ACHR - Earnings call transcript Q4 2024

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Operator

Good afternoon. Thank you for attending the Archer Aviation Fourth Quarter 2024 Financial Results Conference Call. My name is Cameron, and I will be your moderator for today. [Operator Instructions] And I would now like to pass the conference over to your host, Eric Lentell.

You may proceed.

Eric Lentell

Thank you for joining Archer's earnings call. Archer's we Lentell, forward-looking be Eric statements. is General will Counsel. Today, making This are as as on we forward-looking events. based These statements assumptions new or obligation update of undertake to of these result statements a information future no and today, uncertainties risks cause may from and differ actual contemplated. There to materially that are results those

factors information filings. SEC about uncertainties, For our risks more please refer in and these to the risk

measures GAAP turn is today. And non-GAAP also in financial GAAP measures. to be non-GAAP of reconciliation now to will letter financial We shareholder Adam? and those included from our and it discussing A release Adam. both earnings over I'll

Adam Goldstein

future, founded Archer will be clear highly help the and move necessity. that autonomous I aviation ubiquitous, through isn't This and a fundamentally the to air. it's When future XXX wishful it's of how look thinking, we the aviation transform you electric. reshape into years

can safe, overwhelming we populations scale this aviation the locations never and the we transportation estimated unscalable. By world's the inevitable legacy remain get travel it, XXXx the and flown. at systems as to is Our cities see to are can't need keep the population growth ground-based to highly our to without I and cities up the To truly X/XX and XX,XXXx absorb must B. the autonomous. that to networks. To at I way A we our scale infrastructure masses safest and cost are the fastest aviation only software ground has It's of today. aviation is accessible ubiquitous, way our from people mean XX% of growing, antiquated democratize our that believe become achieve this air

burden too technology rely too its systems on limits. current and places much high antiquated already operators reaching human a far Our on

decisions. to focus oversight allowing be the the scale battery operators to strategic to we a can't planet. Luckily, airspace And come levels the at delivering exponential highest curves and ubiquitous are will in saw ubiquitous on of of human improvements utilizing of what of technology operating systems similar our aviation with of cost, operations, cost our AI safety at expense following this Software-driven able computing. fraction future the to

Archer coupled AI, and investment has in of with way. We're inflection. on next decades, And has the begin the to electric able range limits dominant unchallenged force ever and an electric an be of has over to in to this I opportunity Archer of aircraft. The Midnight including across engines industry lead will opportunity technological year. batteries, power thanks for drive constrained unprecedented now fundamental increasingly levels It's And making duopoly been rapid later incremental our But and use we an the revenue-generating for the responsibility over by X the deploying powertrains aviation technology commercial to the to So transformation increasing XX the build. years, the believe aviation. of last improvements track to of to legacy we're global aircraft stuck industry, breakthroughs in aviation. decades, poised technology time acceleration the

a execution lift first and year; focus flight this Midnight, highly is Our aircraft. Midnight congested that advanced most vectors: control the aircraft the but vertical airspace. Today, civilian hybrid opportunity for decade plan believe our an starting today development civilian developing our integrated our air hybrid as paying well to business cities, optimize electric simplified deploying software, are a next-generation on military cases; multibillion-dollar I Anduril, that as designing under and X with commercially three, systems we're and product use in both world's to next-generation automated aircraft, partnership I'll leveraging which spans customers building manufacturing our our deploy propulsion with and defense, AI working one, taxi this in with is is two,

As in fall, part find back, eVTOLs X; remains market. Last fold. structured step a bring Midnight for commercial to of we're the the partner of Taking the of key the and U.S. path place efficient safe to the final into strategy the new FAA the industry, the I'll most safely phased into the a puzzle day path exciting has our to from put clear framework rest rollout Archer needed a bringing to create our same dive this, as piece the of for in it

with the to Midnight adopters program are creating taxi in year, They certification. After across for will program, of Midnight share revenue. commercially deploy in final who the have to stages air work we stand the are dozens just will we over than engaging countries advance hand-in-hand. These are type opportunity pathways our I'm of X governments excited the details early through here highest will these levels today to more us of several to aircraft work of our adopter continue we partnerships the in at Launch about globe FAA last true early certification regulators that While forward-thinking us work allow the Edition operations markets deploy the to customers. worldwide more generate which to type with U.S., have partners These up early components. to

of partner be technicians, local will goals, we revenue strategic be leadership. generate well each on of next fleet tailored positive. one and over These of months the with the but Launch arrangements First, support operate a are aircraft will XX we a engineers we aiming component for of showcase based margin Edition to team them and in provide XX and will as and where their as tens their operational an services pilots, supply countries to millions to small

a if Aviation announce first Launch in playbook ADA signed create not up can to today Abu hundreds And partners to we have with to as dozens, Dhabi is of globally. partner. goal we place, repeatable scale as Our proud known framework I'm Edition that our

revenue later us year, Dhabi generate in with them Abu allowing is to this to plan Our agreement. the deploy aircraft under

Falcon, work partner and we to partners across plan continue regionally, pilot who we Archer on Etihad, part the with infrastructure will with which As scale country in help previously other to this, and will have country. This includes announced. training of ADA

All be closely to aviation to of the in GCAA, continues to who working expedited thanks UAE, with alignment we the unlocked, are early in regulates we have federally which operations our ensure this with to strong the pathway an country.

