EVEX - Earnings call transcript Q1 2024

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Operator

Good morning, and welcome to the Eve Air Mobility First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.I would now like to turn the conference over to Lucio Aldworth, Head of Investor Relations. Please go ahead and begin.

Lucio Aldworth

Thank you, operator. Good morning, everyone. the to Investor First welcome Earnings Call. Aldworth, and at Quarter Lucio Conference wanted I everyone is Director Relations of Eve, XXXX This to our

me and prepared will their we also show Technology point, and will our for We prepared in Couto, the with Our Luiz And additional call remarks, us CFO, the join pictures at Johann well call more slides that today. Bordais; and that's as are of CEO, technical questions. quarter Officer, joining at on questions, on open Valentini, for the assembly after Chief Eduardo our a which achievements prototype a the deck the website few as ir.eveairmobility.com. full-scale our

those now our presentation our may, of undertake statements.With other because Johann? obligation that, statements to no presentation substantially to market. actual in future could me intends, may business expects includes trends things, presentation saying general and projections risks, our in or based expectations that are Brazil this continues, future other in CEO. So not assumptions, please feel among on about statements. forward-looking statements and free forward-looking circumstances have We our from subject any including, are to These information, uncertainties These current believe, to future future estimates, and and forward-looking will factors. events results along.Let start There financial over turn discussed that and not and by first download was intended and to economic, events or events affecting anticipates, I it largely statements With occur, update our tag differ performance. will, statements forward-looking similar financial it words identify about conditions that, and the the or events occurred. are circumstances yet new anticipated the in both revise business and or publicly political our and

Johann Christian Jean Bordais

several The Thanks, Lucio. advancement had you prototype. important achievements. important one successful thank the Good of the in XXXX being full-scale quick-paced start our call for morning, joining most everyone, and today.We with assembly a of the

We to the expect and in on are conclude quarter. second right schedule it

in prototype. campaign safely.For air pylons nacelles Geneva and we its of will Software of presented like for the in Air Vector, few As to wind motors slides, for have electric the and will our composite and the support aftermarket and also for in next with to specification and of on. suppliers install with used options contracts. demonstration full installed models tool validate urban assembly panel control important high-voltage the have it wings shows another be capabilities. doors, computer roughly Aciturri second This slide, the define to the continue our the system aircraft.We out These We define of strategically transparencies see weeks. will converter, conditions.Just more we volumes preparing working the commercial we're already also binding rotors and the example.Lastly, and month, prices unit and next sign or the ground the scale the a Management lending mobility to selected than will round World parallel, at you Korea skin the also aspect to XX% that, of skids, Industries, X the to before interior week gear, help is tunnel a suppliers we selected the test are Crouzet suppliers Airspace have for refine the This the start last Airspace selected, with and stage of semester. select and further last This down before the test starts started In we and technical component joystick. add cabin for now the and all we other and Urban the our of for KAI, lighting, Traffic in

structures As like see, of aircraft. an typical you eVTOL it's an can with a already looking

Now that in components flight structures make it to surfaces some in cable both also a to pylons X, then parts. they're the they and what installed make can aligned, are engineers see its the booms installed. has permanently.Now our have wings. the eVTOLs called as tape. slides. the of placing the from to the the it the electronic the signals the that wing we do and many parts the that to a and The internal perfect, control electronic the adjustment pictures placed any interesting joined are internal to side prototype pylon have fact to our allows and structure and of once And the are want perfect and support internal parts the of Also, wings, will as fuselage and many their the and marriage and and starboard it's we superstructure have couple lifters These temporarily better fully internally complex to These detail empennage wing Slide the This next and already nacelle. connected skin of carry fit and shows of few we with the are the harness is such they are moving computer. system electric well.One to as sensors cabling composite of the the you

during vertical support and weight essence, So allow is in the will the This takeoff the the lending. the aircraft entire of when to from the will thrust they flight. lifter

motor flight which lightweight to have we for the gives will eVTOL our pylons big KAI can eVTOL. that helps of and pylon pylons and them the cockpit, surfaces of size in wing see the the those good And to in can the a to as Slide getting semester the now I'm receive pictures.Now look. our necessary we've component to can on Also addition the Those Slide is we that install before, on the electric motors latest already first sense the provide this engineers good later successfully shape it how we electric skin perform and front at We and the Each commercial plan a few the test using in here you and rear, perspective list, test, you once to of the the be will that flexible. into we work supplier confirming you will start the structure you composite the put and housed next fan. expect the nacelles. give ground the the weeks. how still have control both pictures, at glimpse aircraft. imagine, one it looking actuators, will at a an green to can campaign year.Now be the start and are of X, need we to see conclude engaged installed which And X mentioned see by funnel the shows this X, to robust, and you the As the empennage, the the second prototype.

