioning system, isolated from flight-control and avionics circuits, improves passenger comfort. The Guangzhou Command and Control Center is now fully operational across passenger, firefighting, logistics and formation-drone operations, and the Hefei command-and-control system is deployed and connected to the city's low-altitude sensing network — building the digital backbone for regional scaled operations.

Adjusted operating expenses rose 59% YoY (and 7.9% QoQ) to RMB 101.1M on R&D team expansion, technology investment and commercialization efforts, widening adjusted operating loss to RMB 77.1M (from RMB 42.6M) and adjusted net loss to RMB 75.6M (from RMB 31.1M). Against this, combined cash, restricted cash, short-term deposits and treasury investments stood at RMB 1.03B as of March 31, 2026, which management says funds commercialization, global expansion and technology programs, and underpins the newly approved USD 30M ADS buyback.