Technology & Innovation
Horizon Aircraft Achieves Key VTOL Milestone Amid Mixed 2025 Financials
Horizon Aircraft reports mixed 2025 financials but achieves major VTOL flight milestone and strong stock gains, positioning for eVTOL market growth.
New Horizon Aircraft’s fourth quarter and full year 2025 results present a complex narrative of financial challenges offset by significant technical achievements and unexpected market optimism. The Canadian hybrid electric vertical takeoff and landing (eVTOL) aircraft developer reported conflicting financial figures across different reporting frameworks, with some sources indicating substantial losses while others show modest profitability. This reflects the complexities of accounting for development-stage aerospace companies. Despite financial uncertainties, the company achieved a landmark technical milestone in May 2025 with one of the world’s first successful fan-in-wing forward transition flights of a large-scale prototype aircraft, validating years of development work on their proprietary HOVR wing technology. This achievement has been accompanied by remarkable stock performance, with shares gaining over 96% in the 30 days following earnings despite reported losses, suggesting investors are focusing on long-term operational potential rather than near-term financial metrics. The company maintains a strong balance sheet with approximately $17 million in cash, providing over 18 months of operational runway, while continuing to secure non-dilutive government funding and strategic investments to support development of their Cavorite X7 aircraft.
Horizon Aircraft is a significant player in the emerging eVTOL sector, originating in 2013 when Brandon Robinson and Jason O’Neill co-founded the company in Lindsay, Ontario, Canada. The company’s genesis story reflects a practical approach to advanced aviation, emerging from a client request for a highly modified amphibious seaplane that evolved into an entirely new aircraft concept. Their early Horizon X3 hybrid-electric seaplane incorporated a dual-power system, allowing batteries to take over from a combustion engine during emergencies, laying the foundation for later VTOL developments.
The shift into VTOL aircraft development occurred as the eVTOL industry began gaining momentum, with Horizon recognizing an opportunity to create aircraft capable of helicopter-like operations but with superior speed, efficiency, and safety. Their flagship, the Cavorite X5, is named after H.G. Wells’ fictional anti-gravity metal, reflecting the company’s ambitious vision to revolutionize vertical flight through innovative engineering.
Brandon Robinson’s background as a former Royal Canadian Air-Forces fighter pilot with twenty years of military aviation experience has profoundly shaped the company’s operational philosophy and strategic direction. His military experience, and the accompanying “Humble, Approachable, Credible” ethos, have influenced both product development and client relationships, especially in securing defense contracts and developing aircraft for real-world operational requirements. The company’s focus is on rugged, real-world utility, positioning the Cavorite X7 as a seven-seat hybrid-electric VTOL designed for military, medical, and regional transport missions. This has enabled Horizon to secure a U.S. Air Force contract through the AFWERX program and attract interest from Special Forces units seeking deployable aircraft for challenging conditions.
Horizon Aircraft’s 2025 financials reveal significant complexity, with discrepancies between reporting sources. According to one analysis, the company posted a net loss of $6.463 million, or negative $0.80 per basic and diluted share, driven by high operating expenses totaling $2.659 million and a complete absence of revenue generation. Operating expenses included $1.829 million in selling, general, and administrative costs and $635,000 in research and development, with net interest expenses of $195,000 contributing to the overall loss.
However, other reports show a dramatically different picture. Market Screener indicates net income of CAD 5.2 million for the full year ended May 31, 2025, compared to a net loss of CAD 8.16 million in the previous year. Basic earnings per share from continuing operations were CAD 0.20, compared to a basic loss per share of CAD 0.76 in the prior year. SEC filings show income before taxes of $5,200 for the year, compared with a loss of $8,160 previously, but also a large operating loss of $13,585, suggesting that non-operating items such as warrant valuations or derivative instrument adjustments significantly impacted the results.
These discrepancies highlight the complexity of accounting for development-stage companies with significant warrant activities, derivative instruments, and foreign exchange considerations. Non-cash items can create substantial swings in reported earnings that may not reflect underlying operational performance. Despite these complexities, Horizon’s market performance has been strong: following earnings announcements, the company’s stock had a 100% win rate across multiple timeframes, with gains of 17.33% over three days, 14.02% over ten days, and 96.26% over thirty days. The maximum return reached 138.81% on day 44 post-earnings, indicating that markets are focusing on long-term potential rather than current financials.
