Archer Aviation Inc. (NYSE: ACHR) has released its financial and operational results for the third quarter ended September 30, 2024. The company also published a shareholder letter outlining its performance for the quarter, as well as its estimates for the fourth quarter of 2024. CEO and founder Adam Goldstein shared insights on the company’s progress, stating:
“Over the past six years, we have laid the groundwork for Archer’s seamless transition from concept to commercialization. As we move closer to launching Midnight, our strategy is proving successful, marked by significant certification progress, the completion of the U.S. eVTOL industry’s most advanced scalable manufacturing facility, and solidifying launch plans both domestically and internationally. We are confident that we are positioned to lead the industry’s transition to commercialization.”
Webcast & Conference Call Details
Archer will hold its earnings conference call at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) today. The live webcast will be available on the company’s investor relations website at investors.archer.com. Alternatively, participants can join the call by dialing 404-975-4839 (domestic) or +1 833-470-1428 (international), with access code 286379.
A replay of the webcast will be available on the investor relations website, and a telephonic replay of the conference call can be accessed for one week by calling 866-813-9403 (domestic) or +44 204-525-0658 (international), entering access code 205749.
Third Quarter Highlights
Building Production Aircraft
Archer’s high-volume manufacturing facility is nearing completion, with production set to begin in early 2025. This facility, which was completed on time and on budget at a cost of approximately $65 million, will focus on building piloted, type-design aircraft for testing and early commercial deployment. The goal is to ramp up production to two aircraft per month by the end of 2025.
Certification Momentum
Following the FAA’s finalization of Midnight’s airworthiness criteria in May, Archer is advancing rapidly through Phase 3 of the FAA’s 4-phase type certification process, with Phase 4, the final phase, now underway. Additionally, the FAA’s release of the powered-lift Special Federal Aviation Regulation (SFAR) marks a significant step in establishing a regulatory framework for the safe commercialization of eVTOL aircraft in the U.S. This new regulation aligns closely with Archer’s commercial operations plans for Midnight.
Commercial Launch Progress
- United Arab Emirates: Archer has formed a consortium led by the Abu Dhabi Investment Office (ADIO) to launch commercial air taxi services in the UAE, with the target launch as early as Q4 2025. The consortium has made substantial strides in setting up the regulatory, infrastructure, and flight operations plans for market entry.
- Japan: In September, Archer entered into an agreement with Japan Airlines and Sumitomo Corporation’s joint venture, Soracle, to purchase up to $500 million in aircraft, aiming to introduce air taxi services to Japan’s crowded cities. The agreement includes milestone-based pre-delivery payments and involves close collaboration with the Japanese Civil Aviation Bureau to secure the necessary certifications and approvals. This agreement brings Archer’s indicative order book to over $6 billion.
Liquidity Position
As of the end of Q3 2024, Archer’s liquidity remains strong, with over $500 million in cash and cash equivalents. The company’s quarterly spend remained consistent with the previous quarter. Furthermore, Archer recently announced it is seeking shareholder approval for up to approximately $400 million in additional capital from Stellantis to accelerate the manufacturing of its Midnight aircraft.
Order Book and Future Plans
Orders in Archer’s indicative order book are conditional and subject to the execution of definitive agreements and the fulfillment of certain conditions. The order values are based on an estimated $5 million per aircraft price, which may differ due to various factors.