Embraer Stock Price, News & Analysis

Embraer (NYSE: ERJ) has successfully completed the Critical Design Review for Hungary's KC-390 Millennium aircraft and initiated production at its Gavião Peixoto facility. This marks a significant milestone following Hungary's contract for two aircraft to enhance its Defence Forces' capabilities. The KC-390, featuring the first-ever Intensive Care Unit in its configuration, is designed for various military and civilian missions. The aircraft aligns with NATO requirements and boasts advanced technology for improved performance and reduced lifecycle costs. The first delivery is expected in 2024.

Embraer's Eve Urban Air Mobility Solutions and Widerøe Zero signed a Memorandum of Understanding to advance eVTOL operations in Scandinavia. The partnership, rooted in a previous order for E190-E2 jets, aims to develop sustainable Urban Air Mobility solutions, enhancing connectivity in sparsely populated regions. Widerøe Zero will assist in market readiness and operational studies for the eVTOL market. Eve seeks to contribute to eliminating greenhouse gas emissions by 2050 through innovative eVTOL designs. This collaboration highlights a significant step towards eco-friendly transportation solutions.

Embraer (NYSE: ERJ) unveiled the Energia family of concept aircraft, part of its Sustainability in Action initiative, aiming for net zero carbon emissions by 2050. This family includes four aircraft with varying propulsion technologies: hybrid-electric, fully electric, hydrogen fuel cell, and hydrogen gas turbine. Each design targets significant CO₂ emissions reductions, with technology readiness set between 2030 and 2040. The company has already been testing sustainable aviation fuel and aims for all aircraft to be SAF-compatible by 2030.

On November 8, 2021, Embraer (NYSE: ERJ) announced participation in the public event Sustainability in Action. Key figures including Mr. Luis Carlos Affonso, Mr. Arjan Meijer, and Mr. Rodrigo Silva e Souza will discuss sustainable innovations in commercial aviation. The event will be broadcast live at 11 a.m. Brazil local time. This initiative reflects Embraer's commitment to advancing sustainability through new aircraft concepts.

Embraer S.A. has updated its 2021 projections, reporting a free cash flow of US$ (160.1) million for the first nine months, which exceeded initial expectations. The company anticipates a positive cash flow in Q4 2021, prompting an updated 2021 free cash flow guidance of US$ 100 million or better, an improvement from a previous forecast of US$ (150) million to breakeven. Delivery targets remain unchanged, with expectations of 50 commercial and 95 executive aviation deliveries for the year.

Embraer S.A. (NYSE: ERJ) reported its 3Q21 earnings, showing strong results with revenues of US$ 958.1 million, up 26.3% year-over-year. The company delivered 9 commercial jets and 21 executive jets, raising year-to-date totals to 32 commercial and 54 executive jets.

Adjusted EBIT was US$ 35.7 million and EBITDA was US$ 79.2 million, leading to margins of 3.7% and 8.3% respectively. Notably, Embraer generated positive free cash flow of US$ 21.3 million, the first time this has occurred in a historically weak quarter. The company updated its free cash flow guidance to US$ 100 million.

Embraer (NYSE: ERJ) delivered a total of 30 jets in Q3 2021, with 9 commercial and 21 executive jets, bringing its order backlog to USD 16.8 billion. Notably, the company marked a milestone with the delivery of its 1,500th business jet, a Phenom 300E. Embraer also secured a contract for 16 new E175 jets with SkyWest, valued at USD 798.4 million. Additionally, several service agreements for support packages were signed with various airlines, strengthening Embraer's position in the aviation market.

Embraer and NetJets have signed a deal for up to 100 additional Phenom 300E aircraft worth over $1.2 billion, building on their successful partnership. Deliveries are set to begin in Q2 2023, enhancing NetJets' customer offerings in the U.S. and Europe. This agreement highlights NetJets' ongoing trust in Embraer's quality and performance, reaffirming the Phenom 300 series' status as the best-selling light jet for nine consecutive years.

Embraer has updated its 2021 guidance, anticipating continued recovery amid the ongoing Covid-19 pandemic. Key projections include 45 commercial aviation deliveries and 90 executive aviation deliveries. The company expects consolidated revenues of $4.0 billion to $4.5 billion with an adjusted EBIT margin of 3.0% to 4.0%. Despite ongoing uncertainty, Embraer is confident in its Defense & Security segment's future demand. However, free cash flow is projected at a usage of $150 million, highlighting the need for improved working capital efficiency.