Eve Holding Inc. (EVEX), a leading developer of electric vertical takeoff and landing (eVTOL) aircraft and urban air mobility solutions, saw its stock plummet by 5.26% on November 4th, 2024, after reporting a wider net loss for the third quarter of 2024 compared to the same period last year.
The company reported a net loss of $35.8 million for the quarter ended September 30, 2024, an increase from the $31.2 million loss recorded in the third quarter of 2023. The larger loss was primarily driven by higher research and development (R&D) expenses, which rose to $32.4 million from $28.6 million a year ago. These increased costs are tied to the intensified efforts and development activities related to Eve's eVTOL aircraft program, including the engineering prototype rollout in July and subsequent system and integration ground tests.
Additionally, selling, general, and administrative (SG&A) expenses also contributed to the wider loss, climbing to $8.4 million in the third quarter of 2024 from $5.0 million in the same period last year. This increase was attributed to higher costs associated with outsourced services, payroll expenses, and pre-operating industrialization costs for Eve's first eVTOL plant in Taubaté, Brazil. However, these increases were partially offset by savings on director and officer insurance expenses and the depreciation of the Brazilian Real against the U.S. dollar.
Despite the higher losses, Eve Holding's balance sheet remains strong, with cash, cash equivalents, and financial investments totaling $279.8 million at the end of the third quarter. Furthermore, the company secured additional financing arrangements, including a $90 million credit line from Brazil's National Development Bank (BNDES) to support investments in the Taubaté site, and a $50 million loan from Citibank to fund R&D activities. These additional funds are expected to strengthen Eve's financial position and support its operations and program investments in the upcoming years.
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