“Despite headline losses, Horizon Aircraft’s shares gained over 96% in the 30 days after earnings, indicating investor faith in long-term operational potential and technical progress.”
The most significant development for Horizon in 2025 was the successful completion of a fan-in-wing forward transition flight using a large-scale prototype, validating the proprietary HOVR wing technology. This milestone addresses one of the most challenging problems in VTOL development, coordinating multiple propulsion systems and sophisticated flight control algorithms during transition flight. The technical sophistication is evident in the HOVR system: five battery-powered fans are embedded in each wing and two in each forward canard, with wing surfaces that open for vertical takeoff and close for forward flight. During cruise, a pusher propeller driven by a combustion engine charges the batteries, extending operational range beyond what purely electric systems can achieve. The Cavorite X7’s forward-swept wing design enhances handling during low-speed, high angle-of-attack phases, addressing aerodynamic challenges inherent in VTOL operations. Performance specs for the X7 include a useful load of 1,500 pounds for vertical operations, expanding to 1,800 pounds for runway takeoffs, a maximum range of 500 miles, and a cruising speed of 250 knots, metrics that exceed most competing eVTOL aircraft. This positions the X7 for missions requiring both vertical and fixed-wing capabilities.
Military applications are a particular focus. The Cavorite X7’s hybrid power system enables speeds up to 250 mph with a range exceeding 500 miles and a gross weight of 5,500 pounds. The aircraft can host radars, sensors, and other systems with an estimated 100 kilowatts of excess power generation. Its low noise profile, achieved through the fan-in-wing design, makes it suitable for stealthy military operations, such as commando deployments and casualty evacuation, where quiet operation is critical.
“The successful fan-in-wing transition flight in May 2025 validated years of engineering, making Horizon one of the few eVTOL developers to demonstrate this capability at scale.”
Bank of America Global Research projects extraordinary growth for the global eVTOL sector, with civil adoption expected to grow by 62% between 2025 and 2030, and an 85% compound annual growth rate between 2025 and 2040. Six primary end-applications are identified: public security, logistics, medical/firefighting, tourism, urban commuting, and intercity transport. eVTOLs are expected to supplement, not replace, existing transportation, especially for 50–150 km journeys where they offer unique advantages despite potentially longer travel times and higher fares.
For longer trips (150–400 km), eVTOLs are projected to offer travel times comparable to Helicopters but with enhanced safety, lower noise, and reduced operating costs. The projected 85% growth rate reflects both the transformative potential of eVTOL technology and the current minimal baseline. However, this aggressive outlook depends on successful regulatory certification, supporting infrastructure, consumer acceptance, and viable cost structures.
Ducted fan aircraft like the Cavorite X7 are particularly promising, as their design enhances safety and efficiency in urban environments where safety concerns and noise restrictions are critical. Vertical flight capability enables operations in confined spaces and challenging environments, positioning eVTOLs to serve markets underserved by traditional aviation.
“Bank of America projects an 85% compound annual growth rate for eVTOL adoption between 2025 and 2035, signaling a rapid expansion from a minimal baseline.”
Horizon Aircraft’s hybrid-electric approach addresses the range and infrastructure limitations of purely electric eVTOLs, enabling superior performance metrics and operational flexibility. Their military-first philosophy, shaped by Robinson’s defense background, prioritizes real-world reliability and mission-focused design. This has led to successful large-scale prototype flights, giving Horizon a tangible edge over many competitors still reliant on simulations or models.
The company’s selection for the U.S. Air Force AFWERX High-Speed VTOL Challenge underscores its credibility and provides access to military funding and partnerships. Horizon’s efficient development approach has reduced costs compared to other eVTOL organizations, with $17 million in cash providing 18 months of operational runway, contrasting with competitors that have raised far more capital with fewer milestones achieved.
