Vertical Aerospace Locks In Northrop Grumman and ANH Structure as Valo eVTOL Suppliers

Vertical Aerospace Ltd. (NYSE: EVTL) said Friday that it has signed long-term supplier agreements with South Korea’s ANH Structure and Germany’s Northrop Grumman LITEF for its Valo electric vertical takeoff and landing (eVTOL) aircraft. ANH Structure will build Valo’s seating system, and Northrop Grumman LITEF will supply its inertial navigation hardware. Shares opened about 9% higher at $0.445 but gave back most of the gain. By late morning they traded near $0.41, roughly flat on the day, on volume of about 8.6 million shares, more than three times the daily average.

Key Points

• ANH Structure will design, develop, certify and manufacture Valo’s pilot and passenger seating system.
• Northrop Grumman LITEF will supply its LCR-110 inertial reference system, which feeds position, attitude and heading data to flight-critical systems.
• The two companies join Honeywell Aerospace, Hyundai WIA, Sonaca and others in Valo’s supply chain.
• Vertical holds about 1,500 Valo pre-orders from customers including American Airlines, Japan Airlines and Avolon.

Vertical Aerospace (NYSE: EVTL) Adds Certified Partners to Valo’s Supply Chain

Both suppliers bring certification experience, which matters for a company working toward aircraft approval. ANH Structure, based in Jinju, South Korea, holds EASA design and production approvals. It will supply one common seating platform for pilot, observer and passenger seats, built with its lightweight, 30G energy-absorbing technology. ANH will support the program from detailed design through certification and serial production.

Northrop Grumman LITEF, based in Freiburg, Germany, will provide its LCR-110 inertial reference system. The unit is already approved under applicable EASA and FAA standards, which could ease Valo’s path to certification.

“Valo is progressing from an advanced design into an aircraft,” said Vertical CEO Stuart Simpson.

One Platform, Multiple Markets

Valo is a piloted, four-passenger eVTOL with zero operating emissions. Vertical is also developing a hybrid-electric version for longer range. The company’s “one platform” strategy covers four- and six-passenger cabins plus electric, hybrid-electric and autonomous variants for both commercial and defense customers. By sharing common systems such as seats and navigation across variants, Vertical aims to simplify certification, manufacturing and support.

Vertical Aerospace (NYSE: EVTL) Still Faces Funding and Listing Pressures

The supplier wins come at a difficult time for the stock, which helps explain why the early pop faded. Vertical is pre-revenue and trades well below $1 a share. In September, it hired Jefferies to review strategic alternatives. On October 2, it received a continued listing notice from the NYSE. Friday’s release did not include an update on cash or funding, and Vertical gave no new certification timeline.

Even so, the deals show that major aerospace suppliers are still committing to the Valo program. Vertical is a member of the PRISM Aerospace and Defense Index and has a market value of about $69 million.