On Tuesday, Eve Holding (NYSE:EVEX) discussed second-quarter financial results during its earnings call. The full transcript is provided below.
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Summary
Eve Holding reported successful milestones in its second quarter of 2026, including the transition phase of its flight campaign and advancements in certification processes with ANAC and other global authorities.
The company ended the quarter with $403 million in cash and total liquidity of $531 million, which is expected to support operations through 2028 without new funding.
Eve announced two new LOIs at the Farnborough Airshow, increasing its preorder backlog to approximately 2,700 aircraft valued at $13.5 billion.
The company is actively pursuing synergies with Embraer, which are expected to generate $100 to $150 million in savings over the next three years.
Partnerships with Hitachi and the Florida Department of Transportation are underway to develop infrastructure and operational procedures for eVTOLs.
Future plans include ramping up production of six conforming prototypes and preparing for certification and service entry by 2028.
Full Transcript
OPERATOR
Earnings call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press Star-0 on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Lucio Aldworth. Please go ahead.
Lucio Aldworth, Director of Investor Relations
Thank you, operator. Good morning, everyone. This is Lucio Aldworth, the Director of Investor Relations at Eve Holding, and I want to welcome everyone to our second quarter 2026 earnings conference call. Our CEO, Johan Bourde, and CFO, Eduardo Cotu, are joining me on the call today. After their prepared remarks, we're going to open the call for questions, at which point Marcelo Basili, our Chief Flight Prototype Engineer, will also join us to address more technical questions.
We have a deck with a few slides and additional pictures that showcase our achievements in the quarter, including, of course, the more recent stages of the test flight of our full-scale prototype. The deck is available on our site at ir.eveairmobility.com. Please feel free to download and follow along, and in fact, we just published on our investor relations website a video of our most recent transition flight and we encourage all investors and analysts to watch it.
Let me first mention that today's conference call includes statements about events or circumstances that have not yet occurred. These are primarily based on our current expectations and projections regarding future events and financial trends that will affect our business and future economic performance. These forward-looking statements are based on current expectations and involve risks and uncertainties that could cause financial results to differ substantially from those expressed or implied in this conference call.
We undertake no obligation to update publicly or revise any forward-looking statements because of new information, future events, or other factors. For a more detailed list of these risks and uncertainties, please refer to our SEC filings, which are available on our website. Now I'll turn it over to our CEO, Johan Bourde.
Johan Bourde, CEO
Thank you, Lucio. Good morning, everyone, and welcome to our second quarter 2026 conference call. We had a good quarter with several milestones demonstrating steady progress. After the inaugural flight of our engineering prototype last December, we went through a series of hover flights. We concluded a planned ground test period of three months of software upgrades, which led us to resume our flight campaign towards full transition by the end of this year.
These three major phases validate not only our building-block concept by extensively testing every part, but also the integration of critical systems such as fly-by-wire and fixed-pitch lifter rotors. In parallel, we continue our rig testing of different components for our commercial aircraft and interact with certification authorities and partners. Lastly, we will go through the new LOI agreements announced at the Farnborough Airshow. Slide 3 details some of the tests we performed between May and July in preparation for transition.
As I mentioned previously, we uploaded new software to optimize the synchronization between the lifters and the pusher to sustain lift during all phases of flight. We also made sure that pusher, avionics, actuators, flight control and other systems were tested again on the ground, this time with motors powered on and the aircraft anchored on the ground. On Slide 4, we wanted to show you some additional details of the vibration tests we perform on the ground.
Because wing-borne flight brings to the aircraft different pressure points, vibration, or aerodynamic loads, we attached a shaker device to the lifters to simulate and assess resulting oscillation in the entire aircraft. Slide 5 shows the progress of our accumulated flights. With successful completion of our ground tests, we cleared the prototype to get back in the air and start transition flights. In total, our prototype flew 66 times and logged 2 hours 46 minutes of airtime.
