EMBRAER (B3: EMBR3, NYSE: ERJ) RELEASES ITS 4th QUARTER 2022 EARNINGS RESULTS

Rhea-AI Summary

Embraer delivered 80 jets in Q4 2022, including 30 commercial and 50 executive jets, increasing total deliveries by 12.7% over 2021. The firm order backlog reached US$ 17.5 billion, up US$ 500 million year-over-year. Quarterly revenues soared to US$ 2.0 billion, a 53% increase from Q4 2021, while FY 2022 revenues totaled US$ 4.5 billion. Adjusted EBIT rose significantly to US$ 166.2 million, yielding margins of 8.3% and 11.5%. Full-year free cash flow was US$ 540.1 million. The 2023 guidance indicates commercial jet deliveries of 65-70 and revenues between US$ 5.2 and US$ 5.7 billion.

Positive

• 4Q22 jet deliveries increased to 80, up 12.7% from 2021.
• Firm order backlog at US$ 17.5 billion, up US$ 500 million y-o-y.
• Quarterly revenue surged to US$ 2.0 billion, a 53% increase y-o-y.
• Adjusted EBIT reached US$ 166.2 million, 196% higher than Q4 2021.
• Full-year free cash flow of US$ 540.1 million, exceeding guidance.

Negative

• None.

SAO PAULO, March 10, 2023 /PRNewswire/ -- 

HIGHLIGHTS

• Embraer delivered 80 jets in the fourth quarter, of which 30 commercial aircraft and 50 executive jets (33 light and 17 mid-size). In 2022, a total of 159 jets were delivered of which 57 commercial aircraft and 102 executive jets (66 light and 36 mid-size). Embraer increased the number of aircraft delivered by 12.7% compared with 2021, even with significant supply chain constrains.
• Firm order backlog ended 4Q22 at US$ 17.5 billion, US$ 500 million higher y-o-y with a higher book-to-bill in Executive Aviation and Services & Support.
• Revenues reached US$ 2.0 billion in the quarter (53% higher than 4Q21) and US$ 4.5 billion in 2022, in line with Company guidance.
• Adjusted EBIT (US$ 166.2 million in 4Q22, 196% higher than 4Q21) and EBIT and EBITDA margin of 8.3% and 11.5% in 4Q22, respectively, contributed for yearly results of 6.0% and 10.1%, surpassing guidance of 2022, driven by volume/mix, enterprise and tax efficiencies, partially offset by provision and SG&A.
• Adjusted Free Cash Flow w/o EVE (FCF) in 4Q22, with cash generation of US$ 584.3 million, leading to full year FCF of US$ 540.1 million in 2022, surpassing FCF guidance for the year due to outstanding results and sales performance from Executive Aviation and very strict control over working capital.
• Net Debt w/o EVE/Adjusted EBITDA ratio decreased from 3.9x in 2021 to 2.1x in 2022, with strong FCF and EBITDA performance.

Guidance for 2023: commercial jet deliveries of 65-70 aircraft, executive jet deliveries of 120-130 aircraft, revenues in a range of US$ 5.2 to US$ 5.7 billion, Adjusted EBIT margin of 6.4% to 7.4%, Adjusted EBITDA margin of 10.0% to 11.0%, and adjusted free cash flow of US$ 150 million or better for the year.

PRESS OFFICES: Headquarters (Brazil), Corporate Communications, embraer@idealhks.com, Cell: +55 11 98890 7777, Tel.: +55 11 4873 7984

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SOURCE Embraer S.A.

FAQ

What were Embraer's earnings results for Q4 2022?

Embraer reported Q4 2022 revenues of US$ 2.0 billion, a 53% increase compared to Q4 2021.

How many jets did Embraer deliver in 2022?

In 2022, Embraer delivered a total of 159 jets, including 57 commercial and 102 executive jets.

What is Embraer's revenue guidance for 2023?

Embraer expects 2023 revenues to be between US$ 5.2 billion and US$ 5.7 billion.

What is Embraer's order backlog as of Q4 2022?

Embraer's order backlog at the end of Q4 2022 was US$ 17.5 billion.

What is Embraer's adjusted EBIT margin guidance for 2023?

The adjusted EBIT margin guidance for 2023 is between 6.4% and 7.4%.