EMBRAER EARNINGS RESULTS - 3rd QUARTER 2022
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.
- 3Q22 gross margin improved to 19.1%, up from 19.0% in 3Q21.
- 9M22 consolidated gross margin increased to 20.9%, significantly higher than 16.0% in 2021.
- Adjusted EBIT and EBITDA of US$50 million and US$93 million, respectively.
- Reaffirmed 2022 financial and delivery guidance.
- Increased free cash flow guidance from US$50 million to US$150 million.
- Free cash flow was negative US$109.4 million.
- Dependence on higher deliveries in 4Q22 to reverse negative cash flow.
SÃO PAULO, Nov. 14, 2022 /PRNewswire/ -- EMBRAER S.A. (NYSE: ERJ; B3: EMBR3) releases its Third Quarter 2022 Earnings Results.
HIGHLIGHTS
- Embraer delivered 10 commercial jets and 23 executive jets (15 light / 8 mid/super-midsize jets) in 3Q22, bringing YTD deliveries to 27 commercial jets and 52 executive jets (33 light /19 mid/super-midsize jets). Although deliveries have been back ended to 4Q22 due to supply chain challenges in 2022, they are close to historical average for the quarter.
- Reported 3Q22 consolidated gross margin of
19.1% compared to19.0% reported in 3Q21. As a reference, 9M22 consolidated gross margin of20.9% higher than16.0% reported in same period of 2021. - Adjusted EBIT and EBITDA were US
$50 million and US$93 million , respectively, yielding Adj. EBIT margin of5.4% and Adj. EBITDA margin of10.0% . - Free cash flow (FCF) in 3Q22 was negative US
$109.4 million , mainly explained by working capital increase due to higher deliveries in 4Q22 which will reverse to a positive trend. - The Company finished the quarter with net debt of US
$1.27 5 billion, or US$0.53 billion less than 3Q21 in line with the strategy to reduce interest expenses. - A revolving credit facility of up to US
$650 million with 14 financial institutions was signed to increase our liquidity and improve our capital structure, following Embraer liability management strategy, or reducing gross debt and interest expenses. - We reaffirm all aspects of our 2022 financial and deliveries guidance, with an increase in our Free Cash Flow guidance from US
$50 million or better to US$150 million or better.
For additional information, please check the full document on our website: ri.embraer.com.br
Investor Relations
Leonardo Shinohara, Jose Triques, Viviane Pinheiro, Eliane Fanis and Caio Moriani.
(+55 11) 3040-6874
investor.relations@embraer.com.br
ri.embraer.com.br
CONFERENCE CALL INFORMATION
Embraer will host a conference call to present its 3Q22 Results on:
ENGLISH: Monday, November 14, 2022 at 10:00 AM (SP Time) / 08:00 AM (NY Time).
Access Link: https://mzgroup.zoom.us/webinar/register/WN_XgTmGC7YRHecrEFL4-gETQ [mzgroup.zoom.us]
To participate by Phone:
• From Brazil: +55 11 4632 2236 or 55 11 4632 2237 or +55 11 4680 6788.
• From U.S.: +1 360 209 5623 or +1 386 347 5053 or +1 507 473 4847.
• International Phone Numbers available at https://mzgroup.zoom.us/u/kdl6WjpjTv
ID: 863 6655 9280
Password: 891558
We recommend you call 20 minutes in advance.
THE CONFERENCE CALL WILL ALSO BE BROADCASTED LIVE OVER THE WEB, AT THE ADDRESS: ri.embraer.com.br
View original content:https://www.prnewswire.com/news-releases/embraer-earnings-results---3rd-quarter-2022-301677105.html
SOURCE Embraer S.A.
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