Story and Image Credit: Vertical Aerospace
www.citybiz.co
Vertical Aerospace has retained Jefferies LLC as financial advisor as the electric aircraft developer begins a review of strategic alternatives, including potential strategic and financial partnerships to fund its next stage of development.
The NYSE-listed company said the review comes as its aircraft program shifts from technology development toward certification, industrialization and commercial service. Vertical has not established a timetable for the process and cautioned that the review may not result in a transaction, strategic change or other outcome.
“This year has been the most significant year in Vertical’s history,” CEO Stuart Simpson said. “As our focus moves to certification, industrialization and commercialization, we feel that now is the right time to explore our options for financing the next phase of our growth.”
The move follows a series of development milestones for Vertical in 2026. The company became the second globally to complete a piloted transition flight in a full-scale tiltrotor eVTOL aircraft and subsequently conducted five consecutive days of piloted transition demonstrations at the Farnborough International Airshow.
Those demonstrations took place before an event audience of more than 140,000 visitors and provided Vertical with an opportunity to demonstrate its aircraft as the program advances toward certification.
Vertical has also raised approximately $100 million in new financing to support its certification and commercialization plans. The company recently appointed former Airbus Commercial Aircraft CEO Fabrice Brégier as chair of its board, adding an executive with extensive aerospace manufacturing and commercialization experience as the business moves into its next development phase.
The strategic review is not expected to interrupt those efforts. Vertical said its operations, certification program and existing commercial commitments will continue during the process.
The company remains on schedule to complete its Critical Design Review by the end of 2026. Its early aircraft production facility and expanded Energy Centre are also expected to open later this year, providing additional infrastructure for the transition toward production.
Vertical is developing Valo, a piloted four-passenger electric vertical takeoff and landing aircraft designed with zero operating emissions. It is also developing a hybrid-electric version intended to provide additional range and greater flexibility for different missions.
The Bristol, U.K.-based company combines internally developed battery and propeller technology with systems and components from aerospace partners including Honeywell Aerospace, Syensqo and Sonaca.
Vertical has approximately 1,500 pre-orders for Valo from customers across four continents. Its customers include American Airlines, Avolon, Bristow, GOL and Japan Airlines, although the company notes that certain customer obligations are expected to be fulfilled through third-party agreements.
Vertical’s leadership team includes executives with previous experience at Rolls-Royce, Airbus, General Motors and Leonardo. Collectively, members of the team have previously worked on the certification and support of more than 30 civil and military aircraft and propulsion systems.
Jefferies will advise Vertical as it evaluates potential partnerships and other strategic alternatives against that backdrop. The company said it does not plan to provide updates on the review unless its board approves a specific course of action or determines that additional disclosure is appropriate or legally required.
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