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Should You Buy, Hold, or Sell Archer Aviation Stock Ahead of Q2 Earnings?

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Key Takeaways

  • Archer Aviation will report Q2 results on Aug. 11, with EPS seen improving from last year's loss.
  • New partnerships in UAE and Indonesia aim to expand its Midnight aircraft launch program.
  • Strong liquidity from an $850M equity raise likely boost its Q2 balance sheet.

Archer Aviation Inc. ((ACHR - Free Report) ) is slated to report second-quarter 2025 results on Aug. 11, 2025, after market close.

The Zacks Consensus Estimate for earnings is pegged at a loss of 19 cents per share, suggesting an improvement from a loss of 24 cents in the prior-year quarter. The bottom-line estimate has improved over the past 60 days.

Zacks Investment Research
Image Source: Zacks Investment Research

Archer Aviation’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, met once and missed in the other, the average negative surprise being 10.86%.

Zacks Investment Research
Image Source: Zacks Investment Research

Earnings Whispers

Our proven model predicts an earnings beat for ACHR this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Archer Aviation has a Zacks Rank #3 and an Earnings ESP of +2.70%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Factors to Consider Ahead of ACHR’s Q2 Earnings Release

In June 2025, Archer Aviation announced a strategic partnership with Jetex, a global aviation services provider, to develop infrastructure across Jetex’s 40 private terminals in over 30 countries, starting with the UAE. The collaboration builds on Archer’s existing infrastructure partnerships, aiming to expand a global vertiport network to support its planned commercial air taxi operations and future international growth. In June, Archer Aviation also signed an agreement with PT. IKN to deploy an initial fleet of Midnight aircraft in Indonesia, making it the third country where it plans to deploy Midnight under its “Launch Edition” program.

Such strategic agreements might have contributed favorably to ACHR’s second-quarter performance.

With the company continuing to invest in its engineering, manufacturing and commercial activities for the Midnight aircraft, it is likely to have incurred notable expenses for the program’s development. This, along with an increase in labor and materials spent due to its planned ramp of manufacturing activity for the Midnight aircraft, is likely to have increased Archer Aviation’s operating expenses, thereby weighing on its quarterly earnings performance.

However, ACHR’s technological advancement over the past few quarters while developing the Midnight jet is likely to have provided it with operational efficiency, aiding its quarterly bottom line.

The company’s quarterly results are also likely to reflect a strong cash balance account, particularly driven by the proceeds from its equity raise worth $850 million, following the White House’s announcement of an Executive Order by President Trump to implement an eVTOL Integration Pilot Program in the United States in June. This, in turn, must have brought its total liquidity position to approximately $2 billion, which should be duly reflected in its second-quarter balance sheet on Aug. 11.

Price Performance & Valuation

ACHR’s shares recently exhibited a downward trend, having lost a notable percentage in the past six months. Specifically, the stock fell 3.9% in the said period, underperforming the Zacks aerospace-defense industry’s gain of 19.7%. It also lagged the broader Zacks Aerospace sector’s return of 19.9% as well as the S&P 500’s rise of 4.4%.

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Image Source: Zacks Investment Research

Other notable stocks from the same industry have, however, gained in the past six months. Shares of Embraer ((ERJ - Free Report) ) and Boeing ((BA - Free Report) ) have rallied 37.8% and 25.9%, respectively, over the past year.

In terms of valuation, ACHR’s trailing price/book (P/B) ratio of 5.32 represents a discount to the industry average of 6.22.

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Image Source: Zacks Investment Research

Investment Thesis

ACHR offers promising near-term prospects, but whether its business will be sustainable in the long run remains uncertain. This is because the eVTOL aircraft market is still in its early stages, and ACHR's success depends not only on its ability to design, develop and certify eVTOL aircraft but also on how the demand for these vehicles evolves.

Public acceptance of eVTOLs as an alternative to traditional transport methods could face hurdles related to safety, noise and affordability concerns. Without widespread recognition, ACHR's growth potential may be constrained.

Additionally, ACHR and other aerospace manufacturers like BA and ERJ are navigating industry challenges, including persistent supply-chain disruptions and a shortage of skilled labor. Such factors could hinder ACHR’s ability to complete its projects on time.

Moreover, a quick glance at the company’s return on equity (ROE) over the past year compared to that of its industry reveals a dismal scenario. ACHR’s negative ROE indicates that it is incurring a loss, as evident from its recent quarterly results.

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Image Source: Zacks Investment Research

Should You Buy ACHR Before Aug. 11?

To conclude, ACHR is less likely to disappoint with its second-quarter results, considering its favorable Zacks Rank, positive Earnings ESP as well as improvement in its bottom-line estimate over the past 60 days. However, investors interested in this stock may consider staying on the sidelines before Monday, taking into account its poor ROE, dismal performance at the bourses as well as industry challenges.
 


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