to further later for many this ahead in progress the catalyzed commercial with UAE in Our of early year with has and operations our bring and into the Africa type Middle East, in broader us multiple across Asia interest us opportunities countries talks certification creating U.S., the next.

train to partners, our in and L.A., route New continue we planning manufacturing. for initial and Southwest Miami software aerial we of of must launch pilots into operations in and planning, building plans our our York. all plan Here ridesharing the our airline partners' our scale United Archer's enable to the Airlines U.S., with key this, cities, and includes Francisco, integration working This San software recruit stack. To

to We our share have early to completed to program as but will us XX ARC, year for a to part that Tom this progress, thank our team deployment plan well about to point. as up of aircraft take factory Georgia, use tirelessly as and want get manufacture internationally. Midnight more our I our has commercial worked in moment who to FAA certification

here have The ahead, challenges there world scaling we tackling of are U.S. team first be aircraft but to best eVTOL endless truly them. in in its the capable know commercial believe the We OEM I production of the piloted

with I announcement we Anduril. want the for exciting talk are seeing aircraft developing to Defense. Finally, our I'm December, Archer about hybrid last from demand outsized

partnered calls, earnings few innovative Department companies last Defense. Archer. are We meaningful expect I've will too the Over business the they to of I telegraphed can sell have builders that Anduril and with because defense be successfully proved for how the new

is. have build an the believe I FAA the multibillion-dollar SpaceX, need the build record, unlock military defense seeing we the our now the closely vectors We're a here. and fleet think to for of vertical to aviation, civil well for the in of part powerful Anduril potential the that to core, we plan as develop certification. Similar of those I proud America's between is of opportunity cases all mission to defense requirements our make programs without am lift can to what synergies working flywheel. and future to our future impact with result As use as allies modernizing we're aircraft we have

aviation Trump diversified to America's defense I've global the leaders a months, As modernize technologies. last important future that access ensure our administration cities both in while becomes leaders increasingly I eVTOL on to are the as role here further help building when abroad builds the from over clear we credibility our with and world's the talent the civil helps experience priority. and met how leading in the in Washington military our of engage revenue the streams, industry it's the at in national Archer few the U.S., technology, can technology build elevate has side This and and

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technology generations shape have ultimately to our to future a for We that once-in-a-generation come. of the defines aviation advance opportunity and the skies

building. Over keep to Tom. Let's

Thomas Muniz

variety software been electric to cases. use of from and advanced goal in a has Our perspective to always an engineering for build leverage aircraft advancements propulsion

as foundational and scale but reevaluation can missions with delivery, our configurations adapt from and for conceive fundamental propulsion strategy incremental aviation aircraft control the technology a this yet of was in aircraft and profiles. mission have electric built advancements applications core significant across medevac can technology air to Throughout Our software, have mind in includes adapted as of. cargo platform, multiple urban defense mobility, most Midnight, improvements, system not flight from what's multiple we that and come for possible. The history, be well Midnight,

the are analysis same maturity with upcoming to our can you flight letter, fly moved control piloted at necessary ground we've the testing of This can of a Midnight level aircraft one ahead our piloted shareholder in pictures and perspective. This certifying only flight flight. a safety flight. aircraft support amount testing our the be its to now facility our system, the of from from thus must final and Salinas tremendous FAA, that before for that requires see piloted requires we As

Geoff A tests at our working declarations tests injection been actuators the safety vibration qualification from facilities flight airframe point. Midnight individual of on over of and completed computer no ground a tests the for and our Flight tests relentlessly over Chief highlights. various that across key get in few other comes as covering and learned completing built load of a careers. eVTOL the full-scale Safran flight R&D of many Dr. of with there our us fault it when from comprehensive series well this we've propeller their for and we've France; has completed aircraft Bower, all in flown What programs successfully deck are Garmin; as eighth to Engineer, flight. safety of our are just systems to Honeywell all aircraft; will include: examples testing stress testing team to EEE and This that few XX,XXX pounds. These is Our cases the the be have myself those endurance, of shortcuts

of longer our taken systems. aircraft we our in our confidence this projected, safety of thoroughness the and it's than deepened maturity pilots has may and the design ensures While have

VTOL. phased continue was and takeoff to the come design provides the capable our loads the we increased additional when aircraft resulting operational support had test But our can only only well of with to capability first. to far for important landing both greater landings, additional that and to from landing. landing, a takeoff not the We us that operational ahead focuses loads to are than designed this and not conventional options critical more commercial airframe this test approach land vertical aircraft design gives and capability through emergency free flight this on as Midnight, it to believe gear we as our Looking flexibility, decision plan that as be methodical, is it to did where campaign, the come pilot transition in in full take the take for you aircraft deployed safety safety can before situation. flexibility team a We of we you of will levels as increased When also was first envelope. conventional expect but environment. This which an

progress with pictures on all made help program for of the enable aircraft you that tremendous some If This closely you aircraft certification released at positions Midnight FAA. our look the new see Midnight's type safety momentum activities of this. of today, in landing the piloted can to us gear refinements the on of our from we continued prior we flight

