BETA Technologies, Inc. Class A (BETA) AI Stock Analysis

• Market Cap: $3.62B
• Dividend Yield: N/A
• Average Volume (3M): 1.41M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.96
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 828
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): -2.02
• Shares Outstanding: 221,249,270
• 10 Day Avg. Volume: 1,601,527
• 30 Day Avg. Volume: 1,414,195
• PEG Ratio: -0.04
• Price to Book (P/B): 3.56
• Price to Sales (P/S): 181.56
• P/FCF Ratio: -20.64
• Enterprise Value/Market Cap: 0.54
• Enterprise Value/Revenue: 97.98
• Enterprise Value/Gross Profit: 192.18
• Enterprise Value/Ebitda: -3.53
• 1Y Price Target: $34.50
• Price Target Upside: 97.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): -1.98
• Revenue Forecast (FY): $38.67M

• Rating: 47 Neutral
• Price Target: $17.00 ▼(-2.58% Downside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is held down primarily by severe losses and ongoing cash burn despite strong revenue growth and a relatively low-leverage balance sheet. Technicals are also weak (below key moving averages with negative MACD), while valuation is hard to support with a negative P/E and no dividend. Offsetting these, the earnings call points to strong demand and funding support (large deposit-backed backlog and IPO proceeds), but guidance still indicates substantial EBITDA losses and certification timeline risk.

Positive Factors

Strong Backlog

A $3.5B deposit-backed aircraft backlog plus ~$1B component backlog gives multi-quarter revenue visibility and demand credibility. This order book de-risks near-term commercialization, supports production planning and supplier commitments, and helps sustain scale-up investments over months.

IPO Proceeds Strengthen Balance Sheet

Raising ~$1.1B via IPO materially improves liquidity and funds certification, testing and capital-intensive manufacturing. Strong proceeds reduce immediate refinancing risk, enable continued R&D and network expansion, and provide a durable buffer while scaling operations.

Low Financial Leverage

Very low debt relative to equity preserves financial flexibility and limits interest burden. With modest leverage the company can prioritize equity-funded growth and certification spending without near-term debt covenants, supporting sustained investment through the scale-up phase.

Negative Factors

Severe Cash Burn

Consistently large negative operating and free cash flow means the business must rely on external capital to sustain operations. Persistent cash burn increases dilution risk, compresses runway if markets tighten, and forces management to divert focus to fundraising rather than execution.

Weak Profitability & Margins

A steep decline in gross margin to ~10% and massive net losses indicate the cost base and unit economics are far from profitable. This weak margin structure undermines scalability and means achieving sustainable operating profits will require significant improvements or structural cost reductions.

Certification / Execution Risk

Lengthy durability testing and shifted certification timelines delay revenue realization and aircraft deliveries. Execution setbacks extend the cash-burn period, risk contract postponements or penalties, and heighten uncertainty around converting backlog into durable, repeatable cash flows.

BETA Technologies, Inc. Class A Business Overview & Revenue Model

Company Description

BETA Technologies, Inc. designs, develops, and manufactures electric aircraft platform and propulsion systems for the aviation industry in the United States. The company's products include electric aircraft, advanced electric propulsion systems, charging systems, and components. It offers aircraft, such as ALIA-CTOL (CX300), a piloted electric aircraft for cargo services; ALIA VTOL (A250), a vertical takeoff and landing aircraft for cargo, logistics, medical operations, and passenger services; ALIA Defense VTOL (MV250), a military aircraft for cargo and logistics, and larger aircraft; motors including H500A Motor and V600 Motor for aerospace and marine applications; batteries for electric aircraft; and charging equipment including charge cube, thermal management system cube, and mini cubes. It also offers ground support equipment and flight control systems. The company engages in selling aircraft to military and commercial customers, replacement batteries to operators, propulsion systems to other eVTOL manufacturers, and chargers to state governments, operators, Fixed Base Operators, and other electric aviation companies. It operates across four markets within the aerospace industry including cargo and logistics, medical, defense, and passenger. In addition, the company offers training through flight simulators and virtual reality training solutions. The company was founded in 2017 and is based in South Burlington, Vermont.

How the Company Makes Money

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BETA Technologies, Inc. Class A Financial Statement Overview

Summary

Rapid revenue growth is overshadowed by very weak profitability and heavy cash burn. Gross margin fell to ~10% and losses widened sharply (net loss -$745.9M in 2025) alongside deeply negative operating cash flow (-$267.8M) and free cash flow (-$313.2M). The balance sheet is relatively less levered (debt-to-equity ~0.11), but returns remain deeply negative, elevating dilution/financing risk.

Income Statement

Results show very weak profitability despite rapid top-line expansion. Revenue rose sharply in 2025 (annual reportTypeId 2) to $35.6M from $15.1M in 2024, but gross margin fell to ~10% (down from ~31% in 2023) and operating losses remained extremely large (EBIT margin about -10.5%). Net losses widened materially to -$745.9M in 2025, indicating the business is still far from scale and cost structure remains a major overhang.

Balance Sheet

Balance sheet is a relative bright spot on leverage. Debt is modest versus equity in 2025 (debt-to-equity ~0.11, improved from ~0.39–0.40 in 2023–2024), and equity increased significantly versus prior years. However, returns remain deeply negative (return on equity about -41% in 2025), signaling heavy value dilution risk if losses persist.

Cash Flow

Cash generation is very weak and consistent with a cash-burning growth phase. Operating cash flow is materially negative across all years and worsened to -$267.8M in 2025 (from -$222.7M in 2024), while free cash flow remained deeply negative at -$313.2M. While free cash flow was less negative than net loss (free cash flow to net income > 1), the company still relies on external funding to sustain operations and investment.

Breakdown	Dec 2025	Dec 2024	Dec 2023
Income Statement
Total Revenue	35.62M	15.09M	15.36M
Gross Profit	3.69M	-5.89M	4.71M
EBITDA	-350.64M	-247.24M	-165.56M
Net Income	-745.87M	-275.64M	-175.56M
Balance Sheet
Total Assets	2.13B	666.37M	579.25M
Cash, Cash Equivalents and Short-Term Investments	1.71B	301.55M	253.69M
Total Debt	203.90M	170.55M	155.28M
Total Liabilities	309.85M	230.43M	193.81M
Stockholders Equity	1.82B	435.94M	385.44M
Cash Flow
Free Cash Flow	-313.25M	-296.17M	-311.25M
Operating Cash Flow	-267.80M	-222.66M	-158.01M
Investing Cash Flow	-44.08M	-68.81M	-152.33M
Financing Cash Flow	1.73B	339.33M	134.33M

BETA Technologies, Inc. Class A Peers Comparison

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%
AVAV	53 Neutral	$11.11B	-21.68	-6.41%	―	79.89%	-171.81%
BETA	47 Neutral	$3.62B	-8.67	-73.52%	―	―	―
ACHR	47 Neutral	$4.68B	-7.59	-37.76%	―	―	11.14%
EVEX	46 Neutral	$895.14M	―	-202.35%	―	―	-33.69%
EVTL	45 Neutral	$386.23M	―	1730.37%	―	―	―
EH	43 Neutral	$831.90M	-15.01	-22.42%	―	23.58%	20.74%