Archer secures $301.75M to boost hybrid aircraft development

SANTA CLARA, Calif. - Archer (ACHR), a company specializing in the development of electric vertical takeoff and landing (eVTOL) aircraft, has successfully raised $301.75 million in a recent funding round. This capital injection, led by funds and accounts managed by BlackRock (NYSE:BLK), has bolstered Archer’s liquidity to approximately $1 billion, solidifying its financial position as it aims to meet the growing demand in the defense sector and other markets for its planned hybrid aircraft. The company, now valued at approximately $5.2 billion, has seen its stock surge over 180% in the past six months, according to InvestingPro data.

The funding will be directed towards the advancement of next-generation aircraft manufacturing capabilities, particularly focusing on batteries and composites. Archer’s strategic move to raise additional funds follows the December launch of Archer Defense, a division dedicated to crafting cutting-edge aircraft designed for defense applications, with the first product expected to be a hybrid-propulsion, vertical-take-off-and-landing aircraft. InvestingPro analysis shows the company maintains a strong liquidity position with a current ratio of 6.03, indicating robust short-term financial health despite being pre-revenue.

Adam Goldstein, founder and CEO of Archer, expressed his belief in the significant potential of advanced vertical lift aircraft across the defense industry. He emphasized that the additional capital would enable investments in critical technologies to capitalize on this opportunity.

The company also provided a glimpse into its preliminary financial results for the fourth quarter of 2024, indicating that its GAAP operating expenses are projected to be within $120 million to $140 million. Non-GAAP operating expenses are reported to align with the guidance range of $95 million to $110 million. Archer confirmed that it does not foresee a material increase in non-GAAP operating expenses for the first quarter of 2025 over the guided range for the fourth quarter of 2024.

Archer’s recent financial moves, including the offering of 35,500,000 shares of its Class A common stock at $8.50 per share, are part of a registered direct offering. Moelis (NYSE:MC) & Company LLC served as the exclusive placement agent for the offering.

The company’s strategic financial decisions are aimed at accelerating the development of its hybrid aircraft platform, which is seen as a key driver for its commercialization efforts. With the construction of its ARC manufacturing facility and progress towards FAA certification, Archer is on track with its objectives for 2025 and beyond.

This financial development is based on a press release statement and reflects the company’s forward-looking strategies and expectations. According to InvestingPro, analysts have set price targets ranging from $4.50 to $15.00 per share, with two analysts recently revising their earnings expectations upward. The platform offers 14 additional exclusive ProTips and comprehensive analysis through its Pro Research Report, providing deeper insights into Archer’s financial health and growth prospects. Archer’s filings with the Securities and Exchange Commission provide further details on its financial position and future plans.

Please note that the information presented is based on management’s preliminary determinations and current expectations as of the date of the press release and may be subject to change following the completion of the company’s financial closing procedures.

In other recent news, Archer Aviation Inc (NYSE:ACHR). has seen a flurry of developments. Needham reiterated its Buy rating on Archer Aviation, maintaining a price target of $11.00, following a positive conversation with CEO Adam Goldstein at the 27th annual Needham Growth Conference. The firm anticipates Archer Aviation’s customers will begin taking small batch deliveries to evaluate their air taxi services. Additionally, Canaccord Genuity analysts raised their price target for Archer Aviation to $14.00 from $11.00, while maintaining a Buy rating. The firm’s analysts believe Archer Aviation is well-positioned to move forward with its aircraft certification process throughout 2025.

Archer Aviation also announced adjustments to its shareholder rights, converting Class B Common Stock into Class A Common Stock, simplifying the company’s capital structure. In a separate development, the company increased its authorized shares of Class A common stock from 700 million to 1.4 billion, as approved by stockholders. Additionally, Archer Aviation completed the construction of its high-volume manufacturing facility, ARC, in Georgia, marking a significant step towards the production of its all-electric vertical take-off and landing aircraft, Midnight. These are just a few of the recent developments surrounding Archer Aviation, as reported by Needham, Canaccord Genuity, and the company itself.

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