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New Horizon Aircraft
(NASDAQ:HOVR)
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Rating:46Neutral
Price Target:
$1.00
▼(-46.81% Downside)
Action:Reiterated
Date:10/09/26
Overall score is held down primarily by weak financial performance (pre-revenue, sizable losses, and significant cash burn) and a technically weak price trend (below key moving averages with negative MACD). The latest earnings call provides a partial offset via progress milestones, strong reported liquidity, and LOI/partner momentum, while valuation is hard to support with negative earnings and no dividend.
Positive Factors
Low leverage and substantial equity base
Very low debt reduces refinancing and interest-rate exposure while the reported equity and asset base provide financial support for continued development. This balance-sheet structure gives management more flexibility to fund engineering milestones without the immediate pressure associated with substantial leverage.
Negative Factors
Pre-revenue model and substantial losses
The company has not yet demonstrated commercial revenue, so its current financial profile depends on continued external funding rather than customer cash generation. Large net and operating losses also show that meaningful earnings depend on successful certification, production, and eventual aircraft deliveries.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage and substantial equity base
Very low debt reduces refinancing and interest-rate exposure while the reported equity and asset base provide financial support for continued development. This balance-sheet structure gives management more flexibility to fund engineering milestones without the immediate pressure associated with substantial leverage.
Read all positive factors
New Horizon Aircraft (HOVR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$80.21M
Dividend YieldN/A
Average Volume (3M)505.49K
Price to Earnings (P/E)―
Beta (1Y)2.04
Revenue GrowthN/A
EPS Growth-407.10%
CountryUS
Employees58
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-0.59
Shares Outstanding67,123,940
10 Day Avg. Volume474,250
30 Day Avg. Volume505,494
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.53
Price to Sales (P/S)0.00
P/FCF Ratio-6.24
Enterprise Value/Market Cap0.79
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-377.23
Enterprise Value/Ebitda-2.56
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.55
Revenue Forecast (FY)N/A
New Horizon Aircraft Business Overview & Revenue Model
Company Description
New Horizon Aircraft Ltd., an aerospace original equipment manufacturer company, designs hybrid-electric vertical takeoff and landing (eVTOL) aircraft for the regional air mobility market in the United States. It focuses on the design and delivery...
How the Company Makes Money
Publicly available, company-specific details about New Horizon Aircraft’s current revenue model and revenue breakdown are not available in the information provided here, so a definitive description of how the company makes money cannot be stated w...
New Horizon Aircraft Earnings Call Summary
Earnings Call Date:Oct 09, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Jan 20, 2027
Earnings Call Sentiment Positive
The call was predominantly positive, with substantial progress on the full-scale X7 demonstrator, expanded staffing, strong liquidity, multiple customer LOIs, partner collaborations, and reported technical progress. The main negative factors were materially higher R&D spending and operating cash usage, continued development and certification uncertainty, nonbinding customer commitments, industry headwinds, and acknowledged safety and governance challenges as the company scales.Positive Updates
Full-Scale X7 Demonstrator Progressing Toward Testing
Horizon is building the full-scale Cavorite X7 demonstrator, with major systems including propulsion, flight controls, electrical systems, avionics, landing gear, and primary and secondary structures in detailed design and production. The company targets completion around the end of the first calendar quarter of 2027 and plans to begin ground and flight testing shortly thereafter.
Negative Updates
Significantly Higher Research and Development Spending
Research and development expenses rose to $7.4 million from $2.7 million a year ago, an increase of approximately 174%, primarily due to full-scale aircraft development. Engineering costs within R&D increased to approximately $5.3 million from $0.3 million, or approximately 1,667%. Management expects development spending to remain elevated as design, engineering milestones, and testing continue.
Read all updates
Q1-2027 Updates
Positive
Negative
Full-Scale X7 Demonstrator Progressing Toward Testing
Horizon is building the full-scale Cavorite X7 demonstrator, with major systems including propulsion, flight controls, electrical systems, avionics, landing gear, and primary and secondary structures in detailed design and production. The company targets completion around the end of the first calendar quarter of 2027 and plans to begin ground and flight testing shortly thereafter.
