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Eve Holding (EVEX) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Industrials· Aug 4, 2026

Source: earnings call transcript

Executive summary

Eve Holding, Inc. Q2 FY26 — Transition Flight Progress & Embraer Synergies Drive Confidence

Eve Holding made significant progress in Q2 FY26, advancing its full-scale prototype to partial transition flight and validating 150 test points. The company secured new LOIs, expanding its pre-order backlog, and is actively realizing substantial synergies with Embraer, reinforcing its financial runway through 2028. The focus remains on achieving full transition flight by year-end and preparing for conforming prototype assembly in 2027.

Highlights

5

  • The full-scale prototype flew 66 times, logged 2 hours 46 minutes of airtime, and entered the partial transition flight phase at 30 knots.

  • Secured two new LOIs for 46 aircraft, increasing the total pre-order backlog to 2,700 aircraft valued at $13.5 billion.

  • Identified $100M-$150M in potential synergies with Embraer over the next three years, with part already captured in FY26.

  • Ended Q2 FY26 with $403M in cash and $531M in total liquidity, which is believed to be sufficient to support operations through 2028.

  • Q2 FY26 R&D expenses were lower at $29M, reflecting better-than-expected agreements and development updates.

Concerns

2

  • R&D levels are expected to return to around $50M per quarter after Q2's lower $29M.

  • Full transition flight timing has shifted slightly to 'by the end of this year' (Q4 FY26) from previous indications of Q3.

Guidance & targets

CategoryTargetConfidence
Full transition flight completion
By the end of this year
high materiality
High
Conforming prototype first flight
Second half of 2027
high materiality
High
Certification and entry into service
2028
high materiality
High
Full-year 2026 cash burn
Close to the midpoint of our guidance between $225 and $275 million
high materiality
High
Potential synergies with Embraer
$100 to $150 million
high materiality
High
R&D expenses
Around 50 million per quarter
medium materiality
High
Capex investments
Around 20 million dollars
medium materiality
High
Capex investments
Around 50 million
medium materiality
High
Capex investments
Around 30, 40 million
medium materiality
High
EASA certification validation
12 to 15 months after ENAC and FAA
low materiality
Medium

Orderbook & backlog

Total pre-order backlog 2,700 aircraft Q2 FY26

Valued at approximately $13.5 billion at list price. Includes 100 firm orders and new LOIs for 46 aircraft.

Product announcements

ProductTypeDetails
Full-scale prototype (eVTOL)milestone
Conforming prototype (EVE-100)roadmap

Deals & partnerships

MOVE Letter of Intent for eVTOL operations

LOI for 46 aircraft for operations in Cabo Verde, focusing on ecotourism.

Shearwaters (Bayport Capital Company) Letter of Intent with a new lessor

LOI for aircraft, adding to the leasing community segment of the backlog. Shearwaters was recently purchased by Bayport Capital Company.

Hitachi Non-exclusive partnership for VertiPort infrastructure

Partnership to ensure VertiPorts are reliably connected to power grids, equipped for high-demand, high-frequency operations, including fast charging and integration into existing energy systems.

Florida Department of Transportation Partnership for UAM infrastructure and operations

Focuses on delivering insights into infrastructure, operational procedures, and airspace navigation needed to integrate UAM into Florida's transportation network.

Embraer Strategic synergies and Master Service Agreement $100 million to $150 million (synergies) Next three years

Collaboration across EVE's structure, engineering activities via MSA, and industrialization by leveraging Embraer's existing assets and facilities to reduce costs and avoid duplication.

CAE Joint venture for training services (ECTS)

ECTS is a joint venture between CAE and Embraer, providing training for pilots and mechanics, part of Eve's TechCare solution.

Capital programs

Modular Production Capacity underway ~$100 million
Period spend: $20 million (FY26); $50 million (FY27); $30-40 million (FY28)
Funding: Leveraging existing Embraer facilities
Start: FY26

Benefit:Modular production capacity, scalable with demand

Investment plan to establish manufacturing facilities, utilizing Embraer's existing infrastructure to optimize costs and efficiency.

Risks & headwinds

Increased R&D expenses Going forward (post Q2 FY26)

Expected to return to around $50 million per quarter

Mitigation:Synergies with Embraer are expected to help manage overall cash burn.