we certified. progress in Recently, launch Flight ahead. In updates the we operational This parallel train the GCAA. to Midnight I'm this to the certification, goals. We've X against. to our path to efforts which XXX announce of General launch partnership. document operate the announced Part continue Midnight excited share to type another approvals certification we service from UAE's of with our once our want well finalized the the front UAE taxi important our needed down allowing market executing FAA commercial we've years, with FAA Civil We for our the regulator, strategy. bring air been in on critical and expect type on Midnight outlines in continued steps substantial work making the project-specific country, quarters Authority I certification to the Internationally, pilots, now with is Aviation that significantly us we for are thank the as the the of to Training FAA to element accelerated achieve federal our securing and working we've Academy, now nearly plan certify needed them

expects begun compliance earnest year. data throughout to first and and this the that already of review half have to submitting UAE for We the work acceptance on in

to expect that planned see our day. the XXX operations progress country. exceed it focus as piloted and With to testing this our conditions summer, aircraft, on deliver high-temperature in what to year This we'll we'll Dhabi the our begin testing UAE. you with first can can remainder during in there flight Here's efforts of over in regard degrees Abu Midnight the

passenger is our and performing the the intended that to flights with is efforts heavily aircraft launch. Critical in to we system deployment instrumented working runs Subsequent flight proving remainder and a Midnight XX to aircraft early that, of comfortable UAE, the Fortunately, cities limited flights and ramping designed production. some for support aircraft, climate to survey Honeywell ultimate network including in designed control maintain and our we testing commercial cabin plan on to environment, up our Edition all as these supporting for is of to towards and Midnight operating to this commercial from year, around plan operations deployment. temperatures. performing to This build start X testing locations Launch market

aircraft target now to is factory Georgia Our first by early of completed out this operational, summer. on factory and is be the produced

months thermal Finally, is aircraft and a partnership product boundaries our the core continuing on of the regarding Archer indicated Midnight's ago, Defense, when directly best first already VTOL of while signature. low developed we hybrid announced This we our exclusive to be will we've with what leveraging Anduril planned powertrain a acoustic few that build program what's push a to possible. technology, with

get team Priya. that, this year, Midnight as over is opportunity I'll the turn details yet, passenger that exhilarating. With when next we progress the think I'll extraordinary fly and to is it While by a more can't share to can. The making we time we will is to

Priya Gupta

and cash growth balance and 'XX enabled QX sheets XXXX we've giving as for was managing agreed balance. position in our defense Tom. important of pivotal significant industry. ramp, current of $XXX Archer. Thanks, exited balance have capital us aircraft. while note our a $X QX to commercialization in commit include our significant industry to strong to in we not sheet, made with goals quarter our continued In see of $XXX highest that billion liquidity ever manufacturing of the has million scale readiness principle all we invest a is cash our of in equity demand. It investor and did create parallel, the the by all of QX help additional to made cash raises does We any the our engineering appropriately Midnight to million up on milestones, strides the to This end in billion, progress diversification. one our of was reaching currently the liquidity Stellantis of over and financial $X to an quarter business. We industry-leading spend manufacturing we equivalents, strongest

working Our this complete Midnight we and capabilities would continue agreement expect, for teams that the as ramp-up testing spending in the quarter additional we aircraft expect Midnight to aircraft. and you the to that and and our build are to development, manufacturing invest of our the finalize of hard certification we regards as to year, testing quarter. With our in

operating our quarter-over-quarter. Non-GAAP guidance to range a both were non-GAAP million within were $XX.X million total $XXX.X were our which million, is relatively our in the within also of GAAP $XX provided. was million $XXX guided million. and For with line $XXX expenses, results to expenses flat our basis for our which QX on million and GAAP operating for spending were range QX, And 'XX, expenses previously $XXX

For primarily million expenses, included non-cash of context, approximately our expenses the of compensation. GAAP operating stock-based $XX.X driven by $XX.X million

For to full GAAP scale-up. our in million, full increase we and people-related and were our phase XX% as for operating well due increase operating a of our have and a investments our year-over-year, as year year testing current materials expenses made to non-recurring the spend, expenses engineering aircraft million, the $XXX.X XX% support were primarily non-GAAP manufacturing costs development XXXX, year-over-year, the $XXX.X

This build-out on was of which all our investing in cash Our for used our activities drawdown for $XX loan. spend million. construction operations included through of million facility, was ARC of offset and XXXX approximately $XXX.X the the

ATM over million operations per ending approximately by quarter at total net in million our drawdown ARC, the the balance and average million a This on for build-out XXXX includes third by end forward was path our raising loan and and this through programs, our in commercialization. has of XXXX. We primarily with the and to XXXX the Stellantis. the of significantly final our financing to on This $XXX.X Excluding $XXX.X our cash equity purchase increased cash used December proceeds from XXXX. our tranche under construction in raises, equity arrangement $XXX spend August activities investing derisk activities helped

manufacturing we goals the confident of feel aircraft look access Edition hybrid towards commercialization capital So, to have very of development the to as industry, this we we defense our sufficient the ramp, ahead for our year deliver. of that and Launch program

of adjusted As We generating a cash expenses. this operating our to the using later proxy an operations pivoting closely to we non-GAAP guidance which in revenue instead very believe in historically, we XXXX, metric tracks operating prepare currently we to for was metric expenses. new have year EBITDA are guided for better what spend operating and non-GAAP is

of are and For loss to we we continue to our by well commercial EBITDA to in currently continue as anticipate adjusted about XXXX, QX capitalized I'll the we $XXX be million growth with in be Tom. In business manufacturing a earlier turn discussed back $XX it our for of Adam of and ensure to very summary, engineering, million activities very we and invest Q&A. that, to can to over Adam? the investing thoughtful achieve goals. And Adam