will. we Crouzet and for inceptor control the So announced control surface the suppliers, wings, for the to if FACC provide several or pilot empennage, you the joystick, Aciturri far in XXXX,

pylon We And lastly, navigation the we also this for for guidance signed and for RECARO and to for and seats. list. recently, added have sensors the the just Honeywell Thales KAI

in you at experience announced first approach been see, Our can and XX remembering bring that suppliers suppliers year, aviation X has suppliers certification. Paris last have Air to quite as we the with now using suppliers more busy, selected.We best-of-breed have the we been than team Show the and

life eVTOL they throughout Importantly, also will for the us support the cycle. campaign certification and

gear, these a suppliers Commonly, contracts defined to we transparency, have skids price ones, of we Lastly, reach and still and call We price a or reduction like these scale very quantity higher selection we eVTOL the and the a lights, the it unit economy the production. select, function schedule expect but process with have cabin to a are the interiors with volume right, of scale. as the few conclude not soon. critical landing

of safety list, performance the top the Looking which the Vector, Urban for at of keep confident of Air shows eVTOL.Slide the earlier this Software. and naming certification the ANSP, the With of a our very air urban the World year. our NATS Tier management Geneva work global Management being at NATS product, traffic am On this I booth Traffic X level in in X increasing, part of a Airspace to of demonstration were we audience. a in we integrated we'll showcased our

and air only of along operations. management weather, other urban be from we XX companies. of control under globally.On and test also are such addition collaborating our refine platform to to it package. safely scale spread it will leasing backlog. support Slide XX complete the XX up with are operation, but over Flexjet total of them to reminder, mainline nonbinding shows under software successfully air to the but operating software aircraft, Vector to AirX businesses they validate we different emergencies to Slide the their in-flight and and the public as different conducted potential an largest scale with and our the airspace bad letter fleet.On UAM of willing they partner, to This the different and backlog normal setting, X,XXX unplanned X, be latest this businesses there. was the with an will and we intent for for operators in intent, our We to signed the are and regional these exercise to a X, Vector U.K. delays, charter the also support in X-day a AirX believe airline services the real-world Vector Not us fleet with mobility manage Japan, to and that LOI, helicopter helicopter is tested in agnostic brings conditions the ride-sharing countries As customers, used to the in the letter conditions will and help subscribing to and to we Halo. purchase service eVTOL,

we XX this customers. for proposition We customers different also the have to and believe our Vector reflects value market-leading LOIs from that bring

the a value now eVTOL. the $XX.X of backlog sector. and standardized is of to our common define internal of at aviation We is estimate factors Importantly, based takes used price list estimated to external billion, list using a value is the in in price which reference into a the on account price our different price the and previously practice our and practice backlog

list aircraft and a not the disclose the areas for maintenance price transaction to values.Beyond Air of And that, developing highly is proper as infrastructure of because reference and besides we a will energy address network one many are providing to in transaction, strong support, We whole an best-in-class don't each focused of partners use price are and developing as Mobility, services the new such to operators. we we a aircraft. create will challenges future the on of ecosystem which fly aircraft ahead Urban eVTOLs simply without the

different We secured for period. to have XX million repair over Eve contracts commonly what in XX will the also X that we customers to and bring the revenue up with MRO, called $XXX maintenance, years overhaul to

to with we past these expand contracts.Now own this business and have -- CFO, with to order XX% along service financials our checklist. Edu, I'd X,XXX roughly over X the LOIs is we in did just the for Importantly, milestone book, within of go which our invite base, about potentially like new the of new quarter placed so the customer customers the aircraft, like can