Importantly, the prototype now enters a new phase with partial transition. This is when we gradually accelerate the aircraft by engaging the pusher but still maintain the lifters powered on for the lift. The pusher was engaged at first with low RPMs and then powered up to around 1,200 RPM, allowing the aircraft to fly forward at 30 knots, which is about 35 mph. In the coming weeks, speed will progressively increase to 60 knots and then to 80 to 90 knots to complete the full transition.
At that moment, the lifters will be powered off and all lift will come from air passing through the wing, flying like an airplane. This is the aircraft's ultimate mission: take off vertically, transition to wing-borne flight, and then transition back to vertical flight for landing procedures. Slide 6 shows some pictures and has a link to a video of one of the latest transition flights. The video is also on our website and social media platforms. Now, more than quantity, our flight campaign also demonstrates quality.
Every flight is digitally planned to test and validate specific aircraft components or flight metrics, and in total we have validated 150 test points. It is precisely these validations that allow us to move ahead with confidence. Moving to Slide 7, we can see here part of our physical infrastructure that supports our entire program development. With more than 15,000 accumulated hours of testing, we continue testing different components separately in specific rigs to continue optimizing their individual performance and have now deployed a second iron bird dedicated to flight control system integration.
As a reminder, our first iron bird is a deconstructed eVTOL in which we integrate all the different actual components of an eVTOL into a physical system to make sure all the systems work properly together. This is part of our testing process that should expedite the testing and the certification efforts, which also reduce the program cost in parallel. On Slide 8, we continue to advance our certification process with Brazilian certification authority ANAC.
The means of compliance are almost completed with ANAC. These are the tests that need to be successfully performed on different components to certify the aircraft. Interestingly, a few suppliers have already started testing some of the components that have means of compliance aligned already with ANAC. Separately, ENAC opened a new consultation with industry stakeholders on updated airworthiness certification bases reflecting the requirements alignment with FAA.
This is another important step in the E100 certification process and contributes to the development of a robust regulatory framework for eVTOLs. Following the consultation period, which ends on August 18, ENAC will review the comments received and assess the potential refinements on the criteria. In addition, ENAC published the proposed noise certification criteria for the Eve 100, which is the result of an extensive engagement between Eve and ANAC drawing on existing aviation noise regulations.
Lastly, we applied through ANAC for type certification validation by EASA, and it is expected to certify our aircraft for European markets 12 to 15 months after ANAC and FAA. On Slide 9, we continue to prepare readiness of necessary infrastructure for safe operation of eVTOLs. We have partnered with Hitachi, a global technology leader in electrification, to ensure the vertiports can be reliably connected to a power grid and equipped to handle the high-demand, high-frequency operations.
This includes enabling sufficient power capacity, managing fast charging cycles, and integrating new demand in existing energy systems. In Florida, we also partnered with the Florida Department of Transportation focused on delivering insight in the infrastructure operational procedures and airspace navigation procedures needed to enable the safe and efficient integration of UAM into Florida's transportation network. On Slide 10, you can see the timeline to certification.
As I mentioned previously, we are now in a transition phase. We are around 30 flights away from full transition. Meanwhile, we are conducting a critical design review with our suppliers for each system and component that will be featured in our coming conforming prototype. This will allow us to release drawings and continue manufacturing components within the required specs to produce and test our conforming vehicle in 2027, with certification and entry into service expected for 2028, considering that we will need to fly our conforming prototype for around 12 months after the first crewed conforming prototype flight planned for the second half of 2027. Slide 11: we had a successful outcome at the Farnborough Airshow. We met with several industry leaders, customers and partners, and we met several investors at the show. We also announced two new LOIs for a total of 46 aircraft from Move for operations in Cabo Verde and Shearwaters, a BayPoint Capital company, a new lessor in our backlog. This is a good segue into Slide 12, which shows a total preorder backlog of approximately 2,700 aircraft valued at about $13.5 billion at list price, including the two new LOIs signed this quarter and announced at the Farnborough Airshow.
And now I hand it over to our CFO, Edu, for the second quarter of 2026 financial review.
