Embraer Earnings Results 4th Quarter 2021 and Fiscal Year 2021

Rhea-AI Summary

Embraer S.A. (NYSE: ERJ) reported its earnings for Q4 and fiscal year 2021, delivering 55 jets in Q4, totaling 141 jets for the year. The firm order backlog reached US$ 17.0 billion, the highest since Q2 2018. Q4 revenues amounted to US$ 1.3 billion, with total revenues of US$ 4.2 billion for 2021. Free Cash Flow improved to US$ 452.6 million in Q4, surpassing guidance. Guidance for 2022 projects commercial jet deliveries of 60-70, executive jet deliveries of 100-110, and revenues between US$ 4.5 and US$ 5.0 billion.

Positive

• Order backlog at US$ 17.0 billion, highest since Q2 2018.
• Total deliveries of 141 jets in 2021.
• Free Cash Flow improved to US$ 452.6 million in Q4 2021.
• 2022 revenue guidance of US$ 4.5 to US$ 5.0 billion.

Negative

• Adjusted net income was (28.9) million in 2021.
• Net income attributable to Embraer shareholders was (44.7) million.

SÃO PAULO, March 9, 2022 /PRNewswire/ -- EMBRAER S.A. (NYSE: ERJ; B3: EMBR3) releases its Fourth Quarter and Fiscal Year 2021 Earnings Results.

HIGHLIGHTS

• Embraer delivered 55 jets in the fourth quarter, of which 16 commercial aircraft and 39 executive jets (26 light and 13 mid-size). In 2021, a total of 141 jets were delivered comprised of 48 commercial aircraft and 93 executive jets (62 light and 31 mid-size).
  
  
• Firm order backlog ended 4Q21 at US$ 17.0 billion. This is the highest quarter backlog since 2Q18, driven by solid order activity, particularly in the Executive & Commercial segments. Book to bill in excess 2:1 for Commercial and Executive.
  
  
• Revenues reached US$ 1.3 billion in the quarter and US$ 4.2 billion in 2021, in line with the Company guidance for revenues of US$ 4.0 – US$ 4.5 billion.
  
  
• Adjusted EBIT and EBITDA margins for 2021 reached guidance of 3.0% – 4.0% and 8.5% – 9.5%, respectively driven by enterprise efficiencies, better prices and mix volumes from Commercial, Executive and Services & Support segments.
  
  
• Significant improvement in Free Cash Flow (FCF) in 4Q21, with cash generation of US$ 452.6 million, leading to full year FCF of US$ 292.4 million in 2021, surpassing FCF guidance of US$ 100 million or better.
  
  
• Net Debt/EBITDA ratio decreased from 5.6x in 2019 to 3.5x in 2021, with strong FCF and EBITDA recovery.
  
  
• Guidance for 2022 (without Eve): commercial jet deliveries of 60-70 aircraft, executive jet deliveries of 100-110 aircraft, revenues in a range of US$ 4.5 to US$ 5.0 billion, Adjusted EBIT margin of 3.5% to 4.5%, Adjusted EBITDA margin of 8.0% to 9.0%, and free cash flow of US$ 50 million or better for the year.

Main financial indicators

in millions of U.S dollars, except % and earnings per share data
IFRS	3Q21	4Q20	4Q21	2020	2021
Revenue	958.1	1,841.4	1,301.3	3,771.1	4,197.2
EBIT	30.0	103.6	60.6	(323.4)	201.3
EBIT margin %	3.1%	5.6%	4.7%	-8.6%	4.8%
Adjusted EBIT	35.7	76.6	56.2	(100.5)	167.0
Adjusted EBIT margin %	3.7%	4.2%	4.3%	-2.7%	4.0%
EBITDA	73.5	172.6	111.4	(39.6)	396.8
EBITDA margin %	7.7%	9.4%	8.6%	-1.1%	9.5%
Adjusted EBITDA	79.2	145.6	107.0	82.1	362.5
Adjusted EBITDA margin %	8.3%	7.9%	8.2%	2.2%	8.6%
Adjusted net income (Loss)	(33.9)	(12.5)	57.2	(463.7)	(28.9)
Adjusted earnings (losses) per share - ADS basic	(0.1843)	(0.0679)	0.3116	(2.5194)	(0.1575)
Net income (loss) attributable to Embraer Shareholders	(45.0)	(3.3)	2.1	(731.9)	(44.7)
Earnings (losses) per share - ADS basic (US$)	(0.2450)	(0.0179)	0.0114	(3.9766)	(0.2434)
Adjusted free cash flow	21.3	725.1	452.6	(990.2)	292.4
Net debt	(1,803.6)	(1,695.7)	(1,392.2)	(1,695.7)	(1,392.2)

For additional information, please check the full document on our website ri.embraer.com.br

INVESTOR RELATIONS
Leonardo Shinohara, Jose Triques, Caio Pinez, Marilia Saback, and Viviane Pinheiro. 
(+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 4Q21 Results on:
Thursday, March 10, 2022 at 9:00 AM (NY Time).
The conference call will also be broadcast live over the web at ri.embraer.com.br

Conference ID: EMBRAER
Telephones USA / Canada: +1 (412) 717-9627 / +1 (844) 204-8942 / UK: +44 20 3795 9972
Telephones Brazil: +55 (11) 3181-8565 / +55 (11) 4090-1621
We recommend calling 15 minutes in advance.

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SOURCE Embraer S.A.

FAQ

What were Embraer's earnings results for Q4 2021?

Embraer reported Q4 2021 revenues of US$ 1.3 billion.

What is Embraer's guidance for 2022?

Embraer projects 60-70 commercial jet deliveries and revenues between US$ 4.5 billion and US$ 5.0 billion.

How did Embraer's order backlog change?

Embraer's order backlog ended Q4 2021 at US$ 17.0 billion, the highest since Q2 2018.

What was Embraer's Free Cash Flow in Q4 2021?

Embraer generated US$ 452.6 million in Free Cash Flow in Q4 2021.