Adam Goldstein

quarter. Thanks, this Priya. new tried something We

questions the of platform, retail voted So, Those investors. through Say platform, from the we now questions. through some answer collected the questions top on were we'll and then

expect you or what commercialization, announcements going Edition today can FAA yes, X accelerate about. come. key the are that customers are major partnership question partnership more here certification first different regulatory remaining steps to commercialization? So, want investors you we Launch So, think can for can on, Aviation was, accelerates I that the that any a expect announced to major and there's focus tracks Dhabi to Abu with and But

this Launch is type and track. FAA track, aircraft the certified is Edition the second The first

on we deploying receiving that not on So, type Edition are these are the aircraft track, FAA certification. contingent Launch

industry. as this think doing doing be in want because large countries the are they very possible. why this? soon it's They're to going operations and they start to So They believe as

these the and locally. deploy, allows UAE, those them we're perspective, build aircraft the in working to pre-FAA can this aircraft with Archer's we to So, us from type certification. monetize GCAA certify And

We operations everybody approach. together. This do safely. learn crawl, run eVTOL wins. So a all is walk, We can it

certified type second is the FAA track track. The

regulator why in largest the world market so, does here FAA this largest U.S. in in matter? the the Well, It's is world. And the the the

But So us that all close it's important. the they've obviously to line. needed issues very allow been are industry-wide out cross finish not the to able to

us that And new so, to to administration we speed teams continue that but drive things the results. that up on was I'm ensure our work track, to confident going help

say over question is second the that from And see when on to was, going to platform are Tom. flight? piloted that The we turn I'll

Thomas Muniz

Adam. Thanks,

the flight aircraft assembled, in test can down our So, everybody facility as it positioned fully we've Salinas. see pictures letter, at and in our is Midnight the now shareholder from

going point, We we're specific prevent now ground process just flight. finishing of any I through prepare us finish for or the get So from the this blockers remaining know At fly. to to up of to tests, ready don't flying. have tests issues that

I we're I flight of to the happen on which first that our I As said for call, completed to And want want going on fly really been years. because aircraft, won't give team, being last but a remind should last flying hundreds put soon. we've everybody, prior specific that pressure undue Midnight date I X.X said, on the we've unmanned flights the don't to

feel of confidence dynamics aircraft at have platform. flight lot a understand the confident we point, So and of in this that the we really the

if flying a can year. And the we aircraft as start to really order efficient do you all So, the to completing support open testing commercial we path with we'll our need in call that, to for we have questions. goals up operator, more this think this year, launch

Operator

Chris from Needham. question of Instructions] The with [Operator is Pierce first the line

Christopher Pierce

millions correctly Adam, -- of I hear of tens on on to these you Edition clarify, margin revenue and just you did aircraft? positive Launch did

Adam Goldstein

that's yes, the goal. Chris,

release terms is the standpoint. contracts more to make But positive. just ] on million-plus going of the from these so [ -- and competitive for the contract to $XX to exact a contract it's goal one, a And we're not this

Christopher Pierce

a go. the be want want how have Edition, Okay. moving defense, are sort now moving in to And book, of of the book? Should constrained we front as around. now book or should that extent then, might to order sort the got what you've that of order that how to looks book I of order supply things the get the of you like I front we -- to the to moving the or countries Launch you think about but know just as sense order of think

Adam Goldstein

it's a Yes, great question.

the ahead I'll Edition of constrained the launch order of So, the book gives is, of say, lot move to a within country. ability Launch the some ability by specific The to program a us local full certification.

imagine countries So, are lot out that are there airlines delivery to launch out take you because can aircraft customers to they in there, want of out that scale there and a these learnings there, operations. of need there order operational

how to trying just these get aircraft. can they're So figure out they

it could community us all And aircraft need, ability local add planning, the they do maintenance the to they they and that crews, route can the that train teach So, pilots, things deliver engagement. can go can they them multiple take can all figure gives so them out years. they

that, groups with to that. take very countries. different is the we they true in very clear UAE, were willing and and to So, this started for aircraft dozens of That talking was interested about starting that it pay for and

be and there that even ago, buying Serbia, after saw out was leak of with going aircraft. you kind release to press the there in I President came so, one was of And I that, Davos. out. Several that said was a that of met they're them weeks

lots aircraft. see getting are in can there are you interested of that that countries So

going book this the global understand larger to and the all allow to the a aircraft good it handful somebody there's demand to with place. But to year. And because there. allows a that order start it is go deliver be me in place come from helped for we're in as is the over fruition, it news, not we'll able relates the to really XXX also then orders so They'll to operations put scale this to and

precursor the the to like order is this book. So

Operator

The next question line the Raymond with Savi of Syth James. is from

Savanthi Syth

book, on a but question the guess to so a from bit more a the I just production order prior follow-up of standpoint.

