Eve Holding Inc Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Savanthi Syth - Raymond James & Associates, Inc - Analyst : Hey, good morning, everyone. And maybe a question for Edu. The R&D spend was a little bit higher than I would have expected. But obviously, you're kind of within how you're thinking about the cash burn. Do you still expect that pace to kind of step up? Or is this kind of the right level of spend for the rest of the year on R&D and the G&A, SG&A as well?

Question: Savanthi Syth - Raymond James & Associates, Inc - Analyst : That's helpful. And then just on the certification aircraft build. I think, Johann, you mentioned maybe you can do test flights as early as 2026. And I know you called out the Embraer site being prepared and partners building parts. Just could you talk about what items you're still waiting on to start building that? I'm just trying to think about how much kind of early preparation and what might delay the start of that program if something does?

Question: Savanthi Syth - Raymond James & Associates, Inc - Analyst : Yeah, okay, sounds good. I appreciate the call thank you.

Question: Austin Moeller - Canaccord Genuity - Analyst : Hi, good morning, Johan and I do. So just my first question here. The $1.6 billion in services contract backlog. Does that reflect any expectation of a battery upgrade in the future into existing aircraft with an STC? Or does that only assume replacements of existing battery types and maintenance?

Question: Austin Moeller - Canaccord Genuity - Analyst : Okay. And on the certification prototype of the prototype that you're building now, are you planning to fly that specific aircraft with a pilot or would that be on future aircraft since you're planning to build five as part of TC?

Question: Austin Moeller - Canaccord Genuity - Analyst : Great. I'll pass it back there. Thank you.

Question: Sheila Kahyaoglu - Jefferies - Analyst : Good morning, guys, and thank you for the time. Maybe one on the order book and one on free cash flow. So the order book, can you talk to us about discussions there? Just what's the latest on the customer engagement front? How should we expect the order book and backlog to move forward as we think about timing with your first flight as well?

Question: Sheila Kahyaoglu - Jefferies - Analyst : Got it. No, makes sense. And then maybe just on free cash flow. As we think about -- sorry, $25 million of usage in the quarter versus total cash consumption guide of $200 million to $250 million. Can you provide a little color on the cadence of the burn as we progress throughout the year and how you're thinking about the $410 million of liquidity?

Question: Sheila Kahyaoglu - Jefferies - Analyst : Sounds great. Perfect. Thank you.

Question: Andres Sheppard - Cantor Fitzgerald - Analyst : Hey everyone, good morning and congratulations on the quarter. Thank you for taking the questions. I want to touch on maybe just the five prototypes that you expect to build again for certification campaign. Do we have a sense on roughly what the timing of that might be? And is that REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 12, 2025 / 12:00PM, EVEX.N - Q1 2025 Eve Holding Inc Earnings Call embedded into the cash consumption guidance for this year? Just trying to figure out how and when we should think about maybe CapEx and cash consumption for these five aircraft? Thank you.

Question: Andres Sheppard - Cantor Fitzgerald - Analyst : Got it. That's super helpful. I appreciate that. And just as a quick follow-up. Can you maybe just remind us in terms of your service and maintenance business segment, when, how do you expect to maybe commercialize? What's the latest there? That's something that is maybe differentiated to Eve. So just curious on the timing on the maintenance and service business segment. Thank you.

Question: Andres Sheppard - Cantor Fitzgerald - Analyst : Wonderful. Thank you so much, Johan, and thank you, Edu. I'll pass it on. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 12, 2025 / 12:00PM, EVEX.N - Q1 2025 Eve Holding Inc Earnings Call

Question: Amit Dayal - H.C. Wainwright & Co., LLC - Analyst : Thank you. Good morning everyone. Thanks for taking my questions. Guys, what's the progress on the software side for the services side of the business? Any update on how some of those applications are coming along?

Question: Amit Dayal - H.C. Wainwright & Co., LLC - Analyst : Understood. And just one last one for me. It looks like you're good with financing for maybe until the end of 2026. But beyond that, just wanted to see what options you may be entertaining and if any of those options include any strategic investors from the value chain that may not be Embraer, but somebody else. Just any color on how we should think about future financing options for you guys?

Question: Amit Dayal - H.C. Wainwright & Co., LLC - Analyst : Understood. Thank you guys. That's all I have.

Question: Savanthi Syth - Raymond James & Associates, Inc - Analyst : Hey, thanks for taking the follow up. I just had a clarification on the battery side. Is the battery that you're using in the kind of the prototype that's kind of going under testing right now, is that going to be the same as the battery being used for the certification aircraft that's being built later this year?

Question: Savanthi Syth - Raymond James & Associates, Inc - Analyst : Okay. So the same supplier, so you'll have confidence on kind of production and everything?

Question: Savanthi Syth - Raymond James & Associates, Inc - Analyst : I appreciate that. Thank you.