Horizon Aircraft — Fiscal 2027 Q1 Earnings Summary

Financial Performance

• Cash on hand exceeded $70 million as of August 31, 2026.
• Management projects current cash reserves are sufficient to fund the operating plan for at least the next 24 months.
• The company significantly increased research and development (R&D) spending relative to general and administrative (G&A) spending during the quarter.
• No specific revenue, net loss, earnings per share, or profit margin figures were disclosed in the press release.

Guidance and Future Outlook

• The full-scale Cavorite X7 demonstrator aircraft is expected to be completed by the first quarter of calendar 2027.
• Initial testing for the Cavorite X7 is on track to begin in early calendar 2027, following completion of the demonstrator.
• The testing roadmap includes ground and taxi testing followed by flight testing.
• The company intends to scale unit production to meet expected demand from regional aircraft operators, emergency service providers, and military customers upon successful completion of testing and certification.

Business Segments and Product Lines

• Development of the Cavorite X7, a hybrid-electric Vertical Takeoff and Landing (VTOL) aircraft, continues to advance.
• The aircraft is designed to fly most of its mission in traditional wing-borne flight, prioritizing safety, performance, industry-leading speed, and range.
• The company is investing early in engineering, systems integration, and flight-control architecture to support a program built for certification.
• Strategic partnerships supporting the Cavorite X7 demonstrator development include BETA Technologies, Marshall Aerospace, RAMPF Composite Solutions, and North Aircraft Industries.

Market and Competitive Landscape

• The company has signed letters of intent totaling more than US$1 billion in potential aircraft sales.
• These letters of intent represent up to 200 aircraft purchases and 5 aircraft leases.
• The company is engaging with Transport Canada to design and build the full-scale demonstrator in a manner that supports progress toward certification.

Risks and Challenges

• Potential risks include changes in competitive landscapes, technology evolution, and regulatory changes.
• There is a risk that the company may need to raise additional capital to execute business plans, which may not be available on acceptable terms.
• Challenges include the lack of useful financial information for accurate estimates of future capital expenditures and revenue.
• Risks exist regarding the ability to develop, certify, and manufacture an aircraft that meets performance expectations, as well as the successful completion of testing and certification.
• Actual results may differ from forward-looking statements regarding funding, liquidity, production, and market opportunities.

Management Commentary and Tone

• CEO Brandon Robinson emphasized that strategic capital allocation and consistent financial discipline are keeping the company on track for the Q1 2027 demonstrator completion.
• Management stated they are investing early in engineering and systems to build a foundation for certification rather than just building a demonstrator.
• The tone reflects confidence in the disciplined program and the expectation to expand the global customer base.

Other Key Points

• Horizon Aircraft (NASDAQ: HOVR) is a Canadian aerospace company developing hybrid-electric VTOL aircraft.
• Financial statements are prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP).
• A webcast and conference call regarding the results was scheduled for October 9, 2026, featuring CEO Brandon Robinson and CFO Brian Merker.