Archer plans Hawthorne Airport acquisition and targets 50 aircraft annual production amid global eVTOL expansion

Earnings Call Insights: Archer Aviation Inc. (ACHR) Q3 2025

MANAGEMENT VIEW

* CEO Adam Goldstein highlighted a strategic development: Archer has signed definitive agreements to acquire control of Hawthorne Airport in Los Angeles. Goldstein described it as a “one-of-a-kind opportunity to acquire control of Hawthorne Airport, one of L.A.'s most strategically located airfields and use it as our anchor hub for air taxis ahead of the LA28 Olympic Games and beyond as well as a testbed for our AI technologies under development.”
* Goldstein stated the company's intent to use Hawthorne as “the blueprint for a new class of urban aviation hubs around the world,” envisioning it as “L.A.'s Grand Central Station for air taxis.”
* Archer announced $650 million in new equity capital, bringing total liquidity to over $2 billion. Goldstein pointed to a “structural advantage, a generational opportunity to control a key airport and build the first purpose-built eVTOL hub at the center of a world-class aviation corridor.”
* Progress was reported in international markets. Archer initiated commercial deployment in the UAE, expanded partnerships in Japan and Korea, and received initial payments for commercial operations under the Launch Edition program.
* CTO Thomas Muniz reported that recent flight testing milestones for the Midnight aircraft include “55 miles of range, over 30 minutes of flight time and flying at altitudes up to 10,000 feet at speeds exceeding 150 miles per hour.” He noted the approach is “cementing us as one of the leaders in this sector.”
* Muniz confirmed the acquisition of Lilium's patent portfolio, “one of the most significant technology portfolios in electric aviation, particularly in ducted fan propulsion, high-voltage systems and advanced flight controls.”
* Acting CFO Priya Gupta stated, “We closed Q3 '25 with $1.64 billion in cash, cash equivalents and short-term investments and today, announced an additional equity raise of $650 million.” Gupta emphasized, “Our net loss for Q3 '25 was $130 million. This was a $76 million reduction from Q2 '25, primarily due to the noncash impact of warrant revaluation.”

OUTLOOK

* Management estimated adjusted EBITDA loss for the upcoming quarter to be between $110 million to $140 million.
* Gupta reported, “We expect our core capital investments to increase in Q4 as we continue to build aircraft and expand investments in our manufacturing capabilities. These estimates do not include the costs associated with the Lilium and Hawthorne acquisitions.”
* Guidance indicated the company intends to continue using its liquidity to “win future strategic opportunities across the business.”

FINANCIAL RESULTS

* Gupta detailed, “Our GAAP operating expenses for Q3 '25 were $175 million and stayed essentially flat quarter-over-quarter, as increased people-related costs were more than offset by the timing of material and supply-related spend.”
* Adjusted EBITDA loss for Q3 was $116 million, within the guided range of $110 million to $130 million, and “represents an approximately $3 million decrease from the previous quarter.”
* Cash used in operations and purchase of property, equipment, and intangibles for Q3 '25 was $126 million, flat quarter-over-quarter. Cash used in purchase of property and equipment was $20 million.

Q&A

* Xin Yu, Deutsche Bank, asked about the advantages of the Hawthorne Airport acquisition and software intentions. Goldstein responded, “The opportunity to actually get control of the airport plus the FBO, plus all the different growth opportunities was something that we couldn't pass up... It is structurally advantageous for us to have this right in the middle of L.A.”
* Yu asked about financial contribution from Hawthorne. Goldstein stated, “The revenue has the opportunity to be in the tens of millions and it is EBITDA positive. But we don't really think about it like that... The goal is really to take it as a strategic asset and use it to have a structural advantage in the industry.”
* Yu inquired about the scale of the equity raise. Goldstein explained, “We weren't looking to go out there and raise capital. There was a very large reverse inquiry from very high-quality investors... We thought it would be prudent to add a little bit of extra cushion to the balance sheet.”
* Andres Sheppard-Slinger, Cantor Fitzgerald, questioned commercialization in the UAE. Goldstein replied, “Each of the Launch Edition programs carry a multiyear commercial value in the tens of millions of dollars to Archer. And so we've already started receiving initial cash payments in the 7-figure range tied to operational milestones.”
* Savanthi Syth, Raymond James, asked about eIPP program strategy. Goldstein said, “The program will roll out conservatively, simple point-to-point routes in good weather, VFR conditions. And the goal is really to prove the safety and capability of the aircraft.”
* Mahima Kakani, JPMorgan, requested updates on certification. Muniz responded, “We're actually getting pretty close to starting our first TIA campaign with the FAA and that could happen as soon as the end of this year.”