about more guessing then So, up FAA XX And on demands meet kind authorization? generally, planning of this you that you'll even aircrafts you're before as get sounds produce you But thinking like I'm to these ability year. producing are scale know year. of to some early this you how to the

Adam Goldstein

Yes.

we So the about. do think we that's to Launch monetize found a and And the what concept can of that was, And deploy do every we all build? that. this Edition aircraft how pathway is okay, single I

So not we're what of quarter. real here did the is like business. kind or aircraft deploying negotiating sitting we starting do completion percentage and arguing actually over about in of the This

that. kind XX that's high-level of -- ago. let's several way building, of guidance and what's the of is about and manufacturing out put is exciting. We quarters kind 'XX call of tens So around 'XX plus is The think aircraft to the version that it, more in more scaled

they're scale as building and we're aircraft. can taking together. delivery customers The learning we learning So these we're are as

Savanthi Syth

on are of and that helpful. that, might work? you side just where Adam, a little That's can in talked development bit software kind And like then color more about, provide on you the you how that the

Adam Goldstein

our about call, year to be think earnings to to about, I saying, a is back you started starting The this Yes. if is, big I I ago, defense go a way going deal. think think

be be big it to mean, bit I but I to lessons, a little probably deliveries to think the for a it's -- industry. not there that people going program. to eVTOL -- what a And different because was is reality were understanding than a deal the were as made good the useful basically lot able of were Agility launch full-scale seen Prime learning were program the it's

we something that was to And heavy fuels. hybrid had me to so do type very clear with of it that was some

about thinking very same be thing now for been going that is we've software. with become in so, is And important. process software a clear of The long that to It's part happening time. very me the

movement we blown So, on all they customers, built, we're away. that started lot very control we and Stuff of out very, were building maps, working complex started our with very and is and our we what building useful. them of showing

really the booking about that perspective full control autonomy. and thinking software. and experience into value started then movement so the And chain into from with we the And customer a operations starts ultimately control across

do. do bigger part what will we of I think so, become And software a

I of key think potential And think new to big. line to something for grow be something think it's very, be it's a you're to that the of scaling. I us, revenue also I very going can the all from software see age building new global across industry help system broader make to aviation. can we companies out aviation and aviation scale to of sure sort safely going kind new benefit

Operator

with line Zazula of The from David next question Barclays. the comes

David Zazula

the color you time testing aircraft, what to are program. a get give us there get would could on on frame conforming need you appreciate the more expect be? and the Tom, steps we what the and to plan to the potentially to Could some development

Thomas Muniz

Yes. program David, from test we to on kind set flight very targeted we aircraft of of the of calls, for support parts prior test conforming need the of talked done, our and objectives. detailed that plan out what beginning each as test have to a about so planning exactly we've we our

be would that testing for the as do tests aircraft. Subsequent the some Salinas, components, have aerodynamic been which to measurements all first honest, conformity share plan this until the plan don't other of But with X at lot can of issues on or And FAA. that's you doing that we close that close of will we're that, that, is in on while to topic to be out. we of aircraft see still we're there's a now. we do are have increased kind risk the aircraft, support to expect all with waiting set required to And right where with of pictures an example, for thought here what with final level for aircraft a made we to So, out down to those conformed, system to any aircraft. be there we is to along onboard support

kinds reminder, the these talked about aircraft. with a landing As was issue related emergency deals time whole this industry of we that how to for last

David Zazula

just commercialization we everything Adam, Got you it. as trying early has been Very been on do getting to think to helpful. always And understanding possible. my as to can then, you've as focus strategically,

time to towards resources this of the the why you and the develop initiatives DoD process was original arrangement the you're to towards and aircraft? think the did resources to devote aircraft. certification devote kind trying commercialization right the to decision hybrid towards the work still when I in With those of guess,

Adam Goldstein

a it's Midnight us mature. is now for good the reason quite The Yes. is becoming timing aircraft

so ultimately more a And performance mature, of wrapping staff next that there's on big on aircraft up. each down, start things. working can entire that or as type they The gets are engineers And program. individual up big are them of system chunk the the those off of things that and rolling aircraft. work a steps But of start like cost they effectively

So start it's platform. a great new time them moving a to to over

work and be of on that flight the the of Now, and different people. there some some stay But certification stuff. course, of lot other help test improvements those teams to those will of engineers to teams support a are

there's and that have of are working I incredible that build a of here, products. new think assembled need these just do some So to ever engineers, best in to engineers we of lot a huge some aviation the

of hours other The can them a in technologies. go creating bring go get new about the our where is, business. are where civil taking defense work these We can these flywheel certification. we're back new this back the and lot require not lot learn new aircraft to on a we there FAA technologies, with the aircraft then thing side does of and turn, and on certify technologies, them We

priority they finally, more So the military works applications. for look national different well. And something U.S. that strategic become really a as we've then of at

have helpful the can relates strategy. to it on the defense And you as side broader civil a very so can we the help and you when administration viewpoint both where imagine side it's

think think pretty I to this. a be compliment, it'd net-net, disadvantage a huge not it's and I big So be doing

David Zazula

color. great cash That's the just about that be in squeeze arrangement what If the raises. equity and we could going on the How should for Great think I portion Priya. is with news of to towards dedicated Anduril? balance one

