MUNICH - Lilium N.V. (NASDAQ:LILM), an electric aircraft manufacturer, announced today its plans to appoint Philippe Balducchi, current CFO of KNDS, as a non-executive member of its Board of Directors at the extraordinary general meeting (EGM) scheduled for September 18, 2024. Balducchi's nomination comes as non-executive directors Barry Engle and Henri Courpron opt not to seek re-appointment after their terms end.
Balducchi is known for his extensive experience in the aerospace sector, including a 20-year tenure at Airbus and its predecessor companies. His roles have spanned from CEO of Airbus Canada to CFO of Airbus North America. During his time at Airbus Canada, Balducchi was instrumental in the Bombardier (OTC:BDRBF) C-Series program, overseeing its rebranding to the Airbus A220 and the establishment of a new assembly line in Alabama. He is an aviation engineer with an MBA from HEC Paris Business School.
Lilium's Chairman, Tom Enders, praised Balducchi's strategic insights and financial acumen, citing his experience in managing large-scale operations as assets that will contribute to Lilium's board. Balducchi expressed enthusiasm for joining Lilium, noting the company's innovative vision for electric air mobility.
Engle, who has been on Lilium's Board since September 2021, played a significant role in the company's NASDAQ listing through a de-SPAC procedure and chaired the Audit Committee. His departure is due to an executive position that precludes his board involvement in Europe. Enders thanked both Engle and Courpron for their contributions to Lilium's growth from a startup to a mature aerospace entity.
Lilium, founded in 2015, focuses on sustainable and accessible high-speed regional transportation using the all-electric Lilium Jet. The company collaborates with leaders in aerospace, technology, and infrastructure and has indicated interest and sales across various global regions.
This announcement is based on a press release statement and does not constitute an endorsement of Lilium's claims. The company's forward-looking statements involve risks and uncertainties, and actual results may differ materially. Further details on these risks are available in Lilium's filings with the U.S. Securities and Exchange Commission.
In other recent news, electric aircraft manufacturer Lilium has made substantial progress in safety testing and strategic partnerships. The company has successfully completed the first phase of integration testing for the Lilium Jet's electrical power system, a crucial step towards obtaining flight conditions approval and type-certification. Moreover, Lilium has partnered with Groupe ADP to develop a network of vertiports, enhancing the Lilium network in France and establishing Paris as a key hub for regional electric aviation.
A strategic collaboration with the General Authority of Civil Aviation of Saudi Arabia aims to integrate electric Vertical Take-Off and Landing aircraft into Saudi Arabia's transportation and airspace systems by 2026. Financially, Lilium's Q1/24 cash burn increased by 53% due to payments made to aerospace suppliers, reaching €94.7 million. Despite this, the company secured $114 million in funding to support its operations and upcoming first manned flight test.
The company has reaffirmed its delivery schedule for the first customer deliveries of its Lilium Jet in 2026, following a recent program review. The first manned flight of its Lilium Jet MSN 2 is now slated for early 2025. According to Canaccord Genuity, Lilium's shares maintain a Buy rating, with the stock price target revised to $2.00. These are the latest developments for Lilium.
InvestingPro Insights
As Lilium N.V. (NASDAQ:LILM) prepares for changes in its Board of Directors, investors are closely monitoring the company's financial health and market performance. According to InvestingPro, Lilium holds more cash than debt on its balance sheet, which may offer some financial flexibility as the company continues to develop its electric aircraft. However, the company is also quickly burning through cash, which raises concerns about its long-term financial sustainability.
From the latest available data, Lilium's market capitalization stands at approximately $468.22 million. The company's Price / Book ratio as of the last twelve months ending with Q4 2023 is at a high 11.47, suggesting that the stock may be trading at a premium relative to its book value. This could be of particular interest to investors considering the stock's historical performance and current valuation.
Investors should note that Lilium has reported an operating loss of $299.67 million and an EBITDA of -$292.23 million over the last twelve months as of Q4 2023. These figures underscore the financial challenges the company faces, including weak gross profit margins and a lack of profitability over the last year.
With the stock price's significant decline over the past five years, including a 35.58% drop year-to-date, the volatility of Lilium's stock price remains a key consideration for potential investors. The InvestingPro platform lists additional tips, including the company's poor free cash flow yield and analysts' expectations that the company will not be profitable this year, which could further inform investment decisions.
Investors interested in a more comprehensive analysis can find a total of 12 InvestingPro Tips on https://www.investing.com/pro/LILM, providing deeper insights into Lilium's financial position and market prospects.
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