Eve Holding Inc Aktie

Greetings, and welcome to the Eve Holding, Inc. First Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Lucio Aldworth, Head of Investor Relations. Thank you. You may begin.

Thank you, operator. Good morning, everyone. This is Lucio Aldworth, the Director of Investor Relations at Eve, and I wanted to welcome everyone to our first quarter 2026 earnings conference call. Our CEO, Johann Bordais; and CFO, Eduardo Couto, are joining me on the call today. After their prepared remarks, we will open the call for questions. At that point, Luiz Valentini, our Chief Technology Officer, will also join in to address some more technical questions.

We have a deck with a few slides and additional pictures that showcase our achievements in the quarter, including, of course, the more recent stages of the test flights of our full-scale prototype. The deck is available on our site at ir.eveairmobility.com. So please feel free to download it and follow along. And in fact, we just published on our website today a video of one of the more recent flights that features some more complex on-air maneuvers. You might want to check that out as well.

Let me first mention that today's conference call includes statements about events or circumstances that have not yet occurred. These are primarily based on our current expectations and projections regarding future events and financial trends that will affect our business and future economic performance. These forward-looking statements are based on current expectations and involve risks and uncertainties that could cause financial results to differ substantially from those expressed or implied in this conference call. We undertake no obligation to update publicly or revise any forward-looking statements because of new information, future events or other factors. For a more detailed list of these risks and uncertainties, please refer to our SEC filings, which are available on our website.

Now I'll turn it over to our CEO, Johann Bordais. Johann?

Thank you, Lucio. Good morning, everyone, and welcome to the first quarter 2026 conference call. This quarter was especially significant. As many of you know, we achieved the inaugural flight of our engineering prototype last December after a thorough development and a series of breaks and ground tests. This major milestone validated not only our building block concept by extensively testing every part, but also the integration of critical systems such as fly-by-wire and fixed-pitch lifter rotors. The successful first flight launched an intensive flight test campaign. Our prototype completed 59 flights and logged nearly 2.5 hours in the air with multiple days of 2 flights and the completion of all planned hover phase objectives.

Moving to Slide 3. More than quantity, our flight campaign has also excelled in quality. Every flight is planned to test and validate specific aircraft component or flight metrics. In total, our engineers have already validated 130 different performance points. The prototype has reached 215 feet above the ground and now moving forward at 30 knots. As an example of the envelope expansion, our first flight in December was stationary with the aircraft climbing to 40 feet.

Besides flying more frequently, longer, higher and faster since the first flight, we have also introduced multiple on-air maneuvers to the protocols. We use a building block approach in both design and flight testing, which means we break complex systems into smaller parts, test each unit until it reaches the needed maturity and then build in on this component. Each test validates specific points and allows progression to next level, more complex phases of the campaign. As such, the aircraft has tested and validated the Autoland feature fully controlled by the fly-by-wire system. We have also performed difficult maneuvers in all 4 axis with consistent behavior, allowing continuous envelope expansion.

On Slide 4, the flight campaign has delivered meaningful knowledge gain to date. Most importantly, we confirmed that our predictive models are reliable and precise, enabling safe and confident campaign advancement. Ground effect behaved somewhat differently, but loads remain within expectations. These common small deviation help us further refine and improve our engineering models. We have better-than-expected results for motor thrust and battery performance with noise and vibration meeting our expectations. The key takeaway is that we remain on track for further envelope expansion and more complex flights.

Speaking of which, Slide 5 shows the next steps in the engineering prototype test campaign for this year. The flights up to now have been in hover mode up to 30 knots and all were completed successfully on schedule with approximately 60 flight. During the remainder of the second quarter, we will upload a refined flight computer software and perform final ground test on the pusher and actuators. This will ensure that they are fully integrated with all the other aircraft systems in preparation to initiate transition flight.

Besides software upgrades, we will also perform mandatory structural ground tests and lay-up activities that are required for the transition phase and that will last few weeks. This is critical opportunity that will help us validate methods, setup instrumentation and test techniques to continue advancing. In a nutshell, this structural and software upload phase is an investment in the maturity, safety and predictability of the coming transition and certification path.

The transition phase will also be gradual. We will start with a partial transition, progressively increasing speed. The lifters will be engaged and to provide the aircraft with the necessary vertical support. At the end of this phase, we plan to accelerate the aircraft to a full transition speed above 85 knots. At this point, the entire lift of the aircraft will be provided by the wing, meaning the aircraft will be wing-borne flight with lifters motors off. This is the aircraft ultimate mission. Take off vertically, transition to wing-borne flight and then transition back to vertical flight for landing procedures.

After transition testing, we will introduce controlled failures such as motor shutdown to observe system reaction and refine the safety procedures and the pilot's protocols. Meanwhile, we are concluding the critical design review with our suppliers for each component that will be featured in our coming performing prototypes. This will allow us to release drawings and continue manufacturing components within the required specs to start testing our conforming vehicle in 2027.

We continue to mature our flight test campaign, advance our engineering prototype this year while gaining greater visibility into the certification plans for our conforming vehicles. This suggests that certification and entering the service are more likely in 2028 as we will need to fly our conforming vehicles for 12 months to complete all necessary certification tests. It is important to mention that this greater visibility gives us more confidence in the new schedule and lowers its risk.

The new time line is also important to incorporate knowledge gained from the engineering prototype to the conforming prototype and guaranteeing the maturity and performance level of our Eve-100 eVTOL, especially for range, noise, reliability, payload and lower operating cost. We are now confident that we can deliver an aircraft that is very competitive and well designed for urban air mobility missions.

In parallel, on Slide 6, we continue to engage with authorities worldwide to advance certification for our eVTOL. We have recently performed the demonstration at the Gaviao Peixoto Embraer facility in Brazil for several Brazilian authorities, including the President of Brazil. We also met with both Brazil ANAC and the U.S. FAA certification authorities at our Melbourne, Florida office to continue discussing our certification time line. We also met with Japan JCAB and ANAC to strengthen cooperation between the 2 agencies. Lastly, we formally applied for our eVTOL type certificate with EASA.

Moving on to Slide 7. We attended VERTICON in Atlanta, the world's largest helicopter conference. Our goal was to raise awareness to our eVTOL amongst helicopter operators. We believe that these operators will be very early adopter and see an attractive short-term commercial opportunity with them.

Slide 8 shows our total preorder backlog with approximately 2,700 aircraft valued at about USD 13.5 billion at list price. Out of the 27 customers, we also have LOIs with 14 different customers for our eVTOL aftermarket services and support as well as 21 different potential customers for our air traffic management solution called Vector.

Now I will hand over to our CFO, Edu, for the 2026 first quarter financial review.

Thanks, Johann. Eve ended first quarter 2026 with a record cash position of $441 million and total liquidity of $578 million, including about $136 million in undrawn credit from the Brazilian Development Bank. This is our highest cash level since the IPO, driven by a new 5-year $150 million loan raised in January. This added liquidity should support operations through 2028 without new funding. We're also working with Embraer to find new synergies to reduce our cash burn from 2026 to 2028.

Our initial review indicates that we can achieve $100 million to $150 million in incremental synergies in the next 3 years, likely reducing cash usage and extending our cash runway. We already started to implement these actions. Our 2026 expected cash burn remains at $225 million to $275 million, excluding the new potential synergies under implementation.

Now moving to Slide 10, just to highlight some of our numbers. Eve invested $59 million in R&D during the first quarter '26, mainly for eVTOL development. SG&A expenses totaled $7 million for the quarter. Including R&D and SG&A, Eve's net loss for first quarter 2026 was $69 million. Finally, as mentioned previously, we ended the quarter with $441 million in cash and $578 million in total liquidity. Cash consumption in the first quarter was $69 million, but this figure includes approximately $11 million in service expect to have been paid in the fourth quarter of 2025. Excluding this additional payment in the first quarter '26, our cash consumption was $57 million and in line with the low end of our guidance.

With that, we conclude our remarks, and I would like to open the call for questions. Operator, please proceed.

[Operator Instructions] The first question is from Savi Syth from Raymond James.

Maybe, Edu, first, just on the synergies, could you provide a little bit of color on kind of what type of actions those are? And just to make sure that the $100 million to $150 million you're targeting over a 3-year period, is that coming off of a base of like roughly $250 million per year over the next few years? Is that how we should think?

Yes, you're correct. We did a big workshop in Brazil a couple of weeks ago. There was more than 200 people involved on that from Eve and Embraer side. We basically explored, I would say, 4 main areas. We explored the Eve structure, right? We have a lot of costs at Eve. We also explored all the service that Embraer provides to us. A third pocket was suppliers, right, and all activities we do with third-party suppliers. And the fourth one was industrialization. So after doing this deep workshop, we were able to initially identify this $100 million to $150 million that we expected to capture between 2026 to 2028. That would be a reduction, right, on the expected cash burn that we were planning for the next 3 years. And you're right, we believe these actions will help us to reduce the forecasted cash flow to the years ahead -- cash burn to the years ahead.

That's helpful. And maybe if Valentini is there, just on the means of compliance, I know last kind of earnings call, you talked about working on 2 fronts. Just wondering if there's any kind of update on that. And just related to that, you noted that some suppliers have kind of already initiated performance certification rehearsal test. Just wondering if you could elaborate a little bit more on that.

Sure. Savi, this is Luiz Valentini. So we continue to work with ANAC and also with the FAA on the discussion on the means of compliance. I think we've had good progress recently. We've had all of the means of compliance proposed to ANAC. They are inside the certification plans we call. But basically, we've been discussing them one by one, and we have all of them proposed. We believe that we are at around 90% of the means of compliance agreed, which puts us, we believe, in a good position, like you said, to start working on detail, the design of the test campaigns in order to show compliance with requirements.

We also were able to find a good agreement on the noise certification requirement, which is not part of the certification basis, but is an important part of the certification and operation of the vehicle. So we believe that it's still on par with the development of the vehicle itself. With respect to other authorities, we've also been engaging with the FAA, as we communicated previously, but most of the alignment work on the means of compliance is done directly with ANAC being the primary certification authority.

The next question is from Andres Sheppard from Cantor Fitzgerald.

Congrats on the quarter. I wanted to touch on the flight campaign for a minute. So just to make sure I have it right, so we're targeting first full transition flight in Q3. So I guess, what -- just remind us what are the milestones leading up to it? And how confident are we in that milestone in Q3?

This is Luiz Valentini. So we've been flying quite a bit, as we've shown, all of the flights in the hover flight phase. So we've been pretty excited not only with the pace of the campaign, but also with the results that are coming out that makes us confident in moving forward with the tests, right? The next few weeks we'll be focused on testing some of the integration of the systems in the ground. So we've been planning shifting from a period of many flights to now a period of tests on the ground. And that, again, we will focus on making sure that the flight control surfaces work well with the flight control laws connected with the pusher. And so the lifters, of course, all of that connected. We also will have more tests in the ground that focused on the structure on the airframe of the vehicle to make sure that the vehicle is ready for the larger envelope of flight that we will start from the Q2 to Q3.

Of course, there is a lot to be learned as we move on to this new transition flight phase. So like I said, we are confident and we're excited on the way that the vehicle has been showing itself with respect as it compared to our expectations. But there is a lot to be found out still on this expansion and as we move forward. So we are planning this preparation phase very carefully to increase the chances of doing the transition. And again, that's very important, not only for the transition itself, but on the way that it brings knowledge for us to increase the maturity of the Eve-100 design as we progress to building the certification prototypes and moving to the certification flight test campaign.

Got it. Wonderful. I really appreciate all that context. Very helpful. And maybe just one quick follow-up. Just on the backlog, can you remind us kind of the strategy for this year? Is the plan to continue to increase the backlog or are we happy with the number and that will be more about converting those LOIs? Just kind of curious how you're thinking about it for this year.

