New Horizon Aircraft (NASDAQ:HOVR) said it ended fiscal 2026 with its strongest balance sheet to date and is moving from technology validation toward full-scale construction of its Cavorite X7 hybrid electric vertical takeoff and landing aircraft.
On the company’s fiscal fourth-quarter and year-end earnings call, Chief Executive Brandon Robinson described fiscal 2026 as “truly a transformational year,” citing progress after the company completed a full-scale transition flight of its prototype in May of the prior year. He said the company has spent the past year advancing the Cavorite X7 from validation work to full-scale aircraft construction, expanding its engineering and leadership teams, adding aerospace development partners and strengthening its cash position.
Cavorite X7 Program Moves Toward Demonstrator Completion
The Cavorite X7 is planned as a seven-person hybrid VTOL aircraft using Horizon’s patented fan-in-wing technology. Robinson said the aircraft is designed to fly about 98% of its mission in conventional wing-borne flight, while retaining vertical takeoff and landing capability.
The company reiterated target performance metrics for the aircraft, including a maximum speed of about 250 miles per hour, a range of about 500 miles and a useful load of about 1,500 pounds. Robinson said the X7 is being designed for vertical flight, short takeoff and landing, conventional takeoff and landing, and all-weather operations.
Robinson said Horizon now expects to complete the full-scale demonstrator aircraft by spring 2027, a shift of about one quarter from the prior target of completion by the end of calendar 2027. He said the change reflects the company’s focus on building a more certifiable platform rather than assembling a prototype as quickly as possible.
“Our objective has never been, and will not be, to target the shortest possible route to a flying prototype,” Robinson said. “Every engineering decision we make is aimed at delivering an aircraft that operators can fly safely, that regulators can certify, and that customers can rely on for decades.”
After completing the demonstrator, Horizon expects the 2027 test program to begin with ground testing, followed by a traditional flight-test program. The company said it is continuing to work with Transport Canada toward type certification by 2030.
Hybrid Architecture and Operating Cost Claims
Management emphasized the company’s hybrid electric architecture as a differentiator from all-electric advanced air mobility concepts. Robinson said the X7 is designed to pair a turbine engine with batteries and distributed electrical lift, allowing the aircraft to recharge its battery system in flight or after landing without relying on ground charging infrastructure.
Robinson also highlighted an independent third-party analysis that estimated the X7’s operating cost at approximately CAD 0.97 per passenger seat mile, based on 500 hours of annual utilization. He compared that with operating costs of more than CAD 4 for similar-capacity helicopters at the same utilization level. Based on that analysis, Robinson said Horizon expects the X7 could deliver operating costs of up to 75% lower per unit distance than a comparable helicopter.
He added that Horizon does not intend to become an airline or operate an air taxi service, but instead plans to operate as an aircraft manufacturer.
Partnerships and Certification Focus
Horizon said it has expanded its development partner network over the past year. Robinson said BETA Technologies’ advanced flight control computers will be used on the X7, describing the relationship as more than a standard supplier arrangement during the question-and-answer session. He said there is no equity investment involved “so far” from BETA Technologies, but that the aircraft’s design requires close technical development to integrate the system.
Other partners discussed on the call included RAMPF Composite Solutions for fuselage and empennage construction, North Aircraft Industries for wing design and testing technologies, Marshall Aerospace for flight dynamics and control models, and industry partners including Pratt & Whitney Canada, MT-Propeller and MHI Regional Jet.
Robinson said the company is building certification considerations into the prototype phase earlier than many programs do, including design reviews, system requirements and safety assessments. Horizon also intends to pursue instrument flight rule operations and certification for flight into known icing, which Robinson said is made possible by the fan-in-wing architecture and hybrid electric power core.
During the Q&A, Robinson said systems integration is a major focus and noted that Horizon is building an “iron bird,” a test setup that wires aircraft systems together to assess how flight control computers, propulsion units and other systems interact before installation in the aircraft.
Cash Position Rises to CAD 78.3 Million
Chief Financial Officer Brian Merker said Horizon ended fiscal 2026 with CAD 78.3 million in cash, compared with CAD 7.5 million a year earlier. He said the company’s liquidity extends beyond completion of the full-scale demonstrator and “well into certification and manufacturing efforts.”
Merker said financing activities generated more than CAD 88 million during the year at well over CAD 2 per share. That included two registered direct offerings with the same two investors that generated gross proceeds of USD 45 million, as well as capital from the company’s at-the-market program and government grants.
Research and development costs rose to CAD 13.2 million from CAD 3.7 million in the prior year, reflecting investments in engineering talent, flight software, prototypes, equipment and materials, testing preparation and data analysis. General and administrative costs were CAD 10.2 million, which Merker described as relatively stable. Cash used in operating activities totaled CAD 16 million for the year, or about CAD 4 million per quarter, compared with CAD 9 million in the prior year.
Looking to fiscal 2027, Merker said Horizon expects cash usage to increase as the company receives major aircraft components, expands its engineering organization, continues systems integration and prepares for ground and flight testing. In response to an analyst question, he said spending would not be double the level seen in the last one to two quarters, but would be higher, with a rough split of 50% people-related costs and 50% components, depending on several factors.
Merker said Horizon believes its current cash position provides more than 24 months of liquidity, even with the anticipated increase in aircraft development investment. He also said the company will continue pursuing non-dilutive funding where appropriate, including government programs such as INSAT, which he said can reimburse up to 40% of eligible project costs.
Hiring, Commercial Interest and Production Planning
Robinson said Horizon’s internal team now numbers more than 55 people, and the company expects to grow to more than 100 employees by the end of next year and double that by the same time in 2028. He said recent hiring includes Richard Alexander as chief of certified programs, a role focused on connecting development activity, certification requirements, quality systems and eventual production.
Management said Horizon is in discussions with several potential buyers and operators interested in adding the Cavorite X7 to their fleets. Robinson said those conversations include regional transportation, emergency services, defense, logistics and special missions, though he said the company remains disciplined about when and how it formalizes commercial commitments.
In response to a question about production scaling, Robinson said Horizon has designed the aircraft “to be built” and has considered manufacturing from the start. He said partners such as RAMPF Composite Solutions and North Aircraft are expected to support low- and medium-volume production. Robinson said Horizon is not planning to build thousands of aircraft annually, but instead expects peak production of 200 to 300 aircraft at profitable margins.
Management closed the call by reiterating that Horizon’s immediate priority is completing the full-scale Cavorite X7 demonstrator by spring 2027 and starting ground and flight testing.
About New Horizon Aircraft (NASDAQ:HOVR)
New Horizon Aircraft Ltd., an aerospace original equipment manufacturer company, focuses on designing and developing hybrid electric vertical takeoff and landing (eVTOL) aircraft for the regional air mobility market in the Uinted States. The company is developing Cavorite X7, a hybrid electric 7-seat aircraft that can take off and land vertically like and helicopter. New Horizon Aircraft Ltd. was founded in 2013 and is headquartered in Lindsay, Canada.
