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- **Piloted Transition Milestone**: Completed under U.K. CAA, first in industry for aircraft size. 
- **Cost-Effective Certification**: $700M total, 75% below peers, $550M opex. 
- **Hybrid Powertrain**: Flight testing mid-2026, unique airframe compatibility. 
- **Manufacturing Strategy**: UK-based with US/Asia expansion. 
- **Defense Opportunity**: Low noise/thermal, strategic discussions. 
- **Financial Health**: $117M cash, $255M 2026 spend forecast.

**【CEO Summary Section】**
- Completed piloted transition flight test under U.K. CAA oversight, first in the industry for aircraft size. 
- 2028 certification timeline with 75% of components locked in for certification aircraft. 
- VX4 cabin space 70% larger than competitors, 6-passenger capacity allows 50% revenue increase. 

**【CFO Financial Commentary】**
- Total certification cost guidance: $700M ($550M opex, $225M non-recurring). 
- 2025 spend in line with $110-125M annual guidance, $117M cash position. 
- 2026 spend forecast to be updated at year-end, $255M projected. 

**【Q&A Key Highlights】**
- Hybrid powertrain flight testing to begin mid-2026, airframe compatible with gas turbine without modification. 
- Strategic partnership discussions with global aerospace/defense players to turbocharge production. 
- Defense market opportunity: low noise/thermal signature, nondilutive funding potential. 
- Manufacturing expansion plans include U.K. battery giga factory and global production hubs. 
- Order book closed for 2025, reopening selectively in 2026 for high-value geographies.

Vertical Aerospace Ltd. (EVTL) Q3 2025 Earnings Call Transcript

- **Battery Business Model**: Proprietary battery design targets 50%+ revenue from recurring battery sales, with certification-ready production starting in 2026.
- **Defense Growth**: Hybrid variant with 1,000-mile range and 1,200kg payload positions VX4 as Europe's leading eVTOL for defense, capitalizing on $1T defense spending growth.
- **Partnerships & Cash**: $1B+ deals with Honeywell and Aciturri secure supply chain; $160M raised in 2025 provides runway into mid-2026.
- **Hybrid Strategy**: Fast follow-through certification for hybrid variant (2026-2027) complements electric-only aircraft for short-range missions.
- **Defense & Hybrid**: Silent operations and long-range capabilities make VX4 a unique solution for military and long-haul commercial use cases.


**【CEO Summary Section】**
- Achieved key milestones in 2025 H1, including first full-scale piloted wing-borne flights in Europe and airport-to-airport flight at the Royal International Air Tattoo. VX4 hybrid flights expected in 2026.
- Battery technology advancements: completed full-scale battery pack drop tests and thermal runaway propagation tests, setting foundation for EASA certification. Proprietary battery design creates a razor/razor-blade model, targeting 50%+ recurring revenue from battery sales.
- Strategic partnerships: signed $1B+ deals with Honeywell (flight control systems) and Aciturri (airframe production). Preproduction aircraft assembly set for Q4 2026.
- Defense opportunities: hybrid variant with 1,000-mile range and 1,200kg payload positions VX4 as a key player in Europe's $1T defense spending growth.
- Financial position: $139M cash as of Q2, with $110M-$125M net cash used for 2025, runway into mid-2026. Raised $70M in Q2, total 2025 funding ~$160M.

**【CCO Michael Cervenka Commentary】**
- Deepened partnership with Bristow (world's largest helicopter operator) to offer a 'ready-to-fly' eVTOL model, reducing barriers for customers. Bristow doubled preorder to 100 aircraft and will provide turnkey solutions (pilots, maintenance, insurance).
- Strategic focus on hybrid-electric variant for defense and long-range commercial missions, complementing electric-only aircraft for short-range use cases.

**【Q&A Highlights】**
- **Defense Use Cases**: Silent takeoff/landing and hybrid range/payload capabilities (8 Marines + gear) make VX4 ideal for logistics, Medevac, and ISR missions. Europe's $1T defense spending growth (2025-2030) creates significant opportunities.
- **Hybrid Certification**: Hybrid variant shares 90%+ design with electric aircraft, enabling fast follow-through certification (~2029). Non-recurring engineering costs for certification tooling to ramp in 2026-2027.
- **Cash Runway**: $139M as of Q2, sufficient for 2025 flight test campaign, preproduction aircraft assembly, and supply chain expansion. No immediate funding gaps for 2026 activities.
- **Battery Gigafactory**: Exploring locations for battery production facility, targeting 2026-2027 announcements. Battery sales expected to contribute 40%+ margins post-certification.


Vertical Aerospace Ltd. (EVTL) Q2 2025 Earnings Call Transcript

- **Hybrid Breakthrough**: 1,000+ mile range hybrid variant set for Q2 2026 flight testing, unlocking defense and long-haul commercial opportunities.
- **Battery Dominance**: 200 Wh/kg energy density, 800+ cycle life batteries meet EASA SC-VTOL standards; 50%+ revenue from battery sales by 2030.
- **Certification Confidence**: All-electric VX4 on track for 2028 certification; hybrid variant ~6-12 months behind, with no regulatory delays anticipated.
- **Financial Efficiency**: FY2025 cash spend guidance unchanged at $110-125M; $90M cash on hand supports execution.


