Archer Aviation (ACHR) AI Stock Analysis

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Archer Aviation

(NYSE:ACHR)

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Neutral 49 (OpenAI - 4o)

Rating:49Neutral

Price Target:―

Archer Aviation's overall score reflects significant challenges in financial performance due to its developmental stage, lack of revenue, and reliance on financing. Technical indicators suggest mixed momentum, while valuation remains challenging with negative earnings. Positive developments in strategic partnerships and liquidity were highlighted in the earnings call, but FAA certification and high expenses pose risks.

Positive Factors

Strategic Partnerships

This partnership provides Archer with a revenue-generating opportunity and margin-positive contracts, enhancing its market position and competitive edge in early adopter markets.

Financial Position

A strong liquidity position, bolstered by substantial cash reserves, provides Archer with financial flexibility to support growth initiatives and manage operational challenges.

Manufacturing Milestones

Achieving manufacturing milestones positions Archer as a leader in scaling commercial production of eVTOL aircraft, crucial for capturing market share and driving long-term growth.

Negative Factors

FAA Certification Challenges

Delays in FAA certification can hinder Archer's ability to commercialize its aircraft, impacting revenue generation and competitive positioning in the eVTOL market.

High Operating Expenses

Rising operating expenses, driven by investments in development, can strain financial resources and delay profitability, posing a risk to long-term financial health.

Negative Cash Flow

Persistent negative cash flow reflects ongoing cash consumption without offsetting income, challenging Archer's ability to sustain operations without continuous financing.

Archer Aviation (ACHR) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$6.16B

Dividend YieldN/A

Average Volume (3M)29.86M

Price to Earnings (P/E)―

Beta (1Y)3.16

Revenue GrowthN/A

EPS Growth-4.00%

CountryUS

Employees774

SectorIndustrials

Sector Strength72

IndustryAerospace & Defense

Share Statistics

EPS (TTM)-0.36

Shares Outstanding645,026,300

10 Day Avg. Volume40,671,646

30 Day Avg. Volume29,862,172

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap0.75

Enterprise Value/Revenue493.09

Enterprise Value/Gross Profit-618.01

Enterprise Value/Ebitda-7.93

Forecast

1Y Price Target

$13.14

Price Target Upside35.32% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering7

Archer Aviation Business Overview & Revenue Model

Company DescriptionArcher Aviation Inc., an urban air mobility company, engages in designs, develops, manufactures, and operates electric vertical takeoff and landing aircrafts to carry passengers. The company was formerly known as Atlas Crest Investment Corp. and changed its name to Archer Aviation Inc. Archer Aviation Inc. was incorporated in 2018 and is headquartered in Palo Alto, California.

How the Company Makes MoneyArcher Aviation makes money primarily through the sale and potential leasing of its eVTOL aircraft. The company is focused on developing a viable urban air mobility service, which includes generating revenue from aircraft sales to commercial operators or through direct operation of its own aerial ridesharing service. Key revenue streams also include partnerships with major companies in the aerospace and automotive sectors, such as its collaboration with United Airlines for pre-orders of its aircraft, which provides a future revenue pipeline. Additionally, Archer may explore revenue from aftermarket services, maintenance, and potentially licensing its technology in the future.

Archer Aviation Key Performance Indicators (KPIs)

Any

Operating Expense Breakdown

Operating Expense Breakdown
Details core costs like R&D, marketing, and admin, offering insight into how efficiently the company runs and where it’s prioritizing investment.

Chart InsightsArcher Aviation's operating expenses have been rising, with Research and Development costs consistently increasing, reflecting their focus on innovation and product development. The General and Administrative expenses show volatility, including a notable negative value in late 2023, likely due to accounting adjustments. The earnings call highlights increased expenses due to higher headcount and material costs, aligning with their strategic initiatives like the Midnight Aircraft program. Despite financial losses, Archer's strong liquidity and strategic partnerships position them well for future growth, particularly with the upcoming UAE launch.