Potential delay in full transition flight completion Q4 FY26

Shifted to 'by the end of this year' (Q4 FY26) from previous Q3 indications

Mitigation:The company is progressing with 30-40 flights remaining and is confident in achieving the milestone by year-end.

What to watch in Q3 FY26

Full transition flight completion

By end of FY26
Current Partial transition at 30 knots, 30-40 flights remaining
Target Full transition (60-90 knots, lifters off)

Why it matters

This is a key technical milestone for aircraft development and a critical step towards certification.

In the coming weeks, speed will progressively increase to 60 knots and then to 80-90 knots to complete the full transition. At that moment, lifters will be powered off and all lift will come from air passing through the wing, flying like an airplane. This is the aircraft's ultimate mission.

Find out whether EVEX delivers this. Inve re-checks your case every morning.

Q&A highlights

Could you provide CapEx guidance for the second half of the year and clarify how much of the $100M-$150M Embraer synergies have been realized?

Eduardo Couto detailed CapEx plans: $20M for FY26, $50M for FY27, and $30M-$40M for FY28, totaling around $100M for modular production, leveraging Embraer facilities. He stated that less than one-third of the $100M-$150M synergies are being captured in FY26, with the remainder in FY27-FY28, supporting the cash burn guidance.

“I believe one little. less than one-third of those synergies come this year and the rest comes in 2027 and 2028. Regarding CAPEX, for the manufacturing, that's another area that we have been doing a lot of studies how to be more efficient. We... we are going to be able or we are studying to use the existing Embraer facilities as much as possible so that we can only invest in manufacturing facilities as later as possible. probably this year we're talking about 20 million dollars in capex investments next year this number should go higher something around 50 million and probably another 30, 40 million in 2028.”

asked by Savanthi Syth · answered by Eduardo Couto

2 min read 6 chapters

Detailed narrative

Flight Test Campaign Progress

The full-scale prototype completed 66 flights and 2 hours 46 minutes of airtime, successfully entering the partial transition phase at 30 knots (35 mph). This milestone followed a three-month ground test period for software upgrades and integration of critical systems. The campaign has validated 150 test points, demonstrating the effectiveness of the building block concept and providing confidence for further envelope expansion towards full transition by year-end.

Certification Pathway Advancements

Eve is making steady progress on certification with Brazilian authority ANAC, with means of compliance almost completed. ANAC has opened a new consultation on updated airworthiness certification bases, aligning requirements with the FAA, and published proposed noise certification criteria for the EVE-100. EASA certification validation is expected 12 to 15 months after ANAC and FAA approvals, paving the way for European market entry.

Infrastructure Development and Partnerships

To support future operations, Eve has partnered with Hitachi, a global technology leader, to ensure VertiPorts are reliably connected to power grids, equipped for high-demand operations, and capable of fast charging. Additionally, a partnership with the Florida Department of Transportation focuses on infrastructure, operational procedures, and airspace navigation for safe UAM integration into Florida's transportation network.

Conforming Prototype Development and Timeline

The Critical Design Review (CDR) with 21 suppliers for the conforming prototype is underway, aiming to freeze the aircraft's design by the end of FY26. Six conforming prototypes will be built in FY27, with the first crewed flight planned for the second half of 2027. These prototypes will serve distinct testing purposes, from envelope expansion to systems and cabin integration, leading to certification and entry into service in 2028.

Embraer Synergies and Financial Runway

Eve is actively capturing $100M-$150M in potential synergies with Embraer over the next three years, with less than one-third expected to be realized in FY26. These synergies span EVE's organizational structure, master service agreements, and industrialization efforts, including leveraging existing Embraer facilities to reduce capital expenditures. This strategy reinforces the company's confidence in funding operations through 2028 with current liquidity.

Backlog Expansion and Market Strategy

The company announced two new Letters of Intent (LOIs) for 46 aircraft at the Farnborough Airshow, bringing the total pre-order backlog to approximately 2,700 aircraft valued at $13.5 billion. These LOIs include operations in Cabo Verde with MOVE for ecotourism and a new lessor, Shearwaters (Bayport Capital Company), highlighting a strategy to serve both direct operators and leasing companies, mirroring established aeronautical business models.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.