EHang Holdings Ltd. Q1 Earnings Call Highlights

Ehang Holdings Ltd ((EH)) has held its Q1 earnings call. Read on for the main highlights of the call.

The recent earnings call for EHang Holdings Ltd. presented a mixed sentiment, reflecting both optimism and challenges. The company celebrated significant milestones, such as regulatory approvals and advancements in product development. However, it also faced hurdles with low revenue and delivery volumes in the first quarter, attributed to seasonal factors and pending regulatory approvals. Despite these challenges, EHang remains confident about future growth and has maintained its annual revenue guidance.

First Air Operator Certificates Granted

EHang achieved a major regulatory milestone by receiving the first batch of Air Operator Certificates for human-carrying pilotless aerial vehicles from the Civil Aviation Administration of China. This breakthrough allows EHang and its client, Heyi Aviation, to commence commercial operations, marking a significant step forward in the company’s operational capabilities.

Launch of VT35 eVTOL

The company announced the completion of the final assembly of its next-generation long-range pilotless eVTOL, the VT35. This new model features significant upgrades and is currently undergoing full-scale flight testing. The type certification application for the VT35 has been accepted, indicating progress towards its commercial deployment.

Expansion of Yunfu Production Base

EHang has doubled the size of its main factory at Yunfu, enhancing its production capacity to support up to 1,000 units annually. This expansion is aimed at meeting the anticipated future demand for its aerial vehicles.

Strategic Partnerships and New Facilities

In a strategic move, EHang has partnered with JAC Motors and Guoxian Holdings to establish a next-generation eVTOL manufacturing base in Hefei. Additionally, new assembly facilities are being constructed in Anhui and Shandong provinces, further strengthening the company’s manufacturing capabilities.

Decline in Q1 Revenue

EHang reported a decline in total revenues for the first quarter of 2025, amounting to RMB26.1 million. This decrease is primarily due to reduced sales volume of the EH216 series products, reflecting the challenges faced in the current market environment.

Challenges in Delivery Volumes

The company delivered only 11 units of the EH216-S in the first quarter, a figure impacted by seasonal slowdowns, government procurement delays, and customers awaiting Air Operator Certificates. These factors contributed to the lower-than-expected delivery volumes.

Forward-Looking Guidance

Despite the challenges faced in the first quarter, EHang has maintained its full-year revenue guidance of RMB900 million. The company anticipates strong demand and significant growth in orders and deliveries in the second quarter. EHang’s gross margin improved to 62.4%, driven by higher average selling prices and effective cost management. The company remains committed to R&D investment and global expansion, with successful demonstrations in Spain and Mexico, and expresses confidence in its long-term growth trajectory.

In summary, EHang Holdings Ltd.’s earnings call highlighted a blend of optimism and challenges. While the company celebrated regulatory and product development milestones, it also faced revenue and delivery volume hurdles. Nonetheless, EHang remains optimistic about its future growth prospects, supported by strategic partnerships, infrastructure expansions, and a robust demand outlook.