Talent acquisition has focused on experienced aerospace engineers, and non-dilutive funding through government grants further strengthens Horizon’s position. The recent $450,000 NSERC grant, bringing total federal funding to $3.4 million, supports collaborative research and development without shareholder dilution. Horizon’s 2025 financing combined equity investment, government grants, and strategic partnerships. The key event was an $8.4 million investment in January, with $2.1 million in ordinary shares and $6.3 million in preferred shares convertible over five years. The appointment of Brian Merker as CFO in December 2023, with substantial aviation finance experience, reflects Horizon’s preparation for increased financial complexity and potential public listing.
Since going public, Horizon’s stock (HOVR) has delivered a price return of 195.6% over the past year, far outpacing broader market indices. Its low beta and zero correlation to the SPY ETF indicate that company-specific developments drive performance. However, the micro-cap status and reliance on external financing mean the investment remains speculative.
SEC filings reveal additional complexity from warrants and derivative instruments, which can create accounting volatility and obscure operational performance. Non-operating gains, such as the $21,400 from a Forward Purchase Agreement termination, have materially affected reported earnings. Continued access to capital and execution of development milestones remain critical to financial stability.
The regulatory landscape for eVTOLs is evolving, with the FAA and international agencies developing new certification pathways. Horizon’s hybrid approach may provide advantages by leveraging established combustion engine certification processes, though integrating hybrid systems introduces complexity. The goal to certify the Cavorite X7 for known icing conditions is ambitious and could yield significant competitive advantages for all-weather operations.
International coordination may require Horizon to pursue multiple certification pathways, but its Canadian base and U.S. military contracts position it well for both Transport Canada and FAA requirements. Military applications operate under different frameworks, allowing for earlier operational experience and revenue generation before full civilian certification is achieved.
Horizon Aircraft’s 2025 results and achievements illustrate a company transitioning from concept to technical validation, navigating the challenges of commercializing advanced aviation technology. Despite accounting complexities and conflicting financial reports, the core message is clear: Horizon has achieved critical technical milestones and maintains sufficient capital to continue development through key certification phases.
The successful fan-in-wing transition flight, hybrid-electric approach, and military-first philosophy set Horizon apart in a rapidly growing industry. With strong stock performance and a robust cash position, the company is well-placed to capitalize on projected industry growth. The next 18 months will be pivotal as Horizon works to complete its full-scale demonstrator and advance certification, with success potentially positioning it as a leader in the transformative eVTOL sector.
Q: What was Horizon Aircraft’s biggest technical achievement in 2025? Q: How did Horizon Aircraft perform financially in 2025? Q: What are the main applications for Horizon’s Cavorite X7 aircraft? Q: What is the outlook for the eVTOL industry? Q: How is Horizon Aircraft funded? Sources:
Horizon Aircraft Delivers Mixed Financial Results Amid Technical Breakthroughs and Strong Market Performance in 2025
Background Information and Company Overview
Financial Results Analysis and Market Performance
Technical Achievements and Milestone Development
Market Context and Industry Growth Projections
Strategic Positioning and Competitive Advantages
Investment Activities and Financial Structure
Regulatory Environment and Certification Challenges
Conclusion and Future Outlook
FAQ
A: The successful fan-in-wing forward transition flight using a large-scale prototype, validating their HOVR wing technology.
A: Financial reports were mixed, with some sources showing a net loss of $6.463 million, while others reported a net income of CAD 5.2 million, highlighting accounting complexities typical of development-stage aerospace firms.
A: The Cavorite X7 is designed for military, medical, and regional transport missions, with specific features for stealth, range, and payload flexibility.
A: Bank of America projects an 85% compound annual growth rate for eVTOL adoption between 2025 and 2035, with applications across security, logistics, medical, tourism, and urban/intercity transport.
A: The company combines equity investment, government grants, and strategic partnerships, including an $8.4 million investment in 2025 and $3.4 million in federal grants to date.
GlobeNewswire,
Market Screener,
SEC,
Federal Register
Photo Credit: Horizon Aircraft
Technology & Innovation
Argonne and Spirit AeroSystems Launch AI Tool for Aerospace Inspections
Argonne National Laboratory and Spirit AeroSystems introduce an AI tool that speeds composite material inspections, reducing time and energy use in aerospace manufacturing.
This article is based on an official press release from Argonne National Laboratory.
