EMBRAER S.A. releases its Second Quarter 2021 Earnings Results

Rhea-AI Summary

Embraer S.A. (NYSE: ERJ) reported its Second Quarter 2021 earnings, revealing a significant recovery with revenues of US$ 1,130.5 million, up 110.4% year-over-year. The company delivered 14 commercial and 20 executive jets, leading to a total firm order backlog of US$ 15.9 billion. Adjusted net income was US$ 43.6 million with earnings per ADS of US$ 0.24, marking the first quarterly profit since 2018. For 2021, the company anticipates commercial jet deliveries between 45-50 and revenues between US$ 4.0 and US$ 4.5 billion.

Positive

• Revenues grew 110.4% year-over-year to US$ 1,130.5 million.
• Adjusted net income of US$ 43.6 million, first profit since Q1 2018.
• Total firm order backlog increased to US$ 15.9 billion.
• Free cash flow improved significantly to US$ 45.1 million.

Negative

• None.

SÃO PAULO, Aug. 13, 2021 /PRNewswire/ -- EMBRAER S.A. (NYSE: ERJ; B3: EMBR3) releases its Second Quarter 2021 Earnings Results.

HIGHLIGHTS

• Embraer delivered 14 commercial jets and 20 executive jets (12 light / 8 large) in 2Q21, bringing the year-to-date deliveries to 23 commercial jets and 33 executive jets (22 light /11 large). Following solid sales activity in the period across businesses, total company firm order backlog at the end of 2Q21 was US$ 15.9 billion;
• Revenues in 2Q21 reached US$ 1,130.5 million, representing year-over-year growth of 110.4% compared to 2Q20, with double digit growth in all segments. First half 2021 revenues grew 65.5% compared to the same period of 2020;
• Excluding special items, adjusted EBIT and EBITDA were US$ 104.7 million and US$ 160.7 million, respectively, yielding adjusted EBIT margin of 9.3% and adjusted EBITDA margin of 14.2%. In the first six months of 2021, adjusted EBIT margin was 3.9% and adjusted EBITDA margin was 9.2%;
• Adjusted net income (excluding special items and deferred income tax and social contribution) in 2Q21 was US$ 43.6 million, with adjusted earnings per ADS of US$ 0.24. This is the Company's first quarterly adjusted net profit reported since the first quarter of 2018;
• Embraer generated free cash flow in 2Q21 of US$ 45.1 million, and in the first half of 2021 free cash usage was US$ (181.4) million. The free cash flow in both periods represented a significant improvement compared to the negative free cash flow in 2Q20 and the first half of 2020 on better profitability and on working capital efficiencies;
• The Company finished the quarter with total cash of US$ 2.5 billion and net debt of US$ 1.8 billion;
• Embraer has issued financial and deliveries guidance for 2021. The Company expects commercial jet deliveries of 45-50 aircraft, executive jet deliveries of 90-95 units, consolidated revenues in a range of US$ 4.0 to $4.5 billion, adjusted EBIT margin of 3.0% to 4.0%, adjusted EBITDA margin of 8.5% to 9.5%, and free cash flow to be within a range of a usage of US$ 150 million to breakeven for the year without M&A or divestitures.

MAIN FINANCIAL INDICATORS

IFRS	1Q21	2Q20	2Q21	YTD21
Revenue	807.3	537.2	1,130.5	1,937.8
EBIT	(33.1)	(342.4)	143.8	110.7
EBIT margin %	-4.1%	-63.7%	12.7%	5.7%
Adjusted EBIT	(29.6)	(140.5)	104.7	75.1
Adjusted EBIT margin %	-3.7%	-26.2%	9.3%	3.9%
EBITDA	14.5	(221.1)	199.8	214.3
EBITDA margin %	1.8%	-41.2%	17.7%	11.1%
Adjusted EBITDA	18.0	(120.4)	160.7	178.7
Adjusted EBITDA margin %	2.2%	-22.4%	14.2%	9.2%
Adjusted net income (Loss)	(95.9)	(198.8)	43.6	(52.3)
Adjusted earnings (losses) per share - ADS basic	(0.5219)	(1.0801)	0.2373	(0.2848)
Net income (loss) attributable to Embraer Shareholders	(89.7)	(315.3)	87.9	(1.8)
Earnings (losses) per share - ADS basic (US$)	(0.4882)	(1.7131)	0.4785	(0.0098)
Adjusted free cash flow	(226.6)	(472.2)	45.1	(181.4)
Net debt	(1,902.2)	(1,800.7)	(1,840.5)	(1,840.5)

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

INVESTOR RELATIONS

Eduardo Couto, Chris Thornsberry, Caio Pinez, Marilia Saback, and Viviane Pinheiro. 
(+55 11) 3040-6874
investor.relations@embraer.com.br
ri.embraer.com.br

EARNINGS RESULTS EVENT INFORMATION

Embraer will hold an event to discuss its 2Q21 earnings results on Friday, August 13, 2021 starting at 9:30 AM (SP) / 8:30 AM (NY). The financial results presentation will be followed by the ESG Flight Plan event, in which Embraer will announce its commitments toward carbon reduction, social responsibility, and corporate governance standards. Both the financial results presentation and ESG Flight Plan even will be held in English with Portuguese translation via a Reuters platform, and can be accessed via the following web address: http://esgflightplan.splashthat.com/ [esgflightplan.splashthat.com]

During the Q&A session of the event, questions will only be accepted via the chat function in the Reuters platform.

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SOURCE Embraer S.A.

FAQ

What are Embraer's 2Q21 earnings results?

Embraer reported revenues of US$ 1,130.5 million, a 110.4% increase year-over-year, with an adjusted net income of US$ 43.6 million.

What is Embraer's guidance for 2021?

Embraer expects commercial jet deliveries of 45-50 units and consolidated revenues between US$ 4.0 to US$ 4.5 billion for 2021.

How many jets did Embraer deliver in 2Q21?

In 2Q21, Embraer delivered 14 commercial jets and 20 executive jets.

What was Embraer's order backlog at the end of 2Q21?

The total firm order backlog for Embraer at the end of 2Q21 was US$ 15.9 billion.