Overview

Horizon Aircraft (HOVR) is a unique opportunity into the future of military aviation. The company’s hybrid-electric Cavorite X7 eVTOL, which aims to be certified by 2027, combines stealth, range, and mission flexibility to disrupt the $50B+ military rotorcraft market. While competitors like Archer (ACHR) and Joby (JOBY) focus on urban air taxis, I see Horizon finding a promising market in defense, a sector with higher margins, longer procurement cycles, and fewer regulatory hurdles. With a market cap of $29M (as of May 2025) and no major contracts yet announced, Horizon offers a pre-revenue defense tech play. The global eVTOL market, projected to reach $30.5B by 2030, is ripe for disruption. Horizon’s focus on military applications and practicality positions it to capture a slice of the $30.5B+ global eVTOL segment, driven by military priorities like distributed operations and sustainability.

The Cavorite X7’s Technical Edge

The Cavorite X7 isn’t just another eVTOL. It’s built for both civilian and military purposes with revolutionary, patented technologies. With its hybrid-electric propulsion, Cavorite X7 achieved a range of over 500 miles with fuel reserves, far surpassing the 100–150 mile range typical of fully electric eVTOLs like Archer Midnight and Joby. This extended range is especially critical for military and regional missions in the Pacific region, where vast distances between bases and operational areas demand aircraft that can cover long stretches without refueling or recharging. The X7’s range allows it to support rapid troop deployment, medical evacuation, and ISR (intelligence, surveillance, reconnaissance) missions across dispersed island chains or remote territories, which are capabilities that are out of reach for most urban-focused eVTOLs. This makes the Cavorite X7 not just a viable alternative to helicopters, but an upgrade in mobility and range. Additionally, unlike fully electric eVTOLs that require ground-based charging infrastructure which is rare in itself, the Cavorite X7’s hybrid system allows it to recharge its batteries in flight using its onboard gas turbine generator. This functionality greatly improves its power flexibility, as it eliminates the need to rely on charging stations in areas without them. This means that the X7 can operate for extended periods, with rapid mission replays without charging downtimes. This not only improves military capabilities but also makes the aircraft better for disaster relief scenarios. Finally, the military also has commitments to sustainability as outlined in their 2030 goals. With the hybrid-electric design of the Cavorite X7, it allows up to 75% lower greenhouse gas emissions on a per-mile basis compared to traditional helicopters and aircrafts, attracting a potentially larger customer base, especially those that care a lot about ESG and a smoother transition into fully electric operations. 2. Fan-in-Wing Stealth The X7’s 14 shielded fans stow into wings during forward flight, providing a low acoustic signature. With X7’s 14 electric fans spinning near 5,000 RPM, a frequency in the lower range of human hearing, it enables quiet hover and low-altitude flight, which is ideal for covert military operations such as troop insertion, reconnaissance, or medical evacuation where minimizing acoustic detection is crucial. There is also reduced infrared profile, as by enclosing the fans within the wings, the X7 not only reduces noise but also limits its infrared (IR) signature. Exposed rotors on tilt-rotor aircraft like the MV-22 Osprey can emit heat from all the spinning components and motors, making them vulnerable to threats that can detect heat. In contrast, the X7’s shielded fans minimize external heat emissions, lowering the aircraft’s thermal signals which reduces the likelihood of danger in these precarious military scenarios. Lastly, there is the fan-in-wing system that allows the X7 to stow its lift fans and transition to a fixed-wing cruise configuration. This aerodynamic efficiency enables the aircraft to reach top speeds of 250 mph which rivals high-performance military helicopters like the AH-64 Apache. The result is rapid response capability over long distances, supporting a broad range of missions from ISR to high-speed logistics. Finally, the X7 has been designed for bad weather operations, including the potential for certification for Flight Into Known Icing (FIKI). If successful, this would be a standout capability in the VTOL space, and would enable significant operational flexibility.

The Global eVTOL Market: A $30.5B+ Opportunity by 2030.

The DoD’s 2024 budget allocated $145B for R&D, with “Advanced Air Mobility” prioritized. With this in mind, I believe that Horizon will dominate, as their aircrafts can operate from afar from a remote position (due to their enhanced range) and folding wings for transport, making it ideal for rapid and/or covert military operations. Additionally, with global defense spending at $2.7 trillion in 2024, it's important to consider the cost efficiency. With 75% lower direct operating costs per mile than helicopters and potentially up to 40% lower hangar costs due to reduced wingspan, the X7 is able to a potentially offer superior performance as well as be a cost efficient upgrade. As for potential applicable military purposes, Beijing’s A2/AD systems push U.S. assets farther from conflict zones which can be very limiting to Taiwan’s demands. The X7’s range can provide the military the defense it needs to guard against potential invasions.

Horizon vs. eVTOL Peers Horizon’s design choices create stark differentiation:

Risks

Horizon is pre-revenue, as they have not brought the product to market yet. They are still experimenting and will be having a pilot fly their plane in the next stage compared to remote control. Additionally, they have yet to receive regulatory approval, and with many associated hurdles, it could delay them more than the management team expects. Finally, there are also risks of share dilution, as the company may need to continue offering shares in order to fund their development.

Takeaway

I believe that Horizon Aircraft is betting that the “quiet, long-range, and cheap” that its aircraft stands for will define next-gen military aviation and they might be right. The Cavorite X7’s recent successful wing transition test (May 2025) have reduced technical and financial risks that put it into the next stage of testing and certification. With growing military interest and engagement, with the AFWERX engagement and Phil Kelly’s leadership (ex-Royal Navy), the X7 is poised for exclusive government contracts that can easily put the company at higher valuations. While the stock isn’t without risks, I believe that risk-tolerant investors should look into accumulating shares ahead of potential 2025 DoD contract wins. As CEO Brandon Robinson noted: “We’re bridging the gap between traditional aircraft and emerging platforms, offering capabilities previously unimaginable.”

Now that’s a great vision. 

Disclosure: At the time of this publication members affiliated with Marksman Research own stock, options or other interest in HOVR