BETA Technologies Q2 Earnings Call Highlights

Key Points

• Q2 revenue reached $14.7 million, up 146% year over year and above guidance, while adjusted EBITDA was negative $110 million. BETA raised its full-year revenue outlook to $42 million–$50 million but expects adjusted EBITDA losses of $400 million–$445 million.
• BETA reported progress on FAA certification for its H500A motor and CX300 aircraft, while preparing manufacturing lines, suppliers and labor for production. Its backlog reached 1,001 aircraft valued at $3.9 billion, and the company’s aircraft have flown more than 190,000 nautical miles.
• The company expanded its commercial, defense and infrastructure initiatives, including organ-transport operations under the eIPP, the MV250 military aircraft and a planned consortium targeting up to 250 charging sites. BETA is also discussing up to $1 billion in EXIM financing to extend its runway and fund manufacturing expansion.

BETA Technologies NYSE: BETA reported second-quarter revenue of $14.7 million, exceeding its prior guidance range of $8 million to $11 million and representing 146% year-over-year growth. The company said results were driven primarily by revenue recognized from its Electrified Powertrain Flight Demonstration program with GE Aerospace and charger deliveries to the Florida Department of Transportation.

Adjusted EBITDA was negative $110 million, within the company’s guided range of negative $100 million to negative $120 million. Operating expenses totaled $166 million, including $122 million in research and development and $44 million in general and administrative expense. BETA ended the quarter with about $1.5 billion in cash and cash equivalents.

Chief Financial Officer Herman Cueto said the company is increasing investment in certification, production readiness, electric-aircraft operations, and its defense program. BETA raised its full-year revenue outlook to $42 million to $50 million and now expects adjusted EBITDA of negative $400 million to negative $445 million. It maintained projected full-year capital expenditures of approximately $150 million to $200 million.

Certification and Production Readiness

Founder and Chief Executive Officer Kyle Clark said BETA resolved a policy interpretation issue with the Federal Aviation Administration related to continued rotation for its H500A electric motor, and that no engine changes are required under the path forward. The company has developed datasets for its compliance approach and is continuing to close remaining certification elements, according to Clark.

BETA also completed lightning and durability testing, including teardowns and inspections with FAA participation. Clark said the company has substantially completed requirements-based testing across more than 2,100 engine software requirements, while formal testing runs for the FAA are underway.

For the CX300 conventional takeoff and landing aircraft, BETA said it completed the requirements-definition phase after the FAA signed off on the final open issue paper and accepted its Detailed Design Standards collector. The company said certification testing across multiple systems is already proceeding in parallel, alongside preparations for Type Inspection Authorization flight testing.

Clark told analysts that the H500A certification process has not delayed the CX300 program. He said the motor and aircraft could potentially be certified concurrently, while noting the company still reports certification progress only when it has been accepted by the FAA.

The company is also preparing its manufacturing system for production certification following type certification. Clark said BETA has been securing long-lead materials, expanding vertical integration, staging production lines, qualifying suppliers, and training labor. He said the company is already building aircraft it flies in its production facility and has installed equipment including autoclaves, trim tools, machinery and ultrasonic testing capability.

Commercial Operations, Orders and Charging Network

BETA’s aircraft backlog stood at 1,001 aircraft and $3.9 billion at the end of the quarter. The company’s stated year-end backlog target is $4 billion. Clark said Loganair placed an order after BETA conducted cargo-route flights across Scotland with Loganair and Royal Mail, including routes connecting Glasgow, Dundee, Aberdeen, Inverness, Wick and Kirkwall.

BETA said its fleet has flown more than 190,000 nautical miles and remains on track to reach 250,000 nautical miles by year-end. The company cited operations and demonstrations in Scotland, Virginia, Japan and Hawaii, including organ transport work with United Therapeutics and an eight-week inter-island demonstration program involving Hawaiian Airlines, Mokulele Airlines and Surf Air.

