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Vertical Aerospace (EVTL)
NYSE:EVTL

Vertical Aerospace (EVTL) AI Stock Analysis

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EVTL

Vertical Aerospace

(NYSE:EVTL)

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Neutral 45 (OpenAI - 5.2)
Rating:45Neutral
Price Target:
$5.00
▼(-19.74% Downside)
The score is held down primarily by very weak financial performance (minimal revenue, ongoing heavy losses, negative cash generation, and negative equity). Technical indicators are mixed but slightly supportive over longer moving averages, while valuation is constrained by negative earnings and no dividend. Earnings-call updates show meaningful program progress, but near-term funding needs remain a key risk.
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)

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: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.
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.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.000.000.00132.00K87.00K
Gross Profit-13.96M-3.45M-3.37M-2.69M68.00K43.00K
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 Assets159.29M47.73M84.08M151.24M233.33M8.88M
Cash, Cash Equivalents and Short-Term Investments125.76M22.56M48.68M122.81M212.66M839.00K
Total Debt254.78M2.20M2.62M233.66M114.74M7.33M
Total Liabilities283.27M547.07M133.86M143.92M171.77M9.82M
Stockholders Equity-123.99M-499.34M-49.78M7.32M61.56M-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 Flow945.09K1.73M61.38M-62.96M-3.35M-688.00K
Financing Cash Flow157.91M18.77M169.00K7.25M244.71M12.51M

Vertical Aerospace Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.23
Price Trends
50DMA
5.04
Positive
100DMA
5.12
Positive
200DMA
5.09
Positive
Market Momentum
MACD
0.20
Negative
RSI
62.09
Neutral
STOCH
81.12
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVTL, the sentiment is Positive. The current price of 6.23 is above the 20-day moving average (MA) of 5.73, above the 50-day MA of 5.04, and above the 200-day MA of 5.09, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 62.09 is Neutral, neither overbought nor oversold. The STOCH value of 81.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
56
Neutral
$349.04M-126.95
49
Neutral
$1.61B-115.63%-33.69%
49
Neutral
$6.46B-7.11-59.13%11.14%
48
Neutral
$211.72M-0.42-98.87%-82.36%56.88%
45
Neutral
$604.96M-0.68
43
Neutral
$1.03B-32.74-24.59%23.58%20.74%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EVTL
Vertical Aerospace
6.23
-2.83
-31.24%
SPCE
Virgin Galactic Holdings
3.17
-2.64
-45.44%
EH
Ehang Holdings
14.16
-0.32
-2.21%
EVEX
Eve Holding
4.45
-0.39
-8.06%
ACHR
Archer Aviation
8.42
-0.55
-6.13%
AIRO
Airo Group Holdings, Inc.
10.74
-20.26
-65.35%

Vertical Aerospace Corporate Events

Vertical Aerospace Calls January 2026 EGM to Approve Major Share Capital Increase
Dec 29, 2025

On December 29, 2025, Vertical Aerospace Ltd. called an extraordinary general meeting (EGM) of shareholders to be held on January 20, 2026 in Bristol, U.K., with a record date of December 29, 2025, to vote on significant changes to its capital structure and corporate constitution. The board is asking shareholders to approve an increase in the company’s authorized share capital from US$210,000 (200,000,000 ordinary shares plus 10,000,000 preferred shares) to US$1,010,000 (1,000,000,000 ordinary shares plus 10,000,000 preferred shares), and to adopt a new, fifth amended and restated memorandum and articles of association reflecting this higher authorization. The company says the larger share pool is needed to cover current contingent obligations to issue ordinary shares and to accommodate future equity issuance, signalling continued reliance on share-based financing and providing greater flexibility for future corporate actions, which could have material implications for existing shareholders’ dilution and for Vertical’s ability to raise capital in the competitive advanced air mobility market.

The most recent analyst rating on (EVTL) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Vertical Aerospace stock, see the EVTL Stock Forecast page.

