Bullish indicating open at $55-$60, IPO prices at $37
LONDON & NEW YORK & PHOENIX - Vertical Aerospace (NYSE: EVTL) and Honeywell (NASDAQ: HON) have announced an expanded partnership to accelerate the certification and production of Vertical’s VX4 electric vertical take-off and landing (eVTOL) aircraft. This long-term agreement aims to certify Honeywell’s flight control and aircraft management systems for the VX4, enhancing its safety and operability.
The collaboration focuses on certifying Honeywell’s Anthem flight deck and compact fly-by-wire system, crucial for the VX4’s operation. The Anthem flight deck integrates cockpit displays, software, controls, and connectivity to aid pilots in decision-making. The fly-by-wire system replaces mechanical controls with electronic ones, improving stability and safety.
Both companies will work to certify these systems to the UK Civil Aviation Authority’s (CAA) stringent safety standard of 10-9, a catastrophic system failure rate of one in a billion flight hours, aligning with commercial airliners’ standards. This level of safety exceeds the targets of some competitors, positioning the VX4 for potential global certification and export. With a current ratio of 2.56, InvestingPro analysis shows that Vertical Aerospace maintains sufficient liquid assets to meet its short-term obligations, which could be crucial for supporting this certification process.
In addition to technology certification, the agreement includes the integration of Honeywell’s new inceptors into the VX4, providing pilots with more precise and intuitive control. This selection is part of Vertical’s commitment to meeting regulatory requirements for safe and scalable operations.
Vertical plans to certify the VX4 by 2028 as part of its Flightpath 2030 strategy, with an ambition to deliver at least 150 aircraft to customers by 2030. The partnership could yield a contract value of approximately $1 billion over the next decade. With the company’s next earnings report due on May 13, 2025, investors following this development can access comprehensive analysis and additional insights through InvestingPro’s detailed research reports, which include 12+ key investing tips and extensive financial metrics.
The extended partnership builds on a six-year collaboration between Vertical and Honeywell, with Honeywell also being a long-term investor in Vertical since 2021. The companies have previously worked on incorporating Honeywell’s flight systems into the VX4 prototype program.
Stuart Simpson, CEO of Vertical Aerospace, emphasized Honeywell’s aerospace expertise as pivotal for the next phase of development, focusing on integrating production-ready technologies to adhere to the highest aviation safety standards. David Shilliday, Vice President and General Manager of Advanced Air Mobility at Honeywell Aerospace Technologies, echoed the sentiment, highlighting the joint commitment to innovation and safety.
This announcement is based on a press release statement and does not constitute an endorsement of the companies or their products. The information provided reflects the companies’ current views and may be subject to change. For a complete understanding of Vertical Aerospace’s financial position and growth potential, investors can access detailed Fair Value analysis and comprehensive financial health metrics through InvestingPro’s research platform.
In other recent news, Vertical Aerospace has shared its financial outlook and strategic plans during the Q4 2024 earnings call. The company reported a net cash usage of approximately $100 million in 2024, with projections of $110-$125 million for 2025. Vertical Aerospace has raised $90 million from current investors and $60 million from new investors, ensuring it is fully funded through 2025. Additionally, the company is targeting certification for its VX4 aircraft by 2028 and plans to open its order book in 2025. Vertical Aerospace has also adopted the Combined Charging Standard (CCS) for its VX4 aircraft, aligning with industry peers to establish a universal fast-charging infrastructure. The company has further strengthened its leadership team by appointing three new members to its Board of Directors, including James Keith (JK) Brown, Kris Haber, and Carsten Stendevad. Moreover, Vertical Aerospace has hired former Volocopter pilot Paul Stone to enhance its eVTOL testing capabilities. The company is progressing with the assembly of its third VX4 prototype and aims to achieve wingborne flight, marking significant steps in its development timeline.
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