Please stand by. Your program is about to begin. Good day, everyone, and welcome to the Eve Air Mobility Second Quarter 2025 Conference Call. At this time, all participants are in a listen-only mode. Later you will have the opportunity to ask questions during the question-and-answer session. Please note this call is being recorded, and I will be standing by should you need any assistance. It is now my pleasure to turn the conference over to Lucio Aldworth, Director of Investor Relations at Eve. Please go ahead.

Thank you, operator. Good morning, everyone. This is Lucio Aldworth, the Director of Investor Relations at Eve, and I wanted to welcome everyone to our second quarter 2025 earnings conference call. Our CEO, Johann Bordais; and CFO, Eduardo Couto, are joining me on the call today. And after their prepared remarks, we will open the call for questions, at which point, Luiz Valentini, our Chief Technical Officer, will join us for more technical questions. We have a deck with a few slides and additional pictures that show our achievements in the quarter as well as the testing phase of our full-scale prototype. The deck is on our site at ir.eveairmobility.com. So please feel free to download and follow it along. Let me first mention that today's conference call includes statements about events or circumstances that have not yet occurred. These are largely based on our current expectations and projections about future events and financial trends affecting our business and our future financial performance. These forward-looking statements are based on our current expectations and involve risks and uncertainties that could cause financial results to differ substantially from those expressed or implied in this conference call, and we undertake no obligation to update publicly or revise any forward-looking statements because of new information, future events or other factors. For a more detailed list of these risks and uncertainties, please refer to our SEC filings available on our website. With that, I will now turn the presentation over to our CEO, Johann.