**【CEO Opening Remarks】**
- Vertical Aerospace remains on track to achieve 2028 certification for its all-electric VX4 aircraft, with hybrid variant targeting 1,000+ mile range.
- Hybrid program integrates seamlessly into existing airframe, leveraging battery system expertise developed over 6 years.
- FY2025 cash spend guidance unchanged at $110-125M, with $90M cash on hand.

**【CFO Financial Update】**
- Q1 2025 net cash used in operations: $30M.
- Non-cash P&L impact from convertible notes: £396M (one-time adjustment).
- Battery business model to generate 50%+ revenue by 2030, with >40% gross margin on battery sales.

**【Engineering Director Battery & Hybrid Details】**
- Battery system achievements:
  - 200 Wh/kg energy density (including electronics).
  - 800+ full cycle life, 90% capacity retention.
  - Passed 15.2m drop test and thermal propagation tests to EASA SC-VTOL standards.
- Hybrid powertrain integrates gas turbine for range extension, with first flight testing in Q2 2026.
- Battery second-life applications (marine, CTO) to add incremental revenue streams.

**【Q&A Key Takeaways】**
1. **Certification Path**: 
   - All-electric VX4 certification on track for 2028; hybrid variant likely delayed ~6-12 months.
   - UK CAA confirms no change to SC-VTOL certification standards (10^-9 catastrophe failure rate).
2. **Hybrid Program**: 
   - First hybrid aircraft to be retrofitted from existing prototype, with Q2 2026 first flight.
   - Defense and long-haul commercial use cases (e.g., regional airlines) being explored.
3. **Battery Business Model**: 
   - 1-2 battery replacements/year per aircraft, 50%+ revenue split by 2030.
   - Direct sales and service contracts under evaluation; second-life applications in development.
4. **Market Expansion**: 
   - Global certification strategy focuses on EASA/CAA standards harmonization.
   - Customer engagement pipeline includes major airlines (e.g., American Airlines, Bangkok Airways).


Vertical Aerospace Ltd. (EVTL) Q1 2025 Earnings Call Transcript

- **2028 Certification Confidence**: UK CAA's SC-VTOL regulations ensure 1 in 1 billion safety standard, 10-100x safer than competitors.
- **Technical Excellence**: VX4 achieves 1.4 MW powertrain and 16,000 Nm torque, with full-scale piloted tests generating 2x data per flight hour.
- **Cost Efficiency**: 2025 cash use of $110-125M, $350M total spend vs. $1B+ peers, driven by OEM model and battery-as-a-service.
- **Market Expansion**: Defense partnerships and luxury cabin appeal for high-net-worth individuals, balanced regional order book.


**【Management Opening Remarks】**
- Charlotte Cowley highlighted the company's strategic focus on certification and operational efficiency, emphasizing transparency in financial and regulatory disclosures.
- Stuart Simpson introduced the Flightpath 2030 strategy, targeting certification by 2028 and achieving cash breakeven by 2030, with a focus on cost efficiency and regulatory compliance.

**【CEO Strategic Overview】**
- **Technical Progress**: Full-scale piloted flight tests achieved thrust-borne flight, with wing-borne flight expected in 3-6 months. The VX4 aircraft features a 1.4 MW powertrain and 16,000 Nm peak torque, surpassing competitors in performance and safety.
- **Certification Path**: UK CAA's SC-VTOL regulations ensure a 1 in 1 billion safety standard, 10-100x safer than existing aircraft. EASA collaboration enables European market access post-certification.
- **Business Model**: OEM-focused with battery-as-a-service, targeting high-margin recurring revenue. 2025 production of certification aircraft with long-range parts purchasing.
- **Financial Position**: 2024 net cash used of $100M; 2025 guidance of $110-125M, fully funded with $90M raised in January. Cost to certification expected to be significantly below peers.

**【CTO Flight Test Update】**
- Si Davies emphasized the criticality of full-scale piloted tests, generating 2x Wikipedia data per flight hour. The VX4 demonstrates exceptional stability, quiet operation, and intuitive controls, with no major technical faults during testing.
- Wing-borne flight in public airspace planned, requiring CAA approval and mini-certification processes, de-risking the full certification campaign.

**【Q&A Key Highlights】**
- **Certification Timeline**: 2028 target remains unchanged; SC-VTOL regulations provide clear work stack visibility. FAA alignment expected post-EASA certification with minimal additional testing.
- **Funding Needs**: 2025 fully funded; long-term cost efficiency driven by OEM model, with $350M spent since de-SPAC vs. $1B+ peers.
- **Market Expansion**: Defense applications discussions with UK MOD; luxury cabin appeal for high-net-worth individuals post-certification.
- **Customer Deposits**: Order book to reopen in 2025; regional distribution balanced across Americas, Europe, and Asia.


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