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Vertical Aerospace Ltd. (EVTL)
:EVTL
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Vertical Aerospace
(NYSE:EVTL)
Rating:25Underperform
Price Target:―
Positive Factors
Certification and Commercialization
The company is preparing to complete a piloted transition flight, which would be an important catalyst and significantly de-risk certification requirements leading to commercialization.
Manufacturing Readiness
A new agreement with Aciturri Aerostructures to produce the entire airframe of the VX4 is established, supporting manufacturing readiness.
New Market Opportunities
Regulatory support for military and public safety eVTOLs and drones solidifies a significant new market for Vertical Aerospace.
Strategic Partnerships
There is an expectation that management will attract a large strategic partner as the VX4 prototype completes additional test flights, facilitating future capital raises.
Negative Factors
Capital Needs
Additional capital needs continue to be an overhang for the company.
Valuation Concerns
EVTL has underperformed year-to-date and trades at a notable valuation discount compared to industry leaders.
Vertical Aerospace (EVTL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$523.03M
Dividend YieldN/A
Average Volume (3M)2.33M
Price to Earnings (P/E)―
Beta (1Y)2.78
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees350
SectorIndustrials
Sector Strength84
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-2.39
Shares Outstanding96,677,720
10 Day Avg. Volume1,238,814
30 Day Avg. Volume2,329,161
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)-0.41
Price to Sales (P/S)0.00
P/FCF Ratio-4.37
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue41.84
Enterprise Value/Gross Profit130.17
Enterprise Value/Ebitda1.52
Forecast
1Y Price Target
$9.25Price Target Upside69.72% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Vertical Aerospace Business Overview & Revenue Model
Company DescriptionVertical Aerospace Ltd. engages in designing, manufacturing, and selling electric aircraft. It offers VX4, an electric vertical take-off and landing vehicle. The company was founded in 2016 and is headquartered in Bristol, the United Kingdom.
How the Company Makes MoneyVertical Aerospace generates revenue primarily through the sale and pre-orders of its eVTOL aircraft to commercial airlines, urban mobility operators, and other transportation entities. The company forms strategic partnerships and agreements with key industry players to secure significant pre-order commitments, which serve as a primary source of income. Additionally, Vertical Aerospace may explore secondary revenue streams such as maintenance services, flight operation support, and software solutions for fleet management, although these are not yet fully developed. The company's success is bolstered by its collaborations with technology and aerospace leaders, which enhance its capabilities and market reach.
Vertical Aerospace Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: -11.53%|
Next Earnings Date:Mar 18, 2026
Earnings Call Sentiment Positive
The earnings call highlighted Vertical Aerospace's strong progress towards its strategic objectives and milestones. Key partnerships and funding have bolstered its position, particularly in the defense market. However, the company faces regulatory and certification challenges, as well as upcoming nonrecurring costs. Overall, the company is well-positioned but must navigate these challenges carefully.Q2-2025 Updates
Positive Updates
Strategic Objectives and Milestones
Vertical Aerospace is on track with its 2025 targets, having achieved key milestones such as full-scale piloted wing-borne flights and real-world use cases. They are set to complete piloted transition flight and finalize the assembly of the third VX4 prototype by year-end.
Partnership Expansion
Vertical Aerospace has expanded its partnership with Bristow, increasing the preorder to 100 aircraft and developing a scalable eVTOL operations platform. This partnership aims to offer a turnkey solution for eVTOL operations.
Battery Development and Business Model
The company completed crucial tests on its battery design, which underpins both eVTOL and hybrid aircraft. The proprietary battery model anticipates a high-margin recurring revenue opportunity, with a 50-50 long-term revenue mix between aircraft and battery sales.
Capital Efficiency and Funding
Vertical Aerospace raised approximately $160 million in 2025, ensuring operational agility. The current capital position supports the completion of 2025 flight tests and the build of the third prototype aircraft.
Defense Market Opportunity
Vertical Aerospace demonstrated its aircraft at the Royal International Air Tattoo, highlighting defense applications. The European defense market is expected to grow significantly, presenting a unique opportunity for the company.
Negative Updates
Certification and Regulatory Challenges
The company faces high regulatory scrutiny, requiring the submission of over 20,000 documents to obtain flight permits from the UK Civil Aviation Authority. This complex process underscores the challenges in achieving certification.
Capital Expenditure and Nonrecurring Costs
There will be an increase in nonrecurring expenditure over the next 12 to 18 months, as the company locks in its supply chain and begins production tooling, driving an increase in spending.
Hybrid Certification Process
While the hybrid aircraft offers significant potential, it requires a separate certification process. This parallel certification could present additional challenges and timelines to manage.
