Archer Aviation (ACHR) Q2 2024 earnings summary

Executive summary

• Achieved major technical milestones, including Midnight's first transition flight and delivery of the first aircraft to the U.S. Air Force under a contract valued up to $142 million, advancing both commercial and military programs.

• Secured key regulatory progress: FAA finalized Midnight's airworthiness criteria and granted Part 135 certificate, enabling future commercial operations.

• Announced a significant expansion of the Stellantis partnership, with up to $400 million in support for contract manufacturing and manufacturing ramp-up, furthering a capital-light strategy.

• Order book grew to nearly $6 billion, including a planned purchase of up to 116 aircraft from Future Flight Global, with initial deposits received.

• Progressed air taxi network plans in major U.S. cities, including Los Angeles and San Francisco, and internationally, with strong government and partner support in the UAE, India, and Korea.

Financial highlights

• Ended Q2 2024 with $360.4 million in cash and cash equivalents, plus $6.7 million in restricted cash; subsequent capital raise brought total new funds since Q2 to $230 million.

• Q2 2024 GAAP operating expenses were $121.2 million, including $24.8 million in non-cash, equity-related expenses; non-GAAP operating expenses were $96.4 million.

• Q2 2024 net loss was $106.9 million, a 41.9% improvement year-over-year; adjusted EBITDA was $(93.8) million.

• Research and development expenses increased 41.9% year-over-year to $89.8 million in Q2 2024.

• Weighted-average shares outstanding increased to 334.1 million in Q2 2024 from 251.0 million in Q2 2023.

Outlook and guidance

• Targeting initial production of 1 aircraft per month, ramping to 4, then 20, and ultimately 54 per month in coming years.

• At 250 aircraft annual production, targeting 40–50% gross margin and positive operating margin, assuming $5 million ASP per aircraft.

• Q3 2024 non-GAAP operating expenses expected to be $90–$100 million, reflecting continued investment in certification and production.

• Management believes current liquidity, including recent capital raises, is sufficient to fund operations for at least the next 12 months.

• No revenue is expected until after certification and commercial launch of the Midnight aircraft.