Data provided by:

Main Street Data

Archer Aviation Earnings Call Summary

Earnings Call Date:Aug 11, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 06, 2025

Earnings Call Sentiment Positive

Archer Aviation's earnings call highlighted significant progress in manufacturing, strategic partnerships, and government support, particularly for the 2028 Olympics. The company is expanding internationally and strengthening its defense capabilities. However, financial losses and certification challenges present notable hurdles.

Q2-2025 Updates

Positive Updates

Significant Government Support and Strategic Partnerships

Archer Aviation received unprecedented support from the U.S. government, highlighted by multiple presidential executive orders and a national priority to showcase air taxis at the 2028 L.A. Olympics. Archer was selected as the official air taxi provider for the Olympics.

Manufacturing and Fleet Expansion

Archer is ramping up manufacturing with six additional Midnight aircraft in production, aiming to support certification programs and early commercial deployments. The company is on track to have a fleet of eight Midnight aircraft.

International Expansion and Revenue Generation

Archer has expanded its launch edition program internationally, with operations in the UAE, Ethiopia, and Indonesia. This includes a multiyear commercial partnership with Abu Dhabi Aviation and the Abu Dhabi Investment Office, expected to generate tens of millions of dollars for Archer.

Defense Strategic Acquisitions

Archer completed two strategic acquisitions, acquiring Overair's patent portfolio and a defense composite manufacturing facility, strengthening its defense capabilities and positioning Archer Defense as a strategic pillar of the business.

Record Liquidity and Financial Health

Archer closed Q2 2025 with $1.7 billion in cash and cash equivalents, marking the fourth consecutive quarter of record liquidity, and completed an $850 million financing round in June.

Negative Updates

Net Loss and Cash Burn

Archer reported a net loss of $206 million for Q2 2025, with an adjusted EBITDA loss of $190 million. Cash used in operating and investing activities was $127 million for the quarter.

Certification and Policy Challenges

There are ongoing challenges with FAA certification and policy completion, which are affecting the timeline for full aircraft conformity and TIA testing.

Company Guidance

During Archer Aviation's Q2 2025 financial results conference call, a comprehensive overview of the company's strategic advancements was presented, highlighting significant metrics and progress in both commercial and defense sectors. Archer reported a net loss of $206 million, with an adjusted EBITDA loss of $190 million, aligning with their guidance. They closed the quarter with $1.7 billion in cash, fueled by an $850 million financing round in June, maintaining a robust balance sheet. The company is on track to ramp up manufacturing, with six Midnight aircraft in production and a focus on scaling operations for the 2028 L.A. Olympics. Archer has made strides in infrastructure readiness, securing partnerships for eVTOL vertiports and advancing FAA certification, with 15% of compliance verification documents approved. Internationally, they initiated their Launch Edition program in the UAE, projecting tens of millions in revenue over the next 18-24 months. Archer also emphasized its defense sector growth, facilitated by strategic acquisitions, aiming for a significant share of future revenues. Looking ahead, Archer estimates an adjusted EBITDA loss of $110 million to $130 million for the upcoming quarter, with continued investments in manufacturing and international operations.

Archer Aviation Financial Statement Overview

Summary

Archer Aviation is in its developmental phase with no revenue and relies heavily on financing for cash flow. While it has a solid equity base and cash reserves, the absence of operational income and negative cash flows pose a significant challenge to long-term sustainability.

Income Statement

Very Negative

Archer Aviation has reported consecutive years of zero revenue, reflecting a pre-revenue stage typical for companies in development phases, especially in aerospace & defense. Persistent negative EBIT and EBITDA highlight operational challenges. The lack of revenue growth indicates no commercial operations yet, affecting profitability metrics.

Balance Sheet

Neutral

The company maintains a solid equity base, highlighted by a favorable equity ratio and substantial cash reserves relative to debt. The debt-to-equity ratio remains low, suggesting prudent financial management. However, without revenue, the long-term sustainability of asset growth through equity raises remains uncertain.

