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Investing.com - On Wednesday, EHang Holdings Limited (NASDAQ:EH) reported third-quarter results with revenue of RMB92.5 million ($13.0 million), falling short of analyst expectations and declining from RMB128.1 million in the same period last year. The Chinese advanced air mobility company posted a wider adjusted net loss of RMB20.3 million ($2.9 million) compared to an adjusted net income of RMB15.7 million in Q3 2024.
The company’s shares fell 1.41% in pre-market trading following the earnings miss.
The revenue decline was primarily driven by lower sales volume of the company’s EH216 series aircraft. EHang delivered 42 electric vertical take-off and landing (eVTOL) aircraft during the quarter, including 41 units of EH216 series and one unit of its new VT35 model, compared to 63 units in the year-ago period.
Despite the quarterly shortfall, EHang maintained its full-year revenue guidance of approximately RMB500 million, noting that client purchase plans are typically structured on an annual basis with a significant portion of deliveries scheduled for the fourth quarter.
"In the third quarter, we made significant progress across our product portfolio, operation readiness, and overseas expansion," said Huazhi Hu, Founder, Chairman and CEO of EHang. "The launch of our long-range pilotless eVTOL aircraft, the VT35, together with the existing model EH216-S, form a scalable ’intracity + intercity’ product matrix that enables a wider range of diversified low-altitude mobility scenarios."
The company highlighted several business developments, including the unveiling of its VT35 long-range eVTOL aircraft with a 200 km range, which has already received purchase orders at a unit price of RMB6.5 million. EHang also reported progress on commercial operations in China and international expansion in Thailand, Qatar, Japan, Kazakhstan, and Rwanda.
Gross margin remained relatively stable at 60.8%, compared with 61.2% in Q3 2024. The company ended the quarter with a strong cash position of RMB1.13 billion ($158.3 million).