Embraer delivers 20 executive jets in Q2 2021
Embraer delivered 20 executive jets in the second quarter (Q2) of 2021 and posted revenue of $1,130.5m, representing year-on-year growth of 110.4% compared with the same period of last year. It also reported its first quarterly adjusted net profit since Q1 2018.
Deliveries in Q2 included 12 light business jets and eight larger models alongside 14 commercial jets. Total deliveries so far this year include 33 executive jets (22 light/11 large) and 23 commercial jets. The OEM’s total company firm order backlog at the end of the second quarter reached $15.9bn.
Second quarter revenue of $1,130.5m included double digit growth in all segments. Revenues over the first half this year climbed 65.5% compared with the same period of 2020.
Adjusted EBIT (earnings before interest and tax) was $104.7m, excluding special items. EBITDA (earnings before interest, tax, depreciation and amortisation) were $160.7m. The second quarter EBIT margin reached 9.3% and EBITDA margin was 14.2%. Over the first half of 2021, adjusted EBIT margin was 3.9% and adjusted EBITDA margin was 9.2%.
Adjusted second quarter net income reached $43.6m, excluding special items and deferred income tax and social contributions. Adjusted earnings per ADS (American Depository Share) were $0.24. This represented the OEM’s first quarterly adjusted net profit reported since the first quarter of 2018. Embraer closed the quarter with total cash of $2.5bn and net debt of $1.8bn.
The company predicts executive jet deliveries this year will reach 90 to 95 aircraft with commercial jet deliveries reaching 45-50 aircraft. Consolidated revenues are expected to range between $4bn to $4.5bn, with adjusted EBIT margin of 3% to 4%, and adjusted EBITDA margin of 8.5% to 9.5%. Free cash flow is predicted to be within a range of $150m to breakeven for the year without mergers and acquisitions or divestitures.
Embraer Q2 results – at a glance
- -Delivered 20 executive jets, including 12 light business jets and eight larger models
- -First half deliveries of 33 executive jets (22 light/11 large)
- -Total company firm order backlog reached $15.9bn
- -Revenue of $1,130.5m, including double digit growth in all segments
- -Revenues over the first half cimbed 65.5% compared with Q2 2020
- -Adjusted net income of $43.6m, excluding special items and deferred income tax and social contribution
- -Adjusted earnings per ADS were $0.24.
- -The first quarterly adjusted net profit reported since Q1 2018.
Embraer’s 2021 guidance – at a glance
- -Executive jet deliveries to reach 90 to 95 aircraft
- -Commercial jet deliveries to reach 45-50
- -Consolidated revenues to range between $4bn to $4.5bn
- -Adjusted EBIT margin of 3% to 4%
- -Adjusted EBITDA margin of 8.5% to 9.5%.
Above: The Phenom 300. Embraer delivered 33 business jets in the first half of 2021.