Yes. Thanks, Andres. Johann speaking. When it comes to the backlog, we still have the strongest preorder book with 2,700 aircraft at this stage. We understand the number of LOI and the spread of our customers and the customer profile is what we need. Really, it's a variety of first mile, last mile operation. It's also sightseeing. It's also organ transportation, different type of mission, which I think it's the right balance in different parts of the world, where it's Australia, it's Japan, it's Brazil, obviously, and the United States. So we're very comfortable with our portfolio right now. We demonstrated that we have the right solution because we're very preoccupied based on our strong experience of Embraer, how is the operation will be. So that's something that we work hard also to make sure that we have the ecosystem ready. And this is what has driven this big order book, let's say, right?

And the strategy for -- since last year and this year is to engage the customers so they can go for firm contracts, so then they can also engage with their local authority together with Eve, but also the stakeholders and prepare the Internet service, right? Certification is really the starting line. And the game will be on when they're going to be operating -- we'll be delivering -- certifying and delivering those aircraft and then they'll be able to operate with the lowest operating cost with the highest utilization, and this is how we're going to be starting the urban air mobility. So first will be Revo and then AirX as we announced this year at the Singapore Air Show in Japan, but then we're working with other customers in Brazil, but also in the United States.

The next question is from Sheila Kahyaoglu from Jefferies.

This is Kira on for Sheila. And I appreciate the added color on the flight test progress. You mentioned greater engagement with suppliers with the pickup in R&D. Could you maybe walk us through how conversations with suppliers have developed since flight test began? And how work is progressing on the supplier side at this point in the campaign?

Sheila, this is Luiz Valentini. So what we've been doing with the suppliers is making sure that we have the parts and their systems in the most optimized way for the vehicle to meet its product requirements, right? So the flight test campaign helps us to gather data on the vehicle behavior and flight, on the behavior of the systems, for example. So one example, how the temperature of the battery behaves during flights, right? So with that, we can go back to the supplier and use this information to make sure that what they are developing will lead the Eve-100 to meet its product goals.

So the way that the interaction is going now is to make sure that, again, their products will lead us to reach our targets and the flight test data helps us to bring more clarity and more confidence on the data that we are exchanging with them. So based on this, we are moving forward to finalizing their design of the systems, and again, making sure that it all integrates in a way that will satisfy the Eve-100 goals. And once we are done with that, then we can go ahead and release the drawings for the manufacturing and then manufacture the production prototypes. So that's how the -- let's say, the connection is with the flight test campaign and what we expect to do once we're past this phase.

The next question is from Andre Madrid from BTIG.

I wanted to ask a bit more about the binding orders. At the end of the year, could you maybe just point to what dollar figure would be binding orders have to be for you to call it really a successful year? How many of what's in backlog right now would you have to convert the binding to?

Thanks, Andre. Yes, the binding orders, we have 2 right now. The first one is Revo with 50 aircraft -- up to 50 aircraft firm. And we also have AirX, right? Same type of operation for both customers. As you can also see, like it's a $500 million under a binding agreement right now. There are some PDPs actually associated to it. There is some milestone associated to also the product development. And this is how we've been setting up the whole deal.

Now we need to move the right time. As you understand, since it's going to be a high utilization aircraft and based also on the safety level standard and of commercial aviation, this is what we are doing strong from our experience, there are some commitment that they expect from the vehicle. And as we move the testing campaign and the conforming prototype also certification, then we'll define a bit better with the customers how it's going to work and how the operation will be.

Got it. Got it. And if I could follow-up on that, you mentioned the PDPs. I know you guys don't usually guide this, but is there any more color as you could point to as to the cadence of that flowing in?

Yes, it's Edu here. In terms of down payments, right, as we signed the binding agreements, we already received an initial down payment. And we expect that those down payments will continue 18, 12, 6 months prior to the delivery. And in total, we're anticipating we can receive up to 30% or 40% of the total value of the vehicle before the delivery and then receive the balance at the delivery.

Very similar to what the industry practice is used to between the commercial aviation or executive aviation.

The next question is from Austin Moeller from Canaccord Genuity.

Just my first question on Vector. Is that being actively evaluated by ANAC for approval? And can that be integrated immediately into Brazil's national airspace system once your aircraft are delivered to customers for the first time?

Yes. Thank you, Austin, for your question. Yes, Vector is definitely part of the ecosystem and the solution that we're providing for our customers. Obviously, it comes with module just like for the air traffic management, and we can start today the Urban Air Mobility operation using the current air traffic management system in place. The idea is as we're going to be scaling up, then we will need to have a really robust solution eventually. And when we say we, it's not necessarily Eve, we're talking about the aerospace industry. It's going to be -- we're talking about thousands, hundreds and thousands of vehicles, whether it's drone, whether low altitude space, airspace.

So that's something. It's a journey. It goes along with the scale of the UAM. And the first module is really focused on how to manage your vertiport, right, or helipad still because our strategy is to start today. As a matter of fact, we delivered the first module to Revo, and they already tested it at the Grand Prix of Sao Paulo end of last year, and it was successful. And then we're going to go at the fleet level. And then we'll go for a certifiable software together with ANAC and DECEA, as a matter of fact, who takes care of the flying of the air traffic management in Brazil, right?

Our experience on Vector, we have a strong DNA and a strong right to play as I'd like to remind everyone that the software company that actually developed the air traffic management that is used in Brazil to control the whole air space in Brazil is actually coming from Atech. It's a fully owned company from Embraer, and we're developing Vector together with them.

Okay. And if we think about the production schedule for the certification prototypes, I understand there will be one finished by the end of the year. But how should we think about the cadence of how many will be produced between now and 2028?

So I think as you say, we'll finish the prototype, no, we'll start assembling the prototype and then we'll finish up probably the first semester next year, and then we're looking at the first flight, which I think is a very important milestone for conforming prototype certification. It's the first flight with the pilot on board. And so we're looking at mid next year for the -- early second semester for the first flight of that prototype. And then we will be producing and delivering more or less once every -- once a month afterwards up to 6 prototypes.

The next question is from Marcelo Motta from JPMorgan.

Just 2 follow-ups here. The first one, when we look at the release in the fourth quarter, you were talking about like a $21 million deferral payment to Embraer. And this quarter, this was converting to $11 million. So just wondering if this $10 million difference is for next quarter or if there was some readjustment on the amount?

And the second question is regarding the test campaign. You mentioned to try to get to 300 testing flights this year. Just wondering if this is still the level or what are you expecting in terms of maybe number of testing or hours in there, whatever you can share with us?

Motta, how are you? Edu here. In terms of the accounts payable, you're correct, right? We closed last year with $21 million that were supposed to be paid in fourth quarter. We paid $11 million -- actually, we paid the whole $21 million. But then on the invoices of the first quarter, there was $10 million that slipped to the right. So we pretty much recovered more than half of what was a carryover from last year. But your math is correct.

Motta, this is Luiz Valentini. With respect to the number of flights, yes, we are still considering the 300 flights as a reference for the test campaign of the engineering prototype. Of course, this is flexible as we may decide to test more things. So maybe we have modifications on the vehicle, for example, we want to test, for example, different propellers or different lifters, things like that. So the vehicle allows us to do that. So there's a lot of flexibility on the campaign. But the 300 flights we are considering that is the number of flights that allows us to bring the knowledge that we need for the development of the Eve-100 and also to progress with the expansion of the envelope, as we have mentioned.

So we believe that with that campaign, we can demonstrate the vehicle and its characteristics and also we can bring the knowledge to the development of the Eve-100 in time as we've been mentioning for the production of the production prototypes -- for the manufacturing of the production prototypes, right? But keep in mind that this number is a reference and we may change it as we progress with the test campaign and decide to test more things if we'd like to.

The next question is from Amit Dayal from H.C. Wainwright.

Just going back to the Embraer synergies, does this -- can you clarify whether this includes technology or personnel? Like where are these synergies coming from? If you could just maybe clarify that.

Yes. No, that's a good question, Amit. It's a broad range, right? We are looking at a bunch of different things, but we're looking at how we can use existing assets better, existing facilities, how we can allocate the work between the different teams in a more efficient way. So there are different -- also getting into more details of the flight test campaign, the CapEx and OpEx associated with all of that. It was a very big work.

As I mentioned, there was more than 200 people involved. It came with hundreds of actions, and we are starting to implement that. That's the beauty, right, of being part of a big group as Embraer, when you start to look things in more details and we bring everybody together, you are able to identify gains and synergies that you're not seeing before. So that's pretty much what we're doing. We mapped this $100 million to $150 million to incorporate -- to capture, right, in 3 years, and we are now moving forward with the plan.

Okay. Just a follow-up on that, Edu. Will this impact more on the SG&A side or more on the R&D side, do you think, the cost synergies?

It's both. There are synergies in terms of being more efficient in the way that we are going to be assembling the vehicles, in the way that we are doing the development, being more efficient on the general expenses, more efficient with third-party consultants, right, third-party service. There's a lot of things. I would say, it includes both pockets, R&D and SG&A, right, general expenses. And as I mentioned, also industrialization, right, how we can be more efficient, not only assembling the conforming prototypes that are coming, but also on the production going forward. So there are different areas, pockets, and it includes both.

Okay. Some CapEx is what it looks like?

Yes, that's correct.

Yes. No, it's -- I like the question, and it's something -- it's important to understand that within Embraer and Eve is born as such is about the lean philosophy. And this is something that is dear to Embraer. This is a program that was implemented back in 2007. Now I think it really has to do with -- it's in the blood of all of the Embraer employees, but also the Evers is looking for being lean and looking at every efficiency that we can bring. So we do it through a whole philosophy, which is called the Kaizens and then we go through -- and that's something we do all the time. And I spent 25 years at Embraer, and then we've done it over the last 20 years. And it's just amazing how you keep improving and you keep working on your efficiency at all time. And this is one of the benefits that also Eve is getting from being part of the group of Embraer.

Yes. It looks definitely like a little bit of a competitive edge you guys have versus some of the other players. Just one last one for me. On the cost of the aircraft side, right, roughly it's translating around $5 million per aircraft right now with the numbers you shared. Have any inflationary factors been built into this given sort of these trends all over the world where prices have been rising? Just wondering -- curious about like how this may sort of end up in the next few years in terms of pricing per aircraft?

Yes. I can start here, Johann, but feel free to chime in. Yes, the list price is $5 million, right? We -- as we are progressing on the development of our vehicle, right, we're gaining not only confidence on the specs of the vehicle, right, in terms of range, noise, payload and everything. But we are also getting more visibility on the COGS of the vehicle. We believe our vehicle, given the simplicity, right, and the design, the lift plus cruise design and the focus on the urban missions, we believe our vehicle is going to be extremely competitive in terms of COGS.

We have been working also with our suppliers, right, of the critical components to make sure that our COGS stay within the range that will allow us to sell the vehicle at the $5 million list price and be highly profitable. Things are going in this direction. And -- but we are the whole time challenging not only internally ourselves, but our suppliers to make sure we have a lower cost vehicle and how we can leverage, right, the supply chain of Embraer and the supply chain that our big suppliers also have to have a competitive vehicle.

Nice. Thanks, Edu. Yes. This is something how we build our program. We have the major systems covered by the suppliers. And this is also what we worked on from very beginning. I mean those contracts are lifetime contracts. So we don't look only just to develop the prototype or the production, but also make sure that the operation is covered to guarantee to our customers that they have a competitive aircraft.

So we do have also on those long-term and lifetime life cycle aircraft -- contracts, sorry, the inflation also formulas that allows us to control all this and including the aftermarket. So this is something that we have a good visibility. We brought Embraer also experience. And then we're comfortable with what we have in our $5 million vehicle.

There are no further questions at this time. I would like to turn the floor back over to Lucio Aldworth for closing comments.