Vertical Aerospace Unveils Valo eVTOL Aircraft, Marking UK’s Return to Aircraft Manufacturing
Dec 10, 2025

On December 10, 2025, Vertical Aerospace unveiled Valo, a zero-emission eVTOL aircraft designed to redefine urban air mobility. Valo, succeeding the VX4 prototype, features a more advanced design informed by extensive testing and customer feedback. It is engineered to meet the highest safety standards, targeting certification in 2028, and aims to enter service with airline and operator customers. The launch of Valo marks the UK’s return to aircraft manufacturing leadership and is expected to create significant economic benefits, including over 2,000 high-skilled jobs and a £3 billion annual contribution to the UK economy by 2035.

The most recent analyst rating on (EVTL) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Vertical Aerospace stock, see the EVTL Stock Forecast page.

Vertical Aerospace Secures Key Partnership with Syensqo for VX4 Aircraft
Dec 8, 2025

Vertical Aerospace has announced a long-term supplier partnership with Syensqo, a leader in advanced materials, to supply composite and adhesive materials for the VX4 aircraft. This partnership, which becomes irrevocable on December 26, 2025, is a significant step in Vertical’s industrialization plan, especially as the VX4 targets certification in 2028. The collaboration with Syensqo, along with existing partnerships with companies like Honeywell and Aciturri, strengthens Vertical’s position in the aerospace industry, supporting both commercial and defense applications. The integration of Syensqo’s materials will enhance the VX4’s structural efficiency and durability, crucial for its high-cycle operations.

The most recent analyst rating on (EVTL) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Vertical Aerospace stock, see the EVTL Stock Forecast page.

Vertical Aerospace Leadership Boosts Shareholdings Amid Key Milestones
Dec 1, 2025

On December 1, 2025, Vertical Aerospace announced that 16 members of its Board of Directors and senior leadership team increased their holdings in the company’s ordinary shares by approximately 50% through open-market purchases in November 2025. This move, along with the acquisition of an additional 350,000 shares by the majority shareholder Mudrick Capital Management, underscores the leadership’s confidence in the company’s long-term value creation. The announcement comes as Vertical Aerospace is set to complete the final stages of its transition flight test program and unveil its new full-size aircraft on December 10, 2025. The share purchases and upcoming milestones highlight the company’s strategic positioning and commitment to advancing its eVTOL technology, which could have significant implications for stakeholders and the broader aerospace industry.

The most recent analyst rating on (EVTL) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Vertical Aerospace stock, see the EVTL Stock Forecast page.

Vertical Aerospace Advances VX4 Testing and Unveils New Aircraft Design
Nov 4, 2025

On November 4, 2025, Vertical Aerospace announced its third-quarter updates, highlighting significant progress in its flight testing and business strategy. The company is set to begin piloted transition flight tests for its VX4 aircraft, aiming for full transition flights by year-end. Vertical also unveiled the design of its certification aircraft cabin, emphasizing passenger comfort and flexibility. The company is on track to meet its financial guidance for 2025 and has outlined ambitious production and financial goals for 2030, including producing at least 175 aircraft annually and achieving a 20% gross margin.

The most recent analyst rating on (EVTL) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on Vertical Aerospace stock, see the EVTL Stock Forecast page.

Vertical Aerospace Reports Strong Cash Position as of September 2025
Oct 1, 2025

On October 1, 2025, Vertical Aerospace Ltd. reported having approximately £92 million ($123 million) in cash and cash equivalents as of September 30, 2025. This preliminary financial data, prepared by the company’s management, is subject to adjustments and has not been audited by PricewaterhouseCoopers LLP. The announcement highlights Vertical Aerospace’s financial position as it continues to advance its operations in the eVTOL market, potentially impacting its strategic initiatives and stakeholder interests.

The most recent analyst rating on (EVTL) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on Vertical Aerospace stock, see the EVTL Stock Forecast page.

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: Dec 30, 2025