Executive Summary / Key Takeaways

• Eve Air Mobility is strategically positioning itself as a comprehensive urban air mobility (UAM) ecosystem provider, encompassing eVTOL aircraft design and production, extensive aftermarket services (TechCare), and advanced air traffic management software (Vector).
• The company is on track for Type certification and entry into service in 2027, supported by a robust development program, including the imminent first flight of its engineering prototype and the planned assembly of five conforming prototypes.
• A strong financial position, bolstered by a recent $230 million equity raise and over $534 million in total liquidity as of Q3 2025, provides a cash runway through 2027, significantly de-risking its capital-intensive development phase.
• Eve's deep strategic relationship with Embraer, its majority shareholder, provides unparalleled aviation heritage, engineering expertise, supply chain management, and certification experience, offering a distinct competitive advantage.
• The company boasts a substantial pre-order backlog of approximately 2,800 eVTOLs, valued at $14 billion, alongside significant commitments for its TechCare and Vector solutions, underscoring strong market validation for its integrated approach.

The Dawn of Urban Air Mobility and Eve's Vision

The urban air mobility (UAM) sector stands at the precipice of a transformative era, promising to redefine short-distance travel, alleviate urban congestion, and contribute to sustainable transportation. Eve Holding, Inc., an aerospace company with operations in Melbourne, Florida, and São Paulo, Brazil, is not merely developing an electric vertical take-off and landing (eVTOL) aircraft; it is meticulously crafting a holistic UAM ecosystem. This comprehensive strategy, deeply rooted in its heritage as a former blank check company (Zanite Acquisition Corp.) that completed its business combination in May 2022, aims to provide an end-to-end solution for future aerial mobility.

Eve's mission is ambitious: to deliver affordable air transportation, enhance quality of life, boost economic productivity, save passenger time, and reduce global carbon emissions. This vision is underpinned by a three-pronged business model: eVTOL production and design, a comprehensive global services and support network branded as TechCare, and a unique air traffic management solution called Vector. This integrated approach, leveraging the extensive resources and aviation DNA of its strategic partner and majority shareholder, Embraer S.A. , is designed to de-risk and accelerate its development plans while optimizing costs.

Technological Edge: Engineering the Future of Flight

At the heart of Eve's offering is its advanced eVTOL aircraft, purpose-built for UAM missions. The design features eight lifters and a pusher propeller, optimized for short urban routes, accommodating a pilot and four passengers. A key technological differentiator is the integration of Embraer's fifth-generation fly-by-wire control laws, a proven technology that enhances passenger comfort and safety through simplified single-pilot control. The aircraft also incorporates taxiing wheels, which improve energy efficiency by reducing the need for hovering and facilitate ground maneuvering, eliminating the reliance on ground support equipment.

Recent advancements include the unveiling of a full-scale mockup at the Paris Air Show, showcasing a new four-blade rotor configuration engineered for reduced vibration and quieter operation. These blades feature a fixed pitch and a mechanism to align, minimizing aerodynamic drag during the cruise phase of flight. The company is rigorously testing its engineering prototype, having successfully integrated and tested the pusher motor and now installing lifter motors from Beta Technology Company, following extensive dynamometer tests for performance metrics like thrust, vibration, sound, and energy consumption. This meticulous testing ensures real-life performance consistency with lab results and proper inverter installation.

A critical component of Eve's technological roadmap is the "Iron Bird," a deconstructed eVTOL where actual components are integrated into a physical system. This simulator, offering a 270-degree view, connects the pilot's joystick to actuators and motors that physically react to commands, all linked to avionics and flight control computers. The Iron Bird, which has logged over 10,000 hours of testing, is instrumental in integrating systems, troubleshooting problems on the ground, and improving component maturity for efficient maintenance programs. Its ability to perform tests 24/7, such as electrical system and circuit breaker checks, significantly expedites and reduces certification campaign costs. Furthermore, digital and computer systems, including flight simulators, are extensively used to validate fly-by-wire control laws, optimize pilot ergonomics, and refine cockpit design for efficient operation and maintenance.