Eduardo Couto

in developing Eve XX. of our our With its and it. was our program Air to highlight Slide some is invested Management $XX system. mostly a associated Support Solutions want million to during activities I moving eVTOL The our numbers. continue up. a the majority the XXXX smaller with in company development cost and in reflect Services Urban to around Eve the and quarter Currently, eVTOL that the our preoperational portion development. as program speed said, the Johann.Now financials first & ecosystem Traffic Thanks, invested

to interest mark-to-market Higher partially to We focus in resulting mostly been moving development stable expenses continue our development. net a in expenses during the also loss reasonably warrants, the by to deployed revenues $XX $X cash in offset million control in the SG&A quarter, versus year.Now of and resources were as flow. same flat has the corporate million we period our gain which quarter, a in eVTOL last

still the with as to quarters, have remains Slide this Our sustain we in operations quarter, period versus due around its line the on up in end position. million higher We Eve first to Bank. with cash, milestones million same million the fourth $XXX consumed deliver that moving quarter as $XX into ended $XX from million just XXXX spending. cash in to and with for to hold liquidity well it's of the operations Development from quarter, $XX drew upcoming development $XX preapproved to million from access line of another we our total We remain Brazilian million believe we track our comfortable Eve $XX quarter available enough expect the credit $XXX XXXX the XX. down the We helping XXXX.Now to XXXX. of of our million

made other OEMs. agency mid-March now we public As Johann ANAC, hearing pointed compile in authority, second conclude our will in airframe align the tests of with by of the the and comments process its are out certification first concluded comments rapidly agencies In define certifying ground half certification. Brazil's full-scale assembly, to year. the and all The earlier, advancing of Once we basis them parallel, assembly prototype. to we start conclude

be of functional, an to already we started in of prepare expect of basis published and us eVTOL tooling, this This equipment site, require financial the saving site and facility in is We first time Brazil. going have our resources. in customization to manufacturing new XXXX.Lastly, but plant Embraer the existing certifications to is

secure to financing. eVTOL necessary working for the also long-term industrialization a are funding the We through

remarks, All between proceed. to of our this conclude year.With throughout we would $XXX XXXX to for please and million open questions. million our efforts call Operator, will the like that, consume I $XXX

Operator

James. [Operator from Instructions] be question today the will first Syth Savi from And Raymond

Savanthi Syth

first you'd the certification? first to X one. to following those the just start what's towards count for and if guessing plan used was they're thoughts working going be next want also, I but aircraft timing the one those, And your kind to going this testing curious to conforming the kind Are of to be certification curious. those? around then that's test of on going on of build I'm

Johann Christian Jean Bordais

as doing We'll full second semester, for pictures. we nonconforming right? very the X part assembly the the certification a the the Thank next question. so will speaking. And what what those them. and will is campaigns, year, to much all then have with produce to prototype close the this as cabin, it Yes, we right And we're the -- Johann will to be going eventually. the be all conforming of start, you of your X-prototype [indiscernible] -- indeed, it Savi, of be EVE-XXX will now, assembled is step be the be prototype, showed next will of

Savanthi Syth

That's is quickly, helpful. And that's moving really which encouraging.

the thought design Just also, the if production I might ask before and on that's the XXX. think XXX facility, maybe modular maybe looks like to with for changed production high-volume year, it was of capacity I a

change what was Just the and thinking wondering process there of the there?

Johann Christian Jean Bordais

those Right. No, Actually, some but Savi, are changed. never X it modules, with modules.

second And and -- then call we expect become we can So you XXX first XXX we XXX go XXX. a first that's the module. then what to module the then add that

Taubate XXX -- Brazil sorry, year a our get -- in units So per capacity will the you XXX, in facility year. of that's where full be

Okay.

changed. it rate. was this -- It really it never always So

Savanthi Syth

have I great. Okay. must That's misunderstood.

Operator

question And be from will Jefferies. the Kahyaoglu Sheila next from

Sheila Kahyaoglu

wanted order just I about ask book. to the

to You quarter. pipeline that but increased it list price aircraft, $X.X the some billion $XX.X billion And you last by XX mentioned versus from reference prices. amounts

aircraft suggest if seems And did think you maybe change previously, way versus tell an right maybe it? if accounting about could us price be for miscalculating then it but there? Was list it. to million change are to talk the Why million So to you the you I'm $X about change? something, it $X could going

Johann Christian Jean Bordais

Thanks Yes, for question. the Sheila. Thanks, indeed.

