EMBRAER RELEASES ITS 1st QUARTER 2022 EARNINGS RESULTS

Rhea-AI Summary

Embraer S.A. (NYSE: ERJ) reported its First Quarter 2022 earnings, delivering 14 jets, including 6 commercial and 8 executive aircraft. The firm's order backlog increased to US$ 17.3 billion, the highest since Q2 2018. Revenue dropped by 26% year-over-year to US$ 600.9 million, impacted by a month of production downtime. However, gross margin improved to 20.1%. The company posted an Adjusted EBIT loss of US$ (27.0) million and free cash flow usage improved to US$ (67.8) million. Embraer reaffirmed its 2022 financial guidance.

Positive

• Firm order backlog increased to US$ 17.3 billion, the highest since Q2 2018.
• Gross margin improved to 20.1%, up from 9.5% in 1Q21.
• Free cash flow usage improved significantly to US$ (67.8) million, the best since 1Q10.

Negative

• Revenue fell by 26% year-over-year, totaling US$ 600.9 million.
• Adjusted EBIT recorded a loss of US$ (27.0) million with an Adjusted EBIT margin of -4.5%.
• Free cash flow usage remains negative despite improvement.

SÃO PAULO, April 28, 2022 /PRNewswire/ -- EMBRAER S.A. (NYSE: ERJ; B3: EMBR3) releases its First Quarter 2022 Earnings Results.

HIGHLIGHTS

• Embraer delivered 14 jets in the first quarter, of which 6 commercial aircraft and 8 executive jets (6 light and 2 mid-size).
• Firm order backlog ended 1Q22 at US$ 17.3 billion (+US$0.3 billion versus 4Q21). This is the highest quarter backlog since 2Q18, driven by solid order activity.
• Revenues reached US$ 600.9 million in the quarter, down 26% compared to 1Q21, with almost one month of production shut down due to system and legal reintegration of Commercial Aviation in January. In contrast, reported consolidated gross margin of 20.1% was higher than the 9.5% reported in 1Q21 due to better performance in all segments.
• Adjusted EBIT and EBITDA were US$ (27.0) million and US$ 13.2 million, respectively, yielding Adjusted EBIT margin of -4.5% and Adjusted EBITDA margin of 2.2%. This includes nonrecurring expenses of US$17 million for the quarter.  
• Free cash flow (FCF) in 1Q22 was a usage of US$ (67.8) million, representing a significant improvement compared to the US$ (226.6) million in FCF in 1Q21, and best FCF for 1Q since 1Q10, consistent with working capital optimization measures and enterprise efficiency.   
• FX Variation & Hedge - in 1Q22 we recognized credits of USD 0.8 million related to payroll expenses due to cash flow hedge, mitigating our exposure to FX variation, which is approximately 13% of total costs.
• The Company finished the quarter with total debt of US$ 3.6 billion, or US$0.5 billion less in line with the strategy to improve our capital structure.
• We reaffirm all aspects of our 2022 financial and deliveries guidance, with no material variation.

Main financial indicators

in millions of U.S dollars, except % and earnings per share data
IFRS	1Q21	4Q21	1Q22
Revenue	807.3	1,301.3	600.9
EBIT	(33.1)	60.6	(36.3)
EBIT margin %	-4.1%	4.7%	-6.0%
Adjusted EBIT	(29.6)	56.2	(27.0)
Adjusted EBIT margin %	-3.7%	4.3%	-4.5%
EBITDA	14.5	111.4	3.9
EBITDA margin %	1.8%	8.6%	0.6%
Adjusted EBITDA	18.0	107.0	13.2
Adjusted EBITDA margin %	2.2%	8.2%	2.2%
Adjusted net income (Loss)	(95.9)	57.2	(78.5)
Adjusted earnings (losses) per share - ADS basic	(0.5219)	0.3116	(0.4274)
Net income (loss) attributable to Embraer Shareholders	(89.7)	2.1	(31.7)
Earnings (losses) per share - ADS basic (US$)	(0.4882)	0.0114	(0.1726)
Adjusted free cash flow	(226.6)	452.6	(67.8)
Net debt	(1,902.2)	(1,392.2)	(1,453.2)

 

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 1Q22 Results on:

Thursday, April 28, 2022 at 09:00 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.

View original content:https://www.prnewswire.com/news-releases/embraer-releases-its-1st-quarter-2022-earnings-results-301534953.html

SOURCE Embraer S.A.

FAQ

What were Embraer's earnings results for Q1 2022?

Embraer reported a revenue of US$ 600.9 million in Q1 2022, a 26% decline from Q1 2021.

How many jets did Embraer deliver in Q1 2022?

Embraer delivered a total of 14 jets in Q1 2022, including 6 commercial and 8 executive jets.

What is Embraer's order backlog as of Q1 2022?

Embraer's order backlog increased to US$ 17.3 billion, the highest level since Q2 2018.

What are the financial metrics reported by Embraer for Q1 2022?

Embraer reported an Adjusted EBIT loss of US$ (27.0) million and a free cash flow usage of US$ (67.8) million.

Did Embraer update its 2022 financial guidance?

Yes, Embraer reaffirmed all aspects of its 2022 financial and delivery guidance with no material variation.