A Comprehensive Ecosystem: Beyond the Aircraft

Eve's strategic vision extends far beyond the eVTOL itself, encompassing a robust ecosystem designed to ensure the successful and sustainable operation of UAM services. The TechCare segment offers a full suite of aftermarket services, including material services, maintenance, technical support, training, ground handling, and data services. This offering is agnostic, supporting both Eve's and third-party eVTOLs, and is expected to generate up to $1.6 billion in revenue over the first few years of operation from 14 contracted customers covering approximately 1,100 aircraft. The company's commitment to customer support is further solidified by its partnership with Embraer CAE Training Services (ECTS) for pilot and mechanic training, with initial data packages already provided to facilitate training solution development.

Complementing its aircraft and services, Eve is developing Vector, a next-generation Urban Air Traffic Management (UATM) software. Vector is designed to enable eVTOLs to operate safely and efficiently in dense urban airspace alongside conventional aircraft and drones. With 21 customers already committed to Vector, the solution has undergone successful simulations in São Paulo, Rio de Janeiro, and London, aiming to validate and fine-tune the software for increased air traffic density and higher safety standards. This holistic approach, from aircraft to operational support and air traffic management, positions Eve as a unique player capable of addressing the multifaceted challenges of establishing a new air mobility paradigm.

Financial Fortification: Fueling Development and Growth

Eve is currently a pre-revenue company, with its financials primarily reflecting the substantial costs associated with its program development. For the nine months ended September 30, 2025, the company reported a net loss of $160.34 million. Research and development (R&D) expenses, the largest component of its operating costs, increased by approximately 45.61% to $128.21 million for the eVTOL segment, 5.61% to $4.54 million for Service and Operations Solutions, and decreased by 34.81% to $2.51 million for UATM, compared to the same period in 2024. This acceleration in R&D is driven by intensified eVTOL development, including component procurement, full-scale prototype assembly, and increased engineering engagement with Embraer .

Selling, general and administrative (SG&A) expenses saw a slight increase of $2.80 million for the nine months ended September 30, 2025, to $23.12 million, reflecting increased direct Eve employees partially offset by lower Restricted Stock Unit costs and the capitalization of ERP system implementation.

Despite these significant development expenditures, Eve has substantially fortified its liquidity position. As of September 30, 2025, the company reported $412 million in cash and cash equivalents, with total liquidity reaching approximately $534.30 million. This includes $67.40 million in cash, cash equivalents, and restricted cash, $344.20 million in financial investments, $105.80 million in available undrawn debt, and $16.90 million in grant funding commitments from Finep. A pivotal moment was the successful $230 million registered direct offering in August 2025, anchored by strategic investors like the Brazilian Development Bank (BNDES) and Embraer , which extended Eve's cash runway through 2027. This robust financial standing is critical for funding ongoing R&D, planned capital expenditures for manufacturing capacity, and scaling operations without immediate reliance on external capital markets.

Strategic Trajectory: Milestones and Market Penetration

Eve's strategic roadmap is clearly defined, with a firm target of achieving Type certification and entry into service in 2027. The development program is progressing rapidly, with the engineering prototype in its final testing stages, poised for its first flight by the end of 2025 or early 2026. This initial flight campaign will involve a phased approach, starting with simpler hover flights, gradually expanding the flight test envelope to include increasing speeds and maneuvers, and eventually progressing to transition and cruise flights. Concurrently, Eve is actively engaged with ANAC, Brazil's certification authority, to finalize the certification plans and means of compliance, which are expected to be published by year-end 2025.

The company is also preparing for the assembly of its five certification-conforming prototypes, with suppliers already producing long-lead parts. The assembly line for these prototypes is being established within Embraer's main facility in São José dos Campos, a strategic location that leverages Embraer's engineering proximity. For commercial production, Eve plans a modular manufacturing approach at its Taubaté, São Paulo, Brazil site (ETT Manufacturing Site), with an initial capacity of 120 eVTOLs per year, expandable to 240 with an extra shift, and then to 480 with additional tooling, requiring an estimated $100 million in CapEx, largely secured through long-term financing from BNDES.

