Archer narrows losses to $106.9m

Archer Aviation has issued its share holder letter reporting second quarter loss of $106.9m, down from $116.5m in the first quarter of 2024.

“This has been one of Archer’s most productive quarters yet. From Midnight’s first transition flight to the progress we’ve made on the build out of high-volume manufacturing facilities alongside Stellantis, to the commercial progress we’re making with Southwest, United, and more—we are working tirelessly to enable commercial operations all over the world,” commented Archer CEO Adam Goldstein on the company’s second quarter performance.

In addition to results, the company also announced it reached a $450m agreement with Stellantis to scale production of Archer’s Midnight aircraft.

In addition to the nearly $300m Stellantis has previously invested to date, including $55m in July 2024, Archer said that the global automaker is planning to fund up to $370m of the anticipated manufacturing labor costs. Moreover, the VTOL developer said that Stellantis will contribute additional $20m towards initial incremental manufacturing capital expenditures for the initial ramp of Midnight production.

Archer’s total operating expenses during the second quarter clocked in at $121.2m, down from $142.2m in the first quarter and $181.4m in the same period last year.

As of June 30, 2024, Archer’s cash and cash equivalents stood at $360.4m. The company’s agreement with Stellantis on funding the labour costs as well capital expenditure will provide it with the much-needed liquidity to continue progressing towards ramp up in production of its Midnight aircraft at the proposed Georgia factory.

So far, the company’s indicative orderbook stands at $6bn with $580m order from the Future Flight Global which plans to acquire 116 Archer Midnight aircraft once production begins.

The company expects to report positive gross margins from 2025 onwards as it begins producing and delivering aircraft.