Eduardo Cotu, CFO
Eve ended second quarter 2026 with $403 million in cash and total liquidity of $531 million, which includes $128 million in undrawn credit facilities. We believe the current level of liquidity is enough to support operations through 2028 without new funding. Importantly, we have already started to capture some of the synergies and cost avoidance we had identified and announced in the first quarter. Again, we have worked extensively with Embraer to find new ways to reduce our cash burn until certification, and our initial review indicates we can achieve $100 to $150 million in potential synergies in the next three years, supporting our cash runway.
In the first semester of 2026, total cash burn was $118 million, and our total consumption for the year should remain close to the midpoint of our guidance between $225 and $275 million. Now, moving to Slide 14, just to highlight some of our numbers, research and development in the second quarter 2026 was $29 million. This is lower than around $55 million in previous quarters, and it reflects better-than-initially-expected agreements with some of our suppliers and program development updates.
Going forward, we expect R&D levels to return to around $50 million per quarter. SG&A has been mostly stable at $8 million as we continue to capture synergies and control costs on general and administrative expenses. Including R&D and SG&A, net loss was $34 million in the second quarter 2026. Finally, as mentioned previously, we ended the quarter with $403 million in cash and $531 million in total liquidity. Cash consumption in the second quarter was $49 million, and in the first six months of the year was $118 million.
This shows some of the early benefits of synergies with Embraer and reinforces our position as sufficient to fund our operations until 2028. With that, we conclude our remarks, and I would like to open the call for questions. Operator, please proceed.
OPERATOR
Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star-one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star-two if you would like to remove your question from the queue. This meeting is being transcribed using speaker equipment. It may be necessary to pick up your handset before pressing the star keys. Our first question will come from Savi Sith with Raymond James.
Xavi, Analyst
Hey, good morning everyone. Maybe it was really helpful to get some of the forward color on R&D. I was curious if you could share how we should think about CapEx into the second half as well and how much, if any, of that kind of $100 to $150 million synergies have been realized or are in that run-rate for this year.
Eduardo Cotu, CFO
Yes. Hi, Xavi, good to talk to you. So the synergies we're implementing, right. We did a lot of workshops to make sure we are as efficient as possible in terms of cash burn until certification and make sure we keep our cash burn not only this year but until certification, right, in 2027 and 2028 as efficient as possible. We identified these $100 to $150 million in synergies for these three years. We are already capturing that. So I think that is when we say we are confident we stay in the mid-range of our guidance.
It's already capturing part of those synergies. I believe a little less than one-third of those synergies come this year and the rest comes in 2027 and 2028. Regarding CapEx for the manufacturing, that's another area that we have been doing a lot of studies on how to be more efficient. We are going to be able, or we are studying, to use the existing Embraer facilities as much as possible so that we can only invest in manufacturing facilities as late as possible.
So probably this year we're talking about $20 million in CapEx investments. Next year these numbers should go higher, something around $50 million, and probably another $30 to $40 million in 2028. So, overall we're going to be investing around $100 million to have, I would say, a modular production capacity. And we can grow this capacity, of course, as demand grows. So that's what we're planning.
Xavi, Analyst
That's helpful color and great capacity discipline there. If I might just, on the flight timing, it looks like maybe full transition flights have slipped a bit into 4Q from 3Q. In thinking when those will be done, just wondering if that impacts the timing of when you start building certification-conforming aircraft, or if those two things aren't really connected.
Johan Bourde, CEO
Yes, Xavi, this is Johan. Yeah, both are connected, obviously, but the full transition flight is planned by the end of this year, right? We'll see exactly. You know, we resumed the flight campaign. We're thrilled about it. We just made, as we announced yesterday, also the transition with turning on the pusher. So it should be 30 to 40 flights until we really complete the full transition. This is when we'll go to the 90 knots and then we'll turn off the lift.
So yeah, by the end of this year, we'll see how it goes. Obviously we'll have some more information the next quarter, and then it really triggers also the conforming product of the first one. We'll be debuting the assembly. We already have parts of suppliers that are ready, you know, and have been shipping out to us. And then we'll start the assembly and then the assembly will be finalized next year, and then second half will be the first flight of the conforming prototype.
