Record liquidity position sits Eve in good stead for 2027 certification
November 5, 2024
Despite reporting a net loss of $35.8 million in Q3 2024 versus $31.2 million in Q3 2023, Eve remains in a comfortable financial position as it continues to progress towards anticipated type certification in 2027.
Having raised $236 million since July (in a mix of debt and equity), Eve’s liquidity during the quarter stood at $445 million – the equivalent of three years’ current cash consumption. This is “above our peers and gives us confidence to advance the programme to certification,” highlighted CEO Johann Bordais. Eve’s ongoing operations have consumed $101 million to date in 2024, in line with previous guidance, although withdrew around half of this total amount from the Brazilian Development Bank during the quarter – “significantly preserving [its] cash position”.
However, a tight control over costs has helped Eve achieve this “highest liquidity ever,” elaborated Bordais, who added that synergy with parent company Embraer – including hiring Embraer engineers on a part-time basis, and the purchase of new tooling within an existing Embraer facility – are key efficiency-driving measures. “Some of the competitors are spending hundreds of millions only on the industrialisation. In terms of the liquidity, we are feeling super good,” he continued.
Bordais also confirmed that with Eve possessing “money for the years ahead,” it is not “planning any new capital raises”. “We are always evaluating, but at this point, nothing is on the table,” he elaborated.
Eve engineers continue to perform system and integration ground tests on the engineering prototype, unveiled in July. With Eve expecting to start receiving lift motors next month, this will perform its first remotely-piloted test flight next year; aiming to “validate and improve the accuracy of previous subscale and computer models”. This will then initiate the assembly of conforming vehicles in 2025, which will commence a flight test campaign in 2026 – leading to type certification in 2027, something Eve described as “a realistic and achievable timeline”.
Eve currently has a pre-order book of approximately 2,900 aircraft (worth a total $14.4 billion), bolstered by a further selection of contracts and LOIs from 31 further customers; offering Eve “up to $1.6 billion in revenues… over the first few years of operation”.
