Vertical Aerospace Ltd. Q1 FY2025 earnings call

• Reminded of reasons to believe in success, including aircraft safety, capacity, and market positioning.
• Updated on quarterly progress: Test program achieved important technical milestones, completed high-speed taxi tests, expected to start wingborne flight tests in Q2, submitted ~20,000 pages of documentation to CAA for wingborne flight test permit.
• Announced hybrid program, bringing huge market opportunities for defense and wider commercial operations.
• Formalized and expanded partnership with Honeywell for flight controls and aircraft management systems, etc.
• Adopted CCS charging standard to support global industry charging infrastructure acceleration.
• Added three new directors to the board to strengthen governance and strategic leadership.
• Director of Engineering Limhi Somerville introduced battery team capabilities, R&D progress, including battery system advantages, test progress, etc.

Not explicitly detailed in terms of specific financial performance and revenue contribution percentages for product segments

• Net cash used in operating activities for Q1 2025 was approximately $30 million.
• Full-year spend guidance remains unchanged at approximately $110 million to $125 million.
• Closed the quarter with approximately $90 million cash and cash equivalents on hand.
• Development of the hybrid powertrain was within the already considered cash spend, and the cash spend guidance for this year remains the same.

前瞻性陈述涉及风险，实际结果可能与前瞻性陈述大不相同，且已提交给SEC的6-K文件中详细讨论了相关风险和不确定性

Q: Charlotte Cowley asks about the impact on our cash spend, and our cash burn going forward given the hybrid announcement yesterday.

A: Stuart Simpson says the development of the hybrid powertrain was within the cash spend already considered, and the guidance for this year remains the same, with cash spend projected to be in the range of $110 million to $125 million.

Q: Savi Syth asks about the SC-VTOL certification and revenue generation before EASA certification.

A: Stuart Simpson says the hybrid product is within the current airframe, the core electric VX4 is on track for 2028 certification, the hybrid will be certified as a separate aircraft likely around the same time or slightly delayed, and there have been deep discussions with potential customers but no specific details on short-term cash flow changes.

Q: Austin Moeller asks about whether the hybrid powertrain will be integrated into an existing airframe or a third one and EASA certification flight testing.

A: Stuart Simpson says the hybrid will go into an airframe under construction, will first fly as an all-electric aircraft, then the hybrid powertrain will be retrofitted, and there will be more flight testing with two aircraft to generate test information for the VX4.

Q: Jesse Sobelson asks about wingborne testing in 2025 and how the hybrid expands capabilities to regional air mobility.

A: Stuart Simpson says wingborne testing will begin in Q2 2025, and the hybrid aircraft's range of over 1000 miles and payload capability expand capabilities to regional air mobility, opening up opportunities for defense, cargo, etc.

Q: Laura Lee asks about the battery business model and timeline for revenue generation.

A: Stuart Simpson and Limhi Somerville say the battery business has huge opportunity, including selling battery powertrain capabilities and second life applications, and they will start accepting inquiries and hearing more about it in the coming weeks and months, with every airframe sold having an underlying battery business with 1-2 batteries a year at over 40% margin.

Q: Amit Dayal asks about certification in other jurisdictions and customer relationships.

A: Stuart Simpson says they will work with regulators worldwide to passport the aircraft, have a great customer base including American Airlines, etc., and bring customers to Bristol twice a year to maintain relationships.

Q: David asks about battery design safety vs performance and EPM.

A: Stuart Simpson and Limhi Somerville say safety is paramount, they are working to achieve the highest safety standards, and the battery design optimizes performance while ensuring safety, with no announcement on EPM yet but confident in current aircraft.