New Horizon Aircraft (HOVR) AI Stock Analysis

• Market Cap: $82.31M
• Dividend Yield: N/A
• Average Volume (3M): 587.70K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 20
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): N/A
• Shares Outstanding: 44,252,750
• 10 Day Avg. Volume: 590,062
• 30 Day Avg. Volume: 587,701
• PEG Ratio: -0.04
• Price to Book (P/B): 10.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.90
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -1.54K
• Enterprise Value/Ebitda: -4.78
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $2.00 ▲(23.46% Upside)

The score is primarily held back by weak financial performance (pre-revenue, widening losses, and ongoing cash burn with potential funding needs). Technical momentum is a key positive, while valuation remains challenged due to negative earnings and no dividend. Corporate events are mildly supportive but include dilution risk.

Positive Factors

Manufacturing partnership with RAMPF

Securing RAMPF as a composite fuselage manufacturer reduces technical and supply-chain execution risk for the Cavorite X7, brings aerospace production expertise, and supports scalable, certifiable manufacturing capability—improving long-term delivery and certification prospects.

Very low leverage and positive equity

Minimal debt and a meaningful equity base provide financial flexibility for a capital-intensive certification path, lowering near-term insolvency risk and allowing the firm to prioritize R&D and certification spending without heavy interest burdens while seeking financing.

Board expertise and employee alignment

Adding aerospace expertise to the board and approving an ESPP strengthens governance, technical credibility, and employee alignment. This supports complex certification and testing programs and helps retain talent critical for long-term program execution and regulatory engagement.

Negative Factors

Pre-revenue business model

With no recurring product revenue, the company depends on development milestones, grants, or financings to sustain operations. Lack of commercial cash flow limits ability to self-fund certification and scaling, increasing execution risk until product commercialization.

Sustained cash burn and negative free cash flow

Consistent negative operating and free cash flow indicates ongoing funding needs. Persistent burn during lengthy certification cycles raises the probability of repeated capital raises, which can distract management, delay milestones, and strain long-term program continuity if funding gaps occur.

Dilution and financing risk from expanded offering capacity

While expanded issuance capacity improves ability to raise capital, it creates structural dilution risk for existing shareholders and can alter incentives. Dependence on equity financing during development may increase share count and complicate long-term investor returns if commercialization timelines slip.

New Horizon Aircraft Business Overview & Revenue Model

Company Description

New Horizon Aircraft Ltd., an aerospace engineering company, focuses on designing and developing the hybrid electric vertical takeoff and landing (eVTOL) aircraft for the regional air mobility market primarily in the United States. It is developing Cavorite X7, a hybrid electric 7-seat aircraft that can take off and land vertically. The company was founded in 2013 and is headquartered in Lindsay, Canada.

How the Company Makes Money

New Horizon Aircraft Financial Statement Overview

Summary

Financial profile is weak overall due to being pre-revenue with sharply worse TTM net losses and persistent operating/free-cash-flow burn. The main offset is a currently low-debt balance sheet with positive equity, but ongoing losses and cash burn elevate funding risk.

Income Statement

The company is still pre-revenue (revenue is $0 across annual periods and TTM (Trailing-Twelve-Months)), so reported losses largely reflect operating spend rather than an underperforming core business. Profitability is weak and deteriorated sharply in TTM (Trailing-Twelve-Months) with net loss of about -$31.1M versus a one-time profitable annual period in 2025 (net income +$5.2M) and losses in prior years. The overall trajectory points to rising operating costs and limited visibility to near-term earnings normalization without commercialization.

Balance Sheet

Leverage is very low, with minimal total debt in TTM (Trailing-Twelve-Months) (~$19K) against a meaningful equity base (~$14.5M), which reduces financial risk and improves flexibility. However, equity has been volatile historically (negative equity in several prior annual periods), and returns on equity are very weak in TTM (Trailing-Twelve-Months) due to large losses. Asset base has increased materially versus earlier years, but ongoing losses could pressure the balance sheet if funding is required to sustain operations.

Cash Flow

Cash generation is weak with continued cash burn: operating cash flow is negative in all shown periods and worsened in TTM (Trailing-Twelve-Months) to about -$10.1M, with free cash flow around -$10.9M. Free cash flow remains negative despite showing positive growth in TTM (Trailing-Twelve-Months), and cash outflows are not being supported by current earnings quality given the lack of recurring revenue. The main strength is that debt is not driving the cash profile; the key risk is the likely need for additional capital if burn persists.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	0.00	0.00	0.00	0.00
Gross Profit	0.00	0.00	0.00	0.00
EBITDA	-13.45M	-4.57M	-1.44M	-1.76M
Net Income	5.20M	-8.16M	-1.25M	-1.65M
Balance Sheet
Total Assets	8.41M	4.94M	1.41M	1.16M
Cash, Cash Equivalents and Short-Term Investments	7.55M	1.82M	227.97K	4.32K
Total Debt	30.00K	74.00K	1.60M	2.25M
Total Liabilities	5.82M	22.88M	1.83M	2.44M
Stockholders Equity	2.59M	-17.93M	-413.49K	-1.28M
Cash Flow
Free Cash Flow	-9.45M	-3.52M	-1.09M	-1.75M
Operating Cash Flow	-9.31M	-3.31M	-1.01M	-1.62M
Investing Cash Flow	-142.00K	-209.00K	-77.21K	-130.57K
Financing Cash Flow	15.19M	5.11M	1.31M	1.60M

New Horizon Aircraft 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%
ACHR	55 Neutral	$5.27B	-5.95	-59.13%	―	―	11.14%
HOVR	50 Neutral	$82.31M	-2.92	―	―	―	―
EVEX	49 Neutral	$1.37B	-5.81	-115.63%	―	―	-33.69%
SKYH	47 Neutral	$702.57M	-17.43	-5.40%	―	95.23%	89.44%
EVTL	45 Neutral	$464.07M	-0.51	―	―	―	―
EH	43 Neutral	$916.60M	-28.72	-24.59%	―	23.58%	20.74%

New Horizon Aircraft Corporate Events

New Horizon Aircraft Approves Employee Stock Purchase Plan

On November 25, 2025, New Horizon Aircraft Ltd. held its annual shareholder meeting where the Employee Stock Purchase Plan (ESPP) was approved, allowing employees to purchase company shares through payroll contributions. This plan aims to align employee interests with company growth. Additionally, Jameel Janjua, a renowned test pilot-astronaut, joined the Board of Directors, bringing extensive aerospace expertise to support the development and certification of the Cavorite X7, enhancing the company’s strategic positioning in the aerospace industry.