Horizon Aircraft partners with MT-Propeller for eVTOL development

TORONTO - Horizon Aircraft (NASDAQ:HOVR), a $43 million market cap company whose stock has surged over 46% in the past week, has formed a strategic partnership with MT-Propeller to supply propellers for the hybrid turbine engine in its Cavorite X7 aircraft, according to a press release issued Friday. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 7.11, indicating robust operational capability.

The agreement represents Horizon’s first major hardware commitment for its full-scale production aircraft as the company transitions from prototype development to manufacturing implementation. While trading at an attractive P/E ratio of 1.49, InvestingPro analysis indicates the company is currently burning through cash rapidly - a crucial factor for investors to monitor during this transition phase.

MT-Propeller, a global manufacturer of composite propeller systems, will provide technology aimed at maximizing speed and efficiency while reducing noise for Horizon’s hybrid-electric vertical takeoff and landing (eVTOL) aircraft.

"Partnering with MT-Propeller underscores Horizon’s commitment to delivering a superior flying experience," said Brian Robinson, Chief Engineer at Horizon Aircraft. "Together, we’re setting new standards for range, speed, and efficiency with our regional eVTOL."

Martin Albrecht, Managing Director of MT-Propeller, stated that the company’s certified propellers will enhance performance and sustainability in the eVTOL market.

The Cavorite X7 is designed to function as both a vertical takeoff aircraft and a conventional runway aircraft. The company states the partnership will help accelerate its progress toward certification and production readiness.

Horizon Aircraft describes its vehicle as a hybrid eVTOL that can operate most of its mission like a conventional aircraft while offering enhanced speed and range capabilities. The company aims to complete testing and certification before scaling production to meet anticipated demand from regional operators, emergency service providers, and military customers.

The partnership announcement comes as Horizon continues development of its aircraft technology for the emerging advanced air mobility market. With significant momentum reflected in its recent market performance, investors seeking deeper insights into Horizon’s financial health and growth prospects can access over 15 additional exclusive ProTips and comprehensive financial metrics through InvestingPro.

In other recent news, Horizon Aircraft has made significant strides in the development of its hybrid eVTOL aircraft, the Cavorite X7. The company achieved a key technical milestone by successfully completing a full wing transition with its prototype, marking an important step in the electric vertical takeoff and landing (eVTOL) aviation sector. This accomplishment showcases Horizon Aircraft’s potential in the emerging Advanced Air Mobility (AAM) market. The company is currently in the design phase of the Cavorite X7, which will feature seven seats and the ability to take off and land vertically.

Oak Ridge Financial recently initiated coverage on Horizon Aircraft with a Buy rating and set a price target of $2.35, reflecting confidence in the company’s future prospects. The firm’s valuation is based on a 3.00x EV/Sales metric applied to Horizon’s fiscal year 2030 estimate. Horizon Aircraft’s CEO, Brandon Robinson, highlighted the technological advancements achieved and the ongoing construction of a full-scale, piloted technical demonstrator. The Cavorite X7 aims to disrupt the Regional Air Mobility market with projected speeds of up to 250 mph and operational ranges exceeding 500 miles. The company’s progress is closely monitored by investors and industry observers as it continues to prioritize safety, performance, and utility in its aircraft development.

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