EHang Holdings Limited Q2 FY2026 earnings call

• Strategic Transition & Core Focus

  • The company has moved beyond aircraft certification toward end-to-end operational readiness, scenario validation, capability development, and global expansion. It views certification as just an entry ticket, with sustainable commercial success dependent on standardized, replicable operational capabilities and global delivery capacity.
  • Passenger urban air mobility remains the long-term strategic focus, with the EH216 series having accumulated nearly 100,000 safe flights, 1.5 years of continuous safe internal trial operations in Guangzhou and Hefei, and a 4.94/5 passenger satisfaction score. All key required certifications for the EH216S have been obtained.

• Global Expansion

  • Overseas footprint has expanded to 23 countries, adding Mexico and Switzerland in Q2. The company launched the Global Fast-Track program, a standardized four-stage market entry framework that leverages the company's decade of experience to help local regulators and partners streamline the path from validation to commercial deployment, rather than just selling aircraft. Sri Lanka is the first participant, with additional discussions ongoing in Central America and other regions.
  • Thailand is conducting validation flights via a regulatory sandbox, with a clear approval pathway and a target for commercial approval in 2026. Hong Kong has selected EHang for its low-altitude economy regulatory sandbox trial, with flight validation underway and a public demo upcoming.

• Revenue Diversification

  • While passenger transportation remains the core strategic focus, the company is actively developing non-passenger revenue streams including logistics, forest firefighting, and aerial media to reduce reliance on domestic passenger commercial approval. It is building a multi-scenario product matrix based on its mature passenger-grade safety technology.
  • Aerial media has expanded to Europe, Japan, Thailand, and other overseas markets, evolving from one-off event performances to regular on-site shows to improve revenue predictability and equipment utilization. Over 1,000 GD4 drones have been shipped to Thailand for regular operations in Bangkok and Pattaya. Non-passenger product development for logistics and firefighting is advancing, with prototypes undergoing testing and customer validation, targeting faster market deployment.

• Technology & R&D Progress

  • Upgrades to existing EH216S operations have boosted daily flights per aircraft from ~6 to 12-15 via a new battery cooling system, significantly improving operational efficiency and unit economics, while a new independent air conditioning system enhanced passenger comfort. The company completed its first point-to-point test route in Guangzhou, moving from single-point operations to regular route-based operations.
  • The VT35 completed key aerodynamic and airworthiness tests including wind tunnel testing and component protection testing, with ongoing flight tests. The company is developing new core system capabilities: a low-altitude operations control system for operators, and a city-level integrated supervision platform for government regulators that covers flight planning, airspace management, real-time monitoring, and emergency response. A framework for the Hefei city-level supervision system has been completed.

• Operational Efficiency & Organizational Optimization

  • The company has streamlined its organization, refreshed its talent structure, cut non-essential expenses, and integrated AI tools into R&D and workflows to improve productivity. Cost reduction will not compromise safety, product quality, or long-term competitiveness, with the goal of strengthening cash reserves and sustainable operations. Resources are focused on core priorities: product development, certification, operating systems, overseas commercialization, and revenue-generating businesses.

In Q2 2026, total company revenue was 77.9 million RMB. Air mobility (passenger-related aircraft) revenue accounted for 92% of total Q2 revenue, with 35 units of EH216S and 1 unit of VT35 delivered in the quarter. Non-passenger business accounted for 8% of total Q2 revenue, driven primarily by aerial media (GD4 formation drone performances). In Q2, the non-passenger segment completed 22 aerial media shows and delivered 520 units of GD4 drones, with aerial media revenue surging over 270% year-over-year. Gross margin for the overall company remained stable at 61.2% in Q2 2026, compared to 61.5% in Q2 2025 and 62.5% in Q1 2026.

• The company has withdrawn its previously issued 2026 full-year revenue guidance of 600 million RMB, and will not provide new full-year revenue guidance at this time due to uncertainty around the timing of domestic human-carrying commercial operation approval. Updated guidance will be provided when the regulatory environment and business outlook become clearer.
• Non-passenger revenue is expected to increase in both absolute amount and as a percentage of total revenue in the second half of 2026, driven by higher deliveries of formation drones and initial deliveries of firefighting and logistics products, while passenger business revenue will continue to make up the majority of total revenue overall.
• Thailand is on track to obtain an experimental flight permit for passenger operations in Q3 2026, with a target to secure a full commercial operation certificate by the end of 2026. Formal EH216 deliveries for commercial routes in Thailand are expected to begin in 2027.

• A late-June 2026 accident involving an unrelated piloted light sport aircraft in China prompted regulators to adopt a far more cautious industry-wide safety oversight stance than initially expected. This has delayed the approval timeline for EHang's domestic human-carrying commercial operations, specifically for the Hefei project, with the new timing remaining uncertain.
• Uncertainty around the timing of domestic commercial launch creates uncertainty for near-term revenue growth and investor sentiment, as passenger-carrying operations remain the company's core strategic focus.
• While the regulatory tightening is not specific to EHang's technology or an indictment of its autonomous safety model, the broader industry slowdown in regulatory reviews extends to all low-altitude commercial projects, affecting near-term execution timelines.
• The company's near-term profitability remains under pressure due to lower revenue scale compared to prior expectations and continued targeted investment in R&D, commercialization, and global expansion, resulting in an adjusted operating loss of 62 million RMB and adjusted net loss of 58.5 million RMB in Q2 2026.

Q: When does EHang expect to secure commercial operation approval in Thailand, how many EH216 units will be delivered this year if approved, and why has the domestic Chinese operator certificate (OC) timeline changed following the June industry accident? / A: EHang expects to obtain an experimental flight permit in Thailand in Q3 2026 and a full commercial certificate by the end of 2026. Ten commercial routes covering Bangkok, Phuket, Pattaya, and other tourist destinations are planned, but formal EH216 deliveries will not start until 2027, with at least five aircraft required per location. Over 1,000 non-passenger GD4 drones have already been shipped to Thailand for regular light show operations. For domestic China, the regulatory response to the June unrelated accident was more far-reaching than initially anticipated, leading to broader industry-wide caution that has slowed the Hefei OC approval process, though this is not a rejection of EHang's autonomous technology pathway.

Q: With full-year guidance withdrawn, can you provide color on second half 2026 revenue run rates vs Q2, and an update on the outstanding accounting adjustment for delivered aircraft first mentioned in Q1? / A: The company will not provide quantitative revenue guidance or split run rate guidance due to ongoing regulatory uncertainty. In Q2 2026, passenger air mobility made up 92% of total revenue, while non-passenger business (dominated by aerial media) accounted for 8%, and non-passenger revenue will grow in absolute and percentage terms in the second half. For the accounting adjustment, EHang recognized revenue for a portion of previously delivered EH216 aircraft in Q2, and will recognize remaining revenue in future quarters as it meets applicable accounting criteria, with timely disclosures provided to the market.

Q: What safety milestones are needed for domestic regulatory approval timelines to return to normal, and which non-passenger business vertical has the most promising near-term outlook? / A: Reviews have not stopped entirely, but are proceeding with a heightened focus on safety. For approval timelines to normalize, the Hefei trial operations need to move into standardized routine operations and serve as an industry benchmark, which will accelerate future approvals across the sector. EHang is currently preparing all required documentation for regulators. All non-passenger verticals (logistics, firefighting, aerial media) have genuine market demand, and EHang is leveraging existing passenger aircraft technology for these products. Near-term, firefighting product shipments are expected in the second half of 2026 with promising order potential, and the non-passenger revenue share will continue to expand as part of the company's diversification strategy.