Thanks, Lucio. Good morning to all, and welcome to our second quarter 2025 conference call. We had a very exciting second quarter with several important developments, and we continue to advance our program development. In a nutshell, and we will talk about it in more details in the call, we unveiled our full-scale mockup at the Paris Air Show in June with a new propeller configuration. We also announced our first firm order and signed additional letters of intent. Last but not least, we are announcing today that we are bringing Beta Company to complement our suppliers list. Beta comes in with a proven and mature solution to the distributed propulsion of the eVTOL with the same lift + cruise aircraft configuration, and this will give Eve operating flexibility and optionality in our program. Our schedule remains unchanged with expected TAP certification and entry into service in 2027. Starting with Slide 2. Our eVTOL continues to advance, and we redesigned the wing with a more aerodynamic profile for a more efficient cruise. We are now offering a taxiing wheel version of the aircraft to facilitate ground operation and taxiing in congested landing sites. The DNA of our eVTOL is unchanged with 8 lifters and a pusher designed for short routes and holding a pilot and 4 passengers. Flying should be very simple with a single-pilot control sidestick supported by Embraer's fifth-generation fly-by-wire. This is a proven technology that improves passenger comfort and safety. Now Slide 3 and 4 shows a few pictures of our full-scale mockup that was unveiled at the Paris Air Show last June. This is a true representation of our commercial aircraft and features comfortable full-flex configuration seatings for 4 passengers with a 32-inch pitch and an external baggage compartment. This makes it ideal for short urban flights of up to 60 miles, including trips to and from airports. The reception from customers, partners, government officials, and stakeholders was extremely positive, reflecting the strong interest and the support for our vehicle design and attributes, which clearly demonstrate our aviation and certification DNA. Now moving to Slide 5. I am very happy to bring you our first LOI conversion of a letter of intent into a firm order from Revo. This is a helicopter operator with active helicopter airport shuttle and point-to-point operations in the São Paulo region. As a reminder, São Paulo is the largest and busiest helicopter market in the world with over 400 aircraft and more than 2,000 daily flights. The city offers a great potential market for eVTOL, and Revo will launch operations in the São Paulo region with our aircraft. We're very proud of this partnership. Besides that, Revo also signed a contract for our TechCare aftermarket services. So in total, the contract for 50 aircraft and services has a total potential value of $250 million. We expect that to start producing revenues in 2027. Now this firm order means that we'll begin to collect predelivery payments. This will bring cash in the door and help to fund the assembly of the aircraft. We are going to collect a substantial amount of PDPs until the delivery date, very much in line with market practices, but for competitive reasons, we are not disclosing other specific terms of this contract. Slide 6 shows 2 additional letters of intent we signed during the quarter for a total of 104 eVTOLs. These are 2 new customers with services in Brazil, the United States, and Costa Rica, who are also subscribing to the TechCare services, so they do appreciate the value proposition of our product and aftermarket offering. This is actually a great way to introduce the next slide. On Slide 7, it shows the total preorder backlog that now stands at approximately 2,800 aircraft for a total value close to $14 billion based on the list price. This now includes nonbinding letters of intent from 28 different customers as well as the firm order from Revo. These orders are from over 9 countries and different businesses from mainlines to regional airlines, helicopter operators, ridesharing platforms, and leasing companies. And because maintenance and support guarantees the proper aircraft operation, we are highly focused on providing the best-in-class services and support to eVTOL operators. Therefore, we have also secured contracts with 14 different customers for our Eve TechCare suite of aftermarket products, which could bring up to $1.6 billion in revenue to Eve over the first few years of operations. Importantly, Eve TechCare customers have placed LOIs to service around 1,100 aircraft or about 40% of our preorder book. As you can see, we also have 21 different customers for our air traffic management solution called Vector, and I believe this reflects the market-leading value proposition we bring to our customers. Beyond that, together with our customers and authorities, we're also developing a strong network of partners in different areas such as infrastructure and energy to address one of the many challenges ahead for urban air mobility, which is to create a whole new ecosystem besides simply developing an aircraft. Now going to Slide 8 and 9, you can see our more recent program advancement. Our full-scale engineering prototype is undergoing the last set of ground tests before it initiates its flight campaign. You may remember that we have already tested and installed the pusher motor a few months back. And after extensive tests on the lifters at the facilities of our suppliers, we have now started installing the first units. In fact, the top picture here shows the propeller spinning on its first test on the prototype. We are scheduled to receive the remaining motors shortly. In parallel, we signed with Beta an agreement to test their propulsion electrical motors on our prototype. Nidec continues committed and involved with our eVTOL as they bring engineering and production expertise. While Beta comes in with a startup mindset and adds agility to our program with a proven and tested track record of Lift + Cruise eVTOL flights, along with their strong relationship with the FAA. As always, we're looking for the most optimal possible design when it comes to safety, performance, reliability, and cost-effectiveness to deliver the most competitive aircraft to our customers. In that sense, Nidec and Beta are complementary to our eVTOL design. With that, we expect to start flying our prototype in the next few months. Lastly, as I mentioned earlier, we unveiled at the Paris Air Show our full-scale mockup with a new rotor configuration. The rotor now features 4 blades. This is a design that generates less vibration and is quieter than the previous configuration. The blades have a fixed pitch and a mechanism to align the blades to reduce aerodynamic drag during the cruise phase of the flight. We also have a few pictures of our truck-mounted rig testing in real conditions the aerodynamic drag of this new rotor setup. As you can see, the blades are all aligned, and this rig helps us to define our load analysis on the entire motor propellers rig and validate the new blade configuration. Now on Slide 10, you can see the progress of the final stage of testing the motors for our engineering prototype. As a reminder, the lifters were tested at the Nidec facilities for power output, energy consumption, vibration, noise, emissions, among other metrics. And upon satisfactory results, they were installed into their respective nacelle, integrated into the system that controls them, and finally spun on the eVTOL for the first time. We are going to follow the same protocol with the beta motors that will still be arriving and should be ready to fly in the next few months. And finally, on Slide 11, we updated our list of primary system and component suppliers currently engaged, including Beta. We follow a best-of-breed approach and select partners with aviation experience who can support our certification efforts. We are very proud of all members of this list, and I'm confident that we will have the best eVTOL in the market available to the operators with a great design, high dispatchability, and industry-low operating costs. Now I would like to invite our CFO, Edu, to go over our financials along with a checklist for our 2025 milestones.

