BETA

• Certification Progress

  • Resolved a key FAA policy interpretation issue for the H500A electric motor certification; completed required durability and lightning test teardowns (overseen by the FAA) that confirmed design robustness, and substantially completed all 2,100 engine software requirement tests, with formal FAA testing underway.
  • Fully completed and received 100% FAA acceptance of the requirements definition phase and detailed design standards for the CX300 CTOL aircraft, a first for the advanced air mobility (AAM) industry. This foundation carries over to the A250 VTOL program, which shares substantial common architecture with the CX300.
  • All certification progress is only reported after formal FAA acceptance, per company policy.

• New Product and Program Milestones

  • Unveiled the MV250, a military variant of the company's civilian VTOL aircraft, which leverages shared core technologies (batteries, motors, flight controls) from civilian programs to reduce development cost and accelerate timelines. It delivers 2,000-pound payload, 250-nautical-mile tactical range, and can double as an on-board power source for forward operating bases.
  • Completed successful test flights of the joint GE Aerospace Electrified Powertrain Flight Demonstration (EPFD) hybrid aircraft, including a transatlantic flight to Farnborough and a new altitude record over 30,000 feet for hybrid aircraft, proving the viability of hybrid propulsion for regional passenger aircraft.
  • Launched EIPP (Electric Aircraft Integration Pilot Program) operations on June 1, with United Therapeutics becoming the first operator to launch commercial EIPP flights, marking a 1-year pull-forward of commercialization for Beta aircraft. The company was ready to launch immediately due to pre-existing aircraft, infrastructure, operating experience, and regulatory partnerships.
  • Grew total aircraft backlog to 1,001 aircraft valued at $3.9 billion, near the full-year target of $4.0 billion reached at the half-year mark; logged over 190,000 total nautical miles of flight testing, on track to hit the year-end target of 250,000 nautical miles; expanded the charging network to 135 operational sites, and launched the America's Consortium for Electric Skyways (ACES) joint venture with Archer Aviation and Macquarie Capital to build up to 250 additional charging sites across key U.S. markets.
  • Secured a new order for civilian aircraft from Loganair (UK) after successful demonstration flights on Scottish postal routes, and completed operational demonstration programs in Japan with Yamato and in Hawaii with Hawaiian Airlines/Mokulele.

• Business and Technology Strategy

  • Core strategy is to develop shared core technologies that are leveraged across commercial aircraft, defense platforms, and third-party component sales, allowing each program's progress to strengthen all other programs. The company vertically integrates key technology development in-house to maintain control and quality.
  • Component sales to other original equipment manufacturers (OEMs) is a growing, high-margin business that expands the customer base, proves Beta's technology across additional platforms, and generates incremental revenue while informing Beta's own aircraft development.

• Full-year 2026 revenue guidance was raised to $42 million to $50 million, up from prior guidance, driven by better-than-expected execution across commercial, government, and technology initiatives in the first half of the year.
• Full-year 2026 adjusted EBITDA guidance is updated to a range of negative $400 million to negative $445 million, reflecting planned acceleration of investments in production engineering, vertical integration, and program development to capitalize on strengthening market demand signals.
• Full-year 2026 capital expenditure guidance is maintained at $150 million to $200 million, focused on building manufacturing and production capabilities.
• Q3 2026 interim guidance calls for revenue of $8 million to $12 million, and adjusted EBITDA of negative $115 million to negative $125 million, reflecting ongoing planned investments.
• The up to $1 billion in expanded financing from the U.S. Export-Import Bank will provide non-dilutive capital to fund capital expenditures, materially extend the company's financial runway, and support accelerated manufacturing expansion for all core programs.