We're well. at You $XX.X this know now billion.

and the course, we -- We're customers end keep signing is phase backlog entertain whole the how because, and Eve still interest customers because passing We're the the LOI the shows of now to at and also that think from campaign LOI. the of interest we're sales us bringing LOIs and the of day, campaign. the the I understand the demonstrate that coming solution. the entering demonstrate

don't stop we LOI. So signing

think and as ANAC as countries, the to eventually I various First grow we'll we getting needs but right? will be FAA, per done course, as, go, a and be that we footprint the expand. will of certification it's

to -- we're that a the in world LOIs same at And But sign this important, demonstrate why best solution agreement. customers for tells think really is bringing. really important once starting that's will So time, And we're how certify, we the purchase the are then the campaign. sales it I practice.

course, -- with as a we of Let's a aircraft come up and And price. negotiating disclose backlog price don't value, the that then, the the at. price, we're the reference list

think it's that So I way. better

Sheila Kahyaoglu

Okay.

Johann Christian Jean Bordais

accounting the on sorry [indiscernible]. wise, maybe do, [indiscernible]

Eduardo Couto

GAAP a accounting non-U.S. There's no backlog, measure. it's on

Operator

from be And question will the Moeller Austin Canaccord. next from

Austin Moeller

here, do liquidity to total in to through development be question first the My XXXX? million $XXX get of expect you sufficient all

Johann Christian Jean Bordais

comfortable, access right? the the because long-term show -- million. from position million from have in are though Brazilian left, because terms -- cash $XXX which -- the now we It's As liquidity finance a It we $XX position big we We we cash, and Yes. the $XX million guys, cash a cash we access right, that position. cash still quarter, very Bank. the our decline is very consumption first we small even in increased, have declined of this actual pretty was Development only

think, with been equity a quite long-term funding implemented. been combination We of have this finance has strategy successful discussing, are that I we

We potential finance are discussing long-term lines. additional

So we are comfortable.

a say, well this -- But this of we it's preoperational that us think equity, XXXX. profile, I debt fits it's company. and long-term of for I second when I especially are sure, said, a end more the debt gives 'XX like XXXX. would right? -- mix of half this into $XXX million towards We as really our

our finance. of that, we are those ones So XX, XX long-term some already additional that years, profile. finance because exploring long-term fit the And are of

will strong. comfortable our So liquidity and very we remain are

Austin Moeller

view you lifters propeller as tilt to Or pusher increased do more range? rotors in get to impacting certification was not simplify by significant of weight cert XXXX the date? then And and using using it the that Excellent. a important to

Luiz Valentini

So important we in to us, optimize the really deeply question the for the have. for one Austin. about rotors proposing And to the went very very that we are it it was that vehicle is mission

eventual for urban respect range have tilt mind, for have is that get configuration, mission that also, that the than another the in configuration, we to example, the for path certification. we the loss the configuration rotor with see not more to we this with systems on but only with we example, that So gains mobility offset the clear simpler of

optimizing really it's have. of the being and most our can it making fit proposed. mission And the case, that a balance matter So this that is the for choices vehicle think that we is best that vehicle really the for makes the

Johann Christian Jean Bordais

operator, I need will support the also also add, to the return the right, and on the coming simplicity, the operation, aircraft, and stock for and aftermarket services, the And then, field. from which on course, more the to parts mechanic and the competent the pieces the availability and guarantee have guarantee, site. of customer of break on subject the you

the big for So the customer. advantage also,

Operator

come Andres Sheppard next Cantor question from from The will Fitzgerald.

