Eve Holding, Inc. (EVEX) Cash Flow Statement

The OCF/NI ratio fluctuates widely, from 0.41 in 2025Q4 to 1.42 in 2024Q1, suggesting that working capital changes, not accruals, are the primary source of divergence. In 2025Q4, a $38.7M positive working capital adjustment cushioned cash burn, while 2026Q2 saw a -$10.2M drag, amplifying the cash outflow. This volatility implies that cash burn is not a smooth function of net losses, and investors should monitor working capital swings as a key near-term liquidity lever.

The FCF trajectory shows a clear upward burn trend, with the most recent quarter (2026Q2) posting the second-largest FCF deficit despite a slight moderation from 2026Q1's -$68.6M. This pattern aligns with the prior income statement analysis indicating escalating R&D spending as certification efforts intensify. With no revenue, FCF margins are undefined, and the company remains entirely dependent on external financing to sustain operations.

The low capex suggests that Eve is currently in a design and development phase, relying on Embraer's existing infrastructure rather than building its own production capacity. However, as the company transitions to industrialization, capex is likely to surge, particularly for the Taubaté facility. The current capex/revenue ratio is not meaningful due to zero revenue, but the absolute levels indicate that the bulk of capital investment lies ahead, which will further strain liquidity.

The large positive working capital adjustments in 2025Q4 and 2025Q1 (totaling $63.8M) appear to have temporarily reduced cash outflows, possibly due to deferred payments or advances. However, the negative adjustments in 2026Q2 and 2024Q1 indicate that these benefits are not sustainable. This volatility complicates the assessment of the underlying cash burn rate, and investors should adjust for working capital to gauge the true operational cash consumption.

The absence of any capital returns is consistent with a company in a heavy investment phase, where every dollar is needed to fund certification and development. The $103M cash balance, combined with quarterly operating cash burn averaging -$40.6M, implies a runway of roughly 2.5 quarters, assuming no additional financing. This underscores the urgency for capital raises, which may be dilutive given the current strained balance sheet.

The cumulative gap between net income and operating cash flow is relatively modest, suggesting that earnings quality is not severely distorted by accruals. However, the quarterly volatility in working capital adjustments indicates that the timing of cash flows can diverge significantly from reported losses. This divergence is likely to persist as the company scales up, and investors should focus on cash burn rather than net losses as the primary solvency metric.