Eve Holding (EVEX) 2026年第三季法說會：eVTOL 接近完全轉換

重點摘要

• Eve Holding 在 2026 年第 3 季末擁有 3.56 億美元現金與 4.71 億美元的總流動性，其中包括 1.14 億美元未提領的備用信貸額度。管理層認為這筆資金足以支應營運至 2028 年，無需進行新融資。
• 第 3 季淨虧損為 5,800 萬美元，其中包括 4,800 萬美元的研發支出與 600 萬美元的銷售與管理費用。前 9 個月淨虧損總計達 1.61 億美元。
• 第 3 季現金消耗為 5,500 萬美元，2026 年前 9 個月則為 1.74 億美元。管理層預期全年現金消耗將接近其 2.25 億至 2.75 億美元財測指引的低標。
• 工程原型機已完成 73 次飛行以及 3 小時 6 分鐘的飛行時間。Eve 已驗證規劃中 185 個測試點中的 170 個（約 91%），並表示距離完全轉換飛行僅差 8 至 10 次飛行。
• Eve 計劃於 2027 年初開始組裝 6 架認證原型機中的第 1 架，下一階段的載人原型機飛行目標定於 2027 年下半年。管理層仍以 2028 年底前取得 Eve 100 認證為目標。
• 該公司公布的預購在手訂單約為 2,500 架飛機，以牌價計算價值達 126 億美元。與 FlyBIS 簽署的新協議涵蓋 2 架確認訂單飛機及 10 架選購權，潛在合約價值為 6,000 萬美元。

關鍵財務數據

業務與營運表現

Eve 的飛行測試計畫已從懸停測試推進至部分轉換階段。推進螺旋槳轉速達到約 1,200 RPM，實現了 45 節的前向飛行。完全轉換則需要加速至約 100 節，屆時機翼產生的升力即可在關閉升力馬達的情況下支撐飛行。

該公司還完成了涵蓋升力馬達、能源需求、逆變器與電池安全性的組件級測試。Eve 報告指出，在熱失控事件中電池包圍阻測試取得成功。

首架合規原型機的零組件正陸續投入生產，包括機身段以及機翼和掛架的工裝模具。Eve 預計將組裝 6 架認證原型機，分別用於飛行包線擴展、操控與性能、系統、推進、客艙與電氣測試、儀表飛行（IFR）整合，以及功能與可靠性飛行測試。

預購在手訂單約為 2,500 架飛機，以牌價計算價值約 126 億美元。約有 1,100 架飛機簽有相關服務合約，代表首年潛在 TechCare 營收約為 5 億美元。

Eve 的 Vector 交通管理平台已被 Revo 用於地面營運。管理層表示，Revo 計劃在聖保羅 F1 一級方程式賽事週末期間，利用 Vector 解決方案執行約 300 架次飛行。

管理層指引

管理層預期 2026 年現金消耗將接近其 2.25 億至 2.75 億美元預估區間的低標。公司將此改善歸因於與巴西航空工業（Embraer）的綜效和成本規避，且未改變飛行器研發或認證時程。

每季研發支出預計將維持在約 5,000 萬美元，即每年約 2 億美元。管理層表示，儘管計劃組裝 6 架認證原型機，2027 年的總費用與現金消耗仍應維持在 2026 年的水準附近。

Eve 預期現有流動性足以支應營運至 2028 年，無需額外融資。公司計劃投產時的生產設施年產能為 120 架飛機，並隨需求成長模組化擴產至 240 架，進而達到約 480 至 500 架。

首架合規原型機預計將於 2027 年初開始組裝，隨後組裝其餘 5 架。下一階段載人原型機飛行目標定於 2027 年下半年，管理層的認證目標仍維持在 2028 年底。首批交付計劃於 2028 年底展開。

風險與關注焦點

• 完全轉換飛行尚未完成。Eve 表示在達成此里程碑之前，還需要進行 8 至 10 次飛行。
• 取得認證仍取決於完成 6 架合規原型機、測試提案、飛行測試以及監管機構的批准。在法說會召開時，詳細設計標準已完成 99%。
• 管理層承認預購在手訂單可能會發生變動，原因是潛在客戶可能倒閉、改變策略或重新評估城市空中交通計畫。該公司正優先將意向書轉化為正式確認合約。
• 2027 年大部分時間資本支出預計將維持相對較低水準，隨後隨著 Eve 籌備其生產設施，支出將於 2027 年底和 2028 年初有所增加。

