Vertical Aerospace Ltd. Q2 FY2025 earnings call

• Flight testing: Achieved full-scale piloted wing-borne flights in public airspace (first in Europe) and airport-to-airport flight demonstration at a major military air show.
• Battery development: Completed full-scale build and test on concept battery design, including drop and thermal runaway propagation tests; planning pilot line and gigafactory; battery sales to offer long-term, high-margin recurring revenue (50-50 long-term mix between aircraft and battery sales).
• Partnerships: Expanded with Honeywell for flight control systems; partnered with Aciturri Aerostructures for airframe; deepened with Bristow for ready-to-fly eVTOL operations platform.
• Leadership/Board: Appointed Mark Higson as COO, Steve Vellacott as VP of Airworthiness, and Lord Andrew Parker to the Board; raised $70 million in July, total 2025 raises near $160 million.

No detailed product segment financial performance with revenue contribution % provided in the transcript.

• 2025 guidance unchanged: $110 million to $125 million net cash used in operating activities; cash runway into mid-2026 with ~$139 million in cash and cash equivalents.
• Plan to host Capital Markets event on 17th September to update financials, hybrid opportunity, battery details, cost of certification, and manufacturing plans.

• Forward-looking statements involve risks and uncertainties where actual results may differ from projections.
• Regulatory scrutiny and challenges associated with the certification process of the VX4 aircraft.

Q: Follow up on defense missions A: Discussed military missions like logistics, moving personnel with hybrid's range (up to 1,000 miles) and payload (1,200 kilos).

Q: Transition in second half A: On track for piloted transition in Q4, gathering data for regulator on the flight phase between 30 knots and 70 knots.

Q: Investor Day tease A: Will update financials, hybrid opportunity, battery details, including 50%+ revenue from batteries after 5-7 years in service with 40% margin.

Q: Parts purchase and NRE A: Significant parts secured with Honeywell, Aciturri, Hanwha; NRE to step up over next 12-18 months for tooling and engineering.

Q: Hybrid certification A: Supplemental type certificate possible as modification to electric aircraft, leveraging existing airframe and systems.

Q: Cash burn and aircraft build A: Funds cover building Aircraft 3, installing hybrid powertrain, and constructing next certification aircraft.

Q: Aciturri impact on CapEx A: Details on CapEx at Capital Markets Day; excited about partnership with Aciturri for airframe build.

Q: Defense milestones A: Hybrid powertrain working, public display at air show generated discussions with military, ongoing talks with British military.

Q: Hybrid complementing electric A: Electric for short-range missions; hybrid for longer missions, helicopter displacement, and defense/logistics/surveillance use cases.

Q: Wing-borne testing learnings A: Design works, data supports final certification aircraft design, with no major changes needed from prototype.