Andres Sheppard-Slinger

their price with Congratulations in best you backlog that? listing be interest you I if expected. on LOIs? now commenting are basically realize order recognition book? customers go -- that X, -- paying the on initially are what's negotiating from in But to they not in about the from guess price, think I'm quarter. have guess way the these than going like change to revenue impact curious, the will Just customer. -- the other at are the higher that. the words, Or to to I back the that a we an just prices X I the with in all Does to uptick go I wanted the you're and

Johann Christian Jean Bordais

the Thank you Thank It's you, question. a one. Andres. good for

them customers the customers and also also advisory -- to solution LOI think the we're various we've to interface, the I that close negotiate but board, the the when and introduced those very workshop, doing scope we machine see together. we for when human developing and do the them, since first been we've been our we time concept

transparency and This been prototype following that up this the part think So we'll they customers. all that the a have is technology want and We're the closely, here. challenges learning the have. our the of very know things then as with we the have frontiers that transparency is why conforming I prototype we we're go. the later just model operate learning we right make we of right? be business we for They've and We're Eve, now, that customer flies but on.And about. the It and goes back talking return a to get for that sure customer only the just it's simplicity we're the the for for the the this also customers. to built end, together, needs Eve not and at that also It's vehicle for

different we that and of discussion, we have the we the will lending scenario asset when -- the So and the all optimistic -- and have look, fees the fees the on based typical have the scenarios parameters the what's operation so depending on. the cost operator and

the the So having and comes this the it But price scenarios, one-on-one for determinant we is you to it.I for call when price, have the so it's backlog. those a sure discussion. make to think as now really don't why we customers want right that what that's may market, list different

is them challenge, in want So we'll -- for this of the the support as that discussions them the work right? They then certify sure a we range, we'll will can right, it the want firm impacts go, the service then to or impact makes We see, I think operator point, of the it. happen. could we ready. it's aircraft. in. be and make and understand it -- some bring And backlog It think that going but them, think readiness that as we is may it that of ecosystem make also said? have to we is backlog, important field. what's is an the are. one the to what price have ecosystem. the sure the not to And then ready, another. choose does At is make We of yes, probably. it's This Once ready on what city the there's will you especially They vehicle, those is But just running. we there's a just strategy optional to support they any we that have sure team then orders is vitrine. mean, just Eve. the with go I It's where that the And first make technical operation course, to I shown evolve before. I a program a interruption price.And We then, you yes, we've and that up with show and and for solution airplane. of deliver model as make has a the that This the for them, needs

few ecosystem We on. operation ready, a have vitrine. customers and the that And orders. then get it the working will We a serve we'll we're as get get ready key the then

Andres Sheppard-Slinger

it. Got

on follow-up. Apologies I super line clarify. misunderstood time I a for quick No, prototypes test just context. But to all I and just wanted flights. Okay. just that helpful. Maybe if appreciate the this. that's your

I if the half the first just year? this got similarly I to sure year And that QX the be the prototype test prototype year? of second flights timing X of you're correctly, in make first to right. this So the want half to second of begin I the assembled expecting and in then in other understood of then

Johann Christian Jean Bordais

in the assembled correct, finished that then of year will prototype be let's without production end will But mentioned. full-scale be, we and say, nonconforming, Andre. we X you being what by the next as the second call Thanks, assembled first start of the Right. is quarter. XXXX, it, assembled cabin, That's the important. will Indeed, prototype the okay? conforming That's

Andres Sheppard-Slinger

I see.

test in beginning be the year? the flights Okay. And one first the this then of will in half second for

Johann Christian Jean Bordais

That correct. is is That correct.

so So ground type really and we'll flight this like we'll test, the the system tests interference, the thing, have of electromagnetic before the flight. on vibration control and start different can that testing, eventually test right, we flight ground doing, be instrumentation

Operator

from is question The next Instructions] Motta Marcelo JPMorgan. [Operator from

Marcelo Motta

here. follow-ups Two

cost to margin necessarily eVTOL. you that back like -- average on read of costs mean the that going vehicles. that the say, just let's sale we of higher or First, as price the a doesn't is a Should construction development higher, pass-through have of those just

So on you prototypes. this the conforming about with certification, guys update And just follow-up. mentioned the ANAC, the

to So the here? just potential time bit by any understand a we the base line continues positive, or surprise XXXX could case more the to certification. to on of certification be negative little the have have So

Johann Christian Jean Bordais

for X you those thank Marcelo, questions.

