Embraer Earnings Results 4th Quarter And Fiscal Year 2020

Rhea-AI Summary

Embraer S.A. (NYSE: ERJ) reported its FQ4 2020 earnings, delivering 28 commercial and 43 executive jets, with a total backlog of US$ 14.4 billion. FQ4 revenues were US$ 1,841.4 million, down 11.7% year-over-year, and full-year revenues fell 31.0% to US$ 3,771.1 million. The adjusted net loss for FQ4 was US$ (12.5) million and for the fiscal year, it reached US$ (463.7) million. Despite cash generation of US$ 725.1 million in FQ4, the company did not provide guidance for 2021 due to ongoing COVID-19 uncertainties.

Positive

• Delivered 28 commercial and 43 executive jets in 4Q20.
• Total backlog reached US$ 14.4 billion.
• Free cash flow improved to US$ 725.1 million in 4Q20.

Negative

• 4Q20 revenues declined by 11.7% year-over-year.
• Fiscal year 2020 revenues fell by 31.0%.
• Adjusted net loss of US$ (463.7) million for 2020.
• No guidance provided for 2021 due to uncertainty.

SÃO PAULO, March 19, 2021 /PRNewswire/ -- EMBRAER S.A. (NYSE: ERJ; B3: EMBR3) releases its Fourth Quarter 2020 and Fiscal Year 2020 Earnings Results.

HIGHLIGHTS

• Embraer delivered 28 commercial jets and 43 executive jets (23 light / 20 large) in 4Q20, and in 2020 delivered 44 commercial jets and 86 executive jets (56 light / 30 large). Total company firm order backlog at the end of 2020 was US$ 14.4 billion;
• Revenues in 4Q20 reached US$ 1,841.4 million and for fiscal year 2020 were US$ 3,771.1 million, representing year-over-year declines of 11.7% and 31.0%, respectively, versus their prior year periods;
• Excluding special items, adjusted EBIT and EBITDA were US$ 76.6 million and US$ 145.6 million, respectively, yielding adjusted EBIT margin of 4.2% and adjusted EBITDA margin of 7.9%. For fiscal year 2020, adjusted EBIT was US$ (100.5) million (-2.7% margin) and adjusted EBITDA was US$ 82.1 million (2.2% margin), with the negative EBIT mostly driven by weakness in the Company's Commercial Aviation segment within the context of the Covid-19 pandemic;
• Adjusted net loss (excluding special items and deferred income tax and social contribution) in 4Q20 was US$ (12.5) million, with adjusted loss per ADS of US$ (0.07), while adjusted net loss for 2020 was US$ (463.7) million, with adjusted loss per ADS for the period of US$ (2.52);
• Embraer reported a significant improvement in Free cash flow in 4Q20, reporting cash generation of US$ 725.1 million in the period, leading to full year free cash flow usage of US$ (990.2) million in 2020;
• The Company finished the year with total cash of US$ 2.8 billion, steady versus the US$ 2.8 billion in cash at the end of 2019. Embraer's net debt position at the end of 2020 was US$ 1,695.7 million;
• Due to continued uncertainty related to the COVID-19 pandemic and its impacts on the industry, the Company has decided to not publish 2021 financial and delivery guidance at this point.

MAIN FINANCIAL INDICATORS

in millions of U.S dollars, except % and earnings per share data
	3Q20	4Q19	4Q20	2019	2020
Revenue	758.7	2,085.0	1,841.4	5,462.6	3,771.1
EBIT	(37.7)	(67.6)	103.6	(77.0)	(323.4)
EBIT margin %	-5.0%	-3.2%	5.6%	-1.4%	-8.6%
Adjusted EBIT	(45.3)	4.0	76.6	(5.4)	(100.5)
Adjusted EBIT margin %	-6.0%	0.2%	4.2%	-0.1%	-2.7%
EBITDA	(0.6)	(5.8)	172.6	110.3	(39.6)
EBITDA margin %	-0.1%	-0.3%	9.4%	2.0%	-1.1%
Adjusted EBITDA	(8.2)	65.8	145.6	181.9	82.1
Adjusted EBITDA margin %	-1.1%	3.2%	7.9%	3.3%	2.2%
Adjusted net income (Loss)	(148.3)	(93.4)	(12.5)	(217.5)	(463.7)
Adjusted earnings (losses) per share - ADS basic	(0.8058)	(0.5077)	(0.0679)	(1.1822)	(2.5194)
Net income (loss) attributable to Embraer Shareholders	(121.2)	(209.8)	(3.3)	(322.3)	(731.9)
Earnings (losses) per share - ADS basic (US$)	(0.6585)	(1.1404)	(0.0179)	(1.7519)	(3.9766)
Adjusted free cash flow	(566.5)	739.4	725.1	(181.8)	(990.2)
Net debt	(2,365.1)	(612.4)	(1,695.7)	(612.4)	(1,695.7)

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

INVESTOR RELATIONS

Eduardo Couto, Chris Thornsberry, Caio Pinez 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 4Q20 Results on Friday, March 19, 2021 at 2:00 PM (SP) / 1:00 PM (NY). 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
Telephones Brazil: +55 (11) 4210-1803 / +55 (11) 3181-8565
We recommend calling 15 minutes in advance.

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SOURCE Embraer S.A.

FAQ

What were Embraer's earnings results for Q4 2020?

Embraer reported revenues of US$ 1,841.4 million in Q4 2020, marking an 11.7% decrease compared to the previous year.

How much net loss did Embraer report for the fiscal year 2020?

Embraer reported an adjusted net loss of US$ (463.7) million for the fiscal year 2020.

What is Embraer's current order backlog as of the end of 2020?

Embraer has a total firm order backlog of US$ 14.4 billion at the end of 2020.

Did Embraer provide guidance for 2021?

No, Embraer decided not to provide 2021 financial and delivery guidance due to ongoing uncertainties related to the COVID-19 pandemic.