Archer Aviation’s Stock (ACHR) Consolidating Ahead of Earnings: What To Expect Next

Archer Aviation Inc. (NYSE: ACHR), a leading player in the burgeoning electric vertical takeoff and landing (eVTOL) industry, finds itself at a critical juncture. The markets are bracing for the company's Q2 2025 earnings report, scheduled to be released before the market opens today.

Analysts project that Archer Aviation will report a reduced loss for the current quarter ending June 2025, with an average earnings per share (EPS) estimate of -$0.18, an improvement from -$0.27 in the same quarter last year. This suggests expectations of narrowing losses, reflecting potential progress in cost management or business development as the company advances its operations.

Archer has been proactive in forging strategic partnerships to bolster its technological capabilities and expand its market reach. The March 2025 collaboration with Palantir Technologies to integrate AI into its manufacturing processes initially sparked market enthusiasm, leading to a 5% intraday surge.

Similarly, the partnership with KakaoMobility in South Korea to commercialize eVTOL services generated positive buzz, promising access to a vast user base of 30 million app users. The memorandum of understanding with Southwest Airlines to develop operational plans for electric air taxi networks at California airports further solidified Archer's commitment to integrating its services into existing transportation infrastructure.

However, the $850 million stock offering in June 2025, priced at $10 per share, triggered a 15% stock decline due to concerns over share dilution. While the funds are earmarked for crucial infrastructure development and the rollout of an AI-based aviation software platform, the immediate impact on shareholder value was undeniably negative.

While the prevailing narrative surrounding Archer Aviation is largely optimistic, the eVTOL industry is still nascent, fraught with technological challenges, regulatory hurdles, and significant capital requirements.

While Archer has made impressive strides, the path to profitability remains uncertain and the share price has been catching up with analysts. The company is still burning cash, and reliance on future funding rounds could further dilute shareholder value.

Furthermore, the practical challenges of integrating eVTOLs into existing transportation infrastructure shouldn't be underestimated. Air traffic control, noise pollution, and public acceptance are all significant hurdles that must be overcome.

The current consolidation under $10 suggests that markets are adopting a wait-and-see approach ahead of the earnings release. Options markets are pricing a ~7% move in ACHR off the back of the print, one which could dictate the next leg.