Q2 2026 total company revenue was $14.7 million, representing 146% year-over-year growth, beating the prior guidance range of $8 million to $11 million. The outperformance was driven by two key segments: 1) the EPFD hybrid propulsion demonstration program with GE Aerospace, which contributed steady program revenue reflecting the scaling of the multi-year partnership; 2) charging infrastructure, with completed deliveries of contracted chargers to the Florida Department of Transportation, which contributed to revenue and proved the infrastructure monetization model. Component sales (including motors, batteries, and flight control computers) is a growing, high-margin segment that saw a new sale of flight control computers and software licensing to Horizon Aircraft for their X-7 program during the quarter, extending the company's addressable component portfolio. Defense programs (including the MV250 military VTOL and classified contracts with General Dynamics) are also advancing, with the company moving into phase two on one classified program and entering phase one of a second separate program.

• Certification of new electric propulsion and AAM aircraft requires working through untested regulatory processes with the FAA, as formal rules for certifying novel technologies like electric motors did not exist prior to Beta's work. While key policy interpretation issues have been resolved, remaining work requires formal FAA acceptance of test results, which has inherent timing uncertainty.
• Ramping up industrial production for aircraft requires securing specialized manufacturing equipment (such as autoclaves and ultrasonic testing tools) that can be in short supply across the industry. Beta states it has proactively secured required equipment early, but supply chain constraints remain a potential headwind.
• All forward-looking statements around program timelines, revenue, and certification are subject to inherent risks and uncertainties that could cause actual results to differ materially from expectations, as noted in the company's SEC filings.

Q: Could H500A motor certification and CX300 aircraft certification end up closer in timeline than previously planned, or is CX300 dependent on H500A completion? / A: The original plan spaced the two programs a year apart intentionally, but that separation is not required. Resolution of the H500A policy issue did not negatively impact the CX300 program, which already has most test plans approved. Both programs can proceed concurrently, and the company is currently in good shape for both timelines after resolving the policy interpretation issue. The focus on resolving the harder engine certification challenge first was intentional, as electric engine certification is a less exercised area of the FAA, and clearing it first allows faster progress on the aircraft program.

Q: What are the target use cases for the new MV250 military VTOL, how fast can it deploy and scale, and what is the core benefit of the ACES charging consortium? / A: The MV250 is a multi-mission dual-use platform that leverages shared parts and technology from Beta's civilian programs to reduce development cost. The primary initial focus is contested and front-line logistics, able to carry 2,000 pounds of payload further and faster than conventional helicopters, with autonomous capability that allows operation in high-risk areas without risking aircrew. It also has secondary use cases for medical evacuation and launching effectors like small drones. For ACES, the core benefit is aligning the industry around a common open charging standard for public airport land, combining Beta's charging hardware expertise with Archer's insight into high-priority urban locations to build a more comprehensive, useful network faster than either company could build alone.

Q: What remaining work is left for H500A Phase 4 certification and CX300 Phase 4 over the next 6-12 months? / A: For H500A, all major policy issues are resolved, and the program is now in pure execution mode. The company has already completed most required tests (including lightning and durability testing), and remaining work consists of repeating testing in front of FAA representatives, gaining sign-off on test methods, and ultimately receiving final type certificate approval from the FAA. The program already has over 80,000 hours of motor runtime, far more than the 1,000-2,000 hours typical for turbine engine certification. For CX300, all major technology requirements are already clarified and accepted by the FAA, with test plans approved. Remaining work includes structural conformance testing, flight testing with FAA test pilots, and completing all required compliance sign-offs, with no outstanding major interpretation risks. The process is well-understood and execution is achievable.

Q: What is the current state of customer conversations for the MV250, and what is the company's M&A strategy for defense growth? / A: The MV250 launch was pulled forward six months due to strong demand signals, and that interest was strongly validated at Farnborough, with high-level interest from both the U.S. military and foreign military customers. The program aligns well with current U.S. military acquisition reform priorities for low-cost, rapidly deployable systems built on commercial technology, and the company expects to move forward with a rapid prototyping contract within the next year. For M&A, the company focuses acquisitions on addressing the hardest, most critical bottlenecks for certification and growth, rather than large attractive headline deals. The most recent acquisition was of an AI/software company focused on safety-critical software validation and verification for flight control systems, which directly supports faster certification progress.