Priya Gupta

David. Thanks,

million to talked quarter. the you our of was range see that last you of million. is range in call, is QX in -- earlier we as And can that what the the saw provided similar about to we probably spending, range saw which $XX spending $XXX So, you

how you quarters. think give guidance, typically we the me annual plays walk coming don't let we out but in what that, about Beyond through

we're we're in mentioned, revenue-generating Adam as seeing through firstly, Launch opportunities Edition that our of So, opportunity lot the program. a building the to aircraft deploy

earlier, maintenance And positive. to up revenue business. learnings, just to be that we're the And pilots, of execute get to margin of but engineers. test goal to so our operational And but set to gross program, be team invest also not the we need that, part is growing staff, as flight generate for success, of mentioned in that

opportunity. how specific already generally So is program. And we specific very that's our as large defense, maturity Adam to we're and fund mentioned depending question, the off and this leveraging Adam capture it's of in resources be side the I we about the again, may a again, on nature opportunity, the as upon choose revenue reach the rolling they're we design Midnight that to think again, engineering how able business. But on very And existing that to they're defense large your to of opportunity. think -- hit program this, opportunities, as incrementally onto defense about the to invest this,

offsets defense So, lots execution generation, the here platform takes we and and defense new to customer between both revenue and program, Launch of the get Edition contracts. and the puts potential from the

right we that. we for we're range in stay are still more generally So point committed where to to and time. -- QX, closer And we're get and when all But with so we'll we're thoughtfully. any our of share making able additional comfortable to we investments very assessing now, that

Operator

Deutsche Bank. Edison line of comes with question the Next Yu from

Xinran Li

like Laura the opportunity Edison more. a into to bit is defense I'd today. for dig little This

what Anduril? next for with So, the are steps partnership

Adam Goldstein

didn't I question? the repeat quite you can follow. Sorry,

Xinran Li

partnership next So, what are for the with steps Anduril? the

Thomas Muniz

it. Got

a the what So what aircraft, that of existing hybrid building Midnight we that sensitivity is steps? there's some can VTOL process right core of to are see meet leverage needs capabilities goal and lot the share a the of we're building. the program the we the happening. from program of the And and sort a it's in to can we now. not that the is, that we nature of aircraft next we the have are given But say lot of it, So, just

on comes it. So out that be will program, we sure share information as more to

Xinran Li

frame Also to would Okay. could DoD? like a dollar Got the win terms large And how what like with record such you. like or program realistic of a be of time value a program in volume? be

Thomas Muniz

don't customer real is are very I opportunity have a be real with that's again, very but that here, going we're additional So, there and we share real towards. a able I know need, about very working a to to color what

And we'll sure as information, be so, there is it. share to more

Operator

The Canaccord. next question is Moeller from the line Austin with of

Austin Moeller

price here, Or about question given first support a fixed have will introduced customers? and for you contract the initiated customer Dhabi and my standardized news number training aircraft value of pretty x aftermarket to deploy Launch it So, the the think between significantly Edition, or you Abu all just vary and across your do country? contract provide

Adam Goldstein

is this Adam. Austin,

but think I a type all within range it will of it be vary, similar point. will

really decent that it with. per countries million of think in goals the it million aircraft like working on the terms the just, depends is to So of envelope, the about But way you $XX the of and it. $XX probably about different we're partners can a think back to

the the up the main necessary all stand to broader high-level launch ecosystem is network. goal and take so, And to aircraft

that And so different the aircraft that the go with involves it. systems support itself and then

margin customers in to but a way have positive trying we're themselves. for also so, very the assembled beneficial can And that Archer, that to be

be one capabilities on need little their us So, different, and capabilities will bit they depending to each bring. the a

Austin Moeller

GCAA Abu allow on allow Okay. additional you you're in they hardware need changes sending already passengers to current configuration be And to since to would do the to customers you're Launch Or it board? in? you're planes a it just to any delivering Edition to aircraft Dhabi, follow-up, made delivering those the get

Thomas Muniz

this Austin, is Tom.

of be should in is, to going UAE gather around where that going to think experimental flying So, this environment. you way the the the step aircraft for about an particular data first to we're is kind operating delivering some

different the as things X there the additional kind higher as part well over are that in world considerations. So dust temperatures about of the that of sand are and the

safe. to ensure to be those the tests do will address needing part but anticipate doing need aircraft testing is We those the any first. don't to changes we make first So, to things,

So, right do. type that tailoring have region-specific there's now, to we no

Adam Goldstein

And Austin, this Adam. is

Tom build said, that be But whole together kind certify we program, through we and to and stuff just the sooner. core a we that this certify think FAA been this certify in the going very good part Another we'll certify that here order we're platform of program to aircraft we building, here gets we've in pathway and the with FAA. as that have we what it's think way for to as to same think U.S. framework understanding the have actually get the we're taking the good able here their to is, stuff we've all launch that that and we'll all stable -- aircraft how same of a the we're U.S. of stuff about in found out building a it. And And

win to do. do early, to for go time well deployed and as So, they -- because everybody to to what give need get the here it's us as way hours really build it FAA to a allows good aircraft

Operator

The next with question Andres of Fitzgerald. Cantor comes line from Sheppard the

Anand Balaji

for Andres. question us piloted know I on with an work if wondering more Anand flights. little I color quarter. your was a this program. earlier test bit Awesome you there was on test could share on flight

program was to do you Middle in the you up or defense could activity a year think accelerate certification? prior I test commercialization on flights flight throughout do wondering, And larger see So, East maybe scale? how this ramping the test your maybe

