EHang's Q2 2025 Earnings Call: Contradictions Emerge on Revenue Guidance, Certification Timelines, and Overseas Expansion Strategies

The above is the analysis of the conflicting points in this earnings call

Date of Call: August 26, 2025

Financials Results

• Revenue: RMB 147.2M, up 44% YOY and up 4.6x sequential
• Gross Margin: 62.6%, compared with 62.4% in both Q2 2024 and Q1 2025

Guidance:

- FY2025 revenue guidance: ~RMB 500M (vs RMB 446.2M in 2024), reflecting moderated H2 deliveries to prioritize safety and operations.- Management confident in achieving RMB 500M and expects significantly faster growth next year.- 2025 CapEx guidance unchanged at USD 40M.- Continue Yunfu capacity build toward 1,000 units/year; additional facilities planned in Fangcheng, Hefei, and Weihai.- Transitioning to dual-engine model: eVTOL manufacturing + operational services.- Aim to launch public commercial services in China within 2025; advancing sandbox trials abroad (e.g., Thailand, UAE) targeting near-term commercial ops.

Business Commentary:

Revenue and Order Growth:* - EHang reported total revenues of RMB 147.2 million for Q2 2025, a 44% increase year-over-year and a significant 4.6x sequential increase. - The company delivered 68 units of its EH216 series, with new orders for over 150 units. - The growth was driven by strong market demand and robust operational momentum.

• Operational and Product Focus:
• EHang's EH216-S completed over 10,000 safe flights in the first half of 2025 without any incidents.
• The company is focusing on developing the VT35 model and signed a strategic partnership with the Hefei government.

• The focus is on safety, regulatory compliance, and innovation for sustainable commercialization.

• Strategic Adjustments and Revenue Guidance:

• EHang adjusted its 2025 full year revenue guidance to approximately RMB 500 million.
• The adjustment is due to a focus on safety and alignment with civil aviation protocols.

• The company is prioritizing customer support services for safe and regular operations.

• International Expansion and Partnerships:

• EHang expanded its global presence, conducting demo flights in multiple countries and partnering with global companies like China Communications Information and Technology Group.
• The company is pursuing type certifications in regions like Latin America and the Middle East.
• The international expansion is supported by strong industry collaborations and a growing global footprint.

  Sentiment Analysis:

  • Strong Q2 rebound: “Total revenues were RMB 147.2 million… an increase of 44% YOY and a sequential increase of 4.6x.” Stable margins at 62.6%. However, company “adjusted our full year 2025 revenue guidance to approximately RMB 500 million… reflecting modest growth” as it “moderate[s] the pace of order deliveries” to prioritize safety and operational readiness. Management expects “significant faster growth for next year.”

  Q&A:

  • Question from Tim Hsiao (Morgan Stanley): Why cut revenue guidance and slow deliveries; do you have H2 visibility?
  • Response: Strategy shifted to prioritize safe, scalable operations post-OC issuance; demand remains solid; guidance lowered prudently, and management is confident in achieving RMB 500M.
  • Question from Tim Hsiao (Morgan Stanley): Update on OC progress for clients?
  • Response: Two operators are in phase-2 passenger trial ops, optimizing processes and dual-helipad model; customers can apply for OC themselves with EHang support or via hosted model—both progressing.
  • Question from Fuyin Liang (BofA Securities): Order backlog mix domestic vs overseas and conversion outlook?
  • Response: Q2 added 150 firm purchase orders (~90% domestic/10% overseas); overseas demand is rising with several sizable deals under negotiation.
  • Question from Fuyin Liang (BofA Securities): VT20 certification and commercialization plans?
  • Response: Small VT20 logistics UAVs operate without airworthiness; larger logistics models will require certification, which should progress faster leveraging prior TC experience—scaling from small to large.
  • Question from Siu Lun Lau (Jefferies LLC): Will revenue growth materially re-accelerate next year?
  • Response: Yes. After focusing H2 on safety and demonstration projects, management expects significantly faster growth next year.
  • Question from Siu Lun Lau (Jefferies LLC): Overseas sales progress (e.g., Thailand, Japan)?
  • Response: Advancing Thailand sandbox (Pattaya/Bangkok) to obtain commercial ops within ~6 months and replicating across islands; similar sandbox underway in UAE (Abu Dhabi).
  • Question from Rongyan Zhou (CITIC Securities): Will capacity expansion to 1,000 units and 2025 CapEx change after guidance cut?
  • Response: Yunfu expansion to 1,000 units continues to support long-term demand and diverse models; 2025 CapEx guidance remains USD 40M.
  • Question from Xinran Li (Deutsche Bank AG): Clarify eVTOL services business model and duration?
  • Response: EHang will operate a dual model: manufacturer plus operational services, supporting customers to achieve safe commercial ops—initially focused on operations, then scaling sales.
  • Question from Xinran Li (Deutsche Bank AG): VT35 and RMB 500M Hefei support breakdown?
  • Response: Hefei’s ~RMB 500M support includes aircraft orders, investment, and supply-chain development; Hefei will host VT35 R&D, manufacturing, certification, sales, ops, and training.
  • Question from Yu Chen (Guangfa Securities): Q2 deliveries breakdown and new orders domestic/overseas mix?
  • Response: Delivered 68 units (67 EH216-S, 1 EH216-L) to 13 clients (12 domestic, 1 Japan); new 150-unit orders are ~90% domestic/10% overseas.
  • Question from Yu Chen (Guangfa Securities): Solid-state battery progress?
  • Response: Pursuing multi-battery strategy; achieved solid-state battery flights up to 66 minutes; seeking airworthiness approval by year-end.