Horizon Aircraft (NASDAQ:HOVR) reported second-quarter fiscal 2026 results Wednesday, detailing an aggressive scaling plan for its flagship hybrid-electric VTOL, the Cavorite X7.
The Lindsay, Ontario-based company confirmed that assembly of its first full-scale prototype is on track for completion this year, with initial integrated flight testing targeted for early 2027.
The aerospace firm enters the second half of its fiscal year with a strengthened balance sheet, reporting $24 million in cash on hand.
Management noted that this liquidity, bolstered by recent capital efforts, provides a sufficient runway to fund operations through the critical 2026 build phase.
Financial stability was further enhanced by a $10.5 million non-dilutive grant from Canada’s Initiative for Sustainable Aviation Technology (INSAT) for "Project CRYSTAL," a collaborative effort to develop all-weather vertical propulsion systems.
Elsewhere, Horizon is rapidly expanding its technical capacity to meet the demands of full-scale development.
The company has doubled its engineering headcount over the past year and announced plans to double it again by the end of 2026.
This hiring surge coincides with increased R&D spending as the firm moves from sub-scale demonstrator flights to industrial-grade manufacturing.
The Cavorite X7 differentiates itself through a hybrid-electric architecture that offers up to twice the speed and 75% lower operating costs than traditional helicopters.
Recent business updates highlighted growing interest from "hardcore operators" in the medevac and disaster relief sectors.
The aircraft's "fan-in-wing" technology—which protects rotors and reduces noise—has also drawn attention from the Canadian Air Force for potential special operations and ISR (Intelligence, Surveillance, and Reconnaissance) missions.
Horizon expects the Cavorite X7 to eventually achieve Flight Into Known Icing (FIKI) certification, a rare standard for modern VTOLs that would enable year-round reliability.