A new collaboration between government research facilities and private industry aims to resolve one of the most persistent bottlenecks in modern Commercial-Aircraft manufacturing: the inspection of composite materials. On January 7, 2026, Argonne National Laboratory (ANL) announced the development of an artificial intelligence tool designed to accelerate the analysis of ultrasonic scans, a move they report will significantly reduce production time and energy consumption.
The project, led by ANL in partnership with Spirit AeroSystems, Northern Illinois University, and Texas Research Institute Austin, utilizes advanced machine learning to assist human inspectors. According to the laboratory’s announcement, the tool reduces human inspection time by 7% and cuts facility-level energy usage by approximately 3% per aircraft.
Modern aerospace engineering relies heavily on composite materials due to their superior strength-to-weight ratios. However, verifying the structural integrity of these materials is a data-intensive process. Manufacturers typically use ultrasonic non-destructive testing (NDT) to scan components, generating massive datasets that human experts must manually review to identify defects.
Argonne National Laboratory describes this manual review process as time-consuming and mentally fatiguing. To address this, the research team utilized the Argonne Leadership Computing Facility (ALCF), a U.S. Department of Energy Office of Science user facility, to develop a solution based on Convolutional Neural Networks (CNNs).
According to the technical details released by the laboratory, the AI model does not replace human inspectors. Instead, it functions as an intelligent assistant that rapidly processes scan data to highlight “regions of interest.”
“It rapidly processes scan data and highlights specific areas that contain potential defects or anomalies. This allows human experts to focus their attention solely on ‘regions of interest’ rather than reviewing empty or flawless data.”
— Argonne National Laboratory Announcement
The integration of this technology offers measurable gains in both efficiency and Sustainability. Spirit AeroSystems, a major aerostructures manufacturer, provided the proprietary dataset of ultrasonic scans used to train the model. The resulting tool has demonstrated the ability to shorten the overall production flow time. By automating the initial screening of ultrasonic data, the tool reduces the time human inspectors spend on each component by 7%. In high-volume manufacturing environments, this reduction allows for increased throughput and helps alleviate production backlogs.
Perhaps most notably, the efficiency gains translate directly into energy savings. The announcement states that the tool lowers energy use by roughly 3% per aircraft. This reduction is achieved at the facility level; shorter inspection times mean that heavy machinery, HVAC systems, and lighting operate for fewer hours per unit produced.
The deployment of this AI tool highlights a critical shift in the aerospace sector’s approach to “Industry 4.0.” While much of the past decade’s innovation focused on physical Automation, such as robotic drilling or fastening, the current frontier is digital automation.
We observe that the bottleneck in composite manufacturing has shifted from layup (placing the material) to verification (proving the material is safe). As aircraft designs become increasingly complex, the volume of NDT data is outpacing human capacity to review it. The “human-in-the-loop” approach taken by Argonne and Spirit AeroSystems is significant because it mitigates the regulatory hurdles associated with fully autonomous inspection. By keeping the human inspector as the final authority, manufacturers can likely integrate these tools faster than if they sought to replace the human entirely.
Furthermore, the “open-framework” nature of the underlying techniques, mentioned in the release as being available for academic research, suggests that this methodology could soon expand beyond aerospace into wind energy and automotive sectors, where composite usage is also rising.
The success of this initiative relied on a multi-sector collaboration. While Argonne provided the supercomputing power and machine learning expertise, Spirit AeroSystems supplied the domain knowledge and real-world data necessary to train the AI effectively. Northern Illinois University and Texas Research Institute Austin contributed to validating the technology’s robustness and reliability.
Rajkumar Kettimuthu, a Senior Scientist and Group Leader at Argonne, emphasized the collaborative nature of the work in the official release, noting the combination of industrial constraints and high-performance computing.
Argonne National Laboratory and Spirit AeroSystems Unveil AI Tool for Aerospace Inspections
Addressing the Composite Challenge
Operational and Environmental Benefits
Efficiency Gains
Energy Reduction
AirPro News Analysis
Partnership Details
Sources
Photo Credit: Argonne National Lab
Technology & Innovation
Horizon Aircraft Reports $24M Cash and 2026 Prototype Timeline
Horizon Aircraft secures $24M cash and funding to complete the Cavorite X7 hybrid-electric eVTOL prototype by 2026 with flight tests in 2027.