Thomas Muniz

Yes.

later towards aircraft that piloted will built to working achieving we're this that very said now year. test got in goal that first big flight. we've the being earlier, we're is multiple milestone. flight right was as close parallel, And enter So, But

also we're building up working we mentioned, As airplanes. on to XX

several the get, we specifically get ones the data so test, in more the there operation, platform, the we're and that instrumented will looking are more and aircraft to to Launch Edition that are give addition of And these vehicles better. us course, into which, more of learnings for about

lot a do steps all of this commercial the to year, towards launch. is really plan the taking flying So,

Anand Balaji

us envision this what very little Maybe commercialization and your That's you. vision a Launch I could maybe starting bit if was this secondly, do East. release? more capacity, you new Edition about for the Got in Middle helpful. wondering how with you in with And especially share

Thomas Muniz

sure. Yes,

the is time, here go you of go that. quarters scale put done back again, found starting tens there a to we've So, the in over that. all from we a with, it, way of put couple manufacturing infrastructure same where years, the monetize necessary at all we're out X the plan to effectively call And aircrafts the if that to next ago, and of

is this huge it's like here. win-win literally a a like benefit, So,

course, confident we that and an we're that ability will effectively it's get showing But that, a keep effectively talked commercialize so we're work, FAA there's way Edition the there, all have too. you the that. will we just time, already the about. At to is plowing do through program with that showing same all Launch monetize go the of And to stuff we've and

interested place in as countries, type platform. other we've that countries a of about other of talked a and across dozens seen many has we've So, similar to that start, UAE ramped, really interest broader as are

see I just these a more all It's to not UAE. think, get into you'll going So, the broadly. bit be aircraft deployed,

Operator

The next from question line JPMorgan. Peterson comes the with of Bill

William Peterson

Wanted far. you a Thanks for thus way. about all to in shared the different information defense ask that

we is opportunity context of with the modified guess, way should that, some against curtailed the what's has And Agility and context opportunity apparently, of million maybe now that your summer, Prime. the think announced changes be newer or in Agility last about $XXX in called transitioned, you Prime the any how announced program asking I maybe context exciting as to your the likely to Anduril? changes Support or Just the to of contracts in given

Adam Goldstein

come where is, I the, of millions R&D can very dollars call big for against our very the There's on or you large types take are it down the the opportunities with opportunities think Bill, it there in way Prime, But still larger think big either to kind them XX call smaller of side. that low million with programs. programs about or Agility I'll single-digit definitely opportunities. numbers. is focus

just took think to right Agility aircraft configuration. was, the with focused place has be the I big alone I [ so from there. The shift ] concluded going think, that Prime And that weren't they eVTOLs challenge,

towards program. order with so and the why, and requirements heavy build more that's necessary range working pivoted vehicle hybrid to can in to And field a basically a fuels again, started payload that we an meet speed, aircraft

a hopefully gives So, that you perspective.

William Peterson

I and then and like pre engagement it's you mean, there the with coming -- kind and to in their current of went the them? is if evolved approval, under FAA how is guess been, quarter-on-quarter. that than how maybe your And why maybe you expected? timing this with expected? And and verification it might only has looks lumpy, sort I or engagement line this compliance context documents up administration, the total be? I but asking so, post-election Or in incrementally the is could frame suppose is is is -- of the fairly engagement help slower it of how FAA's

Adam Goldstein

course. At of forward. the working to level, continue Yes, things move

continuing with analyses, great our about on at to the has flight. working a everyone tests we're execute preparation flight I safety have been this CERT of and for piloted data. Like our We're to against relationship submit earlier call, really FAA. quarter We on focused upcoming continuing the with past talked this

it to to addition great. But in you which submit a so, like a tests, those to give to mentioned, FAA, confidence lumpy kind the And lot us is of data fly, is of process giving here. us

data kind of findings. we're so compliance phase in submitting FAA making and of that just And

over would expect towards certification. more we numbers year you'll through and the more get the tick the up of I rest tests, as see moving So,

Operator

The from the comes Amit Dayal of question H.C. line next with

Amit Dayal

term a So, any in respect in manner? potentially Will for this And you sheet need the this may new has away Archer? to do expect resources you balance how opportunities with partnership, Adam, near its then, own to the take creating Anduril you that that does to that evolve? pursue be entity

Adam Goldstein

we mentioned Midnight be be before, able news engineers program entity. to the we no, new matures that good have facilities and this I of accommodate to a is the program. So, not The will the as And an engineers, roll creating that lots to as setup also to program. to start from to away anything use that ability processes, just either. but not from equipment not off there's we the be Archer that toolings, able of program, It facilities, does lot -- the build take different have a and

So handle as to well. from equipped that equipped program, able fully the we're be to fully -- Midnight

quite favorable. setup actually is So, I think the

fulfill really with attention the important regulators. I that the U.S. think administration a also in does of The this lot that that to we'll prominence other of that broader cycle nice the help think become us we're will I thing the the were reinforce their that to company it and goals, it helping some will is that's an that get going the seeing with UAE in see attention back these that as that built help American you're the attention here companies are from reinforce also American gives is technology.