Great. Thank you, Sashi, and everyone who joined the call today. As you can see, we accomplished several important milestones this past quarter. There is much more to come, and our upcoming achievements will be more visible to the investment community from now on. So it's going to be a very exciting next few months for Eve as a whole. We're going to keep you updated on our progress over the next few quarters, and we do look forward to meeting you in the upcoming events we're going to attend. If you have any questions, as always, please feel free to reach out. Thank you, and have a good day.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

Good day, and welcome to the Eve Holding, Inc. Fourth Quarter 2025 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Lucio Aldworth, Director of Investor Relations. Please go ahead.

Thank you, operator. Good morning, everyone. This is Lucio Aldworth, the Director of Investor Relations at Eve, and I wanted to welcome everyone to our fourth quarter and full year 2025 earnings conference call. Our CEO, Johann Bordais; and CFO, Eduardo Couto, are joining me on the call today. After their prepared remarks, we will open the call for questions. At which point Luiz Valentini, our Chief Technology Officer, will also join us to address more technical questions.

We have a deck with a few slides and additional pictures and videos that showcase our achievements in the quarter, including, of course, the initial stages of the test flights of our full-scale prototype. The deck is available on our website at ir.eveairmobility.com. So please feel free to download it and follow along.

Let me first mention that today's conference call includes statements about events or circumstances that have not yet occurred, these are primarily based on our current expectations and projections regarding future events and financial trends that will affect our business and future economic performance.

These forward-looking statements are based on current expectations and involve risks and uncertainties that could cause financial results to differ substantially from those expressed or implied in this conference call. We undertake no obligation to update publicly or revise any forward-looking statements because of new information, future events or other factors.

For a more detailed list of these risks and uncertainties, please refer to our SEC filings, which are available on our website.

With that, I will now hand over the presentation to our CEO. Johann?

Thank you, Lucio. Good morning, everyone, and welcome to the Fourth Quarter 2025 Conference Call. This was a very special quarter for us. As many of you have seen, we concluded the first flight of our engineering prototype last December after we completed an extensive series of ground test on all of its system. Although the first flight was short and lasted about a minute, we are evolving quickly into other phases of the flight campaign. We are going to show more data further in the presentation.

We have performed a total of 28 flights and accumulated more than an hour flight time. The prototype has recently completed a 2-week schedule load calibration test in preparation for continued expansion of the flight envelope that is part of the upcoming phases in the campaign and is ready to resume flight testing.

In parallel, we continue highly engaged with ANAC on the final terms of the certification plans and also suppliers from whom we are already receiving some of the components of the first conforming prototype.

Going into a bit more details. As you can see on the picture on Slide 3, we successfully conducted our first flight on December 19. This was obviously a major milestone for us. It confirmed that not only the proof of concept of the configuration, but also the integration of key systems, including the fifth-generation fly-by-wire and the fixed pitch lifter rotors.

During the flight, we exercised the control laws, verified the integration of the eight lifters and assessed the energy management, the aircraft dynamic response and the noise footprint. The prototype behave as predicted by our models and we will, with this data point, expand the envelope and progress to our transition to wing-borne flight.

The next phases will be conducted in a disciplined manner and ramping up to around 300 flights throughout 2026 and building the knowledge required for TOP certification.

This brings us to the next slide, #4. As you can see, we quickly engaged into a consistent and intense flight campaign. So far, we have flown our aircraft 28 times with a total of 1 hour and 6 minutes of accumulated flight time. As mentioned previously, the high quality of the flights with important test points being validated in each of every flight allow us to continue progressing and expanding the envelope of the flights. We are now performing longer flights at higher altitudes. Also, we are now performing on-air maneuvers with side-to-side movements, some horizontal displacement and rotation on its own axis. Some of the videos available on our website will show you these maneuvers.

Lastly, weather permitting, please keep in mind that this is the rainy season in Brazil, our aircraft is being put on a test twice a day. To date, there were 7 different days in which we could fly twice. At the current pace, we should be in position to make around 300 flights as planned for the year.

Slide #5 details a bit better what the flight campaign will look like for the prototype this year. In total, we are planning our four distinct phases, each building up on knowledge and experience gain in the previous one. The first stage is hover and some maneuvers. This is a critical phase to validate characteristics of vertical flights, which was the first for us. In this phase, the prototype performed vertical takeoff and landing. The flights gradually evolve to a longer time and also higher altitude but remain at a fixed position with some maneuvers with the use of the lift propulsion system only.

This phase is now completed, and we're moving to transition flights where we will start to fly the aircraft horizontally, initially at the speed below 30 knots and using our pusher motor and perform initial synchronization lifters because during this phase, the lifters will be powered at all time, we sometimes refer to the partial transition, and we expect to conclude it until the end of the first semester.

The third phase is what we call the cruise flight in which after a takeoff of the aircraft will move beyond the transition speed. At this point, the air moving through the wane will produce all the lift required to maintain the aircraft airborne. For the landing procedure, we will gradually slow the aircraft below the transition speed the lifter will be engaged automatically to maintain vertical control and the pilot in the remote pilot station, the RPS [ truck ], will maneuver the aircraft vertically to its landing site.

In a nutshell, this is the same set of maneuvers from the take off to the cruise, but in a reverse order, all of which controlled by our fifth generation fly-by-wire. As in previous phase, speed altitude and distances will be all increased gradually, and we're planning completing this phase early in the second semester.

Last but not least, we will introduce the failure into the system such as unplanned motor shutdown to test how the system reacts to validate and refine the safety procedures and the protocol of the pilot.

Now the Slide #6 shows the level of engagement with our suppliers. We regularly meet them and visit their sites, and there has been a noticeable uptick in activity recently. We have some of the components for the first of our series of certification compliant aircraft. The tooling for the pilot and some composite materials of other systems are already being manufactured as the doors, propellers, and a wing tooling.

Importantly, we can see the mechanism that is designed to fold the propeller in its full form. This is a notable achievement because we introduced the four blade system to reduce vibration and sound emission more recently and the folding mechanism is necessary to reduce drag and improve aerodynamic profile as much as possible. We are also working with our suppliers to conclude the Critical Design Review, what we call also CDR to freeze the specification of each component and release the drawing from them to start manufacturing each part. This, as a name suggests, is a critical phase of the design process and will kick start the production process for the remaining components of our certification compliant vehicles.

Slide #7 gives more details of the latest firm orders we signed early February with Japan AirX, this is our second binding contract that includes two firm aircraft and the option for other -- another 48 aircraft. This is a very important market for us with strong potential. As a reminder, we believe that Japan can absorb as many of 390 eVTOLs to transport 3 million passengers per year. There are multiple use cases from the airport shuttle, ecotourism or point-to-point commute in its many large cities. AirX already operates in 10 of them. So it is a strategic partner for Eve.

Slide 8 shows our total preorder backlog that stands around 2,700 aircraft for a total value of close to $13.5 billion based on the list price 2025. This includes non-binding letters of intent from 27 different customers as well as Revo and AirX firm orders. Out of the 27 customers, we also secured contract with different customers, 14 total for our Eve TechCare Suite of the aftermarket product and services, which could bring up to $1.6 billion in revenue to Eve over the first few years of operations. As you can see, we also have 21 different customers for our air traffic management solution called Vector. And I believe this reflects the market-leading value proposition we bring to our customers.

Now I would like to invite our CFO, Edu, to review the financial results and some of the 2026 coming milestones.

Thanks, Johann. If ended last year with a very comfortable financial position. Our liquidity reached $541 million at the end of 2025 with $390 million in cash and another $150 million in undrawn credit facilities with the Brazilian Development Bank, BNDES. These are important to help preserve our cash position.

Also, when adding a new loan secured early this year with a syndicate of banks, total liquidity is even higher, now at $641 million. This is the highest cash level ever for Eve. And although the syndicated loan and brought $150 million, our liquidity grew by $100 million because we refinanced $50 million of an existing loan to extend our amortization schedule better matching our cash flow needs as we approach certification and enter into service.

Last year, and as you can see on Slide 9, our operations consumed $175 million, but I wanted to note that we had a $21 million working capital gain last quarter. as some of our engineering payments to Embraer is slipped into the first quarter of this year. If these invoices had been paid in 2025, our cash consumption would have been $196 million in 2025.

Given that, our cash consumption in 2025 was very close to the low end of our guidance of $200 million to $250 million, and it continues to reflect our robust yet simple structure, cost discipline and the main synergies we enjoy by being part of the Embraer Group.

Now moving to Slide 10. Eve is a pre-operational company and our financials reflect mostly the costs associated with our program development. That said, I would like to highlight some of our numbers. Eve invested $59 million during the fourth quarter 2025 in research and development activities and $195 million in the full year. The majority was directed towards the development of our eVTOL. We also deployed $8 million in SG&A during the quarter and $31 million in the full year, including R&D and SG&A, Eve reported a net loss of $64 million in the fourth quarter 2025 and $224 million for the full year. Finally, we ended fourth quarter with $393 million in cash and $541 million in total liquidity, as already discussed.

We expect cash consumption to intensify this year because of increased development activities. We are now in a full fledged and intense flight campaign with our engineering prototype, we're increasing engagement with suppliers as we progress towards the assembly of our six certification conforming prototypes. All of these efforts will involve greater engagement with Embraer engineering, infrastructure and testing facilities and supplier payments.

In the end, we expect our operations to consume between $225 million and $275 million in 2026. We remain in a comfortable financial position and our liquidity is enough to cover our capital needs well into 2028. With that, we conclude our remarks, and I would like to open the call for questions. Operator, please proceed.

[Operator Instructions] The first question today comes from Savi Syth with Raymond James.

Maybe first off, just wondering if you could give a little bit more color on the cash consumption, just a breakout between how you think that R&D, SG&A and CapEx generally kind of progress this year?

Yes, sure. The $225 million to $275 million, it's mostly R&D, right? We're trying to keep SG&A at kind of the levels we had last year, right, around $30 million. So the remaining portion is mostly for the development service that we pay to Embraer and all the development activities that we have with suppliers, right, a lot of activity on the suppliers. There's also a structure from Eve, but that's a small CapEx. CapEx should be around $20 million to $30 million specifically about the plant. But by far, the big chunk of the cash consumption this year is on the development, mostly Embraer and the several other suppliers we have.

That's very helpful. I appreciate it. I was also wondering, I'm not sure on the means of compliance. I think originally, the thought process was maybe that would be accepted in '25. And so just kind of curious what feedback you've received from ANAC on that front? And if that has any kind of impact on the timing of the CDR review completion.

Savi, this is Luiz Valentini. So we have some work currently going on the means of compliance mostly on two fronts. One is noise for which there is some specific regulation that's still being discussed both with ANAC and the but also with some means of compliance that are related to the certification of the product in many aspects. In the sense that there was not too long ago, new AC published by the FAA, and we are adapting or modifying some of the means of compliance that we had previously agreed with ANAC to be more in line with this regulation that was issued by the FAA. This helps us although it's some rework now, it helps us in the future when we have the ANAC TC and go into the validation process with the FAA, it will be more streamlined with the requirements being more similar.

So it's work that we had not expected to be doing now. But again, it's something that accelerates in the future, the process of validating TC.

It doesn't have much impact on the CDR because it doesn't change the product. It's just mostly the way of showing compliance with the requirements.

The next question comes from Andres Sheppard with Cantor Fitzgerald.

Congratulations on all the great progress. I wanted to maybe just touch on the six ANAC conforming aircraft that you're building. Wondering if you could maybe give us an update there? How are you thinking about timing for those different phases, different steps. And I guess if I could just combine that, are those the ones ultimately to deliver to Revo as part of that first delivery.

Yes. Andres, thanks for the call. So thanks for the question. So the prototypes will not be delivered. These will be only for testing the point that we are in the right now is that we have some of the long lead time items already being manufactured. So you saw there -- one of the slides show some of the parts already being started in production and also some of the tooling for some of the composite parts already being made. That's part of the, let's say, the initial production -- so then when we have more parts like these, we can start assembling components and then go to the final assembly of the prototypes. These will be used only for certification campaign, as I mentioned, development and certification, right, but not for delivering to customers.

