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

$5.49B

Dividend YieldN/A

Average Volume (3M)67.72M

Price to Earnings (P/E)―

Beta (1Y)3.02

Revenue GrowthN/A

EPS Growth11.14%

CountryUS

Employees774

SectorIndustrials

Sector Strength72

IndustryAerospace & Defense

Share Statistics

EPS (TTM)-0.20

Shares Outstanding732,591,550

10 Day Avg. Volume65,372,522

30 Day Avg. Volume67,720,682

Financial Highlights & Ratios

PEG Ratio0.43

Price to Book (P/B)4.88

Price to Sales (P/S)0.00

P/FCF Ratio-8.15

Enterprise Value/Market Cap0.87

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit-994.02

Enterprise Value/Ebitda-8.14

Forecast

1Y Price Target

$12.40

Price Target Upside57.36% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering5

EPS Forecast (FY)-0.98

Revenue Forecast (FY)$750.00K

Archer Aviation Business Overview & Revenue Model

Company DescriptionArcher Aviation Inc. (ACHR) is an aerospace company specializing in the development of electric vertical takeoff and landing (eVTOL) aircraft. Founded with the vision of transforming urban mobility, Archer Aviation aims to create a sustainable and efficient transportation solution for congested cities. The company's core product is its eVTOL aircraft, designed to provide rapid, safe, and environmentally friendly air travel for short to medium distances.

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:

The Fly

Archer Aviation Earnings Call Summary

Earnings Call Date:Nov 06, 2025

(Q3-2025)

% Change Since: |

Next Earnings Date:Mar 04, 2026

Earnings Call Sentiment Positive

The earnings call highlighted significant achievements, such as the acquisition of Hawthorne Airport, successful equity raising, and international partnerships, which underscore strong strategic positioning and growth potential. While there were some challenges, notably from the government shutdown affecting certification timelines and high operating expenses, the positive developments and strategic initiatives outweigh these lowlights.

Q3-2025 Updates

Positive Updates

Hawthorne Airport Acquisition

Archer Aviation has signed definitive agreements to acquire control of Hawthorne Airport in Los Angeles, providing a strategic hub for air taxi operations, especially ahead of the LA28 Olympic Games. The airport is already profitable and offers significant expansion opportunities.

Successful Equity Raise

Archer raised $650 million in new equity capital, reinforcing its balance sheet with over $2 billion in liquidity, providing strategic advantages for future opportunities.

Midnight Aircraft Testing Milestones

Midnight aircraft achieved significant testing milestones, including flights over 55 miles, flight times exceeding 30 minutes, altitudes up to 10,000 feet, and speeds over 150 mph. The aircraft also demonstrated its capabilities at the California International Air Show.

International Expansion and Partnerships

Archer solidified partnerships with Korean Air and Japan Airlines, which selected Archer as their exclusive air taxi partner. Archer also progressed with its Launch Edition program in the UAE, receiving initial payments for commercial operations.

Lilium Patent Portfolio Acquisition

Archer acquired Lilium's patent portfolio, enhancing its technological capabilities in ducted fan propulsion and advanced flight controls, and expanding its global patent assets to over 1,000.

Defense Opportunities

Archer is actively engaged in developing hybrid electric VTOL aircraft for defense, with promising engagement from allied countries worldwide.

Negative Updates

Government Shutdown Impact

The certification process faced challenges due to the U.S. government shutdown, affecting some FAA resources and potentially impacting timelines.

High Operating Expenses

Archer reported GAAP operating expenses of $175 million for Q3 2025, with a net loss of $130 million, though this was partially offset by noncash impacts.

Company Guidance

During Archer Aviation's Q3 2025 earnings call, the company provided several forward-looking statements and metrics. Notably, they announced the acquisition of Hawthorne Airport, a strategic asset in Los Angeles, ahead of the LA28 Olympic Games. This acquisition, valued at $126 million, along with development rights, totals $171 million. Archer raised an additional $650 million in equity capital, bolstering their liquidity to over $2 billion. The company plans to ramp up production to 50 aircraft per year across 700,000 square feet of facilities in California and Georgia. Recent test flights have achieved 55 miles of range, over 30 minutes of flight time, and speeds exceeding 150 mph, validating their engineering approach. With the UAE expecting certification as early as Q3 2026, Archer has begun receiving initial payments from their Launch Edition program. Their Q3 net loss was $130 million, with GAAP operating expenses of $175 million, and adjusted EBITDA loss of $116 million. For Q4, they project an adjusted EBITDA loss between $110 million and $140 million.

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	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-4.80M	0.00	-5.80M	-7.70M	0.00	-103.00K
EBITDA	-586.40M	-498.00M	-451.60M	-309.60M	-239.70M	-24.40M
Net Income	-627.40M	-536.80M	-457.90M	-317.30M	-347.80M	-24.80M
Balance Sheet
Total Assets	1.90B	1.00B	554.30M	573.80M	768.40M	41.80M
Cash, Cash Equivalents and Short-Term Investments	1.64B	834.50M	464.60M	531.20M	746.90M	36.60M
Total Debt	88.60M	79.00M	23.20M	22.20M	23.10M	3.20M
Total Liabilities	245.30M	248.60M	187.20M	80.50M	69.50M	5.90M
Stockholders Equity	1.65B	752.60M	367.10M	493.30M	698.90M	35.90M
Cash Flow
Free Cash Flow	-481.50M	-450.60M	-315.90M	-207.30M	-111.90M	-24.70M
Operating Cash Flow	-408.00M	-368.60M	-271.60M	-200.40M	-108.40M	-22.80M
Investing Cash Flow	-1.13B	-82.00M	420.70M	-464.30M	-3.50M	-1.90M
Financing Cash Flow	1.63B	820.40M	250.10M	-9.90M	822.20M	51.20M

Archer Aviation Technical Analysis

Technical Analysis Sentiment

Negative

Last Price7.88

Price Trends

50DMA

10.05

Negative

100DMA

9.99

Negative

200DMA

9.53

Negative

Market Momentum

MACD

-0.89

Positive

RSI

36.08

Neutral

STOCH

44.46

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACHR, the sentiment is Negative. The current price of 7.88 is below the 20-day moving average (MA) of 8.48, below the 50-day MA of 10.05, and below the 200-day MA of 9.53, indicating a bearish trend. The MACD of -0.89 indicates Positive momentum. The RSI at 36.08 is Neutral, neither overbought nor oversold. The STOCH value of 44.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ACHR	49 Neutral	$5.49B	―	-59.13%	―	―	11.14%
JOBY	46 Neutral	$12.87B	―	-125.73%	―	1934.50%	-92.33%
EH	43 Neutral	$979.01M	―	-31.44%	―	23.58%	-0.70%
EVEX	43 Neutral	$1.31B	―	-115.63%	―	―	-33.69%
MNTS	41 Neutral	$12.22M	-0.08	―	―	-63.81%	81.84%
EVTL	25 Underperform	$432.54M	―	―	―	―	―

* Industrials Sector Average

Performance Comparison

ACHR

Archer Aviation

7.49

-2.08

-21.73%

Ehang Holdings

13.63

-1.89

-12.18%

MNTS

Momentus

0.68

-7.81

-91.99%

JOBY

Joby Aviation

14.12

5.17

57.77%

EVTL

Vertical Aerospace

4.39

-5.71

-56.53%

EVEX

Eve Holding

3.75

-0.44

-10.50%

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