分析師問答重點

• 試飛時程：管理層表示，完全轉換飛行與剩餘的關鍵設計審查預計將於 2026 年底前如期完成，為首架合規原型機的組裝提供支援。
• 認證計畫：巴西國家民航局（ANAC）、美國聯邦航空總署（FAA）與歐盟航空安全總署（EASA）均已參與其中。預計 ANAC 代表將從認證活動初期便參與現場見證測試，而 FAA 的驗證工作預計將於 2028 年底前展開。
• 客戶付款流程：Eve 在簽署正式合約時收取訂金，隨後在交付前 18 個月、12 個月及 6 個月收取額外款項。部分飛機在交付前可能已收取近 40% 的購機款項。
• 巴西航空工業的支援：巴西航空工業（Embraer）提供工程設計、原型機組裝、產業化、品質系統、物流、維修以及售後市場支援。這項合作關係也推動了已確認的成本節省。
• 在手訂單策略：管理層表示，目前的優先考量已不再是將意向書數量最大化，而是增加確認訂單、確保款項入帳，並建立首發市場與營運應用場景。
• 地域市場機遇：管理層指出巴西與美國是主要的首發市場機遇，同時也強調了歐洲、日本、澳洲以及更廣泛的亞太地區。

法說會逐字稿全文

完整財報電話會議逐字稿

管理層陳述

Operator

Good morning, and welcome to the Eve Holding, Inc. Third Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the call over to Lucio Aldworth, Head of IR. Please go ahead.

Lucio Aldworth

Welcome to Eve's Third Quarter 2026 Earnings Conference Call. Earlier today, we released our financial results for the quarter, which are available on our Investor Relations website. Joining me on today's call are Johann Bordais, Chief Executive Officer; and Eduardo Couto, Chief Financial Officer.

During the call, Johann will provide an overview of our quarterly performance, strategic initiatives and progress in our development process. Edu will then review our financial results in greater detail and discuss our outlook. Following our prepared remarks, we will open the call for questions, at which point, Marcelo Basile, our Chief Flight Prototype Engineer, will join us to address more technical questions.

Before we begin, please note that today's discussion may include forward-looking statements regarding future events, operating performance and financial results. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Additional information regarding these risks can be found in today's earnings release and our filings with the SEC. We will also discuss certain non-GAAP financial measures. Reconciliations of these measures to the most directly comparable GAAP measures are included in our earnings materials and are available on our Investor Relations website.

Now I'll turn it over to our CEO. Johann?

Johann Christian Jean Bordais

Thank you, Lucio. Good morning, everyone, and welcome to our third quarter 2026 conference call. We had a good quarter with several milestones that clearly demonstrate consistent progress in the development of our eVTOL and the surrounding ecosystem. After the inaugural flight of our engineering prototype last December, we went through a series of hover flights. After we concluded the planned ground test period with software update, we resumed our flight campaign with partial transition flight, where we started to engage the pusher with the lifter still powered on, and we gradually faster speed. That phase is now complete, and we plan on performing our first full transition flight by powering the lifter down before the end of the year.

In parallel, we continue to test individual components in dedicated rigs as part of our building block approach. This multiphase testing approach validates not only our design philosophy by extensively testing every part individually, but also the integration of critical systems such as fly-by-wire and fixed-pitch lifter rotors. We have also started to receive the first parts and components of the first of 6 prototypes we will assemble for our certification campaign. We have some additional pictures further in the presentation.

Lastly, we signed a new binding agreement with Brazilian operator FlyBIS, who will serve the southern part of Brazil with our aircraft. Slide 3 and 4 show the progress of our flight campaign. With successful completion of our ground test, we cleared the prototype to get back in the air and start the transition flights back in July. The prototype flew 73 times and logged a total of 3 hours and 6 minutes of airtime. The pusher was engaged at first with low RPMs and then powered up to around 1,200 RPMs, allowing the aircraft to fly forward at 45 knots, which is about 52 miles per hour.

The next phase involves accelerating further towards the transition speed of around 100 knots. This is the speed at which air flowing through the wings is enough to provide it with the necessary lift and maintain airborne with the lifters motors off. We are now 8 to 10 flights away from the full transition phase.