Got it. Okay. That's very helpful. And then Johann, I'm wondering if we can maybe get an update on the service and support and maintenance segment. Any sense of when you might target to kind of begin ramping that up and maybe emphasize that a bit more? Just curious on kind of what the strategy there is.

Since the very beginning of solution. It's not only the product, but it's also the customer support and services. We know how important it is to make sure that we have a clear between to start with, especially with Revo, as you can imagine, we're focusing on this in terms of service.

But all the others, we recently announced that the last week at VERTICON, a partnership with vertiports and also Alt Air in Australia. So as you can see, this is part of the whole ecosystem building customers want to make sure that the OEM is involved. I want to make sure that they'll have the availability and the right operating cost. So we have this duty to be engaged. And it's exactly what we're doing with each of our customers.

And it's almost city per city, right? I mean it's really operation and per operation. So this is what we're really focusing on, and this is why you see more and more announcement related to this ecosystem readiness.

The next question comes from Ellen Page with Jefferies. Thanks for the question.

You announced the AirX order -- firm order for two aircraft in February, congrats on that second customer in the firm order book. How do you think about the pace of further firm orders as you kind of progress through flight certification. And also, can you just level set us on your current expectations for certification and entry into service?

This is Johann. Since the very beginning, we've announced we've made LOIs. We understood that at the time, it was very important to sign LOIs not so much about the number of aircraft, obviously, that comes with it because it reflects the need of each operator in their own respective region, but also showing that we had the right solution. And that's the trust that the customers are putting by signing an LOI to say, "Look, you come up with the aircraft, your certified, you have the right customer support, the right suite of solution as a vector for ATM, different modules, then, I'm in, I believe in this urban air mobility be fully electrical and I'm in". And this is what we've built over the years, the last 5 years, and I think this is now. We're at the crossfade right now where we need to convert because we're 2 years away from the first delivery.

Obviously, we're starting to do what we call the SIOP right, which is really seeing what are the sales, what are the slots of the production will come in, in the first ramp-up of production. So this is natural, and this is exactly what happened with Revo.

But it's not so much because of getting the aircraft ready for production, it's also because the customer needs to really engage the -- get the authorities, the partners for the ecosystem to be ready. It takes time to get the power line, for example, to the vertiports, transforming helipad to a vertiport, get the right authorities or authorization for firefighters, for example, procedures for the vertiport and ramp operation. So this is also needed for the operators and then they can come back to the local authority.

So look, I signed a contract. We need to get ready also. You also need to get ready also, you also need to get ready as much as the OEM. Otherwise, we'll be delivering a vehicle that we want to make sure that it has the right operations support. So this is natural. We elected Revo, Revo elected us to start the operation in Sao Paolo. I always say Brazil and Sao Paolo is the place where UAM will be showing what is a true OEM operation, especially when you have a customer like Revo, that already is doing urban air and mobility with helicopters, right?

And then AirX, it's another consequence of a market where you can see that authorities, government, private initiatives, understand that and they see the future and the urban air mobility and they believe in it. And now they know that it's time to also convert. So this conversion rate is natural. We have 2,700 vehicle signed under LOI. It can go up and down. I've said it in previous calls that we're not looking for more LOI unless it really makes sense for Eve in strategic regions or specific customers or a mission fit. And also, really, the focus is to start having this conversion happening together with the aftermarket and ecosystem preparation. I think this is the key because we want to really make sure it becomes a between, right?

The next question comes from Marcelo Motta with JPMorgan.

Two quick questions. The first, if you can provide some additional color regarding this deferral of payments to Embraer? Why that happened? We haven't seen that before in the earnings. So just wondering if something that could happen in the coming quarters?

And the second is also a little bit more color on the backlog. I mean if we are correct, there was a very small contraction in the number of orders and in the value. So just wondering what was the driver for one of the clients to take its LOI out if it was related to, I don't know, timing of evolution of any milestones that you need to reach or if it was maybe a financial issue of the client. I mean, whatever you can tell us that would be appreciated.

Thanks, Motta. Let me take first the payment to Embraer. The way we pay Embraer is they invoices every quarter, right, once the quarter ends, they take around 15 days to get all the expenses, then they send us an invoice and we have 45 days to pay. So that means we end up paying Embraer, for instance, for the fourth quarter of last year, we end up paying at the end of the following quarter, which is the 45 days plus the 15 days that they take to send us the invoices.

In the fourth quarter, right, which was actually the invoice of the third quarter, it took us a little bit longer, and we ended up paying at the beginning of January. So there's nothing special was, as I said, sometimes it slips a little bit. We have to do some -- we have to check all the expenses, everything, but it's it was unusual. We do not expect to see other invoices slipping. But in the fourth quarter, there was this $20 million. And as I said, we already paid in the beginning of January.

Marcelo for a second question. This is -- like I said, I mean, we started to sign LOIs almost in -- when we started the company, 4 to 5 years ago. So it's really natural that you see the LOI especially when it's the companies actually move. Sometimes they change their strategy, sometimes some of them go bankrupt or a startup. They see an opportunity in UAM and then they go bankrupt or sometimes it also happened the reduction of the backlog -- or the preorder backlog, it's with Blade since Toby did purchase with Blade and then they obviously have another strategy when it comes to the OEM or eVTOL.

So like I said, it's natural. It goes up and down when it goes to LOI. But now we're focusing really on the order conversion and moving forward to start looking at the first slots also and getting the customers really the get their ecosystem ready. So it's quite natural.

I'm sorry, I think it was -- Ellen asked a question that we didn't answer was about the certification deadline, right? So Luiz, if you can give us a little more insight?

Sure. So just complementing Johann's answer earlier to Ellen about the time line, it's -- we see on the presentation today that we have significant progress in the project, right? That goes both on the work with the suppliers on the definition of the product and advancing what we see our characteristics that will be on the final vehicle.

And at the same time, on the certification, I mean, the development flight test campaign that we've been doing with the engineering prototype. So these are aspects that we see that the project is moving very strongly, and we're excited about that.

At the same time, we still have significant challenges moving ahead. I mentioned earlier how we are working with the authorities on setting the means of compliance, and we feel that's going well. But then there is another stage that come afterwards which is actually showing compliance with those requirements for certification. And so that involves not only work in analysis, but also testing, ground testing, flight testing. That's a big campaign, a big project, a big part of the project that will come next.

So there are significant challenges that are still ahead of us in finalizing the product characteristics moving the product to the certification phase and managing to show compliance with our requirements to finalize the type certificate issuance.

So in summary, we see that there are strong steps that we were able to take and progress that we are excited about in the last quarter. But still a lot of challenges that are ahead on the road to certification on the time line that we had that we're still publishing.

The next question comes from Sameer Joshi with H.C. Wainwright.

The first is about the suppliers. Have all the critical components being finalized and suppliers for them finalize. And if not, then is there a time line before which you have to freeze all the suppliers?

So all of the suppliers for the critical parts and critical components and systems are already engaged. They are working with us. So these I can mention, for example, the electrical system, the propulsion or lifters and pusher, flight control computer that we're working with Embraer. So all of the suppliers for these systems have been engaged already for quite a while in the project, and that's really important for us in the sense that they need to work in an integrated fashion, right?

So the communication, for example, between the motors and the vehicle goes through the flight control computer also handles communication with the battery. So all of these need to work together, and that's why it's important that all of the suppliers have already been on the project and have been working together on these. So no significant components to be sourced at this time.

Understood. And then the second is just a sort of clarification or more insight. Of these 300 times that you are trying to -- are targeting to fly this year, is there a magic to that number in the sense that would you be able to complete based on your tests and results, these flights and -- or rather all your objectives in less number of flights? And can this be accelerated? Or do you foresee some things that you have to test multiple times and require more flights. I just wanted to see how this time line could be pushed forward or back?

Yes. Thanks, Sameer. So it's -- the 300 flights we usually mention that as a reference to help everyone understand the volume of testing that will be done with this vehicle, right? So it's just a way for us to help everybody gauge the level and the intensity of the flights that will be performed really, the way that it feeds into our development is much more gradual than that, right? So Johann mentioned we're doing the hover tests now. And already with this hover tests, we are bringing useful information for the design of the certification vehicle, right? This will be the case for all of the steps that we take moving forward with the flight test campaign.

So it's something that happens gradually. And of course, as we move forward, we may find that there are some characteristics of the vehicle that require us to do some more extensive testing. This is something that happens with all of the development of aircraft. As you fly, you find that there are some characteristics that sometimes need more tuning or you find that there are some opportunities there to extract more performance, for example, so you do more testing.

So it's normal to adjust the number of flights and exactly which types of flights you perform as you go along. And the 300, again, is just a reference the size of the flight test campaign, but we don't hold ourselves so much on that. It's more important to perform the scope and feed into the project as we move along this flight test campaign.

The next question comes from Austin Moeller with Canaccord.

My first question here, is ANAC planning any equivalent to the eVTOL integration pilot program? Or are you planning to participate in something similar in other countries?

Yes. Great question. Thank you. I know the [ IPP ] has been a program we have visibility. I mean we definitely support the U.S. government efforts to accelerate the future of air transportation, right, for the eVTOL integration pilot program. This is one of them. We -- we're a global company, and we've been working in different countries and it reflects also the backlog that we have. And this is not unusual to have government going through this type of program. And as a matter of fact, whether it's Japan, it's Australia or it's the Middle East or even in Brazil, we do have the similar program.

So we're very supportive of this type of program. We do have our own flight test activity, just like Valentini just described, right, progressing as part of the ANAC certification progress. Also with the FAA validation, right? So they do have meetings between FAA and [ EASA ] -- and ANAC. I'm thinking of the other because eventually, we will apply there. That's why. So -- and yes, we've been working also with different states in the United States to have a similar type of what we call ConOps or pilot program that will allow to demonstrate what is UAM operation, right? So something that we do in Brazil, in the U.S., but in other many other countries.

Okay. And can you talk a little bit about the production capacity for aircraft to roll off the line that you have in your existing facilities versus what you plan to scale into as we get closer to certification?

On mute here, can you repeat that the question, sorry.

Yes. I was just wondering if you could talk about the production capacity for eVTOL that you have at your existing facility versus what you plan to scale into as you get closer to certification?

Yes. No. Thank you. Just a very beginning, we -- Eve has a modular approach when it comes to industrialization. We do have a brownfield operation we elected the Taubaté site, which is a current -- currently site of Embraer, which actually technically is not anymore because we're paying the rent. So it's our side, where it started to some premiums restructure refurbishment. And then we are actually planning to go for a first module, which is going to go -- sorry, it's modular, like I said, with 120 vehicle per year, we can go up to 480 vehicle per year, right, was beyond that number, then we will have to go into another facility, right?

More than likely not on the same site. Somewhere else where even abroad where the market will be with the center of gravity, right, for derisk purposes.

The next question comes from Andre Madrid with BTIG.

Looking ahead, I mean, as you guys move through the test flight campaign, what do you expect the pace of conversion of LOIs to firm orders to be? Or do you have any expectations at all?

Ever since we signed up the contract and converted with Revo and more recently at the Singapore Airshow with AirX, we've seen the interest of customers increasing, right, from either the one that already have the LOI under contract or some new customers, right, where we're actually engaging the negotiation, not even to go through LOI, but directly to a firm order.

I think it's to find the right balance between being able to show them how the program is progressing, right? And also is it the right moment for them to engage and to get a vehicle and when is that going to be, right? And to get the slots. So for 2028 and then there's a ramp up. As I just mentioned about production, we can accelerate, we can go a little slower. We have this full flexibility.

