Our investment thesis in Horizon Aircraft assumes that the company will strengthen its financial position and steadily increase R&D expenditures. The company achieved both of these goals with ease in the current quarter while controlling G&A expenses. Horizon's management alluded to potential strategic partnerships that could develop in 2026. While no specifics were provided, we believe that these potential partnerships will be the key drivers of returns for investors in the near term. Most of the publicly traded eVTOLs have underperformed the broader market over the past three months, but we anticipate renewed enthusiasm for the sector as market leaders Joby, Beta, and Archer move closer to type certification in the US.
