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Archer is partnering with Formula 1 to market its electric aircraft at major races in the US, Middle East, and Europe. The two plan to eventually use Archer’s Midnight aircraft to fly people to and from race tracks in minutes, offering a way to skip the heavy traffic that usually surrounds these events.
While this is a marketing deal rather than a major sale, it puts Archer’s technology in front of the wealthy customers and city officials it needs to win over. For a company moving from testing to actual commercial flights, these high-profile partnerships help build the brand and prove there is real demand for short, fast air travel.
Source: Business Wire
After Archer Aviation's November results, we raised our quality score to 3.7 and updated our ratings for sales growth, leadership, and protection from competitors. We have started tracking the $200 million in yearly revenue from the Boeing business acquisition and the testing of hybrid engines for longer flights. We adjusted our revenue projections to include the $5.1 million the company collected over the past three months. We also added the flight certificate for piloted trips in Los Angeles and the $1.4 billion in remaining cash to what we monitor.
Archer reported a loss of 35 cents per share this quarter, slightly more than the 34 cents analysts expected. However, the business reached a critical milestone by receiving a special airworthiness certificate from the FAA, the agency that regulates all US civil aviation. This allows Archer to begin flying its Midnight aircraft in Los Angeles in the coming weeks, a major step toward its goal of carrying passengers for the 2028 Olympic Games.
The company is also nearing the close of its deal to acquire several businesses from Boeing, including Wisk and SkyGrid. This transaction will make Boeing the largest shareholder in Archer and shift the company from a pure startup into a broader aerospace firm with existing revenue. While Archer is still spending heavily to get its electric air taxis into the sky, these regulatory wins and the backing of a major industry player like Boeing help reduce the risk that it will run out of momentum before reaching full commercial scale.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Archer Aviation is scheduled to share its latest results today. Because the company is still in the testing phase and does not yet have a commercial service, analysts expect it to report zero revenue and a loss of about 34 cents per share. The most important details will be the update on its progress with the FAA, the federal agency that must approve its aircraft for flight. We are also watching how much cash the company spent this quarter, as it needs its current funds to last until it can begin flying paying passengers.
Archer signed an agreement with ITA Airways, the Italian flag carrier, to develop a network for its Midnight aircraft. The two companies plan to launch electric air taxi services in major cities across Italy, marking another step in Archer's international expansion.
This partnership follows similar plans for networks in the US and the Middle East. For a company that is still in the pre-revenue phase, these agreements are important because they build a future customer base and help secure the landing sites needed to actually operate once its aircraft are cleared for flight.
Source: Business Wire
Management is still figuring out how to forecast this business. Results have been choppy as they balance high spending with the first real dollars coming in from early contracts.
| Expectation | |
|---|---|
| EPS | $-0.34 |
| Revenue | $5M |
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