Xavi, Analyst
Helpful. Thank you.
OPERATOR
Thank you. Our next question comes from Andres Shepherd with Cantor Fitzgerald.
Andres Shepherd, Analyst at Cantor Fitzgerald
Hey everyone, good morning. Thank you for taking our questions and congratulations on the quarter. Johan, I wanted to start with maybe the transition flight. Congratulations to the team on the beginning of the transition flight campaign, as you mentioned. My question there is just, can you remind us, you talked about it a little bit already, but how do you expect this program to ramp up going forward? What do you see as the major validation from the flights?
And then can you remind us kind of where we are on the design and build-out of the six conforming aircraft which you'll also be using as part of your flight test campaign. Thank you.
Johan Bourde, CEO
Thank you, Andres. Thank you for your question. This is important. Obviously, you know, since the very beginning we elected to have the lift-and-cruise configuration, which we understand is better for certification purposes but also for the aftermarket operation for the operator customers. And this is exactly what we're doing with the engineering prototype. Separating the vertical flight from the horizontal flight is what has led us to have this building-block methodology that Embraer has been doing for the last 56 years.
And it's been proving efficient as we go. We test each component and this is what we've been doing, right, since the last flight and even prior to this — the first flight that we had on 19th of December — and then we've been having the first phase, which is a hover phase. And then we had the three months of upgrading and software integrating also with a pusher that we would turn on. We did turn it on on the ground first, but now in flight. So this is part of the planned flight campaign and yeah, it's going to take us to the end of the year.
So, you know, we like to progress, like I said, progress with purpose, right. I mean, we don't want to cut any corners. You know, we know all those steps are important. We've tested more than 150 points of testing, which is very important in our process and expanding the envelope of flight, right. And then we're learning as we're doing this; with this, we're transferring this to the conforming prototype as much as possible. And this is exactly what we're doing.
We're going to be freezing the design of the aircraft by the end of this year — we call the CDR phase — with all the suppliers. The 21 suppliers also will be done by the end of this year. And then, like I said, just assembling some of them. By the way, the CDRs are done with some suppliers; some others are not yet. And then we'll transfer this knowledge to the conforming prototype. We'll have six conforming prototypes built up next year, with the first flight, as I said — it's going to be crewed with a pilot — going to be the second half of next year.
Six prototypes to go until the certification for 2028. It takes about 12 months from the first flight. This is a rule of thumb that we have at Embraer that has been proven also for certification, in fact.
Andres Shepherd, Analyst at Cantor Fitzgerald
Excellent. Thank you, Johan. And maybe just as a quick follow-up. So, you know, at the Farnborough Airshow you added two LOIs to the backlog. So I guess the question: how significant are these orders? How are you thinking about converting those to binding orders going forward and what do you see as maybe the main differentiator of the backlog? Thank you.
Johan Bourde, CEO
Thanks, Andres. It is important for us, right? I mean, whether it's a new LOI or it's an order conversion, I think it's just important to move on and also prepare the entry to service. And we do sign those contracts when it makes sense. It's just not, you know, adding up aircraft numbers to the 2,700 aircraft under LOI and the firm orders — 100 airplanes under the firm orders with Revo and Arex that we announced early on. But it is to make sense.
It's exactly when we have the right mission to fit what the aircraft is meant for. And if you look at Move, which is the Cabo Verde network and operation, that's exactly what we want. It's really to start with the ecotourism going and the whole country is also investing massively in the tourism and we feel that the eVTOL is definitely needed so they can grow together with the country. And then we also have another one which is important to us — the leasing community — with Shearwaters, recently purchased by the BayPoint Capital Company.
And it also shows, adds up to the other leasing company that we have, those different models that are going to be sold. We sell to a leasing company and then they lease the aircraft to operators, or we sell directly to the operators. Very similar to what we see in the aeronautical business, which is rotary aircraft or the fixed-wing aircraft. So as you can see, it's getting interest from the leasing community, which I think is super important for us.