Slide 4 shows the progress we have made in the last few months in terms of speed and perhaps more importantly, the engineering test points we have validated so far. Our aircraft never flies for the sake of flying. Our engineering team diligently planned the individual points that needs to be successfully validated for the aircraft to move to the next phase. These points may involve aircraft performance metrics such as the aerodynamic drags, or the loads or the performance of individual components, such as the rotor vibration, battery temperature, motor RPMs versus thrust, et cetera. It is precisely these validations that allow us to move ahead with confidence. As of today, we have successfully validated 170 of 185 planned test points for the engineering prototype flight test campaign, achieving a 91% completion.

On Slide 5, we wanted to show you some additional details of our rigs we have put in place to test individually components separately. We can see here the one of the lifter motors running the last set of tests before shipping and all lifters are on track for delivery and assembly of our certification prototypes. These tests confirm that each motor produced the necessary thrust for takeoff and landing procedures for the flight schedule.

The rigs are used to corroborate the energy requirement and expected drain on the entire system and that the inverter also successfully managed the flow of energy during the peak demand and the takeoff and landing phases of the flight. On top of that, we run successful containment of thermal runaway event on the battery pack. There are multiple ways to prevent thermal events via cells isolation, control of charging/discharging on a cell-by-cell basis, all of which are part of our aircraft design, but it must also be able to successfully contain a thermal event to assure the flight safety.

On Slide 6 and 7, we show some of the additional components and parts that have already been produced for our first conforming prototype. As you can see here, large fuselage sections as well as tooling for wings and pylon structure are ready. We will start receiving these and other parts in the next few months to start the assembly of our first prototype early next year. The assembly of the subsequent 5 other prototype will start right after delivering each of them 30 days after another to the Gavião Peixoto test facility. The next piloted prototype flight will take place by the second half of next year.

Now moving to Slide 8 and 9. As mentioned before, we just signed a new firm agreement with operator FlyBIS for a total of 12 aircraft, 2 firm orders and an option for additional 10 for a potential contract size of $60 million. FlyBIS is a regional operator in the south of Brazil with routes in region with a high touristic demand.

Brazil represents a premier market for urban air mobility, driven by government and certification authority support, a rapidly maturing ecosystem and strong passenger demand in cities where infrastructure has not kept the pace of growth. This makes Brazil one of the most important markets and position it as among the first scale commercially following the certification with 2 operators already committed and several more showing strong interest.

This is a good entry point into the next slide, which shows our total preorder backlog of approximately 2,500 aircraft valued at about $12.6 billion at list price. Additionally, approximately 1,100 of those aircraft have a service contract attached to them, bringing a total potential TechCare revenues to about $0.5 billion in the first year of operations.

The next slide shows some of the SunTrax Ecosystem Summit in Florida, gathering 150 representative of all of our future UAM operation stakeholders. The event in partnership with the Florida Department of Transportation provided insights into the infrastructure, operational procedures and airspace navigation procedures needed to enable the safe and efficient integration of UAM into Florida transportation network. SunTrax advanced air mobility facilities include an aerial test track, vertiports, hangars and charging infrastructure for simulated eVTOLs, takeoff and landing, plus the low altitude corridor for drones, air taxis and autonomous logistics test in the controlled regulated environment.

And now I hand it over to our CFO, Edu, for the third quarter of 2026 financial review.

Eduardo Couto

Thanks, Johann. On Slide 11, Eve ended the third quarter 2026 with $356 million in cash and total liquidity of $471 million, which includes $114 million in undrawn standby credit loans. We believe the current level of liquidity is enough to support operations through 2028 without new funding.

One important highlight during the quarter is that Eve has already started to show synergies and cost avoidance gains that were identified in the first half of this year. We have been working extensively with Embraer to find ways to reduce our cash burn until certification with identified savings of $100 million to $150 million. Only in 2026, we already captured approximately $50 million of those savings despite higher development activities and stronger engineering engagement.

Eve's SG&A is going down year-over-year, and our total cash burn in the first 9 months of 2026 was $174 million. With that, Eve's total cash consumption is now pointing towards the low end of our guidance of $225 million to $275 million in 2026, which is a reduction versus our initial forecast. The captured synergies are reducing our cash burn and extending Eve's cash runway without any impact in our vehicle development and certification time line.

Now moving to Slide 12 with a summary of our financial results. Eve invested $48 million in R&D during the third quarter 2026, mainly for the eVTOL development. Meanwhile, SG&A totaled $6 million for the quarter, down from $7 million a year ago. Including R&D and SG&A, Eve's net loss for the third quarter '26 was $58 million and $161 million in the first 9 months of 2026.