Thanks, Johann. Now moving to Slide 13. Eve is a preoperational company, and our financials reflect mostly the costs associated with our program development. That said, I would like to highlight some of our numbers. Eve invested $55 million during the second quarter in our program development, including our eVTOL, the TechCare Service and Support Solutions, and Vector, our Urban Air Traffic Management software. We continue to accelerate our program development with more engineers from Eve and Embraer, as well as higher engagement with suppliers. That explains the higher R&D expenses in the quarter. We also deployed around $8 million in SG&A during the second quarter. Including R&D and SG&A, Eve reported a net loss of $64 million in the second quarter of 2025. We also recognized a charge related to the fair value of our outstanding warrants as the value of our shares increased in the quarter. Importantly, this is a noncash expense and does not impact our cash flow or liquidity position. Now moving to cash flow. Our operations consumed $57 million in the quarter. This is almost twice the cash consumed in the first quarter, which had a temporary working capital gain as one of our invoices of around $15 million from Embraer is related to the second quarter. Still, the $83 million consumed in the first six months of the year can be considered as a normalized level for our current development stage. We continue to feel confident with our guidance for the full year of $200 million to $250 million, which reflects our financial discipline, advantages of using Embraer's engineering team, as well as our increased efforts in program development. Finally, on liquidity, we ended the second quarter with $242 million in cash, including an additional disbursement of the credit line with the Brazilian Development Bank of $11 million. These standby facilities continue to help Eve to preserve a solid cash position throughout the year. The total liquidity of $375 million at the end of the quarter includes our cash, all undrawn standby facilities, as well as a $50 million grant we announced during the quarter. We view our liquidity as sufficient to sustain our operations through 2026. Now going to Slide 13. We remain on track to deliver our milestones this year. As Johann detailed earlier, our first full-scale prototype is concluding the final tests and installations to start to perform its initial flights in the next few months. We now expect the first flight towards the end of the year. As similar to Nidec, we also performed tests with the beta motors in our engineering prototype in the upcoming months before the first flight. In parallel, we continue in talks with ANAC to detail the means of compliance, which are the specific tests that need to be conducted during the certification campaign. We expect those to be published by the end of the year, at which point we'll be able to begin our certification campaign. Also, we remain highly engaged with suppliers working on the initial parts of our conforming prototypes. In parallel, the site to assemble these aircraft is starting to receive the necessary equipment and tooling. Lastly, our cash consumption in the year despite the better first semester, should stay in the guidance of $200 million to $250 million, probably closer to the low end of the range. With that, we conclude our remarks, and I would like to open the call for questions. Operator, please proceed.

We'll take our first question from Savi Syth with Raymond James.

Maybe a first one for Edu, just on the kind of housekeeping side. Just on the cash consumption, Edu, you're progressing well right now, especially maybe tracking below that $200 million, $250 million. And you also do have the grants that you got recently. Is it fair to assume that you'll be close to the lower end and maybe below considering the grants as well?

Savi, we continue to monitor our expenses very closely. We are very diligent about where we spend our money, and we make sure to leverage all the resources that we have from Embraer so that we don't need to duplicate costs. With that, we have been able to optimize our expenses. In the first half, we burned around $85 million, a little less than $85 million. The second half should be a little more. So that's the reason we are guiding towards the low end of the range, maybe $200 million, maybe slightly below. But there's a lot of investments in development. We're going to continue to advance. We're going to be doing a lot of tests. So we're excited. But yes, I believe we are leveraging more from Embraer, and because of that, we have been able to optimize our cash consumption.

Very helpful. And then maybe if I can ask on the engineering flight testing. It looks like maybe it's slipping a little bit now late '25, early '26, which is not surprising, but you also mentioned moving forward with building certification conforming aircraft, but I'm guessing those are just building the long-range components. How long do you think you need to fly the engineering prototype before you finalize the design and can really start assembling the certification aircraft?

Savi, this is Luiz Valentini. So with respect to the flight of the conforming prototypes, we are still planning that for next year, towards the end of next year also. So we still have time to perform the conforming flight test prototype campaign, which is composed of a development phase and also a certification phase, leading us to certification still in 2027. So this engineering prototype plan and development is parallel to this path of developing the conforming prototypes with the schedule I mentioned then leading to certification in '27.

And maybe can I ask, are the design changes reflected in this engineering prototype or that will go directly onto the certification aircraft that you're building?

At this point, we don't have any major updates regarding the testing that Edu and Johann discussed earlier. The other changes, like optimizations on the wings, are already integrated into the engineering prototype configuration. These changes are not part of the conforming prototype configuration because the engineering prototype is already assembled. Therefore, the latest modifications are not included in this prototype, but this is not a significant issue for us. As we stated previously, the engineering prototype aids us in calibrating our models and making estimates, so it differs from the conforming prototypes.

Our next question comes from Andres Sheppard-Slinger with Cantor.

Congrats on the quarter. And congrats on the unveiling of the aircraft and on the first binding order. So certainly exciting there. Quick question, just maybe following up on Savi's question. Regarding the test flight campaign, maybe a different way of asking is, can you just maybe give us a sense of how you're envisioning this ramping up, starting with hover flights, and then kind of what are the plans to ramp up the test flight campaign? And is the plan still to deploy 5 prototypes for conforming test flights? And if so, what's the timeline for that?

