Embraer business jets backlog reaches $4bn
Embraer’s backlog for its executive aviation division reached $4bn by the first quarter (Q1) of this year, which it claims is the “highest backlog in the industry”.
The division’s revenue for the quarter dropped by 3% compared with Q1 2022, from $90m to $87m. Embraer said this was “due to changes in the mix of light jet deliveries”.
The division made up 12% of the company’s overall revenue of $717m, which increased 19% year-over-year (YoY).
The OEM said it continues to face supply chain constraints and had cash consumption of $399m due to seasonality and in preparation for higher deliveries in the coming quarters.
Debt increased YoY, from $720m in Q1 2022 to $1.1bn, but when its Eve Air Mobility division is removed from this, debt increased from $1.03bn in Q1 2022 to $1.43bn.
The company reported last week that it delivered eight business jets in Q1 of this year, level with Q1 2022.
In its full year 2022 results, Embraer said it aims to deliver 120 to 130 business jets this year, with revenue estimated between $5.2-$5.7bn and free cash flow of $150m or better. In today’s investors call, the company said it is still on track to meet this.