FARNBOROUGH, United Kingdom - A strategic partnership between Groupe ADP and Lilium N.V. (NASDAQ: LILM), an electric aircraft manufacturer, has been announced to establish infrastructure for the Lilium Jet, an all-electric vertical take-off and landing (eVTOL) aircraft. This collaboration aims to accelerate the development of Advanced Air Mobility (AAM) by creating a network of vertiports across Europe, the Middle East, and Asia.
Groupe ADP, which operates a global network of 23 airports, including all three Paris airports, as well as key locations in the Kingdom of Saudi Arabia, Turkey, and India, plans to integrate vertiports into its existing infrastructure. These vertiports will provide crucial support for the Lilium Jet, which is expected to begin commercial operations in 2026.
Sebastien Borel, CCO of Lilium, expressed confidence that France will be among the first countries to witness eVTOL flights, with this partnership significantly advancing that prospect. Edward Arkwright, Deputy CEO of Groupe ADP, shared the company’s enthusiasm for pioneering AAM infrastructure development on a global scale.
In the Paris region, comprehensive vertiports are being developed at Paris-Charles de Gaulle and Paris-Le Bourget Airports, with a temporary site also planned in central Paris for 2024. These facilities are set to enhance the Lilium network in France and establish Paris as a key hub for regional electric aviation.
The Lilium Jet is designed to provide high-speed, regional transportation with zero operating emissions, contributing to the decarbonization of air travel. Lilium has already indicated interest and announced sales in various global markets, including Europe, the United States, China, Brazil, the UK, the United Arab Emirates, and the Kingdom of Saudi Arabia.
Groupe ADP's 2023 performance included managing nearly 336.4 million passengers internationally, with group revenue reaching €5,495 million and net income at €631 million.
Lilium N.V., the electric aircraft manufacturer, has been navigating significant developments. The company has partnered with the General Authority of Civil Aviation of Saudi Arabia to integrate electric Vertical Take-Off and Landing (eVTOL) aircraft into the country's transportation and airspace systems by 2026. As part of this collaboration, a joint Working Group will be formed to draft regulations for eVTOL operations.
The company has also completed a major test of its electric jet propulsion unit, marking a significant step towards its goal of zero-emission regional air mobility. Lilium's Q1/24 cash burn increased by 53% due to payments made to aerospace suppliers, reaching €94.7 million. Despite this, Lilium secured $114 million in funding to support its operations and upcoming first manned flight test.
Canaccord Genuity maintained its Buy rating on Lilium's shares, revising the stock price target to $2.00. The company also established its Asia-Pacific regional headquarters in China's Bao'an District, signaling plans to penetrate the Chinese and Asia-Pacific markets. In addition, Lilium partnered with UrbanV and Aéroports de la Côte d’Azur to establish a network of vertiports across the French Riviera by 2026.
InvestingPro Insights
Lilium N.V. (NASDAQ: LILM) is at the forefront of electric aircraft innovation, with their latest strategic partnership marking a significant step towards the future of Advanced Air Mobility (AAM). As the company prepares for the anticipated commercial launch of the Lilium Jet in 2026, a closer look at some key financial metrics and insights can provide a clearer picture of Lilium's current market position.
InvestingPro data highlights that Lilium holds a market capitalization of $569.05 million, reflecting investor recognition of its potential in the eVTOL space. However, the company's financials show a negative P/E ratio of -0.18, with an adjusted P/E ratio for the last twelve months as of Q4 2023 standing at -1.35, which indicates that the company is not currently profitable.
Additionally, with a high Price/Book ratio of 14.15, Lilium's stock is trading at a premium relative to the book value of its assets. This could be interpreted as the market pricing in the high growth potential of the company despite its lack of current profitability. The InvestingPro data also reveals a 20.08% return over the last month, suggesting a recent upswing in investor sentiment.
Two InvestingPro Tips that stand out for Lilium are the company's position of holding more cash than debt on its balance sheet, which is a positive sign for financial stability, and the fact that analysts do not anticipate the company will be profitable this year. The latter is especially relevant for investors who may be weighing short-term risks against long-term growth prospects.
For those interested in deeper analysis, InvestingPro offers additional tips for Lilium N.V., including insights on the company's cash burn rate and its ability to meet short-term obligations. Readers can access these valuable tips and more by visiting https://www.investing.com/pro/LILM and using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. With a total of 12 additional InvestingPro Tips available, investors can gain a comprehensive understanding of Lilium's financial health and market potential.
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