Embraer Stock Price, News & Analysis

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.

TUI Group has selected Embraer's E195-E2 aircraft to enhance its TUI fly Belgium fleet, leasing three units from AerCap. The E195-E2, renowned for its fuel efficiency and reduced emissions, will support TUI's sustainability goals while expanding holiday destinations from Northern Belgium. Set to be delivered in early 2023, these aircraft will operate primarily from Antwerp. The lease represents a strategic partnership aimed at improving operational efficiency and meeting growing demand for air travel.

On October 17, 2022, Embraer S.A. (NYSE: ERJ) announced that its subsidiaries have secured a revolving credit line of up to US$630,000,000, potentially increasing to US$650,000,000 within 90 days. This facility, maturing on October 13, 2025, is backed by 14 international financial institutions and will accrue interest based on Term SOFR plus a margin. The funds can be utilized for general corporate purposes, and no amounts have been drawn as of the announcement. This facility aims to enhance liquidity and may include sustainability-linked features in the future.

Embraer informs shareholders that its subsidiary, Eve Holding, will restate its financial statements for Q2 2022 due to accounting adjustments related to warrants. The restatement will increase Eve's net loss by approximately US$87 million and will not affect its liquidity. Embraer anticipates a US$82 million increase in non-cash expenses and a potential US$83 million rise in liabilities related to the SPAC transaction. The adjustments will not alter Embraer's financial statements for other periods nor affect its 2022 EBIT and EBITDA guidance.