Cash Flow

Negative

Archer Aviation's cash flow shows significant negative free cash flow, common for companies in heavy R&D phases. Operating cash flow is negative, indicating cash consumption without offsetting income. Financing activities provide substantial cash inflows, crucial for ongoing operations without revenue generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.40M	0.00	0.00	0.00	0.00	0.00
Gross Profit	-7.50M	-11.70M	-5.80M	-7.70M	-3.03M	-103.00K
EBITDA	-584.60M	-524.90M	-451.60M	-309.60M	-343.77M	-24.40M
Net Income	-612.80M	-536.80M	-457.90M	-317.30M	-347.80M	-24.80M
Balance Sheet
Total Assets	1.94B	1.00B	554.30M	573.80M	768.40M	41.80M
Cash, Cash Equivalents and Short-Term Investments	1.72B	834.50M	464.60M	531.20M	746.90M	36.60M
Total Debt	81.60M	79.00M	23.20M	22.20M	23.10M	3.20M
Total Liabilities	257.40M	248.60M	187.20M	80.50M	69.50M	5.90M
Stockholders Equity	1.68B	752.60M	367.10M	493.30M	698.90M	35.90M
Cash Flow
Free Cash Flow	-472.30M	-450.60M	-315.90M	-207.30M	-111.90M	-24.70M
Operating Cash Flow	-399.60M	-368.60M	-271.60M	-200.40M	-108.40M	-22.80M
Investing Cash Flow	-77.90M	-82.00M	420.70M	-464.30M	-3.50M	-1.90M
Financing Cash Flow	987.10M	820.40M	250.10M	-9.90M	822.20M	51.20M

Archer Aviation Technical Analysis

Technical Analysis Sentiment

Positive

Last Price9.71

Price Trends

50DMA

9.82

Negative

100DMA

10.11

Negative

200DMA

9.35

Positive

Market Momentum

MACD

0.03

Negative

RSI

55.92

Neutral

STOCH

75.78

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACHR, the sentiment is Positive. The current price of 9.71 is above the 20-day moving average (MA) of 8.96, below the 50-day MA of 9.82, and above the 200-day MA of 9.35, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 55.92 is Neutral, neither overbought nor oversold. The STOCH value of 75.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACHR.

Archer Aviation Risk Analysis

Archer Aviation disclosed 48 risk factors in its most recent earnings report. Archer Aviation reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Archer Aviation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EH	56 Neutral	1.34B	-37.99	-24.04%	―	87.67%	18.33%
SPCE	49 Neutral	215.39M	-0.41	-114.94%	―	-84.19%	55.27%
ACHR	49 Neutral	$6.16B	―	-60.83%	―	―	-4.00%
MNTS	43 Neutral	15.13M	-0.10	447.45%	―	-70.65%	90.41%
EVEX	43 Neutral	1.22B	-6.44	―	―	―	-30.78%
EVTL	25 Underperform	576.39M	-0.51	―	―	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

* Industrials Sector Average

Performance Comparison

ACHR

Archer Aviation

9.71

6.79

232.53%

SPCE

Virgin Galactic Holdings

3.74

-2.29

-37.98%

Ehang Holdings

18.67

4.82

34.80%

MNTS

Momentus

1.30

-6.20

-82.67%

EVTL

Vertical Aerospace

5.85

-0.38

-6.10%

EVEX

Eve Holding

4.06

0.87

27.27%

Archer Aviation Corporate Events

Executive/Board ChangesBusiness Operations and Strategy

Archer Aviation Appoints New Senior VP of Finance

Positive

Apr 3, 2025

On March 31, 2025, Archer Aviation Inc. announced the appointment of Harsh Rungta as its Senior Vice President, Finance and Chief Accounting Officer. Mr. Rungta brings extensive experience from his previous roles at Tesla and PricewaterhouseCoopers, and his compensation package includes a base salary, bonuses, and equity awards. This strategic appointment is expected to enhance Archer Aviation’s financial leadership and operational capabilities.

Private Placements and FinancingBusiness Operations and Strategy

Archer Aviation Secures $301.75M in Direct Offering

Positive

Feb 11, 2025

Archer Aviation announced on February 11, 2025, a registered direct offering raising $301.75 million by selling 35.5 million shares of Class A common stock. The funding, involving institutional investors like BlackRock, will be used to advance hybrid aircraft development and other corporate purposes, enhancing Archer’s financial standing and positioning it strategically for defense market opportunities.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 20, 2025