This article is based on an official press release from Horizon Aircraft and financial data released January 14, 2026.
Horizon Aircraft (NASDAQ: HOVR) has released its financial results for the second quarter of fiscal year 2026, ending November 30, 2025. The company reported a strengthened balance sheet with over $24 million in cash on hand, a liquidity position management states is sufficient to fund operations through the completion of its full-scale Cavorite X7 prototype in 2026.
According to the company’s official statement, the quarter was marked by significant operational growth and the securing of non-dilutive funding, positioning the aerospace manufacturer to advance its hybrid-electric Vertical Take-Off and Landing (eVTOL) technology.
In its Q2 fiscal 2026 report, Horizon Aircraft confirmed it has secured the necessary capital to execute its near-term engineering goals. The company highlighted a cash balance of $24 million as of November 30, 2025. This financial runway is supported by a combination of equity financing and government grants.
Recent financing activities include a capital raise of approximately C$10.8 million during the second quarter through the sale of 2.6 million shares. Additionally, analyst coverage indicates the closing of a financing tranche in December 2024 involving $1.5 million (approximately C$2.1 million) in common shares.
Beyond private capital, Horizon has successfully tapped into public funding. The company was awarded a C$10.5 million non-dilutive grant from the Initiative for Sustainable Aviation Technology (INSAT). This funding is specifically earmarked to support the development of all-weather flight capabilities for the Cavorite X7.
Brian Merker, CFO of Horizon Aircraft, commented on the company’s financial stability in the press release:
“With significantly improved working capital and incoming non-dilutive funding… we are well positioned to continue investing in our people, advancing our technology, and executing toward completion of our full-scale aircraft.”
Horizon Aircraft is focused on the development of the Cavorite X7, a seven-seat hybrid-electric eVTOL designed for regional air mobility, medical evacuation, and cargo transport. The aircraft distinguishes itself with a patented “fan-in-wing” system, which allows it to fly 98% of its mission configuration as a traditional fixed-wing plane. This design covers the vertical lift fans during forward flight to significantly reduce drag. The company has outlined a clear roadmap for the next 18 months. According to the Q2 update:
To support this timeline, Horizon has doubled its engineering headcount year-over-year and plans to double the team size again by the end of 2026.
Brandon Robinson, CEO of Horizon Aircraft, emphasized the momentum behind the project:
“The progress achieved during the second quarter of fiscal 2026 provides strong momentum toward completing our full-scale aircraft and commencing initial testing within the next 12 to 18 months.”
The Hybrid Advantage in a Crowded Market
While many competitors in the Advanced Air Mobility (AAM) sector are pursuing pure electric architectures tailored for short-range urban air taxi services, Horizon Aircraft’s hybrid-electric approach targets a different segment. By utilizing a hybrid system that recharges batteries in-flight, the Cavorite X7 offers a projected range of 800 kilometers (500 miles) and speeds of up to 450 km/h (280 mph).
This technical choice allows Horizon to bypass the immediate need for extensive ground charging infrastructure, a major bottleneck for pure electric eVTOLs. Furthermore, the ability to operate in “austere environments”, areas without prepared runways, makes the aircraft particularly viable for military and medevac applications, sectors where reliability and range often outweigh the benefits of zero-emission propulsion.
Horizon Aircraft is actively deepening relationships with supply chain partners to ensure the timely delivery of components for the full-scale prototype. The company is also exploring military applications for the Cavorite X7, leveraging its design suitability for rugged environments.
The company’s stock (NASDAQ: HOVR) has reflected the volatility typical of the emerging eVTOL sector, though the confirmation of a funded runway through 2026 provides a degree of certainty regarding the company’s ability to reach its next major technical milestone.
What is the Cavorite X7? When will the Cavorite X7 fly? How much cash does Horizon Aircraft have? What makes Horizon different from other eVTOL companies?
Horizon Aircraft Reports $24 Million Cash Position, Confirms 2026 Prototype Timeline
Financial Highlights and Liquidity
Operational Progress: The Cavorite X7
Prototype Timeline
AirPro News Analysis
Strategic Outlook
Frequently Asked Questions
The Cavorite X7 is a hybrid-electric Vertical Take-Off and Landing (eVTOL) aircraft being developed by Horizon Aircraft. It carries one pilot and six passengers and features a patented fan-in-wing design.
