Vertical Aerospace Locks in Astronics Deal as Valo Supply Chain Takes Shape

Vertical Aerospace has added another established aerospace name to its roster of partners. The British company signed a long-term agreement with Astronics Corporation to supply the low-voltage power distribution system for its Valo electric vertical take-off and landing aircraft. The move comes as Vertical pushes toward a critical design review and eyes type certification in 2028.

Astronics will provide power conversion and distribution hardware. This equipment takes high-voltage power from the propulsion batteries and steps it down for use by avionics, flight controls, navigation and other essential systems. The setup includes fault protection to keep everything running even if problems arise. Hardware from Astronics already flies aboard Vertical’s piloted test aircraft. That early integration gives engineers real data and reduces surprises later.

The Motley Fool highlighted how the pact helps de-risk Vertical’s plans. It joins existing agreements with Honeywell for flight controls, Hyundai WIA for landing gear, Aciturri for the airframe, Evolito for propulsion, Syensqo for materials and Isoclima for transparencies. The supplier list now looks more like that of a traditional aircraft maker than a scrappy startup.

Stuart Simpson, chief executive of Vertical, put the deal in context. “Building a certifiable aircraft requires not only breakthrough technology, but also a world-class supplier ecosystem,” he said in the official announcement. “Astronics brings deep expertise in aircraft electrical power systems and has already demonstrated its capabilities through our flight test programme. This agreement is another important step as we mature Valo’s design, strengthen our supply chain and advance toward certification and commercial production.”

Jon Neal, president of Astronics Advanced Electronic Systems, sounded equally pleased. “Astronics is proud to be working with Vertical Aerospace as the supplier of their power distribution system for the Valo aircraft. Our CorePower system is purpose-built for eVTOL applications, combining high-voltage power conversion with low-voltage power distribution delivering reliable, fault-protected power to flight-critical systems including avionics, flight controls, and navigation.” He added that the system was designed to meet aerospace certification standards from the start. The result is a lightweight, compact solution that cuts integration risk.

But. The financial picture remains challenging. Vertical holds about 1,500 pre-orders for Valo from customers that include American Airlines, Avolon, Bristow and Japan Airlines. Those commitments point to strong interest. Delivery, however, sits years away. Analyst consensus points to the company burning cash until at least 2032 before it turns a profit. Share count is projected to swell from 157 million this year to 373 million by 2032 as the firm raises more capital. Dilution will test investor patience.

Short-term liquidity looks solid for now. In April Vertical closed a comprehensive financing package of up to $850 million arranged with Yorkville Advisors and Mudrick Capital. The deal includes convertible notes, preferred equity and an equity line of credit. Roughly $160 million in working capital is available, with $30 million drawn initially. That runway should cover the next 12 months at current spending rates. Business Wire detailed the terms when the financing closed.

Progress on the aircraft itself has been tangible. In April Vertical achieved full-scale piloted two-way transition flight. The milestone validated the design and marked a major technical step. Simpson called it “a historic technical milestone that validates our product design and represents a major de-risk moment for Vertical.” The company now aims for critical design review, public demonstrations, production of the first certification-standard Valo aircraft and eventual entry into service on routes such as Canary Wharf to Heathrow or JFK to Manhattan.

Certification carries risk. In May Simpson told analysts that the later-than-planned transition flight added pressure to the schedule. The late-2028 target remains the goal, he said, but it sits “under additional risk.” Vertical lacks the double teams that larger rivals can deploy to recover lost time. Still, Simpson insisted 2028 is “absolutely do-able.” FlightGlobal reported those comments in detail.

Recent coverage shows the market’s mixed reaction. Shares traded around $1.85 after the Astronics news, giving the company a market capitalization near $236 million. That valuation reflects both excitement over the technology and worry about the long road to revenue. Zag Daily noted the addition of Astronics to a supplier base that already spans Europe, Asia and the United States. The publication pointed to Vertical’s second full-scale prototype and plans to begin pre-production assembly after critical design review.

Industry watchers on X reacted quickly to the announcement. The official Vertical Aerospace account posted details of the partnership, drawing comments that praised the choice of an established electrical systems specialist. HeliHub and other aviation accounts amplified the news, underscoring how the low-voltage architecture supports safe, certifiable operation. No major new orders or regulatory updates appeared in the immediate aftermath. The focus stayed on steady supply-chain building.

Valo itself represents a shift from Vertical’s earlier VX4 demonstrator. The newer design targets 100 miles of range at speeds up to 150 miles per hour while carrying passengers in a zero-emission package. Four tilting rotors and a quiet profile suit it for urban air mobility routes. Success hinges on hitting certification standards that regulators have yet to fully define for this category of aircraft. Every supplier agreement therefore carries extra weight. It signals that major aerospace firms see a viable path forward.

Vertical has avoided over-promising. Its roadmap lists concrete milestones between now and 2028: complete critical design review, fly public demonstrations, finish a hybrid-electric test vehicle, expand the energy center, break ground on manufacturing facilities and build the first production-representative aircraft. Each step will demand cash. The $850 million facility buys time. But further raises seem inevitable. Investors who buy today are betting that pre-order momentum, technical progress and an expanding partner list will translate into commercial flights before the decade ends.

So the Astronics agreement matters. It is not flashy. Power distribution rarely makes headlines. Yet without reliable, certifiable electrical architecture the entire vehicle stays grounded. By choosing a supplier already proven in its flight tests, Vertical has taken one more variable off the table. The real test will come in the critical design review and the flight campaign that follows. If those go well, Valo could move from prototype to production aircraft faster than skeptics expect. If delays mount, the cash runway will shrink and dilution will intensify.

For now the pieces are falling into place. A growing list of tier-one suppliers. Fresh capital. Tangible flight achievements. And a clear, if challenging, timeline to certification. The stock carries high risk. Patient capital is required. But the latest supplier pact shows Vertical is executing the unglamorous work that turns ambitious concepts into aircraft that airlines can actually fly.