Aug 13, 2026 earnings call — Farnborough demo, flight testing and financing update
Announced financing package expected to provide approximately $100 million in gross proceeds and anticipate available cash of $148 million.
EPS $-0.42 (est $-0.40)
Key quotes
"On day one of the show, we completed the first ever eVTOL flying display at Farnborough, a historic milestone."
"As of today, 13th August 2026, we have available cash and cash equivalents on our balance sheet of approximately $134 million."
"We announced ECLiPSE, a U.K. government-supported program led by Vertical in partnership with the University of Bath and InnCat to develop next-generation high-power charging and liquid cooling infrastructure for electric aircraft."
Analyst Q&A 9
stock gap and order updates
Q (Christopher Pierce · Needham): How do you close the gap between technical progress and the stock price? Also, what did you see for the order book after Farnborough and what to expect for the rest of the year?
A: Management said they will keep executing on their plan and look for strategic partners to close the market gap. They highlighted existing partners like Honeywell and American Airlines and said finding the right accretive partner would help close the disconnect. On orders, they said the order book is closed and selective, and they expect announcements after the aircraft Critical Design Review toward year-end and into next year.
"The first thing is we will just continue, as you say, to keep our heads down and execute flawlessly." — Stuart Simpson (CEO)
certification delay and cash need
Q (Xinran Li · Deutsche Bank): Why was the certification timeline moved from 2028 to 2029, and how does that change cash needs? You previously mentioned about a $200 million gap—how should we think about it now? Also, please explain the Honeywell/European project structure and market plan.
A: They said the shift to 2029 reflects being about a quarter late on transition, which tied up engineering resources and delayed switching focus to the VX4 certification. The Civil Aviation Authority and EASA are involved and supportive. On cash, they said cash needs remain around $700 million. For the Honeywell European project, they described it as the European equivalent to the FAA eIPP, a piloted demonstration involving manufacturers, navigation providers, airports, regulators and tech partners with planned flights between Malaga and Marbella; it does not count toward certification but helps operational proving.
"In terms of cash needs, cash needs remain around $700 million, and we're comfortable and confident we will be able to achieve that." — Stuart Simpson (CEO)
hybrid Valo and defense tie-up
Q (Louie Dipalma · William Blair): Can you discuss the defense partnership with Near Earth and hybrid Valo development? How important is the hybrid form for the U.K. Ministry of Defense? Also, when will the hybrid do a transition flight?
A: They said hybrid was signed off 2.5 years ago, a new gas turbine is running on the bench, and they will install that powertrain in Aircraft 3 in Q1 next year and fly it. The airframe carries directly from the electric to hybrid, which accelerates time to market. They also described strong defense interest and that Near Earth autonomy integrates well with the Anthem avionics, making autonomy easier to deploy.
"We now have a new gas turbine running on the bench, and we'll be installing that powertrain in the current Aircraft 3 in Q1 next year and flying that." — Stuart Simpson (CEO)
cash burn next 12 months
Q (Sameer Joshi · H.C. Wainwright): Why was cash spend higher in the first half and how should we think about cash burn over the next 12 months versus the last six months? Why isn't it just GBP 160 million–170 million for the next year?
A: Management said the first half spend was $112 million and that spending is lumpy. They noted the first half was busy due to supplier payments, work to underpin the Q4 aircraft-level CDR, Farnborough costs, battery investment, and near-term manufacturing facility investment; next year is expected to be less lumpy though there will be spend for hybrid installation and demonstrations.
ECLiPSE charging program details
Q (Sameer Joshi · H.C. Wainwright): Can you explain the ECLiPSE battery program? Is there any monetary commitment from partners, and how should we expect it to progress over the next 12–24 months?
A: They said the ECLiPSE program is sponsored by the United Kingdom government to develop a high-power charging system. Vertical has a proprietary charging system and is developing the ecosystem in parallel with aircraft certification so infrastructure and certification can be ready together. They framed the government sponsorship as supporting development of this proprietary capability.
UK funding and Vertical's cost share
Q (Sameer Joshi · H.C. Wainwright): Is the U.K. government committing funds to ECLiPSE, and how much will Vertical need to provide?
A: They said the U.K. government is committing resources and that Vertical already has funding in its budget to execute the work. Management described the amount as not large—'pretty small'—and said this will not be a huge cash drain going forward.
"So the U.K. government are committing resources to it." — Stuart Simpson (CEO)
accelerating defense / hybrid commercialization
Q (Andres Sheppard-Slinger · Cantor Fitzgerald): How are you thinking about commercializing the defense and hybrid variants? Could you accelerate defense or hybrid ahead of the civil program?
A: They said they could accelerate and 'flip' to hybrid first, but they are not doing so now because hybrid closely follows the electric development. They are well progressed on the all-electric Valo and on the hybrid powertrain, yet if the U.K. government or another military wanted it now, Vertical could pull the program forward and deliver in parallel or potentially earlier depending on certification.
purpose of European demo program
Q (Andres Sheppard-Slinger · Cantor Fitzgerald): With the European eIPP equivalent (VERTI-GO), what do you hope to achieve—revenue, validation, industry attention, or all of the above?
A: The transcript contains no management answer to this specific follow-up question. Management had earlier said they could accelerate hybrid if a government demanded it, but they did not provide a direct answer to this follow-up in the provided text.
battery monetization and production plans
Q (Savanthi Syth · Raymond James and Associates): Can you monetize the battery and charging solutions before aircraft certification? Also, how many aircraft will you build in 2027–2028 and which aircraft will you fly at VERTI-GO?
A: They said there is an opportunity to monetize charging and battery systems before certification and that customers can book pre-certification. For production and flying plans, they said they will be flying Valo, ramp production toward the end of next year, will fly Valo in 2028, and initially build seven Valo aircraft plus some hybrid ones.
"We'll be flying Valo, and we will be ramping up production towards the end of next year, and we will be flying in the Valo in 2028." — Stuart Simpson (CEO)