SENTIMENT ANALYSIS

* Analysts focused on specifics of the Hawthorne acquisition, commercialization timelines, and certification progress, with a neutral to slightly positive tone, particularly around international partnerships and liquidity.
* Management maintained a confident and forward-looking tone in prepared remarks, highlighting “structural advantage,” “unique opportunity,” and “momentum,” with some defensiveness when discussing the rationale for capital raises and asset acquisition.
* Compared to the previous quarter, analyst tone became more focused on execution and tangible milestones, while management continued to stress discipline and opportunity, with increased emphasis on competitive advantages.

QUARTER-OVER-QUARTER COMPARISON

* The current quarter introduced the Hawthorne Airport acquisition as a major new strategic initiative, while the previous quarter focused on the Olympics mandate and manufacturing ramp.
* Guidance remained focused on adjusted EBITDA loss, with investment in manufacturing and infrastructure continuing.
* Key metric changes included a reported net loss reduction by $76 million and operating expenses remaining flat, versus increases in the previous quarter.
* Management's tone was consistently confident, though the narrative shifted more toward tangible asset control and global expansion.
* Analyst focus shifted from broader manufacturing and commercialization themes to specific asset acquisitions and financial strategy.

RISKS AND CONCERNS

* Management highlighted the capital-intensive nature of the industry and the need to maintain liquidity.
* Ongoing regulatory and certification uncertainties were noted, with Muniz stating, “We have obviously all been impacted by the government shutdown and are hopeful that this will be resolved soon.”
* Decisions regarding asset utilization at Hawthorne (e.g., selling, leasing, or using hangars) remain outstanding and could affect financial outcomes.
* Analyst concerns centered on certification timelines, commercial readiness, and capital deployment.

FINAL TAKEAWAY

Archer Aviation’s Q3 2025 call spotlighted a transformative move with the Hawthorne Airport acquisition, a strong liquidity position with over $2 billion, and ongoing momentum in international markets and flight testing. Management emphasized the strategic value of asset control in Los Angeles, disciplined capital allocation, and readiness for upcoming commercialization and certification milestones, while acknowledging sector-specific challenges and the importance of execution as the company advances toward the LA28 Olympic Games and global market leadership in eVTOL technology.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/achr/earnings/transcripts]

MORE ON ARCHER AVIATION

* Archer Aviation Inc. (ACHR) Q3 2025 Earnings Call Transcript [https://seekingalpha.com/article/4839975-archer-aviation-inc-achr-q3-2025-earnings-call-transcript]
* Archer Aviation Fell After No Deal From Tesla, But Fundamentals Keep It Flying [https://seekingalpha.com/article/4828852-archer-aviation-fell-after-no-deal-from-tesla-but-fundamentals-keep-it-flying]
* Archer Aviation: Flying Car Stock Still Has Runway Ahead [https://seekingalpha.com/article/4828364-archer-aviation-flying-car-stock-still-has-runway-ahead]
* Archer Aviation Q3 2025 Earnings Preview [https://seekingalpha.com/news/4516182-archer-aviation-q3-2025-earnings-preview]
* Archer Aviation named air taxi partner for Los Angeles Sports Commission [https://seekingalpha.com/news/4506640-archer-aviation-named-air-taxi-partner-for-los-angeles-sports-commission]