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Vertical Aerospace Ltd. (EVTL)
NYSE:EVTL
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Vertical Aerospace
(NYSE:EVTL)
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Rating:25Underperform
Price Target:―
Vertical Aerospace's stock is facing significant challenges primarily due to its poor financial performance, characterized by substantial operational losses and negative equity. The technical indicators show a bearish trend, and the valuation metrics highlight financial difficulties with a negative P/E ratio. The absence of earnings call data or corporate events further limits any positive outlook.
Positive Factors
Strategic Partnerships
Strategic partnerships enhance Vertical Aerospace's capabilities and market reach, providing a competitive advantage and potential for future growth.
Revenue Growth
The transition from zero to $11.31 million in revenue indicates initial market acceptance and potential for scaling operations in the growing urban air mobility sector.
Gross Profit Margin
A high gross profit margin suggests efficient cost management in production, which can support future profitability as the company scales its operations.
Negative Factors
Operational Losses
Persistent operational losses indicate challenges in achieving profitability, which could hinder long-term sustainability and require strategic adjustments.
Negative Equity Position
A negative equity position signals insolvency risks, limiting financial flexibility and potentially affecting the company's ability to secure future financing.
Cash Flow Challenges
Negative free cash flow indicates difficulties in funding operations and investments internally, necessitating external financing or cost-cutting measures.
Vertical Aerospace (EVTL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$501.51M
Dividend YieldN/A
Average Volume (3M)1.89M
Price to Earnings (P/E)―
Beta (1Y)3.24
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees350
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-0.32
Shares Outstanding98,527,720
10 Day Avg. Volume2,251,699
30 Day Avg. Volume1,887,251
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 Cap0.00
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price Target
$12.33Price Target Upside202.29% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Vertical Aerospace Business Overview & Revenue Model
Company DescriptionVertical Aerospace (EVTL) is an innovative aerospace company focused on revolutionizing urban air mobility. Specializing in the design and manufacture of electric vertical take-off and landing (eVTOL) aircraft, the company aims to transform the future of urban transportation by offering zero-emissions, fast, and efficient travel solutions. Vertical Aerospace operates within the aerospace and transportation sectors, providing cutting-edge technology to address the growing demand for sustainable urban air travel.
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:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 18, 2026
Earnings Call Sentiment Neutral
Vertical Aerospace reported significant achievements in aircraft design and regulatory milestones, positioning itself ahead of most competitors. However, challenges remain in addressing the valuation gap and securing sufficient funding for future operations.Q3-2025 Updates
Positive Updates
Industry-First Milestone Achieved
Vertical Aerospace completed the critical piloted transition flight, becoming the first eVTOL OEM of its size to achieve this under U.K. CAA regulatory oversight, ahead of all competitors except one.
Strong Competitive Advantage in Aircraft Design
The VX4 offers a unique competitive edge with the most spacious cabin in the industry, 70% larger passenger cabin volume compared to competitors, and the ability to scale from 4 to 6 passengers, enhancing operator profitability significantly.
Efficient Cost Structure
Vertical Aerospace's cost to certification is guided at $700 million, significantly lower than competitors, with 75% of non-recurring costs quoted or contracted.
Strategic Order Book and Partnerships
The company boasts a large, globally diversified order book and aims to secure partnerships with a global strategic player to support ramp-up from certification to commercialization.
Negative Updates
Valuation Gap
Vertical Aerospace's market cap is significantly lower than its peers, trading at 3% of company A and 6% of company B, despite achieving or exceeding key metrics.
Cash Position and Future Spending Needs
The current cash position is $117 million, with anticipated spending of $235 million over the next 12 months, requiring strategic partnerships or additional capital to meet future financial needs.
Company Guidance
During Vertical Aerospace's 2025 Third Quarter Earnings Call, the company provided guidance on several key metrics and milestones. They discussed the final phase of their five-stage flight test program, emphasizing the critical piloted transition flight, which is set to begin shortly, pending final permits from the U.K. CAA. Vertical Aerospace aims to complete certification by 2028, with a projected total cost of $1.1 billion for certification. They highlighted their aircraft's unique features, including a spacious cabin, scalable seating from four to six passengers, and significant luggage capacity. They maintained their full-year guidance of $110 million to $125 million in spending, underscoring their efficient use of capital compared to competitors. The company also announced a cash position of $117 million and anticipated spending of $235 million over the next 12 months. Looking forward, they plan to unveil their certification aircraft in December and aim to secure strategic partnerships and investment to support ramping up production capabilities globally.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 | 0.00 | 0.00 | 0.00 | 0.00 | 132.00K | 87.00K |
| Gross Profit | -13.96M | -3.45M | -3.37M | -2.69M | 68.00K | 43.00K |
| EBITDA | -3.61B | -60.08M | -63.53M | -77.15M | -243.71M | -10.86M |
| Net Income | -3.53B | -781.24M | -59.95M | -94.38M | -245.22M | -12.33M |
Balance Sheet | ||||||
| Total Assets | 159.29M | 47.73M | 84.08M | 151.24M | 233.33M | 8.88M |
| Cash, Cash Equivalents and Short-Term Investments | 125.76M | 22.56M | 48.68M | 122.81M | 212.66M | 839.00K |
| Total Debt | 254.78M | 2.20M | 2.62M | 233.66M | 114.74M | 7.33M |
| Total Liabilities | 283.27M | 547.07M | 133.86M | 143.92M | 171.77M | 9.82M |
| Stockholders Equity | -123.99M | -499.34M | -49.78M | 7.32M | 61.56M | -938.00K |
Cash Flow | ||||||
| Free Cash Flow | -83.80M | -46.72M | -76.96M | -105.72M | -28.34M | -12.40M |
| Operating Cash Flow | -88.05M | -46.29M | -74.70M | -103.71M | -27.55M | -12.01M |
| Investing Cash Flow | 945.09K | 1.73M | 61.38M | -62.96M | -3.35M | -688.00K |
| Financing Cash Flow | 157.91M | 18.77M | 169.00K | 7.25M | 244.71M | 12.51M |
Vertical Aerospace Technical Analysis
Neutral
4.08
Price Trends
4.91
Positive
5.12
Positive
4.98
Positive
Market Momentum
0.26
Positive
49.37
Neutral
9.07
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVTL, the sentiment is Neutral. The current price of 4.08 is below the 20-day moving average (MA) of 5.36, below the 50-day MA of 4.91, and below the 200-day MA of 4.98, indicating a neutral trend. The MACD of 0.26 indicates Positive momentum. The RSI at 49.37 is Neutral, neither overbought nor oversold. The STOCH value of 9.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
49 Neutral | $5.55B | -6.60 | -59.13% | ― | ― | 11.14% | |
48 Neutral | $202.87M | -0.44 | -98.87% | ― | -82.36% | 56.88% | |
47 Neutral | $231.96M | -87.71 | ― | ― | ― | ― | |
43 Neutral | $926.64M | -30.18 | -24.60% | ― | 23.58% | 20.74% | |
43 Neutral | $1.60B | -7.39 | -115.63% | ― | ― | -33.69% | |
25 Underperform | $501.51M | -0.58 | ― | ― | ― | ― |
* Industrials Sector Average
EVTL
Vertical Aerospace
5.27
-2.43
-31.56%
SPCE
Virgin Galactic Holdings
3.28
-2.70
-45.15%
EH
Ehang Holdings
13.06
-0.96
-6.85%
EVEX
Eve Holding
4.83
0.21
4.55%
ACHR
Archer Aviation
7.82
-0.60
-7.13%
AIRO
Airo Group Holdings, Inc.
7.42
-23.58
-76.06%
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.