Chronologically, Eve Holding (EVEX) appears to be meaningfully behind two of its better-known peers in the eVTOL (electric vertical take-off and landing) race. But since Brazil-based aircraft maker Embraer has a stake of nearly 82% in Eve, the latter firm may be able to sell eVTOL aircraft to countries that will likely be off limits to its two main U.S.-based competitors. Further, Eve can benefit a great deal from the fact that Embraer is a major seller of airplanes in its own right.
Also importantly, Eve has made a few tentative deals that may turn out to be very lucrative. And last but not least, the aircraft maker’s market cap is a great deal lower than that of its two, main American peers, indicating that it may have more room to advance than the other two names.
So growth investors with a long time horizon should consider buying EVEX stock.
Behind in the West But May Have an Advantage Elsewhere
The company does not expect to start testing “a conforming prototype” of its eVTOL until “late 2026,” and it does not anticipate receiving certification from regulators until 2027.
Conversely, two U.S.-based eVTOL makers – Joby (JOBY) and Archer Aviation (ACHR) – have begun conducting piloted test flights and both have stated that they expect to obtain full certification in 2026.
Indicating that eVTOLs are likely to be used extensively by militaries, Joby and Archer have been working closely with the Pentagon.
But since Joby and Archer are both largely U.S.-owned, they probably won’t be able to sell eVTOLs to America’s adversaries, such as China and Russia.
Although Eve will have to compete with a number of Chinese eVTOL start-ups that are chronologically ahead of it in these markets, Eve’s status as a subsidiary of a well-established airplane maker could give it a meaningful advantage over these upstarts.
Compelling Tentative Deals and Embraer
In a deal that involves Spanish investment firm Globalvia, whose value is estimated at about 3 billion euros, Eve agreed in June to provide 50 eVTOLs to Aerosolutions for use in Costa Rica. And Revo, a Brazil-based subsidiary of OHI Group, agreed to buy up to 50 eVTOLS from Eve. In May, OHI disclosed impressive unaudited 2024 operating revenue of 420 million euros in 2025. Finally, Future Flight Global signed a letter of intent in June to buy 54 eVTOLS from Eve.
While all of these deals may either turn out to be relatively minor or collapse and a number of the potential purchasers appear to be startups, Eve could still generate impressive revenue from the agreements over the longer term.
Finally, Embraer’s customers include a significant number of sizable airlines, including Scandinavian, SkyWest, and Air Canada. Over the longer term, Embraer could very well convince these airlines to make meaningful deals with Eve.
Valuation and the Bottom Line on EVEX Stock
Eve’s market capitalization is $1.2 billion, while Archer and Joby have market capitalizations of $5.5 billion and $11.7 billion, respectively. As a result, Eve looks to have a bigger ceiling, making it an intriguing name for patient growth investors who are bullish about the outlook of the eVTOL sector.
*This article is intended to be informational only; it is not financial advice.