Andres Shepherd, Analyst at Cantor Fitzgerald
Wonderful. Thanks, Johan. Congrats again. We'll pass it on.
Johan Bourde, CEO
Thanks, Andreas.
OPERATOR
And we'll go next to Amit Dayal with HC Wainwright.
Amit Dayal, Analyst at HC Wainwright
Thank you. Good morning, everyone. Thank you for taking my questions. With respect to the synergies, Edu, maybe can you elaborate a little bit on what the components of those synergies are? Are these mostly from engineering, or is there any IP or infrastructure? Can you maybe just give us some color on what the different aspects of these cost synergies are and where you are going to capitalize on them?
Eduardo Cotu, CFO
Yes. When we talk about the synergies, we break that in three pockets. One pocket is the Eve Holding structure, where we look at everything that we do at Eve Holding and see things that Embraer already does on the parent level, and we analyze what we have to do at Eve Holding and also what could be done by Embraer, right. So this is more on the administrative side, general expenses. And we have been able to find things that Embraer is doing they can do for us so we don't have to have a dedicated team at Eve Holding doing that.
So this is one type of synergy we do on the Eve Holding structural level: what could be done by Embraer, what needs to be done by Eve Holding. The second thing is the master service agreement with Embraer. Embraer has this big pool of engineers that has been working for us. They do a lot of activities for us. We are the whole time taking a look at that — how we can be more efficient, what transactions we can pay. Sometimes we can pay things directly to the suppliers of Embraer so it doesn't need to go through Embraer, so that we can save some money.
So, you know, a big work on this service agreement with Embraer. And the third pocket is industrialization. Right. As I said, we want to be as efficient as possible. Embraer has a lot of existing assets and a lot of investments that were already done that we don't need to do again. So we were discussing what is the most efficient way to produce our eVTOL so that we don't need to duplicate infrastructure investments that Embraer has already done. So those are the three pockets: Eve Holding structure, the Embraer service agreement, and the industrialization.
Amit Dayal, Analyst at HC Wainwright
Understood, thank you for that.
Johan Bourde, CEO
I will give two concrete examples of exactly what Edu has mentioned here on those three pillars of synergies. The first one is on the organization, as you mentioned. This is something that we have at Eve Holding — 176 employees, Evers, that's how we call ourselves. And then we also have the MSA with Embraer that involves about 800 people. So if you think about it, that's 1,000 people organized. But the way we organized before, we would have some mirror organization, like Program, for example.
And then we figured, you know, we could get more synergy by having one Program on one side, which comes with the responsibility, right, and ownership, which belongs to Eve Holding. But on the other part, as Edu mentioned, some other team, you know, would go to Embraer because of the volume of people that they have. They could get, you know, some work, you know, with maybe less people and then direct some workforce to other projects. So we've seen those gains.
That's the first tangible example. The second one, which I think also is important, is on the certification program. As you remember, last year we did announce that we would put the landing gear and wheels on our vehicle. Well, the conforming prototype will have those landing gear and it allows us to move around the prototype in Gavião Peixoto faster. And with that in mind, what we could come up with at Embraer is use the existing facilities and hangars that they have and maybe add a couple of containers in the kind of startup style, let's say.
And then it will allow us — we have the FATO and vertiport — and it will avoid some cost on the building of a brand-new hangar that we had originally planned. So those are substantial savings that are a reflection of a direct synergy with Embraer.
Amit Dayal, Analyst at HC Wainwright
And then going forward, can this continue to add up for you guys? I know the range is 100 to 150 now. In the future can you potentially find more areas of cost synergies?
Johan Bourde, CEO
Oh yeah, I think, you know, the focus right now is the synergies related to the certification, right, until we get certification in 2028. But when we think about, for instance, services and support — right — Embraer has a lot of MROs and a lot of facilities spread worldwide that we can also leverage and don't need to invest. So the focus now is certification synergies. But once we enter into service, there is a lot that we can use from existing assets that Embraer already has.