The you talked margin. first one, the about

I think again, we a creating decided There's decided right? in breed go -- We we're to the of -- -- -- suppliers. COGS but to do the to help new lot for only segment, We we're have right? a When and have weight, let's side. for right? our that challenges, suppliers. go aftermarket, have it, comes whether all risk-sharing the for of the them performance We on best the a It's it's vehicles challenges, it's production, vehicle. the call also not it partnership the we and us only development, learning, the the the the series, certification also and with

make sure right on [ we're be but this the think that careful, of in the well, it kill vehicle. here return? charging got It see, you lead you not you focused that right to of -- have what I about the will comfortable first, purpose.So to going we're made margin we, sure about I and the of we in be going now Valentini exactly to do making don't only the sense. right be cost We charging have be balance eVTOLs certify. cautious and It also operators There's to just development spend the that And I We're a well, cost and for it's be will of only to Like we and that yes, the that to make are be be get said, be we what are lot you of -- demonstrate pax money, give certification, for the that only selling it's to the cautious that a And It answer part XXX And that with point first going we're that's clear trying that but question also reasonable. right? how very, segment, second making the the to can also to You but long to look I the actually eVTOL, and to it's money what's with the it. to this. not we're about margin much the is on talked customers on that will and very profitable needs delivering platform, ]. them, go effectively. operator. very on that it be to it going not on time the general.So customer. this sure make update. make to will now, needs had way, and want know We'll sweet can this you all, the customers, Eve cash, the an But the will a we're to no want doing. think is do to we how to we and the risk-sharing be and the all needs premium that's similar we position, to will us take of

customers I the for long be long to -- and And if it's partnership Valentini? and need run. with part, the want have so run, think to for a customers we and ourselves suppliers the we profitable, that for be So we to want second be and both

Luiz Valentini

Yes.

thank the for you question. Marcelo, So

way we in to project ANAC requirements And they compliance, developing really is. certification that year. so certification project mature is call requirements put have in basis today to of how which the But goals we are are right? solutions able that stages be detailed that's that that then you with of it's design as in are why will course, on why vehicle move understand we to our eVTOL and our a the we that this that the authority, that the right? we the been So that defined, hard compliance to of specific the on remember defined case important advance working the show which step the the ANAC, as with very comply So requirements one needed that in early will define the are is FAA. what a can and requirements are eventually So established, primary we get we so certification to these means with of we for standards, we basis other are that's and way confident for

align with And significant the support project.We of not on we with phases what the ANAC, to the FAA whole operational uncertainty, the how for will I industry, mentioned, in project something also example. that only is as Europe, established have the the basis other And basis for and our EASA some both have of to make we development the next authorities, on uncertainties so that requirements. affects are we still significant sure have vehicle some working this of and the

pilot training, flight, what also but requirements, So like operational are be still will both requirements ANAC for and for that. developing includes vehicles. includes like reserves FAA the these This things things the

still that pointed, affects in 'XX, today something depends, entry you is general. we with the lot have So authorities. are where a done. and that to be on we're respect basis development, into With in project, date. the authorities on the to maintaining on still service mentioned, on on working the with we development the that you that that are and think This still the We but we certification as based targeting, also we that's are there

Operator

from the von will Cowen. And question TD be Cai from next Rumohr

Cai Von Rumohr

of to us expect certification start key the flight you basically do are flight And conforming what when do start other then And test secondly, the when to hope milestones tests? Guys, Terrific. you prototype? you not specific that to to give as frame frame? know a maybe date, time but I get we're it's time some us for when might looking and those. certification to start

Luiz Valentini

Yes. the Cai, thanks for question.

and flight this to we then year. the half that's So think we that towards next you development because, that, period to done supports second after of the get some maturing that expecting into line know, there for in is vehicles are fly a the the flights the We entry prototypes in credit start certification. service really to of during as 'XX be time

let's fixes control be any like let's have that, is aerodynamic finalize, airplanes, eventually of deflection control with the there projects, flying with, you're wing surfaces, the in So to have that some made. and say, fixed of -- that case things of say, that's usually period to you even tuning which all laws,

and So get in-flight and you a really for configuration which to certification. definition in configuration finalize the credit then you start taking you can

until So in to of believe respect certification important we service them. development 'XX.With in time milestones, then, is into flying support in certainly, basis something this entering the second the still half of one that definition next year for is will

We are working with ANAC.