that trying too. can we're so here And sure be in they to make America, launched

Amit Dayal

ADA sales of it? be for revenue part to So trying those going opportunity these the the or Archer ADA the and going running there right, servicing aircrafts you are Just is to to is then or limited from just Archer in operations operations involved of any maintenance the partnership, are maybe that? if folks see to be and

Adam Goldstein

Yes.

in all kind of Launch networks each agreements up the nature all and standing Edition So, the the countries. individual are of agreements of the about the

actual be is to learning in and about network. putting place goal the scale so, able And really everything an to

a more paid like we're that. on price of fixed So that's

going So period we're for, able trips. aircraft over not and to say, let's the goal. The really paid be a launch to individual goal a time. flying That's deploy be is like of not to of lot

extrapolate, X XX take a there in each X countries then each can has imagine aircraft. of fleet to are one handful that and imagine, aircraft. of have order a delivery kind of of aircraft, place And and this thing ultimately you those just type of So, one countries of

really see how this And start so, to to large putting can a this by you very place. can scale level in

side then over scale. time, them. the But does this We're of we're us lot doing And a it. the focus the will paid OEM business. doing sales side, groundwork with heavily just on it for getting of So the now

Amit Dayal

That's to see. Yes. good

starting of lining up Just aircraft? Or Are last rest sales types to needs start come required one for also for guys up? infrastructure scaling me. the that's investments operational up in of infrastructure seeing the you in before vertiports infrastructure or those you terms of investments in investors to of put these you place

Adam Goldstein

Yes, absolutely.

in plans in and vertiport us node allow Dhabi. for to really And minimize UAE, move country we will example, have existing the which quickly So, infrastructure spend. network to launch Abu the a all X to these just leveraging will of locations, allow be

so like passengers safely many And -- land Dhabi partner, then overall of mass from and operator, country. our the largest of the of UAE's they locations Abu helicopter the is Aviation and already that these is, today. carry which to over X,XXX UAE, it's across sorry, the And think believe, estimates landing about GCAA which sites of in Abu over I I XXX helicopter are most XX% the Dhabi,

of the of of which Mall some put And locations kind lot Marina that key Terminal a seeing you're are network really to existing we gets infrastructure for have other Dhabi Cruise stand Falcon converting Aviation, us. So, this together. Abu their in up partners then help and like

that country a of example Edition what that's good up. the that's make But a that's about. program to moving again, load help can sure So really Launch we all is this

groups money to go get put money and us fleets. into to start these and And unlock where to spend really larger the so ground it's ready

Amit Dayal

fast. moving color. so the all you guys see to Great Appreciate

Operator

line Company. The Josh Benchmark last from is The question of the with Sullivan

Joshua Sullivan

any exploring is eVTOL some imagine develop have I offering an hybrid here The And that applications, there around payload capabilities envisioning at might system batteries passenger passenger applications with heavy a thought of could process point? as certain hybrid even the Anduril fuels, the or help improve. hybrid commercial defense complement range, for you're markets thought

Adam Goldstein

absolutely. Yes,

use so the side, potential have opportunity. aircraft an makes and is is civilian on it even So think -- the the intent I actually dual to larger what which both have

hybrid So get better range. I us allows to like think further application the performance, much just

we types different cases the increase basically that to us of allows use have. it so, And

that. So, is for an yes, there definitely application

Joshua Sullivan

experienced Okay. Archer, And the the or accelerating as administration, new where industry tangible far just then Got for support you specifically? have as it.

Adam Goldstein

the very out and working the closely figure Transportation to the to of has how process us and Secretary broader continue been category. supportive advance certification the is support So, to try with for to just

they mean, I the and of fit I department and Trump defense on call between needing autonomous attributable types the into side. you've President Elon, think tweeting also defense seen directly it about more, literally those We solutions. comments.

helpful. And at And the the which we in the that's there's on being progress, now. work is think so I very ground of time, path are actual done same

here, start in administration to come I So, we following locked you'll think, actually I you'll process is, to think But the I with that does happen these what's really internationally, be to to American products that in America. FAA here see American especially certification because going see quarters. built deliver want as more accelerate, are to aircraft start the the technology know

Joshua Sullivan

for of those early Got point? seeing you any where it. market buyers are one some one. point? then this And eVTOLs financial at leasing conversations last a Are Or interested just indication in becoming at

Adam Goldstein

very early since the of been conversations. have days We those inundated of types

type on lot We have that countries conversations of to can continue. focus of a But those do really more operators and purchases. fleet tried

of Launch very pockets that But again, program I an operators can to to gives deploy you'll us countries aircraft some of that these have and deep Edition the fleets. see think very really time. deploy more that large with stuff start ability over

come. on more think to I So, that

Operator

like was back last to for the That pass to the any for conference Adam comments. I over closing our would now question day.

Adam Goldstein

to a am All is team has going year. just right. proud this beginning. of accomplished, Thank what the huge the Well, be you. today. call but joining is very the thank for you I XXXX

Operator

Fourth Conference That Results concludes you the XXXX have Quarter Financial participation, your great and Call. Thank Archer Aviation a day. for

Archer Aviation (ACHR) 27 Feb 252024 Q4 Earnings call transcript