Archer Aviation (NYSE:ACHR) executives used the company’s fourth-quarter 2025 earnings call to outline progress on flight testing and certification for its Midnight electric vertical takeoff and landing (eVTOL) aircraft, while also highlighting commercialization plans tied to U.S. and UAE deployments, a growing order book, and continued investment in defense and software initiatives.
Flight testing shifts to piloted VTOL as certification work advances
Founder and CEO Adam Goldstein said Archer completed key piloted conventional takeoff and landing (CTOL) milestones last year, including flights “over 50 miles,” “over 30 minutes” in duration, “at altitudes above 10,000 feet,” and at speeds “exceeding 150 miles per hour.” He said the company has now begun Midnight’s piloted VTOL flight test campaign and plans to expand both the piloted fleet and the flight envelope throughout 2026.
On certification, Goldstein said the FAA confirmed “final acceptance of 100% of Midnight’s means of compliance,” which he said positions Archer as the first eVTOL company to reach that level of progress. Management said completing the means of compliance enables the next step of finalizing remaining certification plans, which the company expects to complete in coming quarters, with the goal of beginning type inspection authorization (TIA) activities “as soon as this year.”
Asked why the “last few percent” of means of compliance can be difficult across the industry, Muniz said Archer’s approach was to use “best practice” or “conventional approaches” for areas such as lightning strike, gust loads, and occupant protection, which he said were enabled by having a “larger, heavier” aircraft design. He added that the company worked through those topics with the FAA by accepting established approaches rather than pushing back.
Commercialization plans: U.S. pilot program and UAE pathway
Goldstein said Archer is preparing for air taxi operations alongside its test program and is “on track to begin deploying Midnight this year,” both in U.S. cities through the White House’s eVTOL Integration Pilot Program (EIPP) and in the UAE as part of a commercial launch program.
On the EIPP, Goldstein described the effort as a potential “Waymo moment” for the industry, arguing that seeing air taxis over major cities can build public comfort and support regulatory acceptance. He said Archer has submitted applications and is working with “roughly a dozen or so municipalities,” including in Southern California, Texas, and Florida. He said the U.S. Department of Transportation is expected to announce finalists “later this month,” after which Archer would work with selected localities on initial operational plans. Goldstein said the company is targeting “public flights as soon as the second half of the year,” but emphasized that the next steps are now “back to the DOT’s hands.”
Goldstein also tied Archer’s U.S. planning to the Los Angeles 2028 Olympics, calling it an “unskippable date” that influences certification, infrastructure, supply chain readiness, and technical development timelines. In response to a question about what he meant by the Olympics “driving the regulators,” Goldstein said the FAA in 2022 laid out a goal of enabling eVTOL aircraft to fly “in mass” in one city during the L.A. 2028 Olympics under an initiative it called “Innovate 2028.” He said the administration has since leaned into the Olympics as a chance to showcase U.S. aviation leadership, creating a fixed deadline for the industry.
In the UAE, Goldstein acknowledged “current geopolitical” uncertainty in the Middle East and said Archer is monitoring conditions closely, with safety for team members and partners as a priority. Despite that uncertainty, he said Archer established what he described as the first restricted type certificate program for an eVTOL manufacturer with the UAE’s General Civil Aviation Authority (GCAA). He said the approach is intended to support additional Midnight deliveries to the country this year for piloted and passenger-carrying operations, alongside development of a network of “certified vertiports across Abu Dhabi.”
Asked to explain the restricted type certificate approach, Goldstein said Archer chose it because it was a “recognized alternative” compared with other options and provides “broader operational flexibility” and a “scalable foundation” for bringing Midnight to market in the Middle East, adding that more details will follow.
Order book, partners, and a broader strategy beyond Midnight
Goldstein said Archer’s “global backlog continues to grow” and described the company’s order book as “in the billions,” with “seven of the world’s largest airlines” partnering with Archer. He also cited new partners including Saudi Arabia’s Public Investment Fund (PIF) and the Serbian government.
