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Vertical Aerospace (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
$578.36M
Dividend YieldN/A
Average Volume (3M)1.75M
Price to Earnings (P/E)―
Beta (1Y)2.73
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees350
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-2.34
Shares Outstanding98,527,720
10 Day Avg. Volume2,167,386
30 Day Avg. Volume1,748,553
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.82
Enterprise Value/Revenue41.84
Enterprise Value/Gross Profit-427.31
Enterprise Value/Ebitda2.70
Forecast
1Y Price Target
$11.60Price Target Upside96.94% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
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: |
Next Earnings Date:Mar 18, 2026
Earnings Call Sentiment Positive
Vertical Aerospace has made significant progress towards their strategic objectives, with successful flight tests, strong partnerships, and advancements in battery technology. However, challenges remain in terms of regulatory certification and managing capital expenditures. The company's financial position has been strengthened through recent capital raises, and they are well-positioned to capture opportunities in the defense market.Q2-2025 Updates
Positive Updates
Successful Flight Tests and Milestones
Vertical Aerospace has successfully flown full-scale piloted wing-borne flights, including the world's first eVTOL airport-to-airport flight. They are on track to achieve final flight phase, piloted transition by year-end, and to finalize the assembly of their third VX4 prototype.
Strategic Partnerships and Collaborations
Vertical has expanded partnerships with companies like Honeywell and Aciturri Aerostructures, securing long-term agreements for aircraft components and systems. The partnership with Bristow aims to accelerate global eVTOL adoption with a ready-to-fly model.
Advancements in Battery Technology
The development of a proprietary battery is advancing, with successful testing and plans to produce a certification-ready battery. This technology is expected to contribute to a long-term, high-margin recurring revenue model.
Financial Strength and Capital Raise
Vertical Aerospace raised approximately $70 million in a recent follow-on, totaling nearly $160 million raised in 2025. This strengthens their position as a leading eVTOL OEM.
Defense Market Opportunities
Vertical is uniquely positioned to capture opportunities in the growing European defense market, with increased defense spending from NATO members.
Negative Updates
Certification and Production Challenges
The company faces significant regulatory scrutiny and must navigate complex certification processes to meet their target certification date of 2028.
Capital Expenditure and Cash Burn
There are upcoming nonrecurring engineering costs and capital expenditures required for certification and production, which will increase cash burn over the next 18 months.
Company Guidance
During the 2025 First Half Year Earnings Call, Vertical Aerospace provided extensive guidance on their progress, strategic objectives, and future plans. The company is on track to achieve key milestones, including the final flight phase, piloted transition, and the assembly of their third VX4 prototype by year-end, which will double their flight test capacity. They plan to achieve a certification-ready battery and have initiated production with key partners such as Honeywell and Aciturri Aerostructures. Vertical is also expanding partnerships, notably with Bristow, to accelerate global eVTOL adoption. Their financial guidance remains consistent, anticipating a net cash usage of $110 million to $125 million in operating activities for the year, with a cash runway extending into mid-2026. The company has raised approximately $160 million in 2025, positioning them strongly for operational agility and future developments. Vertical's long-term strategy includes leveraging their proprietary batteries, projecting a high-margin recurring revenue model, and planning for a gigafactory announcement within 12 months.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 | -1.11M | 0.00 | 0.00 | 0.00 | 68.00K | 43.00K |
| EBITDA | 175.33M | -60.08M | -101.06M | -96.06M | -243.71M | -10.86M |
| Net Income | -513.16M | -781.24M | -59.95M | -76.11M | -245.78M | -12.33M |
Balance Sheet | ||||||
| Total Assets | 87.00M | 47.73M | 84.08M | 151.24M | 233.33M | 8.88M |
| Cash, Cash Equivalents and Short-Term Investments | 61.98M | 22.56M | 48.68M | 122.81M | 212.66M | 839.00K |
| Total Debt | 241.97M | 2.20M | 2.62M | 3.16M | 1.94M | 7.33M |
| Total Liabilities | 263.11M | 547.07M | 133.86M | 143.92M | 171.77M | 9.82M |
| Stockholders Equity | -176.10M | -499.34M | -49.78M | 7.32M | 61.56M | -938.00K |
Cash Flow | ||||||
| Free Cash Flow | -71.19M | -46.72M | -76.96M | -105.72M | -30.91M | -12.40M |
| Operating Cash Flow | -70.95M | -46.29M | -74.70M | -103.71M | -27.55M | -12.01M |
| Investing Cash Flow | 1.67M | 1.73M | 61.38M | -62.96M | -3.35M | -688.00K |
| Financing Cash Flow | 66.59M | 18.77M | 169.00K | 7.25M | 244.71M | 12.51M |
Vertical Aerospace Technical Analysis
Positive
5.89
Price Trends
5.33
Positive
5.61
Positive
5.50
Positive
Market Momentum
0.19
Negative
55.47
Neutral
63.53
Neutral
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 5.89 is above the 20-day moving average (MA) of 5.62, above the 50-day MA of 5.33, and above the 200-day MA of 5.50, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 55.47 is Neutral, neither overbought nor oversold. The STOCH value of 63.53 is Neutral, 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
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% | |
56 Neutral | $1.34B | ― | -30.69% | ― | 87.67% | 18.33% | |
53 Neutral | $627.05M | ― | ― | ― | ― | ― | |
49 Neutral | $228.64M | ― | -91.98% | ― | -84.19% | 55.27% | |
49 Neutral | $8.04B | ― | -60.83% | ― | ― | -4.00% | |
43 Neutral | $1.44B | ― | -320.52% | ― | ― | -30.78% | |
25 Underperform | $578.36M | ― | 115.25% | ― | ― | ― |
* Industrials Sector Average
EVTL
Vertical Aerospace
5.89
-0.18
-2.97%
SPCE
Virgin Galactic Holdings
4.06
-2.19
-35.04%
EH
Ehang Holdings
18.56
0.94
5.33%
EVEX
Eve Holding
4.93
1.60
48.05%
ACHR
Archer Aviation
12.66
9.58
311.04%
AIRO
Airo Group Holdings, Inc.
19.08
-11.92
-38.45%
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.