So it's a ratio that we have that we're looking at what needs to be done. It's the -- what we call internally the SIOP, right? It's a Sales Inventory and Operation Process where we have the sales team together with production and procurement and finance, obviously, and looking at how is this ramp-up is going to look like. So we're not disclosing any more information on it right now, but we do expect that with the up to 300 flights as Valentini mentioned, as a target, right? And then we're progressing also the -- getting the conforming prototype, the conforming prototype, which one of them, by the way, will be a demonstrated, which I think also it's a great tool to have to demonstrate to customers and they bring usually also brings a lot of conversion at the time.

Got it. Got it. And then if I could follow up. I know you've been helpful in outlining your expected cash burn through the year for '26. But I mean, could you maybe just peel back a little bit more and explain the exact cadence quarter-to-quarter.

Yes, we're expecting in terms of cash burn, Andre? We're expecting $225 million to $275 million, right? It's an increase versus the $200 million we burned last year. The increase goes mostly to more development activities, right, not only with Embraer, but also with several suppliers.

We expect -- generally, it's not evenly spread over the quarters, maybe a little bit less in the first half. And as we continue to progress on the conforming vehicles, right? It may be a more heavy on the second half, but it will be spread maybe a little bit more second half than first half.

This concludes our question-and-answer session. I would like to turn the conference back over to Lucio Aldworth for any closing remarks.

Thank you, Betsy, and everyone who joined the call today. As you can see, we accomplished several milestones this past quarter. we're fully engaged and there's much more to come. As you just saw, our upcoming achievements will be more clearly visible to the investment community. So the next few months will be very exciting for us. We're going to continue to update you on all of our progress through the next few quarters. Again, it's going to be very exciting, and we look forward to meeting you in the upcoming events we're going to attend. As always, if you have any questions, please don't hesitate to reach out to our team. Thank you, and have a great day.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Good day, and welcome to the Eve Holding, Inc. Third Quarter 2025 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Lucio Aldworth, Director of Investor Relations at Eve. Please go ahead.

Thank you, operator. Good morning, everyone. This is Lucio Aldworth, the Director of Investor Relations at Eve, and I wanted to welcome everyone to our third quarter 2025 earnings conference call. Our CEO, Johann Bordais; and CFO, Eduardo Couto, are joining me on the call today. And after their prepared remarks, we will open the call for questions, at which point, Luiz Valentini, our Chief Technology Officer, will also join us for more technical questions.

We have a deck with a few slides and additional pictures that show our achievements in the quarter as well as the testing phase of our full-scale prototype. The deck is on our site at ir.eveairmobility.com. So please feel free to download it and follow along.

Let me first mention that today's conference call includes statements about events or circumstances that have not yet occurred. These are largely based on our current expectations and projections about future events and financial trends affecting our business and our future financial performance. These forward-looking statements are based on current expectations and involve risks and uncertainties that could cause financial results to differ substantially from those expressed or implied in this conference call, and we undertake no obligations to update publicly or revise any forward-looking statements because of new information, future events or other factors. For a more detailed list of these risks and uncertainties, please refer to our SEC filings available on our website.

With that, I will now turn the presentation over to our CEO. Johann?

Thank you, Lucio. Good morning, everyone, and welcome to the 2025 third quarter conference call. We had a strong third quarter marked by several key achievements, and we continue to advance the program's development at a steady pace. We are in the final stages of testing our engineering prototype before its flight campaign starts.

We announced an additional supplier for our commercial aircraft, the E100, with a contract with Embraer for their landing gear. Additionally, the Iron Bird has begun to operate and is already contributing to the testing of the actual hardware that will equip our aircraft. Our schedule remained unchanged with an expected Type certification and entry into service in 2027.

Starting with Slide 3. We have now received from Beta Technology Company, all of the electrical motors for our engineering prototype. They have been previously tested in specially designed equipment and installed in their respective nacelles. As mentioned previously, we had already performed integration test between the prototype and the remote pilot station that we also call the RPS, to make sure that there is a successful communication via the dedicated radio link. As a reminder, this prototype will be remotely controlled with a pilot sitting in the RPS, and this is the white [ track ] at the far end of the right picture.

We are running the last set of tests to make sure that electrical power units were properly integrated with the inverters, battery and other systems and subsystems in the vehicle. Therefore, we're confident in starting soon our flight campaign with our first flight by the end of this year or early next year.

Slide 4 is about the selection of our 22nd primary system supplier. Embraer will produce landing gear for our aircraft. Embraer comes with a strong landing gear manufacturing heritage for their commercial and executive jets as well as military aircraft. The landing gear was introduced as a result of a constant interaction between Eve and its customers, understanding how the aircraft will be operated.

Now, the wheels on our eVTOL will be used for taxiing and repositioning the aircraft. This means greater energy efficiency when compared to the hovering. The landing gears also provide the capability of maneuvering the aircraft on the ground, eliminating the use of ground support equipment for the purpose, facilitating operation and reducing time on ground.

The next Slide #5 shows what is now our functional Iron Bird cockpit. As a reminder, the Iron Bird is a deconstructed eVTOL in which we integrate all the different actual components on our eVTOL into a physical system to make sure that all systems work together properly.

This is the interface through which the pilot will control the entire system. As you can see, the simulator has approximately 270 degrees view and is connected with all the different rigs of the vehicle system and components. For instance, the joystick is connected to actuators and motors in another adjacent room, and they react physically to all pilots command. All of these are connected to the avionics and the flight control computers with our fifth-generation fly-by-wire control laws.

The motors are connected to the battery with its own thermal management system. As much as possible, all wires and cables replicate the composition, width and length of the actual harness that will be on our eVTOL. This assures a representative result of the simulation, allowing the Iron Bird to be used as a tool for vehicle development, flight test clearance of a new feature and product evolution as well as optimize the test campaign.

Through this strategy, we maximize the number of prototypes, streamlining the flight test campaign and making the most efficient use of these assets. So, not only does the Iron Bird help us to better integrate and understand how all the systems work together and troubleshoot potential problem on the ground, but it also has an important role for the aftermarket benefit. The Iron Bird will help us improve the system and component maturity, and these are important inputs for successful entry into service and an efficient maintenance program. In total, we have logged more than 10,000 hours of test in these rigs.

Another advantage is that the Iron Bird has also helped us to expedite and reduce the costs related to our certification campaign. Keep in mind that some tests can be performed on the ground 24/7, such as electrical systems, circuit breakers, et cetera, and the Iron Bird becomes a very valuable development and certification tool.

Moving on to Slide #6. Together with our customers and authorities, we are also developing a strong network of partners in different areas, such as infrastructure and energy, to address one of the many challenges ahead of the Urban Air Mobility, which is to create a whole new ecosystem besides simply developing an aircraft.

On the certification side, we participated in ICAO Assembly in Canada, along with ANAC, the Brazilian Air Force and other government officials, along with representative of several other certifying authorities throughout the world. This reinforces our confidence level that we have the right approach to certify our aircraft with ANAC as a primary certifying authority.

Besides that, we are increasing our presence in the Middle East with an agreement to support the adoption and growth of eVTOLs in the region with the Kingdom of Bahrain. The agreement positions Bahrain as a regional hub for electrical aviation and will accelerate its regulatory, operational and infrastructure ecosystem for eVTOLs. The agreement also calls for Eve to possibly conduct test flight in the region in 2027.

Slide 7 shows our total pre-order backlog that stands around 2,800 aircraft for a total value close to $14 billion based on the list price of 2025. This includes nonbinding letters of intent from 28 different customers as well as Revo’s firm order.

Out of the 28 customers, we also have secured contracts with 14 different customers for Eve TechCare suite of aftermarket products and services, which could bring up to USD 1.6 billion in revenue to Eve over the first few years of operation. As you can see, we also have 21 different customers for our air traffic management solution, Vector, and I believe this reflects the market's leading value proposition we bring to our customers.

Now I would like to invite our CFO, Edu, to review the financial results and the 2025 milestone checklist.

Thanks, Johann. Eve has successfully concluded a new funding raise of $230 million through a registered direct offering in August. This equity placement has not only improved our cash position to its highest level ever, but also extended our cash runway to about 2.5 years. We are very comfortable with our current liquidity and estimate it is sufficient to fund our operations and R&D expenses through 2027.

The offering was anchored by 2 strategic and long-standing investors, the Brazilian Development Bank, BNDES, and our controller, Embraer, showing strong investor support and commitment to our project. Also, we had more than 30 U.S. and Brazilian institutional investors participating in this round. The strong institutional participation expanded our public floating and Embraer now has 72% of our total equity, down from 82%, and Eve's daily trading volume in the New York Stock Exchange is averaging $7 million per day.

Now moving to Slide 10 (sic) [Slide 9]. Eve is a pre-operational company, and our financials reflect mostly the costs associated with our program development. That said, I would like to highlight some of our numbers.

Eve invested $45 million during the third quarter '25 in our program development. We continue to accelerate our program development with more engineers from Eve and Embraer as well as higher engagement with suppliers. We also deployed about $7 million in SG&A during the third quarter, in line with previous quarters. Including R&D and SG&A, Eve reported a net loss of $47 million in the third quarter 2025. We also recognized a gain related to the fair value of our outstanding warrants, which is a noncash gain.

Moving to cash flow. Our operations consumed around $60 million in the quarter, reflecting higher program activity and overall engagement with engineering and other R&D functions to progress our eVTOL development.

With $143 million in cash consumed in the first 9 months of the year, we are on track to hit the low end of our guidance of total cash consumption between $200 million to $250 million for the full year of 2025, reflecting our cost discipline, simple business model and advantages of leveraging Embraer's capabilities.

Finally, on liquidity, we ended the quarter with $412 million in cash, again, the highest ever cash level for Eve. Including an awarded grant and an undrawn BNDES credit lines, total liquidity is now at $534 million. These standby facilities continue to help Eve to preserve a solid cash position.

Now going to Slide 10. We remain on track to deliver our milestones this year. As Johann detailed earlier, our first full-scale prototype is concluding final tests and installations to start to perform its initial flights in the upcoming months. In parallel, we continue talks with ANAC, Brazil's certification authority, to detail the certification plans. We expect it to be published by the end of the year to begin certification tests.

We continue to engage with suppliers working on the initial parts of our conforming prototypes. And in parallel, we have started to receive the necessary equipment and tooling to produce the certification vehicles.

Lastly, our cash consumption for the year is in good shape and in line to reach the low end of our guidance of $200 million to $250 million.

With that, we conclude our remarks, and I would like to open the call for questions. Operator, please proceed.

[Operator Instructions] And the first question comes from Savi Syth with Raymond James.

Just -- congrats on the progress and financing deals. But I'm kind of curious about the Bahrain update yesterday. Just -- could you talk a little bit more about how that would work? It looks like 2027 you'll be doing work there. Is that flight testing using the engineering prototype or maybe the certification aircraft that you're building? And is that still part of that agreement?

Great, Savi. Thank you. Yes, we're thrilled about this announcement that we did with Bahrain, with the Ministry of Transportation & Telecommunication. It was also on Sunday, right? We're -- it was talked about at the Gateway Gulf Investment Forum. Very important. We've been in talks with the Middle East and the UAE for some time now. And I think this really proves that we're bringing the solution that they're looking for. This is a sandbox that will work to accelerate the readiness of the regulatory aspect, the operational, the infrastructure also, the ecosystem.

We're going to be starting different fronts, like I mentioned, looking at the vertiports, looking at the operation. And when it comes to the testing, we're looking at the possibility of maybe starting some test flights, right, in 2027. It's not defined yet, but this is what we're definitely working on, maybe using a prototype, this is something that we're thinking about, but definitely for the operation in '28 in the region.

And does that come with any revenue stream? Or it's just kind of more of a demonstration?

Well, no, it will have revenue stream. But definitely on the demonstration, we haven't defined exactly the scope and how it's going to be, right, at this stage.

No, we expect to get orders, right, Savi, as we start to fly and go to the region, we expect for more orders. PDP is the traditional type of sale with other customers.