Yes. Thanks, Andres. So the plan is still the same. So starting from the end of your question, we're still planning the 5 prototypes. There's still some discussion on the number of the test points that will be on each one and if we should bring in another 6 prototypes. So that's still something that may change in the future, but we're still planning to go with the 5 prototypes and the timeline we had previously. With respect to the steps on the flight test campaign, we are still very much in line with the concept of building maturity on the building blocks we have for the vehicle. So we will definitely spend some time focusing on the hover flight of the vehicle since this is one of the building blocks on which we don't have as much previous experience compared to others such as cruise flight, where we bring the experience of Embraer in previous projects. So we will spend some time focusing on hover flight, and that relates to the controllability of the vehicle, the power needed, the management of the systems, temperatures, power, and things like that. And then the transition between hover and cruise is also an important phase. It's a very short one for the vehicle, but it's very important that it is executed smoothly, both in terms of, let's say, technical aspects, but also for the comfort and the user experience of the passengers. And then finally, after that, we will move to cruise, where, again, we believe we have more maturity based on previous experience with other projects.

Got it. Super helpful. I appreciate that color. And maybe just as a quick follow-up, if I may. Just regarding the order book, curious about how you're thinking about it? Is the plan to continue to build up the order book? Is it to begin converting some of those letters of intent into binding orders? Should we expect any PDPs from the order book? Just any granularity there or thoughts would be helpful.

Johann speaking, Andre. Thank you for your comment about the unveiling of the mock-up at the Paris Air Show. Well, the order book is definitely what we've been working on from the beginning. We work on this order book with the LOI because we wanted to put the customer and the operator at the center of what we do. And I've been saying this before, I mean, this really proves the solution that we're providing to the operators, not only the aircraft but also the service and support, making sure they can operate reliably. They can also make sure that they fly; they keep flying on a regular basis and have the most optimal operating costs. And also urban air traffic management is around the corner; we'll have to begin with what we have today in traffic management, but eventually, putting thousands of vehicles in the air in the low altitude airspace will need this. So I think customers understand this, and they want to engage. That's why it starts with letters of intent. Basically, it says that we're working together. We're defining the solution together. They participate in SteerCo with us, where we give them regular feedback on how the product development and also the service and support solutions that we're developing for them. Naturally, as we go forward and get closer to the certification date, then we start converting. It's exactly what happened with Revo. I think it is important for them to prepare for the upcoming service. And this is why we're two years away from the upcoming service. The ecosystem needs to be ready. And with this contract, they can go back to the different stakeholders and say, okay, now this is real. This is happening; my first PDPs and Eve is developing this vehicle, and we need to be ready. So we're not looking to necessarily add supply; we add only when it makes sense when we have the right partner with the right mission. Okay? And this is what we've been working on. And then, of course, once we start converting the first one, we'll also have, if you pay attention to the press release we did at the Paris Air Show, it says São Paulo area, right? The Revo customer for São Paulo, you can imagine that we're already working with other customers in Brazil, but also in the United States to convert other LOIs.

Our next question comes from Ellen Page with Jefferies.

I just wanted to touch on some of the changes in the competitive landscape. Joby and Blade announced that Joby would acquire Blade's passenger business earlier this week. How do you think about how that impacts your competitive dynamic and your positioning, especially given Blade had been part of your 2,800 letters of intent? And that, combined with your partnership with Beta, how do you envision the ecosystem developing from here?

Ellen, we welcome this news about Joby investing in Blade. I think this is exactly proving our point that we've been making since the beginning; there is this transition happening in the electrification of vertical flights from the helicopter to eVTOL, and this is proof of it. So we're excited. We think it's good news because this aligns with what we've been preaching; it's just getting together—there's room for everyone. Joby acquiring a ridesharing platform is positive for all eVTOL manufacturers. We don't see, and there's a special point—I mean, we don't see that it's going to take out our backlog with the 200 vehicles that we have. We have a good relationship with Blade. And it's a ridesharing platform, remember. I mean, it's like, and I'm going to make a joke a little bit here, but it's like Uber asking their drivers to drive only Toyotas, right? I mean, you need all the OEMs. You need various OEMs for the right mission. Each of the eVTOL has its mission, and the same is true for the helicopter. They're multi-OEM. Blade is a multi-OEM today. And so we don't see it as an issue for us.

We will move next with Austin Moeller with Canaccord.

Just my first question here. What is the difference in performance between the motor that's being acquired from Beta and the one that you were using in testing previously? And are you still sourcing a battery pack from BAE? Or is that going to change?

