Embraer Stock Price, News & Analysis

On June 10, 2021, Embraer S.A. (NYSE: ERJ) announced ongoing negotiations between its subsidiary, Eve Urban Air Mobility Solutions, and Zanite Acquisition Corp., a U.S. SPAC, regarding a potential merger worth $2 billion. While the talks are in progress, the company cannot confirm the outcome or specific terms. Embraer emphasized its commitment to keeping shareholders informed of any significant developments in relation to these negotiations, in compliance with relevant laws and regulations.

Eve Urban Air Mobility has partnered with Helisul Aviation to develop Urban Air Mobility operations in Brazil. This collaboration includes an order for up to 50 electric vertical take-off and landing aircraft (eVTOLs), with deliveries anticipated to start in 2026. The partnership aims to leverage Brazil's existing air taxi infrastructure, enhancing urban mobility while focusing on reducing air pollution. Eve plans to offer comprehensive services, including Urban Air Traffic Management solutions, benefiting from Helisul's market position and expertise.

Halo has placed a firm order for 200 Eve Urban Air Mobility vehicles, making it the launch customer for this eVTOL aircraft, with deliveries expected in 2026. The order includes 100 units for the U.S. and 100 for the U.K., positioning Eve as a leader in the rapidly growing eVTOL market. This partnership aligns Halo with Embraer, promoting a comprehensive urban air mobility system. Both companies aim to revolutionize urban transportation and improve operational efficiency, validating Eve’s robust design and support infrastructure.

On June 1, 2021, Eve Urban Air Mobility Solutions announced a partnership with Halo to develop Urban Air Mobility (UAM) solutions in the U.S. and the U.K. This collaboration involves an order for 200 electric vertical takeoff and landing (eVTOL) aircraft, with deliveries starting in 2026. Halo will be the launch partner for Eve in these markets, providing operational expertise. This partnership aims to address regulatory challenges and enhance urban air traffic management.

Embraer has finalized an agreement to sell eight E175 jets to SkyWest for operation with Alaska Airlines, adding to SkyWest's existing fleet. This contract, valued at USD 399.2 million, will bolster Embraer's backlog for Q2 2021. The delivery of the 76-seat aircraft will commence in 2022. Alaska Airlines currently operates 62 E175 jets, which will help expand their route offerings. Embraer holds an impressive 85% market share in the 70-90 seat aircraft segment in the North American region.

Embraer has secured a contract to sell nine E175 jets to Alaska Air Group, valued at USD 449.1 million. These jets will operate under a Capacity Purchase Agreement, further solidifying Embraer's presence in the regional market, where it holds an 85% market share for 70-90 seat aircraft. Alaska Air Group will also receive eight additional E175s through a commitment with SkyWest Airlines. Deliveries of the new aircraft are set to commence in 2022. This order is expected to enhance Alaska Airlines' capacity and support its growth strategy.

Embraer S.A. (NYSE: ERJ) reported its 1Q21 earnings results revealing revenues of US$ 807.3 million, a 27.4% increase from 1Q20, driven by strong deliveries in the commercial and executive jet segments. The firm order backlog stood at US$ 14.2 billion. However, adjusted net loss was US$ (95.9) million, with an adjusted loss per ADS of US$ (0.52). Free cash flow usage was US$ (226.6 million), significantly improved from US$ (676.6 million) in 1Q20. Due to ongoing pandemic uncertainties, no 2021 financial guidance was provided.

Embraer delivered 22 jets in Q1 2021, comprising 9 commercial aircraft and 13 executive jets, including models like the E195-E2. The firm order backlog stands at USD 14.2 billion as of March 31, 2021. Notable deliveries include the first E195-E2 to KLM Cityhopper and Air Peace, with Air Peace being the launch customer for the E2 in Africa. The backlog for Commercial Aviation includes significant orders for the E175, E190, and E195 series, totaling 1,904 firm orders.

Embraer S.A. (NYSE: ERJ) reported its FQ4 2020 earnings, delivering 28 commercial and 43 executive jets, with a total backlog of US$ 14.4 billion. FQ4 revenues were US$ 1,841.4 million, down 11.7% year-over-year, and full-year revenues fell 31.0% to US$ 3,771.1 million. The adjusted net loss for FQ4 was US$ (12.5) million and for the fiscal year, it reached US$ (463.7) million. Despite cash generation of US$ 725.1 million in FQ4, the company did not provide guidance for 2021 due to ongoing COVID-19 uncertainties.