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TORONTO - Horizon Aircraft Ltd. (NASDAQ:HOVR) announced Tuesday it has signed a purchase agreement with Pratt & Whitney Canada for the PT6A engine to power its Cavorite X7 hybrid electric vertical takeoff and landing (eVTOL) aircraft.
The PT6A turboprop engine will be integrated into Horizon’s hybrid gas/electric design, which the company says will allow the aircraft to operate in remote locations without dependency on battery charging infrastructure. According to InvestingPro data, Horizon maintains a strong liquidity position with a current ratio of nearly 8x, suggesting robust financial flexibility to support its development programs. Subscribers can access 12 additional exclusive ProTips about HOVR’s financial outlook.
"Choosing the right engine for our full-scale hybrid aircraft was essential," said Horizon Aircraft CEO Brandon Robinson in the press release statement.
Scott McElvaine, Vice President of Sales & Marketing and Business Development at Pratt & Whitney Canada, noted that the PT6 engine "has been at the heart of countless innovations in aviation" for over six decades.
Unlike many all-electric eVTOL designs, Horizon’s Cavorite X7 is being developed as a hybrid aircraft that will fly most of its mission like a conventional airplane. The company claims this approach will provide advantages in speed, range, and efficiency.
The PT6A engine family is widely used in aviation applications and is known for its modular design that simplifies installation and maintenance.
The agreement represents a partnership between two Canadian companies in the advanced air mobility sector. Horizon Aircraft is developing the Cavorite X7 with potential applications in military, emergency, and commercial operations.
Horizon Aircraft trades on the NASDAQ under the ticker HOVR. While the company holds more cash than debt on its balance sheet, InvestingPro analysis indicates analysts don’t expect profitability this year. The company is working toward completing testing and certification of its hybrid eVTOL design, with its next earnings report scheduled for October 29.
In other recent news, Horizon Aircraft has begun constructing a full-scale prototype of its hybrid electric Vertical Take-Off and Landing (eVTOL) aircraft, with testing slated to commence in 18 months. The company has already achieved a significant milestone by completing one of the world’s first successful fan-in-wing forward transition flights with its large-scale prototype, as reported in their fourth-quarter and annual financial results. Horizon Aircraft has approximately $17 million in cash, which is expected to support their efforts to finalize the full-scale demonstrator aircraft over the next 18 months. Additionally, Horizon Aircraft has announced a collaboration with ZeroAvia to develop hydrogen-electric powertrains for regional VTOL aircraft. This partnership will focus on integrating ZeroAvia’s ZA600 hydrogen-electric powertrain into Horizon’s Cavorite X7, aiming to advance research in zero-emission flight infrastructure and certification guidelines.
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