MUNICH - Lilium (NASDAQ: LILM), an electric aircraft manufacturer, has reaffirmed its delivery schedule for the first customer deliveries of its Lilium Jet in 2026, following a recent program review. The company, which is at the forefront of developing Regional Air Mobility (RAM) solutions, announced that the first manned flight of its Lilium Jet MSN 2 is now slated for early 2025.
The Munich-based firm is currently assembling the first two of its pioneering electric jets. The first aircraft, known as Lilium Jet MSN 1, will soon undergo ground testing, while the second is being prepared for its maiden manned flight next year. The production of a third aircraft will commence later this year, contributing to the certification flight test campaign scheduled for 2025.
Lilium is collaborating with FlightSafety International to create an engineering simulator that will aid in the type certification process. This simulator is expected to be delivered in early 2025. Additionally, Lilium is working closely with the European Union Aviation Safety Agency (EASA) and the Swiss Federal Office of Civil Aviation (FOCA) to develop a flight crew training simulator, an essential step towards the final development of training devices.
Klaus Roewe, CEO of Lilium, highlighted the company's progress, noting that the updated timeline for the first manned flight does not materially affect the original plan for customer deliveries or total program costs. He emphasized the company's ongoing efforts to ensure the highest safety standards and the ramp-up of production for test aircraft.
As part of its commitment to providing comprehensive operational support, Lilium is also expanding its POWER-ON support and services organization. The company has established partnerships for material services, ground support equipment, and charging stations, and is now focusing on digital solutions to support its customers.
This news comes amid industry-wide challenges, including supply chain constraints that have affected the delivery of certain flight-testing equipment, component parts, and software. Despite these challenges, Lilium maintains that there will be no significant impact on its program planning.
The announcement also teased the reveal of the 2026 launch location for the Lilium Jet with one of its customers by the end of the year.
This information is based on a press release statement from Lilium.
InvestingPro Insights
As Lilium (NASDAQ: LILM) forges ahead with its ambitious plans for the Lilium Jet, financial metrics and market sentiment offer additional insights into the company's position. According to InvestingPro data, Lilium holds a market capitalization of $628.24 million, reflecting the market's current valuation of the company. Despite this, the firm faces financial challenges, as indicated by a negative P/E ratio of -0.14 and an adjusted P/E ratio for the last twelve months as of Q4 2023 of -1.49, underscoring the company's lack of profitability during this period.
InvestingPro Tips reveal a mixed picture: Lilium is holding more cash than debt, which is a positive sign for liquidity and financial health. However, the company is quickly burning through its cash reserves, which raises concerns about its long-term financial sustainability.
Moreover, the stock has experienced significant volatility, which could be a point of caution for potential investors. It is important to note that analysts do not expect Lilium to be profitable this year, and the company does not pay dividends, which may affect investor decisions.
Despite these challenges, Lilium's stock has seen significant returns over the last week, month, and three months, with respective total price returns of 13.18%, 29.9%, and 15.12%. This recent performance may attract investors looking for short-term gains, though the company's long-term prospects remain uncertain.
For readers interested in deeper analysis and additional InvestingPro Tips on Lilium, including insights on valuation and price movements, visit https://www.investing.com/pro/LILM. There are 13 additional tips available that could help investors make more informed decisions. To access these insights, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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