According to the company’s latest schedule, the full-scale prototype will be assembled in 2026, with initial flight testing slated to begin in early 2027.
As of November 30, 2025, the company reported $24 million in cash on hand.
Horizon focuses on regional transport rather than urban air taxis. Its hybrid-electric powertrain allows for longer ranges and removes the dependency on ground charging stations.
Sources
Photo Credit: Horizon Aircraft
Technology & Innovation
Airbus Consortium Demonstrates Flight-Ready Composite Recycling
Airbus and partners recycle thermoplastic composites from retired A380 parts into structural components for A320neo, advancing circular aviation.
In a significant step toward a circular aviation economy, a consortium led by Airbus has successfully demonstrated that high-value thermoplastic composite parts can be recycled from retired aircraft and repurposed into structural components for new jets. The project, titled “Recycled and Ready,” involved taking an end-of-life part from a retired A380 and manufacturing it into a flight-ready component for an A320neo.
According to the official announcement released on January 15, 2026, the initiative proves that aerospace composites, historically difficult to recycle without degrading their quality, can be retained within the aviation supply chain rather than being “downcycled” into lower-value products like filler or ground transport components.
The breakthrough was achieved through a partnership between Airbus, materials supplier Toray Advanced Composites, aerostructures manufacturer Daher, and dismantling specialist Tarmac Aerosave. The team’s efforts were recognized with a JEC Innovation Award in the “Circularity and Recycling” category.
The core achievement of the project was the successful conversion of a used engine pylon fairing cover (cowl) from a dismantled A380 into a structural panel for an A320neo pylon. This transition from a “superjumbo” part to a single-aisle component validates the industrial feasibility of reusing thermoplastic materials.
The project relied on the specific properties of the material used: Toray Cetex® TC1100, a carbon fiber reinforced Polyphenylene Sulfide (PPS) thermoplastic. Unlike traditional thermoset composites, which undergo a chemical change during curing that cannot be reversed, thermoplastics can be melted, reshaped, and reformed multiple times.
The project required precise coordination across the supply-chain, with each partner fulfilling a specific role:
This development addresses one of the aviation industry’s most persistent sustainability challenges: the disposal of carbon fiber composites. While metals like aluminum and titanium have recovery rates near 90%, composites have often ended up in landfills because separating the fibers from the resin is technically difficult and expensive.
Isabell Gradert, Airbus VP of Central Research and Technology, emphasized the importance of cross-industry collaboration in achieving this milestone:
“This recognition from the JEC shows how complex challenges, including high-value recycling, are best tackled through partnership. We exist in a complex aerospace supply chain in a hyper-connected world. If a company comes up with a solution on its own, that’s a great story. If an entire industry does it together, that’s transformative.”
, Isabell Gradert, Airbus VP Central Research and Technology
Scott Unger, CEO of Toray Advanced Composites, noted that the project opens the door for high-performance materials to be “meaningfully reused and reintegrated” into structural applications, rather than being discarded.
The Shift to Thermoplastics: This project underscores the strategic advantage of thermoplastic composites over traditional thermosets. While thermosets (like those used heavily on the Boeing 787 and early A350s) offer excellent strength-to-weight ratios, they are chemically “baked” and difficult to recycle. The success of the “Recycled and Ready” program suggests that future aircraft designs may increasingly favor thermoplastics to ensure end-of-life recyclability.
Supply Chain Resilience: Beyond sustainability, this approach offers a strategic benefit. By treating retired aircraft as “material mines,” manufacturers can reduce their dependence on virgin raw materials. With over 10,000 thermoplastic parts on a single A380, the potential inventory for recycled feedstock is substantial. This could help insulate manufacturers from price volatility and supply chain disruptions in the global carbon fiber market.
From Superjumbo to Single-Aisle: Airbus Consortium Proves “Closed-Loop” Composite Recycling is Flight-Ready
Closing the Loop: The Process
Consortium Roles
Industry Significance and Executive Commentary
AirPro News Analysis
Frequently Asked Questions
Sources
Photo Credit: Airbus
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