Read all positive updates
Company Guidance
Horizon Aircraft’s current target is to complete the demonstrator around the end of the first calendar quarter of 2027 and begin testing shortly thereafter, with certification work expected to advance to the next steps over the winter; development spending is expected to remain elevated at these levels, with a similar mix of R&D versus G&A expenses on a prospective basis, while reimbursable project costs are anticipated to reach more than $1 million throughout the fiscal year. The company plans to start with 2 full-scale prototypes, build in a normal fashion at 200 to 300 a year at full rate from one of its facilities, and hopes to have the first aircraft certified in early 2030, which is its current goal; any financing needs looking out to 2028 and 2029 would be influenced by non-dilutive sources, potential partners and cash deposits on aircraft.New Horizon Aircraft Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
55
Neutral
Cash Flow
18
Very Negative
| Breakdown | TTM | May 2026 | May 2025 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Gross Profit | -168.71K | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| EBITDA | -24.83M | -32.11M | 5.34M | -7.94M | -1.22M | -1.63M |
| Net Income | -17.65M | -45.71M | 5.20M | -8.16M | -1.25M | -1.65M |
Balance Sheet | ||||||
| Total Assets | 75.31M | 115.73M | 11.54M | 4.94M | 1.41M | 1.16M |
| Cash, Cash Equivalents and Short-Term Investments | 70.06M | 108.12M | 10.36M | 1.82M | 227.97K | 4.32K |
| Total Debt | 53.00K | 99.44K | 41.16K | 74.00K | 1.60M | 2.25M |
| Total Liabilities | 7.66M | 17.52M | 7.99M | 22.88M | 1.83M | 2.44M |
| Stockholders Equity | 67.66M | 98.21M | 3.55M | -17.93M | -413.49K | -1.28M |
Cash Flow | ||||||
| Free Cash Flow | -30.40M | -24.11M | -12.97M | -3.52M | -1.09M | -1.75M |
| Operating Cash Flow | -28.52M | -22.78M | -12.78M | -3.31M | -1.01M | -1.62M |
| Investing Cash Flow | -1.88M | -1.34M | -194.85K | -209.00K | -77.21K | -130.57K |
| Financing Cash Flow | 101.54M | 121.80M | 20.84M | 5.11M | 1.31M | 1.60M |
New Horizon Aircraft Technical Analysis
Negative
1.88
Price Trends
1.58
Negative
1.74
Negative
1.88
Negative
Market Momentum
-0.11
Positive
22.40
Positive
19.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HOVR, the sentiment is Negative. The current price of 1.88 is above the 20-day moving average (MA) of 1.40, above the 50-day MA of 1.58, and above the 200-day MA of 1.88, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 22.40 is Positive, neither overbought nor oversold. The STOCH value of 19.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HOVR.
New Horizon Aircraft Risk Analysis
New Horizon Aircraft disclosed 60 risk factors in its most recent earnings report. New Horizon Aircraft 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
New Horizon Aircraft 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% | |
52 Neutral | $3.23B | -3.89 | -40.86% | ― | ― | 15.37% | |
50 Neutral | $807.32M | 255.56 | 0.75% | ― | 62.23% | ― | |
46 Neutral | $80.21M | -2.83 | -52.73% | ― | ― | -407.10% | |
45 Neutral | $519.24M | -2.40 | -221.18% | ― | ― | 1.65% | |
44 Neutral | $272.11M | -2.42 | -36.65% | ― | -3.42% | -3.03% | |
44 Neutral | $70.80M | 2.61 | -171.87% | ― | ― | ― |
* Industrials Sector Average
HOVR
New Horizon Aircraft
1.20
-1.39
-53.68%
EH
Ehang Holdings
3.59
-14.82
-80.50%
EVTL
Vertical Aerospace
0.42
-4.09
-90.71%
EVEX
Eve Holding
1.49
-2.87
-65.83%
SKYH
Sky Harbour Group
9.89
<0.01
0.10%
ACHR
Archer Aviation
4.20
-7.02
-62.57%
New Horizon Aircraft Corporate Events
Business Operations and StrategyExecutive/Board Changes
New Horizon Aircraft appoints Tom Hearne to board
Positive
Sep 4, 2026
On September 2, 2026, Horizon Aircraft director Trisha Nomura notified the board of her decision to resign as a Class I director and from all board committees, including her role as Audit Committee chair, citing personal reasons and a desire to sp...
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.