EHang Withdraws 2026 Guidance After Second-Quarter Revenue Miss

EHang Holdings (NASDAQ:EH) reported mixed second-quarter results on Tuesday, delivering a stronger-than-expected earnings performance but falling short of revenue forecasts as regulatory caution weighed on China’s low-altitude aviation industry.

The market reaction was muted, with EHang shares edging just 0.58% higher in pre-market trading following the announcement.

Adjusted earnings per share came in at RMB0.38, comfortably ahead of analysts’ estimate for a loss of RMB0.72 per share. Revenue, however, reached RMB77.9 million, missing the consensus forecast of RMB132.96 million and falling 31.3% from RMB113.3 million in the second quarter of 2025.

Sequentially, the picture was considerably stronger, with revenue rising 203.5% from RMB25.7 million in the first quarter of 2026.

eVTOL Deliveries Recover From First Quarter

EHang delivered 36 electric vertical take-off and landing aircraft during the quarter. That represented a decline from 52 units in the corresponding period last year but a substantial improvement from just four aircraft delivered during the first quarter.

Despite the sequential recovery, the company withdrew its previous full-year 2026 revenue guidance of RMB600 million and did not issue a replacement forecast.

Management attributed the decision to increased regulatory caution following a major light-sport aircraft accident in China in late June. The incident has slowed the approval process for passenger commercial operations in some regions.

“We see this as a temporary adjustment in industry pace, not a change in market demand, our technology foundation or long-term direction,” said Huazhi Hu, Founder, Chairman and CEO. “We are therefore focused on three priorities: refining replicable flight operational models in China while accelerating capability deployment overseas; diversifying revenue through logistics, firefighting and aerial media while keeping passenger transportation at the core; and improving efficiency.”

Operating Loss Widens Despite Stable Gross Margin

EHang recorded an adjusted operating loss of RMB62.0 million for the quarter, widening from a loss of RMB23.9 million in the same period of 2025.

Gross margin remained broadly resilient at 61.2%, compared with 61.5% a year earlier, despite the decline in annual revenue.

The company ended June with cash and investment balances totalling RMB929.4 million, providing liquidity as it continues developing its commercial operations and pursuing regulatory approvals.

EHang Pushes Ahead With International Expansion

While regulatory conditions have slowed the development of passenger operations in parts of China, EHang continues to pursue opportunities outside its domestic market.

The company is progressing its Global Fast Track Program alongside regulatory sandbox initiatives in Thailand and Hong Kong, with the aim of accelerating entry into overseas markets.

EHang is also seeking to broaden its revenue base through applications including logistics, firefighting and aerial media, while maintaining passenger transportation as the central focus of its longer-term eVTOL strategy.

The withdrawal of full-year guidance introduces greater uncertainty over EHang’s near-term growth trajectory, although the sharp sequential improvement in revenue and aircraft deliveries points to a recovery from the particularly weak first quarter.

EHang Holdings stock price