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TORONTO - Horizon Aircraft (NASDAQ:HOVR), a $65 million market cap company whose stock has surged over 230% in the past six months, has started construction of a full-scale prototype of its hybrid electric Vertical Take-Off and Landing (eVTOL) aircraft, with initial testing planned to begin in 18 months, the company announced Wednesday. According to InvestingPro analysis, the stock currently appears undervalued, suggesting potential upside for investors interested in the emerging eVTOL sector.
The aerospace engineering firm reported completing one of the world’s first successful fan-in-wing forward transition flights in May with its large-scale prototype, a key technical milestone for its proprietary HOVR Wing technology. The company maintains a strong financial position, with InvestingPro data showing more cash than debt on its balance sheet and a healthy current ratio of 6.16.
According to the press release statement, Horizon has completed architecture development for the full-scale, non-conforming prototype and is currently testing propulsion units that power its patented wing technology.
"This has already been an incredible year for the technical team," said Brandon Robinson, Horizon CEO. "A historic full transition to forward flight of the large-scale prototype, construction and testing of many full-scale underpinning technologies, and maturation of our many professional aerospace processes has been rewarding."
The company stated it has increased its technical team by nearly 50% in 2025, adding senior designers and engineers to support development efforts.
Horizon indicated it has engaged with Transport Canada Civil Aviation regarding certification plans, with aims to certify the aircraft for Instrument Flight Rules and Flight Into Known Icing conditions.
The company’s Cavorite X7 eVTOL is designed to operate primarily like a conventional aircraft while offering vertical take-off and landing capabilities. Horizon claims its approach prioritizes safety, performance, and operational utility for potential applications in regional transport, emergency services, and military operations. While the company has shown promising technical progress, InvestingPro analysts anticipate challenges ahead, with earnings expected to decline in the coming year. Subscribers to InvestingPro can access 12 additional key insights about HOVR’s financial health and market position.
In other recent news, Horizon Aircraft announced its fourth quarter and annual financial results, revealing the successful completion of a fan-in-wing forward transition flight with its large-scale prototype aircraft. The company reported having approximately $17 million in cash, providing an estimated 18-month runway to complete its full-scale demonstrator aircraft. Horizon Aircraft has also partnered with ZeroAvia to develop hydrogen-electric powertrains for regional VTOL aircraft, aiming to integrate ZeroAvia’s ZA600 hydrogen-electric powertrain into Horizon’s Cavorite X7. This collaboration seeks to advance research into infrastructure and certification guidelines for zero-emission flight. Additionally, Horizon Aircraft has regained compliance with Nasdaq Capital Market’s minimum bid requirement, as confirmed by an official notice from The Nasdaq Stock Market. The company also announced a strategic partnership with MT-Propeller to supply propellers for the hybrid turbine engine in its Cavorite X7 aircraft, marking its first major hardware commitment for full-scale production. These developments highlight Horizon Aircraft’s continued progress in the aerospace sector.
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