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LONDON & NEW YORK - Vertical Aerospace [NYSE: EVTL], an innovator in electric aviation, announced a robust financial restructuring, having secured $220 million in refinancing, including a $90 million public offering. This strategic move is set to fund the company’s operations through 2025, as it progresses towards the certification and commercialization of its electric Vertical Take-Off and Landing (eVTOL) aircraft, the VX4.
The company’s third full-scale VX4 prototype is currently in assembly at GKN Aerospace’s Global Technology Centre, marking a significant step forward in Vertical’s developmental timeline. Following the successful completion of piloted thrustborne testing, Vertical is now preparing for full-scale piloted wingborne flight, which is anticipated to be a landmark achievement in electric aircraft flight.
Vertical’s financial results were disclosed in its 2024 Annual Report, which highlighted a year of major advancements under its "Flightpath 2030" strategy. The report can be accessed on the company’s investor relations website and the SEC’s website.
Stuart Simpson, CEO of Vertical Aerospace, expressed confidence in the company’s trajectory, stating, "2024 was a year of major progress for Vertical... We are reinforcing our position as Europe’s leading eVTOL company."
The company has made notable strides in its flight testing program, with over 30 piloted test flights that have collected substantial data to validate engineering models and system performance. Vertical’s second full-scale VX4 prototype began flight tests in July 2024 and completed piloted thrustborne testing in February 2025, a feat only achieved by one other company worldwide with a full-scale vectored thrust eVTOL.
On the regulatory front, Vertical has expanded its Design Organisation Approval (DOA) with the UK Civil Aviation Authority (CAA) and is cooperating with the European Union Aviation Safety Agency (EASA) on certification. The upcoming wingborne flight phase is crucial, as it will involve transitioning from controlled test environments to more dynamic operations, effectively serving as a mini-certification process for the prototype.
Financially, Vertical has demonstrated capital efficiency with a net cash usage of $58 million in FY 2024, including a $34 million cash settlement from Rolls-Royce. As of December 31, 2024, the company’s cash and cash equivalents stood at $28 million. The recent public offering has bolstered this to $99 million, ensuring the company’s operations are funded through FY 2025. InvestingPro analysis shows the company’s market capitalization stands at $307.77 million, with an EBITDA of -$92.79 million in the last twelve months. The stock currently trades near its 52-week low of $3.55, reflecting market concerns about its path to profitability. For deeper insights into Vertical Aerospace’s financial health and 14+ additional ProTips, consider exploring InvestingPro’s comprehensive analysis tools.
Investors and interested parties can join the FY24 earnings call today at 08:30 ET (12:30 GMT) via webcast on the company’s investor relations website or by phone. A replay of the webcast will be available on the company’s website following the event. With the stock showing significant volatility and trading at current levels, InvestingPro subscribers can access detailed Fair Value analysis and comprehensive financial metrics to make more informed investment decisions.
This news is based on a press release statement from Vertical Aerospace.
In other recent news, Vertical Aerospace has successfully closed an underwritten public offering, raising $90 million in gross proceeds, surpassing its initial target of $75 million due to strong investor interest. The funds are earmarked for research and development of the VX4 aircraft, expansion of testing and certification capacities, and other corporate purposes. The company aims to use this funding to meet its 2025 operational goals and accelerate spending in support of its Flightpath 2030 strategy. Meanwhile, Canaccord Genuity analysts have revised their price target for Vertical Aerospace shares to $13.50 from $16.00, while maintaining a Buy rating, citing the recent capital raises as a factor that reduces financial risk. The company also announced the appointment of Dómhnal Slattery as the new chairman of its Board of Directors, a move that was positively received by the market. Slattery’s extensive experience in aviation finance is expected to bolster Vertical’s strategic direction. Additionally, Vertical Aerospace has become the second company globally to complete piloted thrustborne flight maneuvers with a full-scale vectored thrust eVTOL aircraft. These developments highlight Vertical Aerospace’s commitment to advancing its electric aviation technology and achieving its ambitious goals in the eVTOL sector.
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