Al Root

Archer Aviation offered investors two positive pieces of news along with its financial results, and that was enough to boost the stock by double digits.

The company is getting close to entering commercial service with its quiet, battery-powered vertical takeoff and landing aircraft. And it is also now working with Palantir Technologies.

Archer stock was up almost 23% in early trading at $11.14 a share, while the S&P 500 was up 0.7%. The Dow Jones Industrial Average slid 0.3%.

The move came after the company reported first-quarter numbers on Monday evening. While Archer doesn't generate sales yet -- it is still working on certifying its Midnight aircraft for service -- operating expenses for the quarter were $144 million. The company ended the period with more than $1 billion on its balance sheet.

The company is on track to launch its Midnight eVTOL in the Middle East this summer. Abu Dhabi Aviation is an early customer. The company also said it was working with Palantir on AI for aviation.

"In the US, [Archer's] Midnight FAA certification continues to move forward with recent favorable standard clarifications," wrote Benchmark analyst Josh Sullivan in a Tuesday report. He rates shares Buy and has a target of $12 for the price. "We believe the Defense Tech partnership with Anduril is shaping up to be one of the largest opportunities at the company.

Archer and Anduril, a defense start-up, disclosed plans to develop a military eVTOL in December.

Investors look pleased with the progress. "Archer's pushing the boundaries of what's possible and reshaping the future of aviation for years to come," said CEO Adam Goldstein in a news release. "This quarter, the team made strong progress across our civil and defense efforts as we continue to deepen our strategic partner relationships and prepare for commercialization in the UAE later this year."

Write to Al Root at allen.root@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

May 13, 2025 12:14 ET (16:14 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.