Vertical Aerospace (NYSE:EVTL) used its full-year 2025 business and strategy update call to highlight recent “Valo” showcase events, provide an update on its piloted transition flight test campaign, outline its battery manufacturing plans and “battery as a service” model, and discuss liquidity and expected spending as it ramps toward critical design review and pre-production assembly.
Valo showcases and aircraft positioning
Chairman Dómhnal Slattery said Vertical recently hosted a series of Valo showcase events in London, New York, Miami, and Atlanta that brought together airline partners, investors, regulators, suppliers, and other advanced air mobility stakeholders. He said the “energy and enthusiasm” around the market opportunity stood out, and that the response to Valo had been “extraordinary.”
Slattery also reiterated Vertical’s strategy to operate as a “pure play OEM,” relying on tier-one aerospace partners for key systems and certification support. He said the company has contracted the “vast majority” of partners and expects to bring final partners on board later in 2026 as it progresses toward critical design review (CDR) in the summer.
Flight test progress: nearing full piloted transition under CAA oversight
Chief Engineer David King said Vertical has been flight testing a full-scale piloted prototype of Valo for 20 months and began piloted transition testing in November. He framed the testing approach as incremental, working from both ends of the envelope—accelerating from hover toward wing-borne flight and decelerating from wing-borne flight back toward thrust-borne conditions—while operating under “disciplined U.K. CAA oversight.”
King said a key differentiator is that Vertical is flying from a public airport in public airspace, working with the same U.K. Civil Aviation Authority (CAA) specialists expected to be involved in certification. He characterized that as a “huge de-risker” and described the prototype effort as “essentially a mini certification program,” with flight data used to update models and airworthiness documentation before proceeding to subsequent test points.
Management repeatedly emphasized that the company is in the “final innings” of completing full piloted transition. Slattery said the team is close to completing the five profiles and expects to finalize them soon. In Q&A, King said the program is in the “tail end of the S-curve” typical of envelope expansion and estimated less than 10% of tests remain, citing weather and the sequential nature of regulatory permitting as major factors in the pace of testing.
Executives described 2026 winter weather in the U.K. as a meaningful constraint, noting extended periods of rain that prevented flight activity. They also said the permitting process requires coordination with the CAA for each flight, including review of learnings and any required updates to models and documentation.
After completing full piloted transition, King said the company plans to focus on operational demonstrations and continue progression from prototype to pre-production, certification, and production. He added that the company’s final prototype aircraft number three has completed commissioning tests, and that the company recently operated two prototype aircraft at the same time for the first time. King said the company expects to complete CDR by mid-year, which would freeze the design and enable the build of seven pre-production aircraft intended to conform to type design and be used for certification credit.
Battery strategy and manufacturing expansion
CEO Stuart Simpson described Vertical’s battery system as the company’s “secret sauce” and core in-house technology, even as the broader corporate strategy leans on external tier-one suppliers for much of the aircraft. He said Vertical sources cells and manufactures battery packs internally, and expects pack performance to improve as cell technology evolves.
Simpson said testing to date supports the current battery’s ability to deliver power such that, “at launch,” Valo would be able to provide lift for one pilot, four passengers, and 70 pounds of luggage per person. He added the company is already testing next-generation batteries intended to improve payload and range over time.
Simpson also announced that the battery pilot production line is now operational and said Vertical is expanding battery manufacturing via a new 30,000-square-foot Vertical Energy Centre 2 adjacent to existing facilities, which is expected to open later in 2026. He said the company plans to host an investor day at the Vertical Energy Centre in July ahead of the Farnborough Airshow.
In addition, Simpson outlined a “battery as a service” business line, stating the company expects batteries to be replaced approximately once per year over an aircraft’s roughly 20-year operational life, which management characterized as a predictable, high-margin revenue stream. He said Vertical anticipates margins of about 40% for this offering and noted that the company’s published “Flightpath 2030” figures do not include potential “second life” revenue opportunities. Simpson said that after batteries are removed from aircraft under European aerospace standards when they degrade below about 93%, they may still be suitable for other applications such as surface transport, marine, and storage. He also said the company has received inbound interest from third parties seeking to understand its battery technology and whether it could be sold beyond Vertical’s own aircraft programs.
Hybrid and defense interest, partnerships, and ecosystem initiatives
Vertical also discussed hybrid-electric and defense opportunities. Slattery said the company plans to be a leader in the hybrid-electric defense space and expects to deepen discussions with militaries, particularly in Europe, ahead of the Farnborough Airshow. In Q&A, executives said they are dedicating “a significant amount of internal resources to defense sales,” and suggested they may be able to share progress later in 2026.
King said the aircraft’s size and modularity could enable a hybrid configuration without changing the airframe, by using the baggage bay to insert a turbo-generator system—something he said the company is demonstrating on prototype aircraft number three. Management also highlighted autonomy as an area of interest for defense use cases, referencing the Honeywell flight control system and describing autonomy as “one small step” from the current architecture.
On the supplier front, management addressed a recently announced partnership with Evolito for the development and supply of EPUs. Simpson said Vertical did not previously have an “established tier one supplier for certification” on the EPU side, and described Evolito as having certification processes in place, including a design organization approval (DOA) and progress toward a production organization approval (POA). King added that Evolito’s U.K. proximity was also helpful for collaboration during U.K. CAA certification.
King also discussed government-backed ecosystem initiatives, including the U.S. eVTOL Integration Pilot Program (EIPP), which he said Vertical was not eligible to join directly as a non-U.S. manufacturer. He said Vertical is participating in similar European initiatives, including the U.K. Future Flight Challenge, a GBP 150 million government-backed program, and referenced planned demonstrations at Skyports Bicester Vertiport and work related to potential operations between Oxford and Cambridge.
Financial snapshot, spending outlook, and capital options
Simpson said Vertical’s fiscal 2025 spend was in line with prior guidance of $110 million to $125 million. The company reported cash and cash equivalents of $93 million as of December 31, 2025, and said short-term liquidity was estimated at about $85 million, including cash on hand and anticipated near-term receipts. Simpson also said the company’s at-the-market (ATM) facility, put in place in September 2025, had remaining capacity of about $78 million.
Looking ahead, Simpson said Vertical expects to spend about $190 million to $200 million over the next 12 months as it ramps manufacturing footprint and begins assembly of the first Valo. In Q&A, he said that spend estimate covers planned 2026 activities including expansion of battery manufacturing, a new aircraft manufacturing facility, conversion of aircraft 3 into a hybrid, and the start of the build of the first Valo.
Slattery and Simpson both stressed that “cash is critical through certification” and that the company will need to continue raising capital, while also emphasizing “optionality” across capital markets, strategic investors, and government support. In Q&A, management said it felt “pretty comfortable” with liquidity as of the call and did not feel pressured to raise capital immediately, stating it would execute financing when the timing is right for the company and shareholders.
About Vertical Aerospace (NYSE:EVTL)
Vertical Aerospace is a United Kingdom–based aerospace manufacturer specializing in the development of electric vertical takeoff and landing (eVTOL) aircraft for urban air mobility. Founded in 2016 by entrepreneur Stephen Fitzpatrick, the company is publicly listed on the New York Stock Exchange under the ticker EVTL. Vertical Aerospace’s mission is to deliver zero-emission, high-speed electric aircraft designed to transform short-haul journeys in densely populated areas.
The company’s flagship model, the VA-X4, is a piloted, five-seat eVTOL craft engineered for quiet operation, low running costs and minimal environmental impact.
