Archer Aviation Exec Says Boeing Deal Will ‘Significantly Change the Profile’ as $200 Million Insitu Business Joins Portfolio

Archer Aviation Inc.‘s (NYSE:ACHR) deal with Boeing Co. (NYSE:BA) could significantly reshape the electric vertical take-off and landing (eVTOL) company.

Insitu’s $200 Million Revenue Business

During the company’s second-quarter earnings call on Monday, Archer’s Chief Financial Officer Priya Gupta hailed the company’s acquisition of unmanned aircraft systems manufacturer Insitu, as well as autonomous eVTOL maker Wisk Aero and SkyGrid in an all-stock deal.

“Insitu today is a profitable business, generating more than $200 million of revenue a year,” Gupta said during the earnings call. She also said that Archer expects Insitu to “contribute positive free cash flow,” which will help it operate on a “self-funding basis” and “potentially offset spend in other areas.”

Gupta added that the acquisitions, in addition to the company’s Halo-Thunder platform and AI solutions tailored for aviation, will “significantly change the profile for Archer and our path to meaningful revenue in the years to come.”

Archer Aviation CEO Adam Goldstein said that the company expects cash flow and revenue generated from its existing product portfolio in the near term, but the company can build a “whole new suite of products” which “could be expanded and generate a significantly higher revenue,” he said.

In an interview with Axios following the earnings call, Goldstein said Boeing will receive newly issued shares equal to nearly 20% of Archer’s pre-deal share count, which would give Boeing roughly a 16% stake.

Archer’s Earnings Call

The company reported $5 million of total revenue in the second quarter of the year, which exceeded market expectations of $1.96 million. However, Archer’s EPS loss of 34 cents per share was in line with analyst estimates.

Archer had also revealed the commercial Halo aircraft earlier, which was built in partnership with Anduril. The aircraft touts unmanned, autonomous flight capabilities.

Price Action: Archer Aviation shares surged 11.99% to $6.26 on Monday.

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