That makes sense. I appreciate that. And then just on the cash flow side, I just wanted to clarify -- again, congrats on getting that deal across last month or a couple of months ago. But is that -- this current spend still the thought process that this is kind of the level of spend for 2026 as well?

Yes, we're consuming around $60 million, right? We consumed that in the third quarter, $6 million. Probably fourth quarter should be around $6 million as well, and we may close the year around $200 million. For next year, if we keep that pace, which I think is, I would say reasonable, we may consume a little bit more, right, than $200 million, so something maybe around $250 million. We're still working on the details for 2026, and we still don't have a guidance. We may provide something by the fourth quarter results, but I think it's reasonable to expect to keep that pace.

And the next question comes from Andres Sheppard with Cantor Fitzgerald.

Congratulations on the quarter and all the great progress. I wanted to maybe follow up from Savi's first call just on the expansion to the Middle East. Hoping maybe you can give us a bit more detail there? So you're targeting commercial services in 2028 and then further expansion in 2029. But I'm curious, just given the region's maybe more leniency towards the certification process, is there an opportunity here perhaps to commercialize ahead of FAA certification? Is that something that's being explored? Or what's overall the strategy here in the region?

Thanks, Andres. That's a good question. Obviously, our primary authority is ANAC, and this will start for us with ANAC and then with the bilateral agreement that they have it will be FAA. Now ANAC has been also in contact and have agreements with all other authorities in the world. And it wouldn't be different, like we've done at the Embraer for many, many years where they would accept the ANAC certification. So it's actually independent of what will happen at the FAA, right? But I'll let also Valentini give you a little bit more insight.

Yes. Thank you, Johann, and good question, Andres. This is -- this doesn't change the path that we have of certifying first with ANAC and then validating with other authorities. As Johann mentioned, we work to expedite this process by aligning -- or promoting alignment of not only vehicle characteristics and understanding by all of the authorities, but also supporting ANAC and all that we can in their arrangements and agreements for their certification basis to be accepted by other authorities. So we support the process of having these authorities, accept the ANAC certification basis, and that is done in a way to shorten the time that we have their validation once we have the ANAC type certificate.

Got it. Okay. That's super helpful. Appreciate it. And maybe just as a quick follow-up. Just on your test flight program, just to make sure I have it right. So we are targeting first test flight, I think, before year-end and then to kind of ramp up the program all throughout next year, starting with hover flights and then heading towards a transition. Just can you break that down for us, just what does that flight path look like, just the timing again and just confirm what that looks like for this year and next year?

Sure. Yes. So we'll start reengineering prototype flights, as we had mentioned in the end of this year or at the beginning of next year. So that will start first with, let's say, simpler flights with hovering only, and then that will gradually expand what we call the flight test envelope. So increasing speeds, making maneuvers that cover, let's say, a more extended range of capabilities of the vehicle. And then from there, expand also to transition flight, which is what we call the phase of flight between hover and cruise flight, the fixed wing part of the flight, right?

So that's made in a way for us to validate parameters of our analysis today. So we still have some calibration, some knowledge that we expect to gain from the hover flights themselves. So for example, we believe that we'll be able to gain more insight on the noise of the vehicle once we start flying the hover. So even the hover test phase has significant information for us.

But then, evolving towards the transition is also important for us because even though it's a short phase of flight, it has a significant, let's say, a physical phenomenon happening. So it's important that we get that very well, not only for engineering and certification, but also for the comfort and for the user experience inside the vehicle, right?

And then in the end, we'll also perform cruise flights or fixed wing airplane flights with this engineering prototype. But that's the, let's say, the working of the vehicle in which we have more confidence from the background that we bring for previous Embraer programs. So that's the progress that we are expecting to make all that to happen next year.

And the next question comes from Eegan McDermott with Jefferies.

Maybe on the supplier with Embraer signing on to provide the landing gear, could you remind us of what other suppliers or component agreements you still need to secure? And maybe at a higher level, what kind of advantages does your extensive supplier network provide compared to peers who have a more vertically integrated approach?

So, thank you for the question. So, this is really the last main system that we have introduced to the vehicle with respect to bringing new suppliers in. So we don't expect to have any other supplier for any major aspect of the vehicle coming in from now on the program.

And then, we've been working with -- on the second part of your questions, with suppliers that we believe bring a differential to our program given their background on aviation product and their knowledge on certification of these products. So for example, the fact that we are working on the battery supply with BAE, we believe that puts us on a good path for certifying this system, which is one of the critical systems of the vehicle, right?

So, as we mentioned previously, we believe that the list of suppliers that we assembled was a list that for our program optimize not only the maturity that they bring to our project and the background that they have on the vehicle, but then optimizes what we have in terms of integration of these systems on the vehicle from the previous experience of Embraer projects. Does that answer your question?

It does. Yes. And maybe one follow-up or slightly unrelated question. But in terms of the motor when it comes to performance test, could you provide an update of what you're monitoring there in terms of performance testing? And are you going to continue to dual source motors from Nidec and [ Beta ]? Or is there any intention to source both the lifter and pusher from one supplier? And what would be your priorities in making such a decision if so, whether it's cost performance, scale or else?

Yes. So as we mentioned last time, we -- the flight test of the engineering prototype is part of a process for us to optimize the vehicle characteristics, and that goes through choosing what are the right systems and components to compose the vehicle, right? So, we are still on that path that we mentioned on the last call, to understand the opportunities that we have for supply of the motors, both lifters and pusher. And then based on the choices that we have and the fit that we get from the tests, then choose the final configuration.

We choose these components on a number of parameters, I'd say, most importantly, parameters related to performance, so such as weight and the controllability that they provide to the vehicle. But also cost, of course, is an important one and what we believe is the capability of these companies to provide a good product for the life of the vehicle, right? So for production, for support, for spare parts and all of that. So it's really a complete set of parameters that we analyze to -- that will eventually lead to the choice of the supplier for these components.

And the next question comes from Sameer Joshi with H.C. Wainwright.

I just had a couple of questions. First, on the cash burn expectations for this year. I think I heard that you were expecting to be closer to the lower end of that $200 million to $250 million. Is there a reason for that? Were there some programs that were slowed down? Or what was the -- or were you more efficient than you expected to be?

In terms of the cash for this year, you're right. We believe we're going to be closer to the low end of the guidance range of $200 million to $250 million, pretty much because we are trying to optimize our cash consumption the whole time, right? We control expenses. We make sure we're spending money the right way. We try to increase payment terms and have some working capital gains. We are always discussing with suppliers payment terms. There is a lot of work that is done by Embraer as well that we have on the service agreement.

So there are different pockets, right, of cash consumption that we're always trying to optimize. We leverage a lot of existing infrastructure, existing capabilities, things that the Embraer Group already has, in order to have this more optimized cash burn, and we're going to continue to do this way, okay?

Okay. Got it. And then just a broader question. Of course, you have like a $14 billion sort of backlog of orders, including from the Eve TechCare and Vector offerings. How are you continuing to engage with these customers? Because the flights are -- the commercial flights are not until 2027. What kind of -- what level of interaction do you have with them? Do you have feedback from them on design -- interior design and stuff like that?

Yes. Thanks for this question, Johann speaking. This is the essence of how Eve is built on, is really based on workshop with our customers, that we have those workshops, whether it's on the HMI, like a human machine interface workshop that tells you how the pilots interact and what we need to have or whether it's all the [ conops ] that we've been doing since the very beginning, whether it's in Rio or Chicago or in London.

This is really building together like what will be the Urban Air Mobility environment and type of operation and it shapes not only the vehicle, and this is why you can see over the last 5 years how the vehicle has evolved outside, but also inside. And with the cabin and those full flex cabin concept where you can -- in one day you can change -- within a couple of hours you can change your configuration, whether it's a full cargo or removing the first row, putting in the club configuration for the operation.

So this is something that we've been doing since the very beginning, and that's what led us to have the 28 customers and the largest pre-order backlog because we bring not only the vehicle, but the whole solution, where there's the full suite strong from the Embraer heritage, where the 4,000 people that are around the world, the customers understand that we have the DNA and what it takes to support an operation, not only to certify and deliver the first airplane, but make sure that you guarantee a dispatch reliability rate or a [ schedule ] reliability rate, which is exactly what the customers want to make sure the asset is available and it has the most competitive operating cost. And this is the 2 pillars that we have.

And the third one is eventually not at the beginning because we can start the operation with the existing infrastructure and airspace management system. But eventually, if we're going to be putting -- and we will be putting thousand, not only us, but the others putting thousands of those vehicles in the air, then we need to make sure that we have urban traffic management software adequate. And I think this is all this DNA that we're bringing, aviation DNA that really pushes the customer to elect Eve.

And the next question comes from Andre Madrid with BTIG.

When you think about scaling production moving forward, where might you anticipate the largest bottlenecks forming? Or I guess, maybe put more broadly, are there any risks that you see throughout your supply chain currently?

No, we believe the way we are going to be doing the manufacturing, right, the industrialization of the eVTOL, is going to be modular, right? We start with -- we're going to have basically 3 modules, right? The first one, 120 eVTOLs per year, 120, doing in the Brazilian factory. Then we can go from 120 to 240 just with an extra shift, right? The first one has 2 shifts. Together, the 240 will go to the third shift.

Then we can double the 240 to 480 with some additional tooling and equipment. Nothing major for the 240, probably we're going to be investing around $100 million, for the 480, $150 million. So we have all of that method. The suppliers -- as Valentini mentioned, right, we have very good suppliers. They have production capabilities, a lot of production capabilities as well, and we keep them informed of our production plans. As we ramp up production, we believe suppliers will be ready also to ramp up their supply.

So we're not envision any major challenge to get this 500 eVTOLs per year. Of course, to deploy all those eVTOLs in the markets and so on, we may need some local assembly. But in terms of the production of the eVTOL itself, we're confident on this initial 500 eVTOLs per year capability.

Got it. Got it. I'll return now.

Andre...

Yes, go ahead.

No, sorry, yes, I just want to [ compliment ] another aspect of the -- what we've done with our 22 primary suppliers is those contracts, it took us 1 year, but each of them, it's based on the strong experience of supply chain management the Embraer is bringing. And we know on the conventional aviation, I mean, it is a challenge that we got to cope with and that we've been really learning from. And all the contracts that were negotiated are lifetime agreement, right? Not only for the prototype, not only for the production, but also for the aftermarket.

So given all this, we've taken the best breed of negotiation and learning from Embraer and then we've negotiated this contract where one example, I mean, it's not single source program, right? Those are conditions that we had with the suppliers, and it allows us also to derisk the ramp-up or the production, different flows that we can have.

So -- and also another one that we've taken to the next level is also we are the face of the customer on the aftermarket. That's another angle just to make sure that we are in touch with our customers on a constant basis and guarantee what I told you from the suppliers and then it goes through us and then we support the customers on the dispatch availability or operating cost, right? So those are really advantages and a strong learning that we've had from the past that -- for someone from a company that's done it for 56 years.

And the next question comes from Austin Moeller with Canaccord.

So based on you said about Bahrain, is ANAC looking to form similar dual cert partnerships with -- for eVTOLs with other countries similar to the relationship that they have with the FAA once the means of compliance are published?

So Austin, the work we've done -- we're doing with Bahrain with respect to certification is very similar to how we're working with other authorities. So we've been trying to, as much as we can, work on the certification basis so that if we don't have a full harmonization, we have good alignment of the requirements. So that means from early on engaging with these authorities to understand their expectation in terms of the requirements for the vehicle and then developing the vehicle in a way that we will be able to show compliance with those requirements, right?

So we start talking to these [indiscernible] following what we believe will be important markets for our eVTOL and then start building this alignment on the certification basis. That's something that Eve does.