He positioned Archer as building an “ecosystem” with partners including Anduril, SpaceX, and NVIDIA, and outlined three major areas of focus beyond the core commercial aircraft program:
- Defense: Goldstein said Archer and Anduril are designing an autonomous hybrid electric VTOL aircraft intended for dual use, including a “loyal wingman” defense role and cargo or medevac applications commercially. He said the company remains “optimistic about winning a major defense contract this year,” though he declined to share sensitive details and said he hopes Archer can “show the aircraft this year.” He also noted the company opened a new hub in Bristol, U.K., and has hired “20-plus” engineers there.
- Powertrain licensing: Goldstein highlighted a previously announced third-party powertrain deal with Anduril and EDGE Group to support their Omen autonomous air vehicle, noting that Anduril spent five years searching for a propulsion solution.
- Software: Goldstein said Archer partnered with Palantir on air traffic control, movement control, and route planning; with NVIDIA to integrate the NVIDIA IGX Thor platform for safety-critical autonomy applications; and with SpaceX’s Starlink for aircraft connectivity. He said Archer plans to unveil its “first software product” in this category later this year.
Leadership updates and engineering learnings
Goldstein highlighted leadership changes, including Benjamin Lyon’s role as President of Aircraft OEM and Muniz’s shift toward leading development of the hybrid aircraft program while continuing to support Midnight. Lyon, in prepared remarks during Q&A, said a key learning from Archer’s CTOL campaign was that the “software update cycle” paced progress. He said Archer initially used traditional aerospace methods for its first piloted campaign, but found that roughly half the time came from manual steps that could be automated. Lyon said the company updated its software infrastructure to automatically deploy software updates to Midnight, reducing “multi-month long cycles” to “often just a few days,” while maintaining safety standards.
In another design-related discussion, management said it continues to balance performance, certification, and manufacturability trade-offs. Goldstein said Archer selected a four-bladed propeller design to optimize for payload, describing a trade-off where two-bladed designs carried a weight penalty while four-bladed designs carried a drag penalty. Muniz also said Archer is “comfortable with the architecture” but could still make design changes as certification testing continues.
Liquidity and spending outlook
CFO Priya Gupta said Archer ended the quarter with approximately $2 billion in total liquidity, which she called the “highest watermark” in the company’s history. She said the balance sheet allows Archer to “think and act beyond a single program” and reiterated that capital allocation priorities are centered first on commercializing Midnight—progressing certification, scaling manufacturing, and advancing launch efforts—followed by investment in adjacent opportunities including the hybrid aircraft program and a software platform.
Gupta said fourth-quarter spending was aligned to prior guidance and said industrialization and market entry will require increased but “disciplined” spend. For the first quarter, she guided to an Adjusted EBITDA loss of $160 million to $180 million. While declining to provide annual guidance, Gupta said investment is focused on three areas: supply chain and manufacturing capacity for Midnight, development of the dual-use hybrid aircraft to pursue defense opportunities, and development of an AI autonomy software platform. She added that potential defense awards and early revenue opportunities—including from software and air taxi operations as part of a “Launch Edition” program—could help offset spending.
Goldstein closed the call by reiterating a focus on execution, including flying aircraft, deploying them in cities, completing certification, scaling manufacturing, and delivering to customers, while noting the company’s intent to remain selective on spending despite its liquidity position.
About Archer Aviation (NYSE:ACHR)
Archer Aviation, Inc (NYSE: ACHR) is a California-based aerospace company developing electric vertical takeoff and landing (eVTOL) aircraft designed to serve as sustainable urban air mobility solutions. Founded in 2018 by Adam Goldstein and Brett Adcock, Archer focuses on the design, development and certification of zero-emissions air taxis aimed at reducing traffic congestion in densely populated metropolitan areas. The company’s flagship prototypes, “Maker” and “Midnight,” have been engineered to deliver quiet, efficient short-haul flights with ranges of up to 100 miles per charge.
Headquartered in Palo Alto, California, Archer operates a manufacturing facility in nearby Santa Cruz County and maintains research partnerships with automotive and energy companies, including a collaboration with Stellantis to integrate advanced battery systems.
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