Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Income Taxes | |
| Income Taxes |
The Company calculates its income tax expense using the annual effective tax rate (“AETR”) methodology, under which interim income tax expense is determined by applying the estimated annual effective tax rate to year‑to‑date pre‑tax income, adjusted for discrete items, if any, in accordance with ASC 740‑270.
Beginning in fiscal year 2026 and for all periods thereafter, the Company prepares its income tax calculations on a stand‑alone basis, as it no longer files, nor is it included in, a consolidated income tax return with Embraer. Following the 2025 Registered Direct Offering, Embraer’s ownership decreased to less than 80% of the Company’s outstanding common stock, which, pursuant to U.S. tax law, resulted in the Company’s tax deconsolidation from EAH. For tax year 2025, the Company will file a short‑period tax return for the period subsequent to deconsolidation, covering the period from August 15, 2025 through December 31, 2025.
As a result, the Company now files separate income tax returns, inclusive of EVE UAM LLC and EVE Soluções de Mobilidade Aérea Urbana Ltda., both of which are treated as disregarded entities for U.S. federal income tax purposes.
For the three months ended June 30, 2026 and 2025, the Company recognized income tax benefit of $2.9 million and income tax expense $0.4 million, respectively. For the six months ended June 30, 2026 and 2025, the Company recognized income tax benefits of $2.8 million and $0.1 million, respectively. |