As mentioned previously, we ended the quarter with $356 million in cash and $471 million in total liquidity. Finally, cash consumption in the third quarter was $55 million and $174 million in the first 9 months of 2026.

With that, we conclude our remarks, and I would like to open the call for questions. Operator, please proceed.

Operator

[Operator Instructions] The first question comes from Andres Sheppard with Cantor Fitzgerald.

分析師問答

Andres Sheppard-Slinger

Congratulations on the quarter and all the great progress. Johann, I wanted to maybe start with the quality of the flight campaign. I think very exciting to see the progress here, 91% of the planned progress for the year already complete. So I guess maybe just help us understand what is left to get to that first transition flight by year-end? What gives you confidence in getting there? And then what comes after that?

Johann Christian Jean Bordais

Great. Thank you, Andres, for the question. I will start and then Marcelo can complete also here with us. This is -- the campaign has been going very well. It's based in 3 phases. The first one that we did when we had the first flight in the 19th of December last year. Hover phase, what we called, and then we flew and hover phase doesn't mean that you don't make some movements, but it means that you don't have the pusher on. And then we did -- so we completed this by April this year.

Then we stopped the aircraft to do some upgrades and software upgrades, some reinforcement, as I mentioned before, just for the next phase, which is the transition which -- where you have the loads, right, on the aircraft. And that's something that we wanted to make sure it matches our engineering model. So this is what we've done. And right before the Farnborough Airshow, we actually announced the resuming of the flight and then this time with the pusher on.

And it's not really so much about the number of flights, it's the quality of flight and exactly what the engineering wants to test, right? That's what we call the engineering test. And the 91% is exactly what we wanted to do by the end of this year. We're 8 to 10 flights away from the full transition because then once you have the full transition, you have a typical full flight of what we're going to be operating for the Eve 100. So together with the prototype flying with the -- to the full transition, along with all the CDR that we have, we're doing with our suppliers and finalizing the configuration of the aircraft, then we can move on and start producing the conforming prototype.

Marcelo, do you want to add anything on the test?

Marcelo Basile

It's perfect. So we're in the very end of the flight campaign, our uncrewed prototype and that you provided the final definitions for our conforming prototypes that will start building the next year. So perfect Johann, your speech was great.

Andres Sheppard-Slinger

Very helpful. I appreciate all that color. And maybe just a quick follow-up. I was wondering if you can maybe -- I know you mentioned it a little bit on the call, but maybe can we get an update on the 6 ANAC conforming prototypes that you're planning to build? I think you briefly mentioned where the second one stands. Just how should we think about these? What's the time line for these being built and then ultimately use for test flights?

Johann Christian Jean Bordais

Yes. Great question. Well, Marcelo, you go ahead.

Marcelo Basile

Okay. So those 6 prototypes were dimensioned to allow us to reach the final of 2008 (sic) [ 2028 ] with the Eve 100 certified. So we start with the first prototype. It will be responsible for opening the envelope. Opening the envelope means we are progressing both in speed and altitude. We know the aircraft, you provide the pilot feelings and you finish after 4 to 5 months, the definition of the systems and the integration of the airplane.

After that, we have the airplane 2 flying at least 1 month after the prototype 1, which is responsible for part of handling quality and performance flights, followed by the third prototype, which is responsible for the systems, some of the systems of the airplane. The fourth prototype with mainly propulsion test and other systems, the fifth prototype with interior testing and some remaining electrical system testing and the integration of IFR. And the final prototype is the sixth one, so that will be designed for operational flights we call functional and reliability flights. So that's our plan for 2008 (sic) [ 2028 ] starting from the end of 2007 (sic) [ 2027 ].

Andres Sheppard-Slinger

And congrats again on all the great progress, very exciting.

Operator

The next question comes from Savi Syth with Raymond James.

Savanthi Syth

Just on the ANAC certification, can you discuss how that's progressing and then just kind of the discussions around the means of compliance and associated test plans? Are there any kind of regulatory requirements or physical testing that you still need to kind of scope out? Or are you still on target to maybe finalize that before year-end?

Marcelo Basile

Okay. So in this year, we are closing all our certification plans. Our detailed design standards is 99% closed, which is a demand from both ANAC and FAA and our certification plans are defined. We just defined out our noise certification base this year, which was accepted by ANAC and that's under -- and finished -- just finished the public consultation with success.

