BETA Technologies shares fall on weak quarterly results

Shares of BETA Technologies fell sharply on Tuesday after the electric aircraft startup reported a wider-than-expected quarterly loss and missed revenue projections.

The Burlington, Vermont-based company posted a net loss of $52 million for the quarter, compared with a loss of $38 million in the same period last year. Revenue totaled $8 million, falling short of the $10 million estimate from analysts surveyed by Refinitiv. The decline in revenue was attributed to slower-than-anticipated delivery schedules for its ALIA electric aircraft.

BETA Technologies, which went public via a $235 million SPAC merger in March 2022, has faced operational challenges as it scales production. The company has emphasized long-term growth potential in the emerging electric aviation sector, but investors have grown increasingly concerned about execution risks and funding requirements.

The stock, which had surged following its market debut, has since retreated more than 60% from its peak. Tuesday’s decline extended losses that have persisted since the company’s last earnings report in May, when it warned of delays in aircraft deliveries and higher-than-expected costs.

Analysts at Piper Sandler maintained a neutral rating on the stock, citing "execution uncertainty" as a key risk factor. The firm noted that while the long-term vision for electric aviation remains compelling, near-term financial pressures could weigh on sentiment until production ramps up.

BETA Technologies did not provide updated guidance for 2024, leaving investors to assess the impact of ongoing delays on its cash runway. The company ended the quarter with $180 million in cash, which management stated would support operations through 2025 under current plans.

The stock was down 12.5% at $4.20 in midday trading, extending declines from a prior session close of $4.80.