earlier, the support now also trying can mentioned I much finalizing means as the of advancing, we process them as their we for to basis, mentioned we in As of example. period as discussion on compliance, commenting that have closed, certification but

steps next the of be as what of then will certification certification plans process, by the for the of support compliance flights these taking the means certification. authorities the will credit such defining the approved being So and

the communicate be and basis. progress will there to certification. certification the see of for will also test start the the that preparedness So believe, help other after will stages finalizing flight I we for you These, the

Cai Von Rumohr

then challenges technology other lift I are you eVTOL, the with design. key the it For example, cruise which And a is anticipate? know Beta, has what

cruise, done from they phase -- I you Valentini? little but for them basically, have tech now, I longer transition maybe took think it What lift challenges are expected. was to the key the than that do think a think,

Luiz Valentini

Sure.

think, Then that making flights. I limited vehicles right? but everything still that encountered. power, after ranges, longer are everybody development I'd So that having mean, the already I quite everybody So right? first So have a -- few. with batteries also batteries the encountered payloads, work it's is to the higher say, challenges integration a think I respect making this there for for using on stage there one, we We was is are some work only. challenge, know I today the with of are think and that that that, electric

fixed-wing don't conventional for flight have in inherent that they vehicles, stability an example, So these configurations have.

And on the fly-by-wire control so that means that we are example. flight systems, much dependent for more

this being these or any that configuration, cruise developed this of is so or a change be that complexity that control.So for significant bring the maturity. control something Praetor our EX, lift flight the new phases on there something transition has right, are few Embraer flight it's we feel flight the with plus fly-by-wire, other very the which see been basing between Embraer it's of developing cruise much phases prepared these a rotor and challenge with of been we doing hover C-XXX, we in tilt very is us. fly-by-wire have, background for that are And of at flight in the that last and bring So that systems new eVTOLs fly-by-wire lot have from also, or to high a doing with one has but we Embraer that we flight something in that is that That projects, something requires we flight a these will right? airplanes be or technology,

that think, the of is in this I that So that I And vertical the flight with challenging will to is getting with the battery something manufacturers. for then of fly the I think be all in to faced. the combining challenge think power fly-by-wire summarize, flight, a has the different systems that everybody flight, I -- mentioned, also especially eVTOL the just phases in

Cai Von Rumohr

is obviously, -- operational the requirement as I pilots some upfront to of you training, is, the to have on a the schedule are question, know, Terrific. what to to operational to that and of I or you have X as have the we I be they the think also be do design that? not. requirements where to last FAA do need reserve will you impact keys able assume, needs are to Do your do of answer. changed Great which know X ANAC one is expected expect and reach finalization And still the where kind the FAA whether the training? finalize on requirements because,

Luiz Valentini

you, Thank points. important very Cai. These are

last You've expectation I And has requirements, mentioned but a -- draft year, the FAA these by they been in a There from finalized a you the had, the really requirements brought, don't that has And development have you is that But of were, going if now. expectation we most clear an there the significant a right? been industry the the really, quite the the would from I industry. of these that think, publication. couple visibility part ones the there information -- process are think, an I points from industry soon, through, the happen.So right? a following be year, the by think, there's these previously finished very the was end think, publication FAA of I important received of remember, that of new significant are these have that is be think that a that -- will the we have you the that that I we to of when same going pushback expectation

requirements. expect be final the We this publication of to a

not a as end, will publication that there there's when change, as pilot will these comes that that the final on a and example, where and where but We for expect, think, reserves. when will But significant I is requirements FAA, really industry be also happen. training Eve, clear for statement from

work than mentioned the detail with this you second without that. semester, any but time So of we more still that frame

Operator

concludes question-and-answer gentlemen, to Aldworth Ladies over our the this closing turn conference And thank for I you. back will and session. Lucio remarks. any

Lucio Aldworth

Thank joined you, Chad, today. and who call the thanks to everyone

As accomplished milestones you and engaged much important past and more come. see, we fast, moving We're this fully to can there's several quarter.

updating So look events you as upcoming the in the meeting we're next forward prototype throughout going on to you to going attend. are and as to on our well we progress few prototype the to continue the quarters progress

out my to questions, hesitate good reach day. any As don't to always, if have team. a me to please have Thanks, and or you

Operator

The conference attending for has you today's presentation. concluded. Thank

You may now disconnect.

Eve Holding (EVEX) 7 May 242024 Q1 Earnings call transcript