For the next year, we are writing the specific test proposals, ground and test proposal for flying, right, which will ensure our readiness for the beginning of 2008 (sic) [ 2028 ] the beginning -- and the end of 2027. So we're in the route of the readiness to starting since the beginning of 2008 (sic) [ 2028 ], our flights for both development and the credit for certification. So we are good on this.

Savanthi Syth

Got it. That's very clear. And if I might just -- congrats on moving forward in getting some of these orders firmed. I was curious if you could remind me again, is that -- does that -- the PDPs, do they come closer to certification? Or will you see anything in 2027?

Eduardo Couto

Yes, I can start with the PDPs and Johann can talk about the orders. But yes, those firm orders are an important goal for us, right, because we are converting the letters of intention into firm orders. And with that, we start to receive the down payments. We have some aircraft that we're going to receive almost 40% of the value of the aircraft before the delivery, and then we receive the balance at delivery. So yes, this is very important. We are progressing with good customers in very good use cases, especially in Brazil. But in terms of cash, we're going to start to see more and more PDPs flowing through our cash balance.

Johann Christian Jean Bordais

Yes. Remembering that we do have the bigger pre-order book backlog with 2,500 aircraft. I've been saying since the beginning that I joined the company that more than the number is really the leap of faith that customers are seeing in the solution that we are providing here and that's always what they tell us. I -- We want to go for the UAM solution. We want to go with Eve because Eve is not only the vehicle, but it's a whole solution. It's all about customer support. It's about creating the ecosystem.

And now we're seeing this happening. It started with Revo in '25. Now we had early this year, another customer with AirX in Japan, and then this is the natural third one. Quite natural as we're moving forward and showing steady progress on the program development. So customers are eager to also get the slots, right, of the first production line. And this is what's happening, right? We've signed the LOI in 2022. They -- we've been discussing with them. We've been showing the progress as of the other customers, and they're very eager to develop the UAM in the Southern Brazil, highly touristical.

I don't know if you had a chance to go there, but it's a beautiful area with the growing city -- with many cities that -- Rio Grande do Sul, Balneário Camboriú. It's a bit hard to say, but it's a beautiful place, by the way, a lot of tourism growing exponentially. So it fits perfectly the Eve solution and what they need for the urban air mobility and be the first one in the world, right, in that region.

Savanthi Syth

That's great to see that progress. So just to clarify, is this -- do you have to start flying the -- for certification before you start getting some of those funds? Or could you get it sooner?

Eduardo Couto

We get sooner. We get the signature, we have down payments, then we have 18 months, 12 and 6 months prior to delivery, we receive additional payments and the balance at delivery.

Operator

The next question comes from Adam Samuelson with Jefferies.

Adam Samuelson

I guess for me, just maybe on just on expenses and cash uses, the R&D kind of realized up around $48-or-so million after kind of being low in the second quarter. Should we look at that $50 million or so quarterly run rate as kind of the new peak intensity? Or is there going to be a step-up at some point in '27 with 6 conforming aircraft kind of entering kind of production?

Eduardo Couto

No, I think the level should stay around this $50 million level that you mentioned, R&D per quarter, right, around $200 million per year. Of course, next year, we're going to assemble the 6 prototypes, as Basile mentioned. But we have been able to get synergies, right, additional synergies with Embraer. We are also controlling non-R&D-related expenses, right, SG&A expenses.

So we have been doing a lot of cost savings and synergies with Embraer that allows us for next year to have the 6 prototypes being assembled and keep cash burn and total expenses kind of at the same level this year, which is a big win and a big achievement for us. So we are excited because we're going to be showing much more next year and moving towards certification in '28 at the same time, keeping our cash burn around current levels.

Adam Samuelson

Okay. That's very helpful. And I guess just as you move past '27 through the -- into the certification program and then to production, can you just update us on how you're thinking about the modular kind of manufacturing ramp and how that can scale as you get '28, '29 and beyond?

Eduardo Couto

Yes. We have a modular facility, right? We can produce up to 500 eVTOLs per year in the Brazilian facility, but it's modular. It starts with 120 and then it can go to 240 and 480, around 500. So that's the beauty, right? We did something that we just invest as we have additional demand, right? So initially, we're starting with this 120. It's an investment that we already have a loan, right, a facility to pay for this investment committed. This is part of our standby facility that we already have. So it doesn't bring an additional cash burn for us. So we're going to start to invest on that.

Prototypes, we are still assembling at the Embraer facility. So the vehicles being delivered -- we're going to produce in another facility. We're going to have more investments on that towards the end of next year and early 2028.

