Material Fact: 2022 Guidance Update
On November 14, 2022, Embraer S.A. updated its Free Cash Flow projection for 2022 from over US$50 million to over US$150 million, reflecting better-than-expected performance in the first nine months of the year. This improvement is attributed to enhanced operating margins, effective working capital management, and tax efficiency. The company expects a higher concentration of deliveries and revenues in Q4 compared to other quarters. All other financial projections remain unchanged, including commercial and executive aviation deliveries.
- Updated Free Cash Flow projection increased from over US$50 million to over US$150 million for 2022.
- Better-than-expected performance driven by improved operating margins and effective working capital management.
- Higher concentration of revenues and deliveries anticipated in Q4.
- None.
SÃO JOSÉ DOS CAMPOS, Brazil, Nov. 14, 2022 /PRNewswire/ -- Embraer S.A. (B3: EMBR3, NYSE: ERJ) ("Company" or "Embraer"), in compliance with Resolution no. 44, issued on August 23, 2021 by the Securities Commission of Brazil ("CVM"), informs its shareholders and the market in general its updated projections for Free Cash Flow (Fluxo de Caixa Livre) for the year of 2022.
In the first nine months of 2022, Embraer recorded an accumulated Free Cash Flow (Fluxo de Caixa Livre) higher than the Company's initial expectations for the performance of the indicator in this period, mainly as a result of the improvement in operating margins, better management of working capital, tax efficiency, among other factors. In addition, Embraer highlights that, as usual, it will have a higher concentration of deliveries and revenues in the fourth quarter when compared to the seasonality of the other quarters of the year.
As a result, Embraer is updating its projections for Free Cash Flow (Fluxo de Caixa Livre) for 2022, from US
PROJECTIONS – 2022 (1) | ||
INITIAL | UPDATED | |
Commercial Aviation Deliveries ( | 60 - 70 | 60 - 70 |
Executive Aviation Deliveries | 100 - 110 | 100 - 110 |
Consolidated Net Income (US$ Billions) | ||
Adjusted EBIT Margin | ||
Adjusted EBITDA Margin | ||
Free Cash Flow (US$ Millions) | ||
(1) Without Eve | ||
Such changes in Embraer's projections will be set out in Section 11 of the Company's Reference Form and will be available on the CVM's website at http://www.cvm.gov.br/ and on the Company's website at http://ri.embraer.com.br/ within the period set forth in the applicable regulation.
Furthermore, Embraer notes that the information disclosed in this document represents only an estimate and an expectation, which in no way represents any assurance of any outcome. The projections above depend on market factors which are outside the Company's control and, therefore, may be subject to further change.
São José dos Campos, November 14, 2022.
Antonio Carlos Garcia
Executive Vice-President, Financial and Investor Relations
View original content:https://www.prnewswire.com/news-releases/material-fact-2022-guidance-update-301676812.html
SOURCE Embraer S.A.
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