Market validation for Eve's integrated solution is evident in its substantial pre-order backlog of approximately 2,800 aircraft, valued at $14 billion. This includes non-binding letters of intent from 28 diverse customers across nine countries, alongside a binding framework agreement with Revo for 50 aircraft and TechCare services, marking Eve's first firm order and a significant step towards revenue generation in 2027. Recent agreements, such as the Framework Agreement with Bahrain's Ministry of Transportation and Telecommunications, further underscore Eve's global market penetration strategy, aiming to establish regional hubs and potentially conduct test flights in the Middle East by 2027.

Competitive Arena: Differentiating in a Nascent Market

The urban air mobility industry is dynamic and increasingly competitive, with players ranging from focused eVTOL developers like Joby Aviation , Archer Aviation , Lilium (LILM), and Vertical Aerospace (EVVT) to established aerospace and automotive conglomerates. Eve's competitive positioning is significantly bolstered by its strategic relationship with Embraer , which provides a deep well of aviation experience, engineering prowess, and a proven track record in aircraft certification and global aftermarket support. This heritage allows Eve to adopt a "best-of-breed" approach in supplier selection, ensuring lifetime agreements for prototypes, production, and aftermarket services, and fostering a multi-source program to de-risk ramp-up and production flows.

While competitors like Joby and Archer (ACHR) may demonstrate rapid prototyping and flight testing progress, Eve differentiates itself through its holistic ecosystem approach. It offers not just an eVTOL, but also comprehensive TechCare services and the Vector UATM solution, positioning itself as a complete solution provider rather than solely an aircraft manufacturer. This integrated strategy aims to guarantee dispatch reliability and optimized operating costs for operators, fostering stronger customer loyalty and potentially more stable revenue streams compared to product-centric models. The recent news of Joby (JOBY) investing in Blade (BLDE), a ridesharing platform, is viewed by Eve as a validation of the UAM market's transition and the need for multiple OEMs to serve diverse missions, rather than a direct competitive threat to its backlog.

Eve's focus on a comprehensive solution, including air traffic management, addresses a critical bottleneck for the industry's scalability. While direct quantitative financial comparisons with all competitors are challenging given the pre-revenue stage of many players, Eve's strong liquidity and disciplined cash management, leveraging Embraer's capabilities, position it favorably against peers who may face greater funding pressures. Eve's commitment to working with global authorities, including ANAC, FAA, and EASA, to harmonize certification standards further strengthens its path to market.

Risks on the Horizon

Despite its strategic advantages and robust development, Eve faces inherent risks common to a nascent industry. The UAM market remains undeveloped, with no guarantee of future demand, and its growth is susceptible to perceptions of eVTOL safety, performance, cost, and the pace of infrastructure development. Regulatory hurdles and certification delays, particularly from key authorities like ANAC and FAA, could significantly impact commercial launch timelines. Furthermore, the company's financial results are dependent on certifying and delivering eVTOLs on time and at a cost that supports viable returns, with variable manufacturing costs at scale remaining uncertain.

Operational risks include the dependence on high aircraft utilization rates, which can be affected by adverse weather, air traffic congestion, and unscheduled maintenance. Exposure to the Brazilian economic environment, including currency fluctuations and government policy changes, also presents a risk, as a significant portion of its costs are incurred in Brazil. The company will also lose its emerging growth company status by December 31, 2025, subjecting it to additional SEC reporting requirements. Legal proceedings, such as the shareholder derivative action related to the 2024 Private Placement, and compliance with covenants tied to its BNDES funding and Finep grant, also warrant close monitoring.

Conclusion

Eve Air Mobility is charting an ambitious yet well-supported course towards leadership in the nascent urban air mobility market. Its core investment thesis rests on a holistic strategy that integrates eVTOL aircraft development with comprehensive aftermarket services and advanced air traffic management solutions. This approach, significantly de-risked by the deep strategic partnership with Embraer (ERJ) and a strong financial foundation, positions Eve to capitalize on the transformative potential of UAM.

With a clear roadmap towards 2027 certification and entry into service, backed by a substantial pre-order book and disciplined cash management, Eve is demonstrating consistent progress in a capital-intensive industry. While challenges such as market development, regulatory complexities, and manufacturing scale-up persist, the company's technological differentiators, integrated ecosystem, and strategic alliances provide a compelling narrative for long-term investors seeking exposure to the future of urban transportation. Eve's ability to execute its integrated strategy and maintain its technological edge will be paramount in translating its vision into sustainable financial performance.