Embraer Stock Price, News & Analysis

Embraer (NYSE: ERJ) reported the delivery of 80 jets in 4Q22, totaling 159 for the year, marking a 12.7% increase from 2021. The firm order backlog reached US$ 17.5 billion as of December 31, 2022. In 4Q22, the company confirmed a US$ 1.17 billion order for 15 E195-E2 aircraft and an additional order from Binter worth US$ 389.4 million. The E190-E2 received certifications in China and Canada, enhancing its market presence. The Executive Aviation segment also demonstrated growth with 50 jet deliveries.

On February 10, 2023, Embraer (NYSE: ERJ) issued a statement regarding a recent article in Estado de São Paulo, which suggested that the Brazilian Supreme Court's decision on the Social Contribution on Net Income (CSLL) could result in a R$ 1.16 billion annual loss for the company. Embraer clarified that it does not anticipate any material financial impact from this decision. The company regularly calculates and pays CSLL and has no pending legal issues regarding its collection. Therefore, Embraer does not foresee any alterations in its cash position or annual financial results due to this tax matter.

Embraer (NYSE: ERJ) has announced a significant new order for 15 E195-E2 aircraft from an undisclosed customer, valued at US$1.17 billion. This order will enhance the company's Q4 2022 backlog and reinforces Embraer's position in the aerospace market. Known for producing commercial jets for up to 150 seats, Embraer continues to be a leading player in the global aviation sector. The company has delivered over 8,000 aircraft since its inception, transporting more than 145 million passengers annually.

Embraer (NYSE: ERJ) has signed two significant heavy maintenance services agreements worth $72 million with Envoy Air Inc. and JSX. These services will be conducted at Embraer's facility in Macon, Georgia. Envoy, a long-term customer, will receive a nose-to-tail heavy maintenance line, while JSX secures a long-term agreement for two such lines. Embraer's Vice President noted that these contracts will foster growth in Macon, creating job opportunities and enhancing service capabilities.

Embraer S.A. (NYSE: ERJ) reported its 3Q22 earnings, delivering 10 commercial jets and 23 executive jets, with total YTD deliveries at 27 commercial and 52 executive jets. The gross margin for 3Q22 was at 19.1%, slightly up from 19.0% in 3Q21, while the 9M22 gross margin improved to 20.9% compared to 16.0% in 2021. Adjusted EBIT and EBITDA were US$50 million and US$93 million, yielding margins of 5.4% and 10.0%. However, free cash flow was negative at US$109.4 million. The company reaffirmed its 2022 financial guidance and increased free cash flow outlook to US$150 million.

Embraer S.A. (NYSE: ERJ) has secured a R$ 2.2 billion (approximately US$ 400 million) financing from the Brazilian National Bank for Economic and Social Development (BNDES) to boost aircraft production and exports. This year marks the 25th anniversary of their partnership, which has facilitated the export of 1,275 aircraft, valued at US$ 25 billion. The financing will support a resurgence in production levels post-COVID-19. BNDES emphasizes its role in reinforcing Brazil's aeronautical industry and Embraer's competitive standing in the global market.

On November 14, 2022, Embraer S.A. updated its Free Cash Flow projection for 2022 from over US$50 million to over US$150 million, reflecting better-than-expected performance in the first nine months of the year. This improvement is attributed to enhanced operating margins, effective working capital management, and tax efficiency. The company expects a higher concentration of deliveries and revenues in Q4 compared to other quarters. All other financial projections remain unchanged, including commercial and executive aviation deliveries.

Embraer delivered a total of 33 jets in Q3 2022, marking a 10% increase from the previous year. This includes 10 commercial and 23 executive jets.

Year-to-date deliveries reached 79 aircraft (27 commercial and 52 executive) with a stable firm order backlog of US$ 17.8 billion.

Recently, Embraer celebrated the delivery of its 1,700th E-Jet and announced contracts with SalamAir and TUI for the E195-E2.

On October 21, 2022, Embraer announced updates regarding Contracts 002/DCTA-COPAC/2014 with the Brazilian Federal Government. Negotiations led to amendments reducing the total KC-390 Millennium aircraft delivery from 22 to 19. The new amendments include a revised delivery schedule and adjusted contractual clauses, ensuring cash flow and economic viability of the project. Embraer reaffirmed its commitment to the KC-390's export potential and its long-standing partnership with the Brazilian Air Force, emphasizing the aircraft's unique innovations.