Amit Dayal, Analyst at HC Wainwright
Understood, thank you for that. Just one last question, guys. This partnership with Hitachi, is this more for Eve's operational execution and infrastructure or are you targeting the general eVTOL infrastructure opportunity with this partnership?
Johan Bourde, CEO
Yeah. Thanks, Amit. Since the beginning we strongly believe in the agnostic way, right? This is the way how we're going to be creating the UAM. If we are able to have different type of OEM and different vertiports — and this is what we want — we want to scale up the OEM and we'll do this only if we standardize, you know, whether it's the electrification, whether it's the BTMS, which is the battery thermal management system, and so on, right? Same thing with the FATO, and I think this is what we're looking for.
And this non-exclusive partnership with Hitachi is exactly going in this direction. It's a great partner into the electrification around the world already on many industries, and they're naturally coming to the eVTOL world, and their knowledge will be paramount to make sure that we can spread, with their system or any other system, the UAM.
Amit Dayal, Analyst at HC Wainwright
Understood. Thank you, guys. That's all I have. Appreciate it.
Johan Bourde, CEO
Thanks, Amit.
OPERATOR
As a reminder, it is star one to ask a question, and we'll go next to Austin Mohler with Canaccord Genuity.
Austin Mohler, Analyst at Canaccord Genuity
Hi, good morning. Yodhan Nidoo for TechCare. How should we think about the process of revenue generation on the 1.4 billion in MRO contracts? What kind of work might need to be performed on these aircraft in their first year after delivery to customers?
Johan Bourde, CEO
Thanks for the question. This is since the beginning, the inception of Eve Holding. We think about three pillars, which is the vehicle itself. This is about the customer support and services — strong from the Embraer experience — obviously a network, you mentioned it, the MRO, for example, but not only. It's all about the spare parts, about the training of pilots and mechanics and so on, right? Technical services, and you name it. And then the third one is the vector — it's about the UATM.
When it comes to TechCare, it's the name of our solution, the suite of technical solutions that we have. It's a fly-by-the-hour program — not fly-by-the-way — but it's based on this system well known in the industry. But what happened is that during our negotiation with the suppliers, with our partners — the 21, 22 suppliers that we have — it's a lifecycle. So not only it's for the prototype, conforming prototype, but also contracts for the production of the E100, but it's also for the customer support and services.
And we want to be the face to the customer. This is something that the model that customers have been asking us. We're going to be creating a new category of aircraft and a new segment of aviation, and they want to make sure that we're committed. And this is exactly the spirit of Eve Holding — just to make sure that we are embedded in the operation, right? They want two things. They want to make sure our operators will want to have the availability of the vehicle when needed — you know, really ready for the mission — and also the operating cost.
The best way to do this, when it comes to customer support and services, is for you to be the face to the customer. And that's how we're going to be doing. So it's basically MRO, material availability with an exchange program and the repair. Also a network, right, that we do this with the base customer, and the training — remembering that we do have a contract with ECTS, which is a joint venture between CAE and Embraer that today do all the Phenom and also the E2s — and the technical services.
On top of this, very important, we're also piggybacking on the AHEAD PRO, which is a prognostic service that Embraer provides to their customers, that we will have. So with sensors all throughout the machine, the eVTOL, then we'll be able to see what's prognostic, the maintenance of the aircraft. When it comes to the aircraft and the needs, it's an electrical vehicle, so it's definitely fewer maintenance tasks. But again, this type of program — it's all about predicting, you know, the future.
Murphy is really keen, you know, on trying to break those machines and making sure that it breaks where it shouldn't. And then with that TechCare services, we will return the operation as fast as possible. And this is what the operator wants.
Austin Mohler, Analyst at Canaccord Genuity
Okay. And can you comment on the component or part-level differences between the six cert-conforming prototypes that you expect to start building this year and will be completing different tasks?
Johan Bourde, CEO
You mean compared to the current engineering prototypes?
Austin Mohler, Analyst at Canaccord Genuity
No, no, I think the difference between the six. Right,
Johan Bourde, CEO
right, between the six. Are you talking about the difference between the six conforming prototypes, or you're talking the difference between the conforming prototype and the engineering prototype — also the six conforming prototypes? We do have Basili here on the line. He can give you a little bit more detail.
