Horizon Aircraft (HOVR) Fiscal Q1 2027 Earnings Call: X7 Spending and Test Timeline
Source Tradingkey
Key Takeaways
- Research and development expense rose to CAD 7.4 million from CAD 2.7 million a year earlier as Horizon Aircraft increased spending on the full-scale Cavorite X7 demonstrator.
- The company ended fiscal Q1 2027 with more than CAD 70 million in cash. Net cash used in operations increased to CAD 7.2 million from CAD 2.4 million.
- Net loss narrowed to CAD 4.1 million, or CAD 0.06 per share, from CAD 10.9 million, or CAD 0.29 per share. The latest quarter included a CAD 3.8 million noncash warrant liability gain.
- Management targets completion of the full-scale demonstrator around the end of calendar Q1 2027, followed by ground, taxi and flight testing. The first aircraft certification is targeted for early 2030, although management said it cannot promise a specific date.
- Signed customer letters of intent cover potential purchases of up to 200 X7 aircraft, including options, with indicated potential sales value exceeding CAD 1 billion. These include a nonbinding LOI with V-Star PowerLift Aviation for up to 100 aircraft valued at approximately CAD 600 million.
- Management expects development spending to remain elevated as engineering, integration and testing advance, while maintaining a spending mix weighted toward R&D rather than administration.
Key Financial Data
| Metric | Fiscal Q1 2027 | Prior-year period | Change or context |
|---|---|---|---|
| R&D expense | CAD 7.4 million | CAD 2.7 million | Increased with full-scale aircraft development |
| Engineering costs within R&D | About CAD 5.3 million | CAD 0.3 million | Driven by prototype manufacturing, flight software and analysis |
| G&A expense | CAD 1.7 million | CAD 3.2 million | Declined mainly due to lower stock-based compensation |
| Net cash used in operations | CAD 7.2 million | CAD 2.4 million | Increased as development activity expanded |
| Investing cash outflow | CAD 0.7 million | — | Principally equipment and tooling |
| ATM proceeds | CAD 0.6 million | — | Average price of CAD 2.81, or USD 2.04 |
| Quarter-end cash | More than CAD 70 million | — | Management described liquidity as strong for the current development stage |
| Net loss | CAD 4.1 million | CAD 10.9 million | Included a CAD 3.8 million noncash warrant liability gain |
| Loss per share | CAD 0.06 | CAD 0.29 | Prior period included a CAD 5.1 million noncash warrant liability expense |
Business and Operational Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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