Is Archer Aviation Stock (ACHR) a Buy Before Q1 Earnings?

Aircraft company Archer Aviation (ACHR) is poised to release its Q1 2025 earnings on May 12. While it’s expected to report another loss, investors will be watching closely for updates on manufacturing milestones, regulatory approvals, and strategic partnerships. Buying ACHR stock before its Q1 report takes confidence, as the company hasn’t yet launched commercial flights. However, it has made steady progress toward its goal of operating an air taxi service. Investing now could offer early exposure and potentially big gains if Archer emerges as a key player in the urban air mobility space.

Ahead of its Q1 report, analysts remain strongly bullish on ACHR stock, maintaining a Strong Buy rating due to its long-term growth potential.

What Is the Earnings Forecast for Archer Aviation?

According to analysts, Archer Aviation will post a loss of $0.28 per share in Q1, an improvement from the $0.36 loss reported during the same period last year.

As the company advances toward commercializing its flagship Midnight aircraft, investors are keenly observing its progress. Archer Aviation has likely spent a lot of money on engineering, production, and business development recently as it advances toward commercializing its flagship Midnight aircraft. Notably, the Midnight aircraft is an electric vertical takeoff and landing (eVTOL) vehicle designed for short-distance travel, similar to a taxi, but in the air.

These rising costs, including more spending on workers and materials to get ready for mass production, may put pressure on the company’s upcoming earnings report. That said, the company remains on track to deliver its first revenue-generating Midnight jet later this year.

Additionally, Archer’s earnings will likely show a strong cash position, helped by a $301.8 million equity raise in February, boosting its total liquidity to around $1 billion.

Archer Aviation’s Future Hinges on Regulatory Approvals

A crucial factor for Archer Aviation’s long-term success is its progress with the FAA’s (Federal Aviation Administration) regulatory approval process. Since aircraft safety is strictly regulated, most of the Midnight air taxis built in 2025 will likely be used for extensive testing required to gain certification. This step is essential before the company can begin commercial operations.

In parallel with its regulatory efforts, the company recently showcased its Midnight aircraft to investors in New York and introduced its Launch Edition Program, which aims to deploy the aircraft in early-adopting markets even before receiving FAA certification.

Furthermore, Archer Aviation’s upcoming Q1 report is expected to offer an update on its progress toward the goal of producing up to 10 Midnight aircraft in 2025. Management also revealed that Abu Dhabi Aviation is expected to be its first customer, with the first aircraft delivery planned for later this year.

Is Archer Aviation a Buy or Sell?

Turning to Wall Street, analysts have a Strong Buy consensus rating on ACHR stock based on six Buys and one Hold assigned in the last three months. The average Archer Aviation share price target of $12.83 implies a 46.5% upside potential.

See more ACHR analyst ratings