Earnings

Eve Holding Widens Third-Quarter Loss as R&D Rises

The Tip Desk · November 11, 2026 · 3 min read

The pre-operational eVTOL developer posted a $58.1 million net loss and said 2026 cash use is tracking to the low end of a $225 million to $275 million range.

Eve Holding, Inc. (EVEX), an aerospace company developing an electric vertical takeoff and landing aircraft, reported a net loss of $58.1 million in the third quarter of 2026, wider than the $46.9 million loss a year earlier. The company said the increase was mainly due to higher research and development expenses and lower net financial results.

R&D expenses were $48.3 million, compared with $44.9 million a year earlier. Eve said the costs reflect increasing supplier engagement and R&D activities, including eVTOL development and allocation of Embraer engineering resources under its Master Service Agreement. The company said it does not expect meaningful revenue, if any, during the aircraft development phase, and that results are expected to be driven mostly by program development costs.

Selling, general and administrative expenses fell to $6.0 million from $7.0 million, mostly in response to reduced outsourced services and other expenses, despite an approximately 4% average appreciation of the Brazilian real versus the U.S. dollar. Eve said it is already capturing some of the additional cost savings and synergies previously identified with Embraer. Interest income and other non-operating items swung to a $0.8 million net expense from $6.3 million of income.

Cash consumption, which Eve defines as free cash flow, was $55.1 million in the quarter, versus $60.7 million a year earlier, even as design and development intensified. Net cash used in operating activities was $51.6 million. Net additions to property, plant and equipment declined to $3.5 million from $6.7 million. Cash, cash equivalents and financial investments totaled $356.0 million at quarter-end. Total debt increased to $322.1 million from $168.1 million. Total liquidity, including undrawn credit lines with Brazil’s National Development Bank and a grant, reached $470.4 million. The company said it believes that funding is sufficient to support operations and program investments through 2028.

In the first nine months of 2026, cash consumption reached $173.1 million. Full-year 2026 cashflow consumption is now expected to reach the low end of Eve’s $225 million to $275 million guidance range, versus $196.5 million demanded by the program in 2025, adjusted for working capital. Eve said intensifying program development, increased supplier engagement and initial assembly of certification prototypes require more engineering hours under the Embraer MSA and purchases of raw materials and parts. It said investments and expenses are expected to stay high in upcoming quarters, mainly due to strong engineering engagement and possible supplier payments.

The engineering prototype, which first flew in December 2025, completed 73 flights and validated 170 points, equivalent to 91% of the check points planned for the prototype’s entire flight campaign. Flights do not count toward certification. After 59 hover flights and 2 hours 27 minutes of airtime, the team expanded the envelope into transition testing, including in-flight activation of the rear pusher. Eve said it demonstrated Autoland and a simplified fly-by-wire mode.

Teams have completed most Critical Design Review processes and released final drawings. Eve said it has started receiving components for the first of up to six certification-conforming prototypes and expects the first flight of that prototype in the second half of 2027. Brazil’s ANAC published the Basis of Certification in November 2024; Eve said it has aligned most Means of Compliance and expects FAA validation for 2028. It applied for EASA type-certificate validation in March 2026, accepted in April, and said it expects to initiate EASA tests in mid-2028, with the process lasting about 18 months.

On November 4, Eve and FlyBIS signed a binding agreement for up to 12 eVTOLs, comprising two firm orders and purchase rights for 10 additional aircraft, to be deployed in Southern Brazil. The order pipeline totals approximately 2.5 thousand units, with a non-binding backlog value of approximately $12.6 billion based on list price. Eve said the pipeline is based on non-binding letters of intent and is subject to change.