Austin, so with respect to the battery, nothing changes there. We're still developing with BAE and still in the same requirements, same products, same line we were before. On the differences between the motors from Nidec and from Beta, there are mainly differences with respect to the cooling systems, for example; there is a little bit on the architecture of the motor. So the size of the motor is a little bit different between the two solutions. The control is different. And there are some differences in how it integrates into the vehicle. And so how it communicates and how some of the protections are made. Basically, these are differences that we believe warrant us a phase of testing. So we can, with these differences, find what is best for the vehicle as a whole. By doing this step, we are looking for a solution that is best for the vehicle overall, and that's why we believe this phase of testing will increase our maturity moving forward for the flight test campaign.

And are you able to comment on the tip speed of the new rotor blades? And do you expect additional design changes to the aircraft before building the conforming units for ANAC to evaluate?

Yes. So that's a very good point because the blade tip speed is one of the main parameters that dictates the noise emitted by the vehicle, which again is one of the important characteristics of the vehicle when we think of bringing them into urban areas and the way we relate to the communities where the vehicles will be operated. Right? So this change of motors that we are testing does not affect the tip speed. We're maintaining the requirement for tip speed so that we maintain the noise level of the vehicle and keep it at a level that will not significantly impact the areas where we'll be operating. And so in that sense, there is no change. And then completing your question around changes that will be brought to the conforming prototypes. Of course, we will incorporate any learnings that we believe are relevant through this testing phase with the engineering prototype into the certification vehicle and to the vehicle that will go into service. So that's one of the objectives; to bring these solutions that we optimize into this vehicle as much as we can to the vehicle that will be certified and go into service.

Our next question comes from Marcelo Motta with JPMorgan.

Just one is regarding capital needs. You mentioned that you feel very comfortable until the end of '26. As you mentioned in previous calls, you have been exploring options for '27. You guys have this shelf registration that was filed during the quarter to raise money. The sector has been doing pretty well. So just wondering if you can comment anything about that or how you see the current state of the sector? And what else do you think could improve? Or what are the current risks? And what type of derisk would you be expecting to be more optimistic about the outlook for eVTOL?

Thanks, Motta, for the question. It's Edu here. We feel confident about our cash situation, which is sufficient for over 18 months. This means we have ample cash to last until the end of 2026. When factoring in the standby facilities we've secured and the recent grant we've received, we have nearly $400 million, enough to carry us for about two full years, likely until mid-2027. Our financial position is solid. However, we still require some resources to achieve certification. We have various options available, including the S-3 shelf registration. We are also in discussions for long-term loans, similar to what we've accessed from BNDES and Citibank. Unlike some other companies, our association with the Embraer Group provides us with more funding options, which we are currently evaluating. We are not rushed, but we want to choose the best option and implement it at the right moment.

Our next question comes from Andre Madrid with BTIG.

Quick one on the eVTOL landscape. We've seen a number of partnerships between eVTOL names and defense contractors emerge for the development of defense use cases. Could we see Eve pursuing similar partnerships?

Yes, this is Johann. Since the inception of Eve, our focus has been on urban air mobility, specifically in the 100 to 150-kilometer range. We shared our market outlook at the Paris Air Show and were the first original equipment manufacturer to present our insights and the discussions we've had with stakeholders. We affirm that urban air mobility will primarily target densely populated areas, and this aligns with our ongoing commitments. Additionally, we leverage the advantages of being part of Embraer, which provides us with technological development, analytical capabilities, and the resources to explore different technologies. We are considering the potential for a hybrid solution for our vehicle without altering its core structure for specific markets, including defense. It's worth noting that we have a letter of intent with BAE Systems, which is exploring various markets, including defense in both the U.S. and U.K. While we are looking into these avenues, our primary focus remains on certifying the fully electric vehicle we are offering.

And this will conclude our Q&A session. I will now turn the call over to Lucio Aldworth for closing remarks.

Thank you, and thanks, everyone, who joined the call today. As you can see, we accomplished several important milestones in the past quarter. We're fully engaged, moving fast, and there's a whole lot more to come in the next few quarters. So we're going to keep updating you on our progress throughout the next few quarters, and we look forward to meeting you at the upcoming events we're going to attend. As always, if you have any questions, please don't hesitate to reach out to me or to my team. Thanks, and have a great day.

Thank you. And this does conclude today's program. Thank you for your participation. You may disconnect at any time.