Company Guidance
During the call, Vertical Aerospace provided detailed guidance on their progress and strategic objectives for 2025. Key achievements include flying through public airspace with full-scale piloted wing-borne flights, marking a first in Europe, and demonstrating airport-to-airport flights at a major military air show. They are on track to finalize the assembly of their third VX4 prototype and pilot the transition and hybrid flights by year-end, which will double their flight test capacity. The company is also advancing their partnership with Bristow to foster global eVTOL adoption and is targeting piloted hybrid flight tests in 2026. Financially, they raised approximately $160 million in 2025 to support these activities, maintaining guidance of $110 million to $125 million net cash used in operating activities, with a cash runway extending into mid-2026. Additionally, their proprietary battery technology is set to unlock a high-margin recurring revenue model, anticipated to result in a 50-50 long-term revenue mix between aircraft and battery sales.Vertical Aerospace Financial Statement Overview
Summary
Vertical Aerospace is facing significant financial challenges with persistent operational losses and a fragile balance sheet. While there has been some revenue growth, it is overshadowed by substantial losses and a negative equity position. The company's ability to generate cash remains weak, necessitating a focus on cost control and strategic initiatives to improve financial health.Income Statement
Vertical Aerospace has shown a modest revenue increase in the TTM period, with a revenue of $11.31 million compared to zero in the previous year. However, the company continues to operate at a significant loss, highlighted by a negative net income of $781.24 million. The gross profit margin is 67.21%, but the EBIT and EBITDA margins are deeply negative, indicating operational inefficiencies and high operating costs.20
Very Negative
Balance Sheet
The company's balance sheet reveals significant financial distress with a negative stockholders' equity of $499.34 million. The debt-to-equity ratio is undefined due to negative equity, and the equity ratio is also negative, signaling insolvency. Despite having a low total debt, the high level of liabilities relative to assets is concerning.15
Very Negative
Cash Flow
Cash flow analysis shows a negative free cash flow of $44.68 million in the TTM period, though there is a slight improvement compared to the previous year. The operating cash flow to net income ratio is negative, reflecting cash outflows and further challenging financial management. The firm struggles to generate positive cash flow from its operations.25
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.31M | 0.00 | 0.00 | 0.00 | 132.00K | 87.00K |
| Gross Profit | 3.63M | 0.00 | 0.00 | 0.00 | 68.00K | 43.00K |
| EBITDA | 310.44M | -60.08M | -101.06M | -96.06M | -243.71M | -10.86M |
| Net Income | -376.95M | -781.24M | -59.95M | -76.11M | -245.78M | -12.33M |
Balance Sheet | ||||||
| Total Assets | 104.58M | 47.73M | 84.08M | 151.24M | 233.33M | 8.88M |
| Cash, Cash Equivalents and Short-Term Investments | 68.80M | 22.56M | 48.68M | 122.81M | 212.66M | 839.00K |
| Total Debt | 124.45M | 2.20M | 2.62M | 3.16M | 1.94M | 7.33M |
| Total Liabilities | 143.64M | 547.07M | 133.86M | 143.92M | 171.77M | 9.82M |
| Stockholders Equity | -39.06M | -499.34M | -49.78M | 7.32M | 61.56M | -938.00K |
Cash Flow | ||||||
| Free Cash Flow | -65.34M | -46.72M | -76.96M | -105.72M | -30.91M | -12.40M |
| Operating Cash Flow | -65.26M | -46.29M | -74.70M | -103.71M | -27.55M | -12.01M |
| Investing Cash Flow | 1.55M | 1.73M | 61.38M | -62.96M | -3.35M | -688.00K |
| Financing Cash Flow | 66.81M | 18.77M | 169.00K | 7.25M | 244.71M | 12.51M |
Vertical Aerospace Technical Analysis
Negative
5.45
Price Trends
5.91
Negative
5.04
Positive
5.71
Negative
Market Momentum
-0.17
Positive
44.53
Neutral
19.58
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVTL, the sentiment is Negative. The current price of 5.45 is below the 20-day moving average (MA) of 6.12, below the 50-day MA of 5.91, and below the 200-day MA of 5.71, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 44.53 is Neutral, neither overbought nor oversold. The STOCH value of 19.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EVTL.
Vertical Aerospace Risk Analysis
Vertical Aerospace disclosed 76 risk factors in its most recent earnings report. Vertical Aerospace 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
Vertical Aerospace Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.02B | ― | -22.54% | ― | 9.52% | 24.27% | |
63 Neutral | $10.83B | 16.63 | 7.96% | 2.06% | 2.20% | -16.67% | |
57 Neutral | $20.82B | ― | -40.45% | ― | 54.36% | -26.35% | |
50 Neutral | $1.28B | ― | -43.18% | ― | 167.99% | 22.75% | |
49 Neutral | $6.61B | ― | -60.83% | ― | ― | -4.00% | |
43 Neutral | $1.78B | ― | -320.52% | ― | ― | -30.78% | |
25 Underperform | $523.03M | ― | 115.25% | ― | ― | ― |
* Industrials Sector Average
Performance Comparison
EVTL
Vertical Aerospace
5.45
-3.10
-36.26%
EH
Ehang Holdings
17.99
5.84
48.07%
EVEX
Eve Holding
5.86
3.32
130.71%
RKLB
Rocket Lab USA
43.00
37.17
637.56%
ACHR
Archer Aviation
10.20
6.47
173.46%
PL
Planet Labs PBC
6.74
4.57
210.60%
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.