In parallel, as I mentioned earlier, we promote and we try to support as much as we can, a work that is done directly between authorities, so from ANAC to other authorities in the world, in bilateral agreements that they have within the authorities and also agreements that they have with respect to validation of type certificates, for example, right? So we support that.

And we try to steer that, and we do that by giving information to the authorities -- is steer that to where we believe we should focus with respect to what markets are most important for our vehicles. So it's a very similar process to what we're doing with the Bahrain certification authority, is to connect with these authorities in the world, build early engagement and then also promote the connection between the authorities to, again, shorten the time that we have for validation once the TC from ANAC is issued.

Great. And can we talk about what stage we're at on assembly for each of the conforming prototypes right now? And how close any of them might be to finishing assembly?

Yes. So for now, we are -- we're still on the definition of much of the design of these prototypes. There are some more long lead parts that are already being manufactured by the suppliers. So those have -- already have drawings released and are also already in production by the suppliers. We will receive -- start to receive those parts next year and then assemble the prototypes next year. So, so far, we are not assembling. We are still working with the manufacturing of the more long lead items and also designing the ones that are, let's say, shorter to manufacture which then we expect to start manufacturing next year.

And this concludes our question-and-answer session. I would like to turn the conference to Lucio Aldworth for any closing comments.

So we accomplished several important milestones this past quarter. We're fully engaged and moving fast, and there's much more to come. So we're going to continue updating you on our progress through the next few quarters, which will be very exciting, and we look forward to meeting you in the upcoming events we're going to attend. As always, if you have any questions, please don't hesitate to reach out to our team. Thanks, and have a good day.

Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.

Thank you, operator. Good morning, everyone. This is Lucio Aldworth, the Director of Investor Relations at Eve, and I wanted to welcome everyone to our second quarter 2025 earnings conference call. Our CEO, Johann Bordais; and CFO, Eduardo Couto, are joining me on the call today. And after their prepared remarks, we will open the call for questions, at which point, Luiz Valentini, our Chief Technical Officer, will join us for more technical questions. We have a deck with a few slides and additional pictures that show our achievements in the quarter as well as the testing phase of our full-scale prototype. The deck is on our site at ir.eveairmobility.com. So please feel free to download and follow it along.

Let me first mention that today's conference call includes statements about events or circumstances that have not yet occurred. These are largely based on our current expectations and projections about future events and financial trends affecting our business and our future financial performance. These forward-looking statements are based on our current expectations and involve risks and uncertainties that could cause financial results to differ substantially from those expressed or implied in this conference call, and we undertake no obligation to update publicly or revise any forward-looking statements because of new information, future events or other factors. For a more detailed list of these risks and uncertainties, please refer to our SEC filings available on our website.

With that, I will now turn the presentation over to our CEO, Johan...

Thanks, Lucio. Good morning to all, and welcome to our second quarter 2025 conference call. We had a very exciting second quarter with several important developments, and we continue to advance our program development. In a nutshell, and we will talk about it in more details in the call, we unveiled our full-scale mockup at the Paris Air Show in June with a new propeller configuration. We also announced our first firm order and signed additional LOIs. Last but not least, we are announcing today that we are bringing Beta Company to complement our suppliers list. Beta comes in with a proven and mature solution to the distributed propulsion of the eVTOL with the same lift + cruise aircraft configuration, and this will give Eve operating flexibility and optionality in our program. Our schedule remains unchanged with expected TAP certification and entry into service in 2027.

Starting with Slide 2. Our eVTOL continues to advance, and we redesigned the wing with a more aerodynamic profile for a more efficient cruise. We are now offering a taxing wheel version of the aircraft to facilitate ground operation and taxing in congested landing sites. The DNA of our eVTOL is unchanged with 8 lifters and a pusher designed for short routes and a pilot and 4 passengers. Flying should be very simple with a single-pilot control sidestick supported by Embraer's fifth generation fly-by-wire. This is a proven technology that improves passenger comfort and safety.

Now Slide 3 and 4 shows a few pictures of our full-scale mockup that was unveiled at the Paris Air Show last June. This is a true representation of our commercial aircraft and features comfortable full-flex configuration seatings for 4 passengers with a 32-inch pitch and external baggage compartment. This makes it the ideal for short urban flight up to 60 miles, including trips to and from airports. The reception from customers, partners, government officials and also stakeholders was extremely positive, reflecting the strong interest and the support to our vehicle design and attributes, which clearly demonstrate our aviation and certification DNA.

Now moving to Slide 5. I am very happy to bring here our first LOI conversion of a letter of intent into a firm order from Revo. This is a helicopter operator with active helicopter airport shuttle and point-to-point operations in São Paulo region. As a reminder, São Paulo is the largest and busiest helicopter market in the world with over 400 aircraft and more than 2,000 daily flights. The city offers a great potential market for eVTOL, and Revo will launch operations in São Paulo region with our aircraft. We're very proud of this partnership.

Besides that, Revo also signed a contract for our TechCare aftermarket services. So in total, the contract for 50 aircraft and services has a total potential value of $250 million. We expect that to start producing revenues in 2027. Now this firm order means that we'll begin to collect predelivery payment. This will bring cash in the door and help to fund the assembly of the aircraft. We are going to collect a substantial amount of PDPs until the delivery date, very much in line with market practices, but for competitive reasons, we are not disclosing other specific terms of this contract.

Slide 6 shows 2 additional LOIs we signed during the quarter for a total of 104 eVTOLs. These are 2 new customers with services in Brazil, the United States and Costa Rica, who are also subscribing to the TechCare services, so they do appreciate the value proposition of our product and aftermarket offering. This is actually a great way to introduce the next slide.

On Slide 7, it shows the total preorder backlog that now stands at approximately 2,800 aircraft for a total value close to $14 billion based on the list price. This now includes nonbinding letters of intent from 28 different customers as well as the firm order from Revo. These orders are from over 9 countries and different businesses from mainlines to regional airline, helicopter operators, ridesharing platform and leasing companies. And because maintenance and support guarantees the proper aircraft operation, we are highly focused on providing the best-in-class services and support to eVTOLs operators. Therefore, we have also secured contracts with 14 different customers for our Eve TechCare suite of aftermarket products, which could bring up to $1.6 billion in revenue to Eve over the first few years of operations.

Importantly, Eve TechCare customers have placed LOIs to service around 1,100 aircraft or about 40% of our free order book. As you can see, we also have 21 different customers for our air traffic management solution called Vector, and I believe this reflects the market-leading value proposition we bring to our customers. Beyond that, together with our customers and authorities, we're also developing a strong network of partners in different areas such as infrastructure and energy to address one of the many challenges ahead for the urban air mobility, which is to create a whole new ecosystem besides simply developing an aircraft.

Now going to Slide 8 and 9, you can see our more recent program advancement. Our full-scale engineering prototype is undergoing the last set of ground test before it initiates its flight campaign. You may remember that we have already tested and installed the pusher motor a few months back. And after extensive test on the lifters at the facilities of our suppliers, we have now started installing the first units. In fact, the top picture here shows the propeller spinning on its first test on the prototype. We are scheduled to receive the remaining motors shortly.

In parallel, we signed with Beta an agreement to test their propulsion electrical motors on our prototype. Nidec continues committed and involved with our eVTOL and they bring engineering and production expertise. While Beta comes in with a start-up mindset and adds agility to our program with a proven and tested track record of Life + Cruise eVTOL flights, along with their strong relationship with FAA. As always, we're looking for the most optimal possible design when it comes to safety, performance, reliability and cost effectiveness to deliver most competitive aircraft to our customers. In that sense, Nidec and Beta are complementary to our eVTOL design. With that, we expect to start flying our prototype in the next few months.

Lastly, as I mentioned earlier, we unveiled at the Paris Air Show, our full-scale mockup with a new rotor configuration. The rotor now features 4 blades. This is a design that generates less vibration and is quieter than the previous configuration. The blades have a fixed pitch and a mechanism to align [ the blades align ] reduce aerodynamic drag during the cruise phase of the flight. We also have a few pictures of our truck-mounted rig testing in real condition the aerodynamic drag of this new rotor setup. As you can see, the blades are all aligned, and this rig helps us to define our load analysis on the entire motor propellers rig and validate the new blade configuration.

Now on Slide 10, you can see the progress of the final stage of testing the motors for our engineering prototype. As a reminder, the lifters were tested at the Nidec facilities for power output, energy consumption, vibration, noise, emission, among other metrics. And upon satisfactory results, they were installed into their respective nacelle, integrated into the system that controls them and finally spun on the eVTOL for the first time. We are going to follow the similar protocol with the beta motors that will still arriving and should be ready to fly in the next few months.

And finally, on Slide 11, we updated our list of primary system and component suppliers currently engaged, including Beta. We follow a best-of-breed approach and select partners with aviation experience and that can support our certification efforts. We are very proud of all members of this list, and I'm confident that we will have the best eVTOL in the market available to the operators with a great design, high dispatchability and industry low operating costs.

Now I would like to invite our CFO, Edu, to go over our financials along with a checklist for our 2025 milestones.

Thanks, Johann. Now moving to Slide 13. Eve is a preoperational company, and our financials reflect mostly the costs associated with our program development. That said, I would like to highlight some of our numbers. Eve invested $55 million during the second quarter in our program development, including our eVTOL, the TechCare Service and Support Solutions and Vector, our Urban Air Traffic Management software. We continue to accelerate our program development with more engineers from Eve and Embraer as well as higher engagement with suppliers. That explains the higher R&D expenses in the quarter. We also deployed around $8 million in SG&A during the second quarter.

Including R&D and SG&A, Eve reported a net loss of $64 million in the second quarter of 2025. We also recognized a charge related to the fair value of our outstanding warrants as the value of our shares increased in the quarter. Importantly, this is a noncash expense and does not impact our cash flow or liquidity position.

Now moving to cash flow. Our operations consumed $57 million in the quarter. This is almost twice the cash consumed in the first quarter, which had a temporary working capital gain as one of our invoices of around $15 million from Embraer is related to the second quarter. Still, the $83 million consumed in the first 6 months of the year can be considered as a normalized level for our current development stage. We continue comfortable with our guidance for the full year of $200 million to $250 million, which reflects our financial discipline, advantages of using Embraer's engineering team as well as our increased efforts in the program development.

Finally, on liquidity, we ended the second quarter with $242 million in cash, including an additional disbursement of the credit line with the Brazilian Development Bank of $11 million. These standby facilities continue to help Eve to preserve a solid cash position throughout the year. The total liquidity of $375 million at the end of the quarter includes our cash, all undrawn standby facilities as well as $50 million grant we announced during the quarter. We view our liquidity as sufficient to sustain our operations through 2026.

Now going to Slide 13. We remain on track to deliver our milestones this year. As Johann detailed earlier, our first full-scale prototype is concluding the final tests and installations to start to perform its initial flights in the next few months. We now expect the first flight towards the end of the year. As similar to Nidec, we also performed tests with the beta motors in our engineering prototype in the upcoming months before the first flight. In parallel, we continue in talks with ANAC to detail the means of compliance, which are the specific tests that need to be conducted during the certification campaign. We expect those to be published by the end of the year, at which point we'll be able to begin our certification campaign.

Also, we continue highly engaged with suppliers working on the initial parts of our conforming prototypes. And in parallel, the site to assemble these aircraft is starting to receive the necessary equipment and tooling. Lastly, our cash consumption in the year despite the better first semester, should stay in the guidance of $200 million to $250 million, probably closer to the low end of the range.

With that, we conclude our remarks, and I would like to open the call for questions. Operator, please proceed.

[Operator Instructions] We'll take our first question from Savi Syth with Raymond James.

Maybe a first one for Edu, just on the kind of housekeeping side. Just on the cash consumption, Edu, you're progressing well right now, especially maybe tracking below that $200 million, $250 million. And you also do have the grants that you got recently. Is it fair to assume that you'll be close to the lower end and maybe below and you consider the grants as well?

