Archer Aviation (NYSE:ACHR) said it has entered agreements to acquire Boeing-owned Wisk Aero, Insitu and SkyGrid in an all-stock transaction that is expected to close by the end of the year, broadening its operations beyond electric air taxis into unmanned aircraft systems, aviation artificial intelligence and autonomous-flight technology.
Founder and CEO Adam Goldstein characterized the transaction as an “important inflection point” for Archer, saying the acquisitions would support its strategy to build a diversified aerospace and defense platform. Boeing will receive a strategic equity stake in Archer, subject to a lockup, while the companies plan to collaborate on aviation autonomy, flight controls and other technologies.
Boeing Assets Add Revenue, Autonomy Capabilities
Wisk brings engineers and technology focused on autonomous flight, flight controls and sensors, according to Archer. Goldstein said Archer sees an opportunity to use Wisk’s technology initially on its Halo Thunder aircraft platform before incorporating it into future air-taxi iterations when the Federal Aviation Administration is prepared to certify autonomy.
Insitu, an intelligence, surveillance and reconnaissance drone manufacturer, is profitable and generates more than $200 million in annual revenue across 35 countries, Goldstein said. The company has built more than 4,000 Group 2 and Group 3 unmanned aircraft systems that have accumulated nearly 2 million autonomous flight hours.
Archer expects Insitu to provide an immediate revenue base and positive free cash flow after the transaction closes. Goldstein said the company plans to focus first on growing Insitu’s existing product portfolio and increasing manufacturing of the Group 2, Group 3 and Group 4 drones it produces.
SkyGrid is expected to complement Archer’s ZEE aviation-specific foundation model, which uses data including ADS-B, air traffic control communications, maps, aircraft movements, terrain and weather. Archer said it believes the combined technologies could support a next-generation air-traffic-management product.
Maintaining Focus on Midnight and Halo Thunder
Goldstein said Archer’s Midnight air-taxi program remains central to the company’s strategy. During the quarter, Archer flew piloted aircraft almost daily, at times conducting multiple flights per day, including piloted vertical takeoff and landing and conventional takeoff and landing tests as well as its first intercity flights in California.
The company expects to begin flying in the Los Angeles area from Hawthorne Airport over the next several months. It also plans to begin operations later this year in Texas under the White House’s eIPP program, initially using conventional takeoff and landing operations.
Archer said it remains in the fourth and final phase of FAA type certification for Midnight and has a fully accepted means of compliance. The FAA approved Archer’s quality management system during the quarter, enabling FAA creditable conformity findings across the aircraft, components and systems. The company said it is working with the agency on for-credit testing this year.
Meanwhile, Archer is developing its Halo Thunder platform with defense technology company Anduril. Chief Technology Officer Tom Muniz said the clean-sheet hybrid aircraft is designed to carry heavier payloads farther and faster than Midnight. While it uses certain building blocks from the Midnight program, including battery, electric-motor and flight-control technologies, the hybrid system is a new element intended to expand range, speed and payload capabilities.
- Archer targets a first flight for Halo Thunder next year.
- The company is working toward customer deliveries in 2029 and scaling production beginning in 2030.
- Halo is the base aircraft platform, while Anduril is expected to missionize Thunder for defense applications.
Goldstein said the civilian Halo platform could serve uses such as search and rescue and offshore energy, where customers need longer range and greater payload capacity than Midnight provides. Archer has previously identified Marubeni as an early customer for the platform.
Financial Results and Spending Outlook
Interim CFO Priya Gupta reported $1.6 billion in liquidity at the end of the second quarter. Revenue reached $5 million, up 213% from the prior quarter, driven by expanded operations at Hawthorne Airport, according to the company.
Adjusted EBITDA was a loss of $177 million, toward the lower end of Archer’s previous guidance range of a $170 million to $200 million loss. Archer expects its third-quarter adjusted EBITDA loss to remain within that same range as it advances Midnight flight testing, eIPP operations, Halo development and aviation AI products.
Gupta said Archer aims to keep cash burn relatively flat after the planned acquisitions close and through integration. The company expects its AI products to generate revenue and reach profitability as early as next year, with potential for a more significant ramp in the second half of 2027 and beyond.
Goldstein said defense programs may offer faster deployment and revenue opportunities than passenger-carrying aircraft, but emphasized that Archer has not shifted its focus away from the commercial air-taxi market. “Midnight is core to our platform here at Archer,” he said, while adding that Insitu’s revenue and cash flow could help bridge Archer’s path toward profitability.
About Archer Aviation (NYSE:ACHR)
Archer Aviation, Inc (NYSE: ACHR) is a California-based aerospace company developing electric vertical takeoff and landing (eVTOL) aircraft designed to serve as sustainable urban air mobility solutions. Founded in 2018 by Adam Goldstein and Brett Adcock, Archer focuses on the design, development and certification of zero-emissions air taxis aimed at reducing traffic congestion in densely populated metropolitan areas. The company’s flagship prototypes, “Maker” and “Midnight,” have been engineered to deliver quiet, efficient short-haul flights with ranges of up to 100 miles per charge.
Headquartered in Palo Alto, California, Archer operates a manufacturing facility in nearby Santa Cruz County and maintains research partnerships with automotive and energy companies, including a collaboration with Stellantis to integrate advanced battery systems.
