By Bjorn Fehrm
November 6, 2023, ©. Leeham News: Embraer presented its 3Q2023 results today. Commercial aircraft deliveries increased by 50% to 15 E-Jets compared with 10 jets in 3Q2022, and Executive jets delivered 28 jets versus 23 for 3Q2022.
EBIT was $84m versus $11m for the same quarter last year. The company retained the 2023 guidance to deliver 65-70 E-jets and 120-130 Executive jets for the year.
Group revenue for the quarter was up 38% at $1,284m versus $929m in 3Q2022. EBIT was $84m ($11m). Free cash flow was a positive $44m (-109m).
The revenue for the different segments is per Figure 1.
The company has done further work on the debt and has no main liability until 2027, with an average loan maturity of 4.8 years. Embraer has a total loan position of $3.1bn with $1.9bn in cash.
The company maintained its guidance for 2023: commercial jet deliveries of 65-70 aircraft, executive jet deliveries of 120-130 aircraft, revenues in a range of US$ 5.2 to US$ 5.7 billion, Adjusted EBIT margin of 6.4% to 7.4%, Adjusted EBITDA margin of 10.0% to 11.0%, and adjusted free cash flow of US$ 150 million or better for the year.
The Commercial Aircraft division delivered 15 E-Jets during 3Q2023 compared with 10 for 3Q2022, Figure 2. The E1 and E2 split deliveries for 3Q2023 1/3 to 2/3 in units, which is positive as the E2s have a higher margin than the E1s.
Commercial aircraft revenue for the nine months was $1096m versus $722m for the first nine months of 2022, an increase of 52%.
The Business jets deliveries were up 22% compared with 3Q2022, with 28 deliveries versus 23, Figure 3.
Segment revenue was $340m versus $272m in 3Q2022.
The KC-390 has had significant sales success in 3Q2023, with the Czech Republic, Austria, and the Netherlands joining Portugal and Hungary as export customers for the aircraft.
Segment revenue increased by 40% to $133m vs. $95m for 3Q2022.
Services revenue was $366m vs. $295m in 3Q2022, an increase of 24%, with a gross margin of 25%.