Eve Holding Inc Q2 2024 Earnings Call Transcript

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

Question: Savi Syth - Raymond James & Associates, Inc. - Analyst : Hey good morning everyone. I was wondering, you mentioned the electric motors. I was wondering what kind of the expectation on when those will be delivered. And as you kind of contemplate building those certification conforming prototypes for next year, what do you need to see before you start building those? Is it anything around the test campaign or what are the factors that will decide when you move forward with that?

Question: Savi Syth - Raymond James & Associates, Inc. - Analyst : Thanks for the clarity. So just wondering when you're expecting the electric motor delivered? And if there's anything in the testing that you're doing here with that engineering prototype that will then decide when you start building the conforming prototypes.

Question: Savi Syth - Raymond James & Associates, Inc. - Analyst : Very helpful, thank you. And if I might, just on Edu's comments on liquidity, and I think the release had multiple years of liquidity sufficient. So in terms of the step-up next year, it doesn't seem like it's a big step-up, even though you're doing a lot more of building and testing, is that a fair comment, Edu?

Question: Andres Sheppard - Cantor Fitzgerald & Co - Analyst : Hey good morning everyone. Thanks for taking our questions and congratulations on the quarter. And Johann, it was great seeing you at Farnborough a few weeks ago.

Question: Andres Sheppard - Cantor Fitzgerald & Co - Analyst : Just a quick question. I was hoping maybe you can give us a little bit more color regarding kind of the test sites that you're going to be initiating in the second half of this year. Wondering if you could maybe walk us through the time line there, kind of how you anticipate those tests ramping up? And then maybe in addition to that, just remind us again the plans to assemble the additional up to 5 prototypes, the ones that will be certification and compliance. Yes exactly, thank you.

Question: Andres Sheppard - Cantor Fitzgerald & Co - Analyst : I think it's for sure, and then I'll pass it on and having the CTO with us here, even though he will give you more insight. Obviously, Lowe's could be the next step. So Valentini? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 06, 2024 / 12:00PM, EVEX.N - Q2 2024 Eve Holding Inc Earnings Call

Question: Andres Sheppard - Cantor Fitzgerald & Co - Analyst : Got it, that's super helpful, I appreciate all that color. May be just a quick follow-up on certification, so obviously, ANAC has been kind of the primary type certification that you've been targeting in concurrence with the FAA, but my question is, with all the recent developments in the UAE, I'm wondering if that maybe has changed some of your type certification plans or how you're thinking about that market? Is that a certification that you'll pursue as well now? And if so, how do you see that process unfolding? Thank you.

Question: Andres Sheppard - Cantor Fitzgerald & Co - Analyst : Wonderful. Thank you so much. I really appreciate it. Congrats on the quarter again. I'll pass it on.

Question: Austin Moldow - Canaccord Genuity Global Capital Markets - Analyst : Hi good morning, and great to see you at Farnborough, Johann. My first question just on the battery, so the battery is being supplied by BAE. I know they've done some work providing those for industrial vehicles and buses. But I was just wondering what is the production volumes look like for the cells within the batteries being provided by BAE, are they being built at a production volume each year that could enable a strong manufacturing supply chain going out the gate and what does that look like, if you could just tell us a little bit more?

Question: Austin Moldow - Canaccord Genuity Global Capital Markets - Analyst : Excellent and just a follow-up, depending on where your first launch customers are once you get to serial manufacturing stage and you're certified, do you expect to provide aftermarket support from day one in one specific geography or do you expect to provide aftermarket support at all of Embraer's MRO facilities right from the beginning?

Question: Austin Moldow - Canaccord Genuity Global Capital Markets - Analyst : Awesome. Thanks. That's all for me.

Question: Conor Walters - Jefferies LLC - Analyst : Hi guys. Congrats on the progress in the quarter and thanks for taking my question. Maybe just to go back on liquidity, as of the first quarter, you indicated that the $280 million that you had at the time was sufficient support operations well into 2025, so curious on the rationale for the equity raise in the quarter.

Question: Conor Walters - Jefferies LLC - Analyst : Okay, got it, that's very helpful. And maybe just to go back to your commentary about a modest step-up in burn into 2025, is there any way that you can frame the cadence for quarterly cash burn over maybe the next four quarters as we think about you progressing through these next few milestones?

Question: Conor Walters - Jefferies LLC - Analyst : Okay, great. Thanks so much. I'll leave it there.

Question: Sheila Kahyaoglu - Jefferies LLC - Analyst : Thank you, so much. Conor and I are tag-teaming as I'm at the airport. So he got my cash questions in and I just maybe do want to ask about orders. You haven't had vehicle orders, but you got a big chunk of maintenance orders that you guys highlighted in the script. So maybe can you talk about how we should expect more maintenance orders? You gave that $1.2 billion over the next 5 years. Can you talk a little bit about how you expect that to transition to revenue? Thank you.

Question: Sheila Kahyaoglu - Jefferies LLC - Analyst : Got it, thank you.

Question: Cai von Rumohr - TD Cowen - Analyst : Yes, thanks so much. So Edu, you said you have the funds to get to 2027. Maybe when do you expect to begin getting PDPs on the planes? And secondly, are there any financial requirements on your part or advances that you expect as a result of your MRO agreements?

Question: Cai von Rumohr - TD Cowen - Analyst : Terrific, thank you. And then Valentini, we're getting closer to get definition by the FAA and others in terms of what's going to be required to get your design and other designs certified. Now that we have a little bit more visibility there, could you comment at all in terms of the difficulty of certifying a tilt rotor, which is what most of the other guys have and a lift cruise design, which seems like inherently a little safer in the sense that basically you can fly with the rotors and you can fly with the pusher prop.

Question: Cai von Rumohr - TD Cowen - Analyst : Terrific, thank you very much. And then Johann, when you put it all together, do you have a rough target? Obviously, you can't know exactly but a rough target in terms of when you might achieve certification and when you might see entry into service?

Question: Cai von Rumohr - TD Cowen - Analyst : Okay, great. Thank you so much.