Operator

The next question comes from Amit Dayal with H.C. Wainwright.

Amit Dayal

Just one question for me, guys. Just any clarity on what Embraer is helping you guys with today? And what kind of assistance and support you might get from them down the line?

Johann Christian Jean Bordais

Thank you, Amit, for the question. It's -- every day, they're helping us. Absolutely, it's the way that we're -- Eve was created and spin-off. I mean, we're a separate company, but obviously, we do have an MSA with Embraer. For the obvious program right now is the program development. So it's more than 1,000, so around 1,000 engineers dedicated to the Eve program. So the Embraer engineers focused on Eve, but it's a program development. So you have to also talk about the -- and prepare the industrialization, which is exactly what Edu just talked about.

And then we're taking the best of what Embraer does today based on the lean philosophy and then obviously putting in the factory that we'll have that will trigger at the right time, right? It's a brownfield. It's another advantage that we have being a part of Embraer Group. And also the quality system, we're talking about the customer support and services where we've been working together to prepare the aftermarket and how we're going to be supporting the customers. It's what we call the make or buy, whether it's going to be -- Eve will be the face of the customer, but then -- and also in the background, it could be also Embraer supporting us, right, with all the logistical network and MRO and that they have. So Embraer helps us at all levels, right?

Operator

The next question comes from Andre Madrid with U.S. Bancorp, BTIG.

Andre Madrid

I wanted to dive into the backlog real quick and the order book. It looks like maybe a bit of a sequential decline. I know this has happened before, but I was hoping you could maybe elaborate on what might have been the driving causes and...

Johann Christian Jean Bordais

Sorry, Andre, of what? It happened before what? Sorry, come again.

Andre Madrid

A sequential decline in the order book and backlog.

Johann Christian Jean Bordais

Well, it's natural, right? Like I said, we've been for the last 6 years since we created Eve, we've been designing the solution for the customer and with the customers. So ever since then, we had the first design, but also talking about the customer support and how we're going to be developing the ecosystem, it's done with the customers. And they're early adopters, they're pioneers, they're visionary. And then we have really -- the profile of our customers, it's from helicopter operators, it's from airlines, it's from also the leasing company with different missions. So it's touristical, ecotourism, as we mentioned, but it's the primary business that we're going for.

And what the customer want is the urban air mobility, it's really under 150 kilometers. They want to have a solution that is fully electrical, 1 pilot, 4 pax, and it goes to a 30 to 40 typical routes, right, which is what we call the shuttle routes, downtown of the city to the international airport and back and forth, but it could be any point of the city. And that's exactly the market that we're aiming for, right? And the customers, when they decided, it's from the world, right? It's 29 customers from 9 different countries.

And wherever there's a strong support and ecosystem readiness, which come from authorities, the local government, also the different partners like infrastructure, the power company, we've been leading those discussions. And then customers sees that, okay, the Eve 100 plus the ecosystem readiness and the customer support, they place those LOI. And that's why we got to the 2,600, as you mentioned, a decline, it's natural. I mean, it's early, and there's a lot of those companies that can be just going bankrupt or they change their strategy on UAM.

We're also bringing new customers and new lead, right? And that's like FlyBIS, AirX that we recently signed. And I think as we progress in -- and very quickly now in '27 and '28, they will be able to see the actual aircraft, right, especially in Brazil, Gavião Peixoto will have the first prototype. And I can tell you there is no better catalyzer than having a full prototype ready to be certified in the next 16 months -- 24 months, right? So in 2028.

So it will happen. It's natural what's happening right now, and we're thrilled about it, right? It's now it's about not additional LOI. It's about the quality LOI, if we go for it, for new markets, for new customers and also the conversion rate, right? And that's what we're doing right now.

Eduardo Couto

Yes. If I may add, Johann, it's exactly the focus now guys is to firm the orders, right? We have this very big backlog 2,600, 2,700 doesn't really matter if it's 26 or 27. What matters is our ability to move those LOIs into firm orders, firm contracts, you start to receive the payments, you start to plan the entry into service and the use case that's what matters. So what analysts should be looking is really this firm order backlog needs to keep growing, growing so that we have the initial use cases, the launch markets and the initial deliveries. So that should be the focus.