Savi, we continue to monitor, right, our expenses very closely. We are very diligent where we spend our money, and we make sure we leverage, right, all the resources that we have from Embraer so that we don't need to duplicate costs. With that, we have been able to optimize our expenses, right. In the first half, we burned around $85 million, a little less than $85 million. Second half should be a little more. So that's the reason we are guiding towards the end of -- the low end of the range, right, maybe $200 million, maybe slightly below. But there's a lot of investments on the development. We're going to continue to advance. We're going to be doing a lot of tests. So we're excited. But yes, I believe we are leveraging more from Embraer. And because of that, we have been able to optimize our cash consumption.

Very helpful. And then maybe if I can ask on the engineering flight testing. It looks like maybe it's slipping a little bit now late '25, early '26, which is not surprising, but you also mentioned kind of moving forward with building certification conforming aircraft, but I'm guessing those are just building the kind of the long-range components. How long do you think you need to fly the engineering prototype before you kind of finalize the design and can really start assembling the certification aircraft?

Savi, this is Luiz Valentini. So with respect to the flight of the conforming prototypes, we are still planning that for next year, towards the end of next year also. So we still have time to perform the conforming flight test prototype campaign, which is composed of a development phase and also a certification phase, leading us to certification still in 2027. So this engineering prototype plan and development is parallel to this path of developing the conforming prototypes with the schedule I mentioned then leading to the certification in '27.

And maybe can I ask, are the kind of the design changes reflected in this engineering prototype or that will kind of go directly on to the certification aircraft that you're building?

Yes. So at this point, we don't have any significant changes with respect to this testing that Edu and Johann mentioned in the beginning of the call. The other modifications such as optimization on the wings and things like that, those are already part of the engineering prototype configuration. They are not on the -- I'm sorry, on the conforming prototype configuration. They're not on the engineering prototype because this is a vehicle that is already assembled.

So these most recent changes are not on them, which for us is not significant because as we mentioned before, this engineering prototypes helps us to calibrate our models and helps us in estimate. So it doesn't have the same configuration as the conforming prototypes.

Our next question comes from Andres Sheppard-Slinger with Cantor.

Congrats on the quarter. And congrats on the unveiling of the aircraft and on the first binding order. So certainly exciting there. Quick question, just maybe following up on Savi's question. Regarding the test flight campaign, maybe a different way of asking is, can you just maybe give us a sense of kind of how you're envisioning this ramping up, starting with hover flights, and then kind of what are the plans to kind of ramp up the test flight campaign? And is the plan still to deploy 5 prototypes for conforming test flights? And if so, kind of what's the timeline for that?

Yes. Thanks, Andres. So the plan is still the same. So starting from the end of your question, we're still planning the 5 prototypes. There's still some discussion on the amount of the test points that will be on each one and if we should bring in another 6 prototypes. So that's still something that may change in the future, but we're still planning to go with the 5 prototypes and the timeline we had previously. With respect to the steps on the flight test campaign, we are still very much in line with the concept of building maturity on the building blocks we have for the vehicle. So we will definitely spend some time focusing on the hover flight of the vehicle since this is one of the building blocks on which we don't have as much previous experience in comparison to others such as cruise flight, right, where we bring the experience of Embraer in previous projects, right?

So we will spend some time focusing on hover flight, and that relates to the controllability of the vehicle, the power needed, the management of the systems, temperatures, power, things like that. And then transition between hover and cruise is also an important phase. It's a very short one for the vehicle, but it's very important that it is executed smoothly, both in terms of, let's say, technical aspects, but also for the comfort and the user experience of the passengers. And then finally, after that, move to cruise, where, again, we believe we have more maturity based on previous experience of other projects.

Got it. Super helpful. I appreciate that color. And maybe just as a quick follow-up, if I may. Just regarding the order book, curious on kind of how you're thinking about it? Is the plan to continue to build up the order book? Is it to begin converting some of those LOIs into binding orders? Should we expect any PDPs from the order book? Just any granularity there or thoughts would be helpful.

Johann speaking, Andre. Thank you for your comment about the unveiling of the mock up at the Paris Air Show. Well, the order book is definitely what we've been working at the beginning. We work on this order book with the LOI because we wanted to put the customer and the operator at the center of what we do. And I've been saying this before, I mean, this really -- it proves the solution that we're giving to the operators, not only the aircraft, but also the service and support, make sure they can operate reliably. They can also make sure that they fly, they keep flying on a regular basis and have the most optimal operating cost.

And also UATM is around the corner, we'll have to -- we can begin with what we have today in the traffic management, but eventually putting thousands of vehicles in the air and the low altitude airspace will need this. So I think customers understand this, and they want to engage. That's why it starts with LOI. Basically, it says that we're working together. We're defining the solution together. They participate in SteerCo with us, where we give them regular feedback and how the product development and also the service and support solutions that we're developing for them. And naturally, as you go forward and you get closer to the certification date, then we start converting. It's exactly what happened with Revo.

I think it is important for them to prepare the infront service. And this is why we're 2 years away from the infront service. The ecosystem needs to be ready. And with this contract, they can go back to the different stakeholders and say, okay, now this is real. This is happening, my first PDPs and Eve is developing this vehicle, and we need to be ready. So we're not looking to add necessarily. We add only when it makes sense when we have the right partner with the right mission, okay? And this is what we've been working on.

And then, of course, once we start converting the first one, we'll also have and if you pay attention to the press release we did at the Paris Air Show, it says São Paulo area, right? The [indiscernible] customer for São Paulo, you can imagine that we're already working with other customers in Brazil, but also United States to convert other LOI.

Our next question comes from Ellen Page with Jefferies.

I just wanted to touch on some of the changes in the competitive landscape. Joby and Blade announced that Joby would acquire Blade's passenger business earlier this week. How do you think about how that impacts your competitive dynamic and your positioning, especially given Blade had been part of your 2,800 LOIs? And that combined with your partnership with Beta, how do you envision the ecosystem developing from here?

Ellen, we welcome very much this news about Joby investing in Blade. I think this is exactly proving our point what we've been saying since the beginning, there is this transition happening in the electrification of the vertical flights from the helicopter to eVTOL, and this is a proof of it. So we're excited. We think it's a good news because this is what we've been preaching, it's just getting together, there's room for everyone. Joby going and getting a platform -- ridesharing platform is positive for all the eVTOL manufacturers. We don't see -- and there's a special point. I mean we don't see that it's going to take out our backlog with the 200 vehicles that we have. We have a good relationship with Blade.

And it's a ridesharing platform, remember. I mean it's like -- and I'm going to make a joke a little bit here, but it's like Uber asking their drivers to drive only Toyotas, right? I mean it's just -- you need all the OEMs. You need various OEMs for the right mission. Each of the eVTOL has its mission, and same thing for the helicopter. They're multi-OEM. Blade is a multi-OEM today. And so we don't see it as an issue today for us.

We will move next with Austin Moeller with Canaccord.

Just my first question here. What is the difference in performance between the motor that's being acquired from Beta and the one that you were using in testing previously? And are you still sourcing a battery pack from BAE? Or is that going to change?

Austin, so with respect to the battery, nothing changes there. We're still developing with BAE and still in the same requirements, same products, same line we were before. On the differences between the motors from Nidec and from Beta, there are mainly differences with respect to cooling system, for example, there is a little bit on the architecture of the motor. So the size of the motor is a little bit different between the two solutions. The control is different. And there are some differences on the way that it integrates into the vehicle. And so how it communicates and how some of the protections are made.

Basically, these are differences that we believe that warrant us a phase of testing. So we can, with these differences, find what is best for the vehicle as a whole. So we optimize the global solution based on these differences that the systems bring to us. And so by doing this step, we are looking for a solution that is best for the vehicle overall, and that's why we believe this phase of testing will increase our maturity moving forward for the flight test campaign.

And are you able to comment on the tip speed of the new rotor blades? And do you expect additional design changes to the aircraft before building the conforming units for ANAC to evaluate?

Yes. So that's a very good point because the blade tip speed is one of the main parameters that dictates the noise that is emitted by the vehicle, which again is one of the important characteristics of the vehicle when we think of bringing them into urban areas and the way we relate to the communities where the vehicles will be operated, right? So this change of motors that we are testing, they don't affect the tip speed. And so we are maintaining the requirement for tip speed so that we maintain the level of noise of the vehicle and keep that at a level that is low enough not to significantly impact the areas where we'll be operating. And so in that sense, there is no change.

And then just completing your question with respect to changes that will be brought to the conforming prototypes. Of course, we will bring any learnings that we believe are relevant through this phase of testing with the engineering prototype to the certification vehicle and to the vehicle that will go into service. So that's one of the objectives is to bring these solutions that we optimize into this vehicle as much as we can to the vehicle that will be certified and go into service.

Our next question comes from Marcelo Motta with JPMorgan.

Just one is regarding capital needs. You mentioned that you feel very comfortable until the end of '26. And as you mentioned in previous calls, you have been exploring the options for '27. You guys have this shelf registration that was filed during the quarter to raise money. The sector has been doing pretty well. So just wondering if you can comment anything about that or how you see the current state of the sector? And what else do you think could improve? Or what are the current risk? And what type of derisk would you be expecting to be more optimistic about the outlook for eVTOL?

Thanks, Motta, for the question. It's Edu here. We continue to feel very good, right, in terms of cash. Only the cash we have in hand gives us more than around 18 months, right? So we have plenty of cash to get at the end of 2026. If you add the standby facilities we have already signed, the recent grant that we raised, that gives us probably we're talking about almost $400 million, which gives us 2 full years, right, so probably until, I would say, mid-2027.

So the position is good. We still need some resources, right, to get the certification. We have different options, right? You mentioned the S-3, the shelf registration we have. But we also have interesting discussions in terms of long-term loans, right, similar facilities to what we already have been drawing from BNDES and also from Citibank.

So I think different from some other players, right, given the strength of the group, right, being part of the Embraer Group, we have, I would say, more options in terms of funding, and we are analyzing. We are not in a hurry, but we need to assess the best option and execute at the right time.

Our next question comes from Andre Madrid with BTIG.

Quick one on the eVTOL landscape. I mean we've seen a number of partnerships between eVTOL names and defense contractors emerge for the development of defense use cases. Could we see Eve pursuing similar partnerships?

Andre, yes, this is Johann. Sorry, I mixed up with the microphone here. Well, since the beginning of Eve, it's a matter of focus, and we're really working on the UAM, it's the 100 to 150-kilometer market. And by the way, we released our market outlook at the Paris Air Show, and we were the first OEM to put our experience out there and all the discussions that we've been having with all the stakeholders, and we do confirm that we believe that the UAM will go for urban dense area, and this is also -- we're always confirming what we're saying.

So it's a matter of focus. At the same time, we always look, and this is also one of the advantage of having Embraer that can bring the technology development, analysis and all the bandwidth to look at different technologies. And we're looking at the possibility of getting into a hybrid solution for the vehicle, not changing the core structure of the vehicle and for specific markets. Defense could be one of them. But to remind you that we do have an LOI with BAE System and which also looking at different markets as defense, whether it's in the U.S. or U.K. And so yes, we are looking into this, but the focus is still to be certifying the vehicle that we're offering fully electrical.

And this will conclude our Q&A session. I will now turn the call over to Lucio Aldworth for closing remarks.

Thank you, [ Nicki ], and thanks, everyone, who joined the call today. As you can see, we accomplished several important milestones in the past quarter. We're fully engaged, moving fast, and there's a whole lot more to come in the next few quarters. So we're going to keep updating you guys on our progress throughout the next few quarters, and we look forward to meeting you in the upcoming events we're going to attend. As always, if you have any questions, please don't hesitate to reach out to me or to my team. Thanks, and have a great day. Thank you.

Thank you. And this does conclude today's program. Thank you for your participation. You may disconnect at any time.