The eVTOL developer has hit key milestones and reopened its order book, but a $195 million outflow caught the eye

Vertical Aerospace Ltd (NYSE:EVTL) endured a choppy ride pre-market, dipping and then recovering altitude in a busy pre-market session.

The mini-bout of turbulence was encountered after the electric aircraft developer reported a narrowing cash position alongside its 2025 annual results, despite meaningful progress in its flight test programme.

It took traders a beat to pick a side with the stock (down 40% year-to-date) recovering from an initial 3% slide to gain around 1.5% by 1.10 pm GMT.

Operationally, the group appears to be hitting (and passing) most of its major waypoints (milestones).

It completed hover, vertical and wingborne flight phases during the year, including the first winged eVTOL flight in open European airspace and an airport-to-airport flight at the Royal International Air Tattoo.

Transition testing, which focuses on the seamless movement between vertical lift and wingborne flight, began in November 2025 under UK Civil Aviation Authority oversight, and a third full-scale prototype was completed in December to provide additional flight test capacity.

The company has also relaunched its commercial order book, with recent orders from JetSetGo for operations in India and Heli Air Monaco for routes along the Côte d'Azur.

For any business at this nascent stage of development, the focus is on the balance sheet rather than the profit and loss account.

Vertical held approximately $93 million in cash at December 31, a figure that had fallen to approximately $58 million by the date of the report.

The company expects net cash outflows of approximately $195 million over the next 12 months as investment in flight testing, certification and manufacturing accelerates.

Anticipated receipts from research and development tax reliefs and government grants of around $28 million partially offset the near-term shortfall, but the gap between available liquidity and projected outflows points to a further capital raise ahead.

Vertical completed two public equity raises in 2025, securing more than $175 million, and net cash used in operations for the year was approximately $112 million, in line with guidance.

On manufacturing, the company has launched a battery pilot production line at its Vertical Energy Centre and plans to open an adjacent 30,000 sq ft facility later this year.

Vertical is also advancing plans to expand at Cotswold Airport, targeting production capacity of more than 25 aircraft annually.