Embraer delivered 30 executive jets in the second quarter (Q2) of this year compared with eight aircraft in the previous quarter. Executive jet deliveries for the three months ended June 30th, 2023, consisted of 19 light jets and 11 mid-size aircraft.
Overall Q2 deliveries, including 17 commercial aircraft, reached 47 jets – a rise of 47% compared with Q2 last year.
Executive Aviation revenues reached $378m, 42% higher than the previous quarter; reflecting an increase in volumes and deliveries mix. Divisional gross margin fell to 19.8% compared with 22.1% year-on-year (yoy) due to one-time effects last year, said the company. Total revenues climbed to $1,292m, up 27% on the year and 80% higher than the first quarter of this year. Commercial Aviation posted 57% revenue growth.
Adjusted EBIT fell to 7.7% compared with 8% in the second quarter of last year, due to different revenue mix and in line with company expectation, according to the manufacturer’s financial statement.
Firm order backlog ended the quarter stable at $17.3bn, with strong sales in Executive Aviation, said the company.
Embraer ended Q2 with net debt of $1,459.4m (without Eve), compared with $1,528.7m yoy and $1,432.1m quarter-on-quarter. Adjusted free cash flow (without Eve) was close to breakeven. Cash consumption in the quarter was reported as $10.7m, in preparation for higher deliveries in the coming quarters.
The manufacturer’s operational and financial guidance for 2023 remained unchanged from its Q1 results. The manufacturer forecast 120 to 130 business jets deliveries this year. Revenue was estimated to reach between $5.2-$5.7bn, with free cash flow of $150m or higher.
Meanwhile Embraer has recruited Carlos Naufel, currently technical director of airline Azul Linhas Aéreas, to become its new vice president of Services & Support. Naufel will take up his new role on September 1st, 2023. The current vice president, Johann Bordais, is to become the CEO of Eve Air Mobility. (Pictured is an Embraer Phenom 300E).
Embraer Q2 results – at a glance
- Delivered 30 executive jets
- Consisting of 19 light jets and 11 mid-size
- Delivered 17 commercial aircraft
- Rise of 47% in total deliveries compared with Q2 2022
- Revenues up 27% to $1,292m
- Executive Aviation revenues up 42% yoy
- Firm order backlog stable at $17.3bn.