On July 12, United Therapeutics became the first operator to launch operations under the electric Integration Pilot Program, or eIPP, according to BETA. The operation used two BETA aircraft to transport an organ between Maryland and Virginia. Clark said the program represents more than a one-year pull-forward in commercialization for the company’s aircraft.

Cueto said BETA expects eIPP activity to expand in coming weeks, with Louisiana and Texas expected to come online with customers including Metro Aviation, Bristow and Future Flight Global. He said the company’s focus is on establishing repeatable operations involving aircraft dispatch, charging, ground handling, maintenance, customer workflows and data capture.

BETA had 138 charging sites at quarter-end. Deliveries under a 34-charger Florida Department of Transportation contract contributed to second-quarter revenue. The company also announced the America’s Consortium for Electric Skyways, or ACES, with Archer and Macquarie Capital. The consortium plans to develop up to 250 charging sites in California, Texas, Florida and New York.

Defense and Component Sales Expansion

At the Farnborough Airshow, BETA unveiled the MV250, a military variant of its vertical takeoff and landing aircraft. The company said the aircraft combines hybrid propulsion and autonomous capabilities for contested logistics missions, using core technologies shared with its civilian aircraft, including batteries, motors and flight-control computers.

BETA said the MV250 is designed to carry a 2,000-pound payload over a 250-nautical-mile tactical range, cruise above 170 knots and offer a projected repositioning range of more than 1,300 nautical miles. The aircraft’s hybrid turbogenerator, developed with GE Aerospace, is intended to provide range and onboard power for military missions.

Clark said the initial target application is contested logistics, though the company also sees potential uses in medical evacuation, exfiltration and launched-effects missions. BETA has integrated Sikorsky’s MATRIX autonomy suite for military operations.

The company also said an optionally piloted ALIA CTOL aircraft completed autonomous flights using both BETA’s internal autonomy stack and Sikorsky’s MATRIX stack. During a U.S. Army exercise in Sweden, BETA deployed an ALIA aircraft for 30 sorties and said it used approximately $300 of electricity.

Separately, BETA and GE Aerospace completed hybrid-aircraft test flights under their Electrified Powertrain Flight Demonstration program. BETA said its pilots flew the aircraft from Plattsburgh, New York, to Farnborough, England, reaching an altitude above 30,000 feet.

BETA continued to expand sales of aircraft components and related technology. Shortly after the quarter ended, it announced a sale of flight-control computers and software licensing to Horizon Aircraft for its X7 aircraft. Clark said BETA has also sold or supplied motors, propellers, inverters, batteries, high-voltage systems, flight controls, data-acquisition systems, flight-test services and chargers. Cueto said the component business generally carries margins of roughly 40% to 60%, with flight-control computers generating higher margins.

Financing Plans and Third-Quarter Outlook

BETA announced plans to expand its relationship with the Export-Import Bank of the United States through up to $1 billion in net financing. Cueto said the financing, if used for capital assets, would extend the company’s financial runway and support investment in manufacturing, vertical integration and production capability. He did not provide a timetable for the financing, saying the company remains in discussions with EXIM.

For the third quarter, BETA expects revenue of $8 million to $12 million and adjusted EBITDA of negative $115 million to negative $125 million. Cueto said the outlook reflects ongoing investments in production engineering and technical capabilities as BETA seeks to advance its aircraft, propulsion and component businesses.

About BETA Technologies (NYSE:BETA)

BETA Technologies is an American aerospace company that develops electric vertical takeoff and landing (eVTOL) aircraft and supporting infrastructure. The company focuses on designing aircraft and propulsion systems intended for short-range cargo, logistics and regional passenger movement, emphasizing electric propulsion, battery systems and integrated charging solutions to support distributed operations.

Its product and service set includes aircraft design and development, electric motor and battery integration, charging hardware and software, and flight testing aimed at meeting certification requirements.

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