Andre Madrid

Got it. That's helpful color. And then maybe, Edu, one for you. I know you talked a lot about the synergies with Embraer. But I'm also looking at it seems like on a CapEx level, you guys are running pretty light for the year, and it would require a significant step-up in the fourth quarter to hit what you guys have outlined. I mean could you maybe just drive us through the puts and takes of what's really contributing to the lower end of cash burn that you guys have outlined? Is it more of the synergies? Is it less of the CapEx? I mean, is it a combination of the 2 or the 2 intertwined? I'm trying to just understand that a little bit better.

Eduardo Couto

Yes. No, the majority of the cash burn goes on the development, right? We have around 800 engineers at Embraer today working on the development of our eVTOL. On top of that, we have production guys that are starting to -- they're going to be starting to assemble the final prototypes. So that's the bulk of our cash burn and our spending. Anything outside that is not a priority, and we are trying to bring synergies with Embraer and reduce as much as possible.

In terms of CapEx, all these -- the expenses of the engineers, all the expenses on the prototypes, it all goes through these payments we do to Embraer. So it doesn't show in the CapEx line. CapEx line only shows some toolings and some machines that we're starting to buy. As the prototypes are assembled inside the Embraer facility, I believe we're going to see more CapEx probably towards the end of next year when we start to prepare our final facility, which will be used for the initial deliveries in late 2028.

So probably throughout next year, we're still going to see light CapEx investment, but that doesn't mean that we're not buying parts, assembling the prototypes. It just means that all of that goes as operating cash flow on those payments we do to Embraer. I don't know if it's clear.

Operator

The next question comes from Austin Moeller with Canaccord.

Austin Moeller

So just to walk through the time line here on development. If we get the full transition by end of year, does that set you up for closing out critical design review in early 2027? And then when should we be thinking about ANAC or other FAA officials stepping into the final prototype to do their own tests?

Johann Christian Jean Bordais

Yes, that is correct. It's really the final transition also in parallel with the CDR by the end of this year, right? We're down to probably 10, 11 CDR that we need to close yet. And we're on track, and we'll be able to start the assembly. All the parts that we showed you and all the other parts that we've showed you in this presentation also they're at the suppliers that they're starting to send to us and then we can start the production of the first prototype.

And that's when -- then the authorities, which they have been engaged, by the way, right? They've all been engaged even in the engineering prototype, we have ANAC representatives and following the development and all the flight campaign. But go ahead, Marcelo, on the ANAC.

Marcelo Basile

Yes. I was about to say that they are already engaged, both ANAC, FAA and EASA with our program. But to be more directed to your question, they'll be getting into their plane after the half of the next year, after opening the envelope and locally in the beginning with some system certification because we're already designing and getting ready for the test campaign to be certification campaign.

So since the beginning, we will have the ANAC representatives going to Gavião Peixoto witnessing the tests. And by the half of the 2008 (sic) [ 2028 ] with the final envelope opening, we close the final aircraft systems and the aerodynamic integration. We expected to receive our TIA, right? And we have ANAC on board. By the end of the year 2028, we have the FAA getting there for the validation of the certification.

Austin Moeller

Okay. And can you talk about what countries or municipalities might be launching the Vector Air Traffic Management System first? Would this be in some of the launch cities where you'll have aircraft with customers like São Paulo?

Johann Christian Jean Bordais

Yes, definitely, the launch of Vector, it's happening. It already happened last year. As a matter of fact, at the Brazilian Grand Prix, Revo, our launch customer for the eVTOL, didn't want to wait for the eVTOL, but already wanted to use it because it is the first module of Vector of the UATM, right? Traffic management also does the ground, and that's the first module, the ground management of the helipad. And they're doing it again this weekend as we speak. So they're using the Vector first module. Then it will go -- they will be using the fleet module, and then it will go up to eventually with the UATM air traffic management module.

So it's 3 phases, which will be developed along for the next 5 years, right? Vector, it's also part of the solution that we're offering to our customers, part of the TechCare solution, right, the customer support and services. It's the aircraft customer support services and the ATM ecosystem readiness. And basically, all the customers will be operating eVTOL will be very interested to get also the Vector. They showed interest. They are part of the LOI that we signed with them.

Eduardo Couto

Just to highlight, Johann, as you said, right, this weekend, guys, there is the Formula 1 race in São Paulo, right? Revo will be operating a lot of flights. Now we're talking about 300 flights during the weekend and they're going to be using the Vector solution this weekend in the São Paulo F1 race, okay?

Johann Christian Jean Bordais

And thanks to Vector, they will have a very efficient landing and taking off of the activities of the helicopters. So turnaround time, the most efficient one. There's a lot of people you want to get in and out of the Grand Prix of Brazil.

