Investing.com -- Archer Aviation Inc. (NYSE:ACHR) saw its stock surge 4.2% after reporting better-than-expected first quarter earnings, as the electric air taxi company continues to make progress towards its planned UAE launch later this year.
The urban air mobility firm reported a Q1 adjusted loss per share of -$0.17, beating analyst estimates of -$0.28 by $0.11. While Archer did not disclose revenue figures, the company highlighted several key operational milestones achieved during the quarter.
Archer reaffirmed its plans to deliver its first Midnight aircraft to the UAE in the coming months, with commercial deployment slated for later in 2025. The company secured design approval for the first hybrid heliport in Abu Dhabi to support these launch efforts.
"Archer’s pushing the boundaries of what’s possible and reshaping the future of aviation for years to come," said CEO Adam Goldstein. "This quarter, the team made strong progress across our civil and defense efforts as we continue to deepen our strategic partner relationships and prepare for commercialization in the UAE later this year."
The company announced its first two customers for its "Launch Edition" program: Abu Dhabi Aviation and Ethiopian Airlines. Archer also formed a partnership with Palantir (NASDAQ:PLTR) to develop artificial intelligence for next-generation aviation technologies.
Archer ended the quarter with a strong cash position of $1.03 billion. For Q2 2025, the company expects an adjusted EBITDA loss between $100 million to $120 million.
The positive market reaction suggests investors are encouraged by Archer’s progress towards commercialization and its ability to exceed earnings expectations. However, the company still faces challenges as it works to bring its electric vertical takeoff and landing (eVTOL) aircraft to market.
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