Eve Holding Inc Q3 2024 Earnings Call Transcript

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

Question: Savanthi Syth - Raymond James - Analyst : Hey, good morning everyone. I appreciate all the kind of the color on what's been accomplished so far and, and it looks like maybe kind of the updated outlook in terms of type certification may have slipped a very little bit. You know, maybe from the end of 26 to 2027 but I was curious, you know, what was driving that and then just any implications for the timing of some of the revenue that could come in at like PDP and kind of other revenue sources that could come in before type certification.

Question: Savanthi Syth - Raymond James - Analyst : Appreciate the color and if I might just on the 80 to 90 million in the production facility, how should we think about like the timing of that CapEx flowing through? I recognize that you have the financing for it. So that's not a concern but just curious about the timing of that and what that means for. I know in the past you said, you know, cash burn steps up next year, but not a big step up. So I was just kind of curious if you have any early thoughts into, into kind of that cash burn as well into 26.

Question: Savanthi Syth - Raymond James - Analyst : Okay. And so we should kind of expect like a similar maybe and a little bit more step up on maybe R&D as well for next year. So those are the two things that will drive the step up.

Question: Savanthi Syth - Raymond James - Analyst : Very helpful. Thank you.

Question: Marcelo Malta - JP Morgan - Analyst : Hi, everyone. Good morning, two questions on, on our side as well. Just to follow up on the, the TOBA plant. You know, you comment on the release, you know, you have had a model, you know, one model two models when we think about the Capex, the that you guys' comment about, you know, 80 to 90. This is like, what size exactly is the 120 or, you know, can you go up to the 480 then, you know, for the additional models, if that is the case, what is the, the additional Capex there? And then finally, second question on liquidity, I mean, of course, you have a comfortable position for the next three years but just wondering, you know, given what happened to some peers in the industry, if you think about the trend even more your liquidity in the short term, you know, just to have a bigger question of cash if necessary or how are you guys thinking about, you know, new credit facilities or, or how should we think about that? Thank you.

Question: Andres Sheppard - Cantor Fitzgerald - Analyst : Hey, good morning, everyone. Congratulations on the quarter and thanks for taking our question. I wanted to maybe touch on the fr regulations. So, you know, you mentioned that obviously this is supportive. I'm curious, you know, what did you see as the number one or number two most supportive regulation as it pertains to eve or, or the EV to industry? You know, what, what was it that you thought was most significant there? Thank you.

Question: Andres Sheppard - Cantor Fitzgerald - Analyst : Very helpful. I appreciate all that context. And maybe just as a quick follow up, you know, with with certification now expected in 2027 just trying to understand, you know, what is driving that move into 2027 you know, understanding that the the test flights will will ramp up in 12 to 18 months. But from the regulatory perspective, what are you seeing from, from AEC and from the FAA that you know, that that makes it seem like the certification is more realistic in 2027? Thank you.

Question: Andres Sheppard - Cantor Fitzgerald - Analyst : Got it. Thanks again. Congrats on the quarter, I'll pass it on. Thank.

Question: Sheila Kahyaoglu - Jefferies - Analyst : Hi, how are you? Congrats on the quarter guys and just maybe just wanted to fine tune this a little bit because there's been a lot thrown out there, and appreciate the additional funding. Does when we think about the flight test program and the final development, kicking off in 2026 does that mean, you know, with another 12 to 18 months to complete it? Does that mean EIS is pushed out about, you know, a year and a half? Is that fair to say? And that's what's driving the additional funding? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 04, 2024 / 1:00PM, EVEX.N - Q3 2024 Eve Holding Inc Earnings Call

Question: Sheila Kahyaoglu - Jefferies - Analyst : Okay. And then just on the loys, obviously, we don't expect that to really move until, you get closer to EIS, but they're flat from last quarter at 2,900 aircraft. But services revenues is picking up up 30% Q over Q to 1.6 billion in the backlog. So maybe if you could just talk about how you're selling that to your customers and how we should think about that shift in customer conversations as you build, you know, lifetime revenue model.

Question: Savanthi Syth - Raymond James - Analyst : Sure.

Question: Cai Von Rumohr - Cowen - Analyst : Yes. Thank you so much. And so congratulations on the sr So I I've read the thing. Can you go through the diversion requirements, flight diversion requirements, whether those are totally in line because they looked a little confusing and any vertiport requirements that are spelled out there?

Question: Cai Von Rumohr - Cowen - Analyst : Terrific. And then on the issue of service, at one point, you were going to you know, make available service to EV tools of your competitors particularly, I believe Archer. So, so where are you in that process? And secondly, as you think about the service opportunity, who are the people who you view as potential competitors, if any.

Question: Cai Von Rumohr - Cowen - Analyst : And lastly, I mean, are you the, the only guy kind of with this major focus on service? Obviously, other guys are going to, you know, support their own vehicles. But are you the only one who is sort of taking this broader approach toward, you know, looking at, at, at servicing competitor vehicles?

Question: Cai Von Rumohr - Cowen - Analyst : Terrific. Thank you very much.

Question: Austin Moeller - Canaccord - Analyst : Hi, good morning, Johan. And I do just my first question here on the SR does the 20 minutes of battery reserve for flight required by the FAA which was less than the 30 minutes expected benefit the TAM and potential routes for your aircraft in the US.

Question: Austin Moeller - Canaccord - Analyst : Great and just a follow up. Have you had any new conversations with potential customers in the last couple of weeks about their orders coming over to your book now that there's been a recent shake out among competitors.

Question: Austin Moeller - Canaccord - Analyst : Fantastic. Thanks for all the details.

Question: Amit Dayal - HC Wainwright - Analyst : Thank you. Good morning, everyone. Good to see the liquidity position continue to be strengthened. You know, I just want to touch on the tech care offering again. I know you've already provided some color on it, but you know what the significance is of launching this offering almost three years ahead? Is there any monetization that we can expect to take place? You know, if you could just lay out all the milestones for the tech care offering are from here, you know, the next 23 years as you get ready for operational launch, you know, it would be helpful to just understand what you're trying to achieve. You know, with this today. Thank you.

Question: Amit Dayal - HC Wainwright - Analyst : That makes a lot of sense, you know, good to see you thinking so far ahead. My other questions have been asked. I'll step off the queue and follow up offline. Thank you so much.