BETA Technologies shares fall on weak quarterly results

Shares of BETA Technologies fell sharply on Tuesday after the electric aircraft developer posted a larger-than-expected quarterly loss and revenue that missed analyst estimates.

The company, which is developing electric vertical takeoff and landing (eVTOL) aircraft for commercial and military applications, reported a net loss of $24.3 million for the quarter ended March 31, compared with a loss of $18.7 million in the same period last year. Revenue totaled $1.2 million, down from $1.5 million a year earlier and below the $1.4 million consensus estimate among analysts polled by Refinitiv.

BETA Technologies attributed the decline to lower-than-expected deliveries of its ALIA-250 aircraft, delays in customer certification programs and higher operating costs. The company also noted that supply chain constraints and inflationary pressures had weighed on its margins.

The stock, which had surged earlier this year on optimism surrounding the eVTOL sector, dropped as much as 12% in early trading before paring some losses. By midday, shares were down 8% at $14.20, extending a recent downward trend that has seen the stock fall roughly 25% from its 52-week high.

Analysts at Piper Sandler maintained a neutral rating on the stock but lowered their price target to $16 from $18, citing execution risks and the challenging macroeconomic environment. The firm noted that while BETA’s technology remains promising, near-term financial performance may continue to lag amid regulatory and operational hurdles.

Investors have grown increasingly cautious about eVTOL companies as rising interest rates and economic uncertainty dampen appetite for high-risk growth stocks. BETA Technologies, which went public via a special purpose acquisition company (SPAC) merger in 2021, has yet to generate meaningful revenue from commercial operations, relying primarily on pre-orders and government contracts.

The company’s next major milestone will be the certification of its ALIA-250 aircraft by the Federal Aviation Administration, expected later this year. Analysts say delays in certification could further pressure the stock, while any progress toward commercialization may provide a catalyst for a rebound.