Archer Aviation Stocks Soar After Acquiring Boeing Subsidiaries and Beating Earnings Expectations

Archer Aviation (ACHR) stock surged by 12% on Monday after announcing a major deal with Boeing. As part of the agreement, Archer will acquire three Boeing subsidiaries: Wisk Aero, SkyGrid, and Insitu. The latter already generates over $200 million in annual revenue and operates in 35 countries.

The deal also includes Boeing taking a nearly 20% stake in Archer as part of the agreement. In addition to this acquisition, Archer's Midnight air taxi continues to move through the FAA certification process, having completed Phase 3 in April and now proceeding to Phase 4.

Archer reported Q2 earnings that beat revenue expectations at $5 million, while EPS matched forecasts at -$0.34. The company also unveiled two new aircraft, Halo and Thunder, built on an autonomous hybrid VTOL platform.

However, rising costs remain a concern for Archer, with operating expenses climbing to $284.2 million in Q2. Management guided for an adjusted EBITDA loss of $170 million to $200 million in Q3.