Marcelo Basili (Chief Flight Prototype Engineer)
I can help on that. Good morning, this is Marcelo Basili, Austin. And the difference of those prototypes are related to what the matters of certification we have ahead. So the first one will be related to the envelope expansion, and dealing with handling quality, performance. The second one will be going deep on the handling quality and on some tasks regarding also performance. The third vehicle will be dealing with systems, and most likely propulsion and the electrical system.
The fourth aircraft will be dealing as well — going deep on systems — but with focus on avionics. The fifth prototype is more related to interior, interior cabin systems. It will be the first one that will have the aircraft with a full cabin implemented. And the sixth one will be dedicated to the function and reliability testings — basically the most close to the series aircraft. And the test plan will be compliant with the function and reliability — basically the last thing that we have before entry into service and the type certification achievement.
Austin Mohler, Analyst at Canaccord Genuity
Really helpful detail. Thanks, everyone.
Marcelo Basili (Chief Flight Prototype Engineer)
You're welcome.
OPERATOR
And as a final reminder, that is star one if you would like to ask a question. Moving on to Andre Madrid with U.S. Bancorp.
Andre Madrid, Analyst at U.S. Bancorp
Johan, Edu, Lucio. Looking at, you know, the supply chain, can you maybe give us an update there? And also as you're going through production — your conforming prototypes — do you think there's room to add additional suppliers still?
Johan Bourde, CEO
Good, good question. Supply chain — we do have 22. I keep saying 21, 22, because as a matter of fact there's a few of them remaining, but there's what we call the off-the-shelf type of components, like, you know, an ELT, or you know, those type of things that, you know, there's not much of a negotiation or customization to our vehicle. It's something that comes, you know, with the aircraft and needs to be on the aircraft. But all those contracts were closed and negotiated back — the first contract was on the battery back in 2023.
And with the battery and the engines we are going through this development phase, right? So back and forth for the requirements that we have, and we send it to the suppliers and then they answer back, we make changes as we're evolving also and testing the vehicle. But like I said previously, we will have to freeze the design of the aircraft, the E100, by the end of this year. We can accept afterwards minor changes, but for certification and for exactly all the test phases that Basili actually mentioned on the sixth vehicle, then we really need to have this configuration frozen by the end of this year.
So this is what we're going to be doing with all the suppliers. That's going to happen by the end of this year. And then those contracts are — it's one also of the big synergy and knowledge that we're getting from the Embraer team. For the last 56 years they've been negotiating these contracts, and it's a lifecycle contract. Like I said, it's not for only the production. It's really to make sure that all throughout the life of, and the operation of the eVTOL — our eVTOL — then they will be supporting us and ramping up.
So we do have clauses, important clauses, that allow us to increase the ramp up and the production, for example, based also on the experience of Embraer. And we know that Embraer has been very good to manage, and really a spirit of partnership throughout the pandemic, but after the pandemic with our suppliers, and that's the same methodology that we're using — locating people also at suppliers to follow up with the development and engineering teams.
So this is how we — you know, that's the DNA of our relationship with the suppliers.
Andre Madrid, Analyst at U.S. Bancorp
Got it. That's very, very helpful. I'll leave it on. Thank you.
Johan Bourde, CEO
Thank you.
OPERATOR
And this now concludes our question and answer session. I would like to turn the floor back over to Lucio Aldworth for closing comments.
Lucio Aldworth, Director of Investor Relations
Thanks, Gary. And thank you everyone who joined the call today. As you saw, we achieved several important milestones this quarter and we're going to continue evolving quickly and forward, and all of our achievements are going to be much more clearly visible to all in the investment community. We look forward to meeting you in the next upcoming event we're going to be participating. And as always, if you have any questions, don't hesitate to reach out to me or my team.
Thank you and have a good day.
OPERATOR
Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines and have a wonderful day. This meeting is no longer being transcribed. This meeting is no longer being recorded.
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