Austin Moeller

Very exciting. Congrats on the operational progress.

Operator

The next question comes from Pat McCann with D. Boral Capital.

Patrick McCann

I'll just add one more. I believe you mentioned in your prepared remarks a little bit about the opportunity in Brazil being a favorable one. I was wondering if you could talk a little bit more about that, if you could give any more details as to kind of what makes that a strong opportunity for building additional customers in the pipeline.

And maybe on top of that, if you could speak a little bit about if you kind of broadly look globally where you think your strongest opportunities are as you move towards commercialization?

Johann Christian Jean Bordais

Very nice, Pat. Thank you for this important question. Absolutely, in the remarks, we did mention that Brazil is and will be the leader of the UAM. And that's a good reason for this because it takes different aspects. The first one, it needs to have a wish from the government. It's a new segment we're talking about. So it's not a regular aircraft that you'll put in service, right? Of course, at the beginning, we'll be using everything that it is existing, whether it's in the area, whether it's in infrastructure, using the helipad, remembering that São Paulo has the biggest fleet in the world of helicopter.

It has got the biggest number of helipad. It's more than 2,000 in and out of helicopter taking off and landing in São Paulo. The city has been growing. We've done and we came up with the outlook, the market outlook in 2025, last year, and we did mention that the planet Earth will have 2 billion more people in the next 20 years, right? And 70% of those 10 billion people will be living in cities. So if you think that spending 200 hours in traffic, whether it's in São Paulo or any other big cities in the world, it's bad. I mean it's going to get worse.

And I think it's just -- Brazil is the perfect ecosystem, the perfect market to make it happen. We do have the history and the DNA of aerospace development, right? We do have Embraer now with the eVTOLs, we do make a vehicle that will be very safe at the highest safest level to be operating. We do have a big city, right? People ask me like, what about urban air mobility, when it's going to start? It already started. And Revo is the proof of it. Revo didn't want to wait for the eVTOL. They wanted to go and really start to have -- because they see the market. They see the need of having an urban air mobility alternative in the big city. And that's what they started. They started with a dual turbine, dual pilot helicopter. It's not the most efficient in terms of operating cost, but that's what it takes to get the customers and grow their market base. And that's what they've been doing.

They started in São Paulo, but now they're also going to other cities. And this is exactly what urban air mobility is about. So -- and you can see with FlyBIS, it's happening in the south of Brazil. I can tell you there's -- other operators are talking to us now to also cover other regions, right? And I know that you're probably thinking about, oh, what about Rio? Absolutely. Rio is another place that with the UAM and eVTOL will be perfect for the environment and for that type of business.

So Brazil, I can tell you, will be thanks to Eve, thanks to the aeronautical DNA that Brazil has, all the big governmental wish and incentives that they were pushing for this, the vision of the future for the Brazilian cities and the Brazilian. Yes, Brazilian will be one of the first one in the world to be flying on eVTOLs.

And of course, the market is the big one also for us is the U.S., right? Very well prepared, great infrastructure, a lot of initiatives also from the government. We've been in talks with many states. One of the latest one, and as you saw it in the presentation with SunTrax in Florida, they've been supportive of what's going to be for the next few years, the urban air mobility, and we're part of it.

But not only we've applied for EASA, right? Marcelo mentioned it early this year. It's also another important market. We believe that it may come a little bit later, right? And -- but another one, very important for us, which represents almost 20% of what we see as a growth for all the eVTOL is Asia-Pacific, right? And this is not by chance that we announced this new customer, AirX in Japan, having the same model -- business model that Revo is having or FlyBIS or even Australia. We were the only one having such a big base of LOI also in Australia for ecotourism and also shuttle operation.

Patrick McCann

Really appreciate the commentary and congrats again on the continued development.

Operator

[Operator Instructions] This concludes our question-and-answer session. I would like to turn the conference over to Lucio Aldworth for any closing remarks.

Lucio Aldworth

Thank you, Drew, and thank you, everyone, who joined the call today. This was an important quarter for Eve. It was marked by significant milestones and continued progress across -- very excited about the opportunity in front of us and confident in our ability to continue executing on the development plan.

The next quarter will be very important for Eve, and we look forward to keeping the investment community informed as we achieve additional milestones and advance our objectives.

Thank you for your continued support and engagement, and we look forward to seeing you in the many of the upcoming conferences and investor events we're going to be attending. Have a great day, everyone. Take care.

Operator

Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.