China's EHang Q4 revenue rises on record eVTOL deliveries

Overview

• China advanced air mobility firm's Q4 revenue rose 48% yr/yr on record eVTOL deliveries

• Company posted first GAAP profitable quarter, with net income turning positive yr/yr

• Q4 results driven by record 100 eVTOL aircraft deliveries, including new VT35 model

Outlook

• EHang expects 2026 revenue to be around RMB600 mln, up about 18% year-over-year

• Company plans to launch EH216-S commercial operations in China in March 2026

• Company sees continued overseas expansion, with Thailand commercial license pending approval

Result Drivers

• HIGHER SALES VOLUME - Q4 revenue growth and profitability were mainly driven by increased sales and deliveries of eVTOL aircraft, including EH216 series and new VT35 model

• IMPROVED OPERATING LEVERAGE - Operating loss narrowed significantly as higher revenues outpaced increases in operating expenses

• INCREASED MARKETING AND SALES EXPENSES - Higher sales-related compensation and marketing activities contributed to increased operating expenses

Company press release: ID:nGNXc1rBMF

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for EHang Holdings Ltd is $20.63, about 68.1% above its March 11 closing price of $12.27

• The stock recently traded at 58 times the next 12-month earnings vs. a P/E of 66 three months ago

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