Eve Holding's Q1 2025: Unraveling Key Contradictions in Certification, Cash Burn, and Revenue Projections

Eve's certification timeline and key milestones, cash burn expectations and spending priorities, type certification timeline and revenue expectations, R&D spend and cash burn expectations, services revenue and backlog are the key contradictions discussed in Eve Holding's latest 2025Q1 earnings call.



R&D Investment and Cash Consumption:
- Eve Holding invested $45 million in program development during Q1 2025, including R&D, service and support solutions, and urban air traffic management software.
- The company consumed $25 million in cash during the quarter, with expectations to stay within the full-year guidance of $200 million to $250 million.
- The increase in R&D expenses was due to higher engagement with Eve and Embraer engineers and suppliers.

Certification Prototype Advancement:
- Eve Holding is preparing to start assembly of the first of five conforming prototypes for the certification campaign towards the end of 2025.
- These prototypes, which will be close to the commercial versions, will be assembled at the Embraer main facility in Sao Jose dos Campos.
- The advancement is driven by the completion of necessary equipment and tooling installation, and close coordination with Embraer's engineering team.

Order Book and Customer Engagement:
- The order book stands unchanged at approximately 2,800 aircraft for a total value of nearly $14 billion based on list price.
- The pre-orders include non-binding letters of intent from 28 different customers across nine countries.
- A focus on customer engagement and ecosystem development is aimed at ensuring early operational success in the first city and customer.

Preparation for Certification Campaign:
- Eve Holding is engaged in talks with ANAC to detail the means of compliance for the certification campaign.
- The company is also actively working with suppliers to produce parts for the conforming prototypes.
- These activities are part of the broader strategy to prepare for the certification campaign, expected to start early in 2026.

Preorder Backlog and Service Contracts:
- The total preorder backlog remains at approximately 2,800 aircraft, with non-binding LOIs from customers.
- Secured contracts for the Eve TechCare suite of aftermarket products are expected to bring up to $1.6 billion in revenue over the first few years of operation.
- The focus on customer engagement and service support is aimed at ensuring reliable and cost-effective aircraft operation.