Embraer’s business aviation segment sees stronger end to 2020


Embraer delivered 43 executive jets, 23 light and 20 large, in in the fourth quarter (Q4) of 2020, bringing the total for the year to 86 jets, 56 light and 30 large. The company released its earnings results for Q4 and the 2020 fiscal year last week, reporting a firm order backlog of $14.4bn.

Revenues in Q4 reached $1.84bn and for fiscal year 2020 were $3,77bn representing year-on-year falls of 11.7% and 31% respectively compared with the previous year.

Adjusted EBIT and EBITDA were $76.6m and $145.6m, respectively, meaning the adjusted EBIT margin was 4.2% and the adjusted EBITDA margin was 7.9%.

For the fiscal year 2020, adjusted EBIT was $100.5m, a -2.7% margin, and adjusted EBITDA was $82.1m, a 2.2% margin. Embraer said the negative EBIT was mostly driven by weakness in the company’s commercial aviation segment as a result of the Covid-19 pandemic.

Adjusted net loss in Q4 was $12.5m, with an adjusted loss per American Depository Share (ADS) of $0.07. Whilst for the year Embraer reported an adjusted net loss for 2020 of $463.7m, with an adjusted loss per ADS for the period of $2.52.

Embraer also reported a significant improvement in free cash flow in Q4 , reporting cash generation of $725.1m in the period, leading to full-year free cash flow usage of $990.2m in 2020. The South American OEM finished the year with total cash of $2.8bn, the same level of cash it had at the end of 2019. Embraer’s net debt position at the end of 2020 was $1,69bn.

Due to continued uncertainty related to the pandemic and its impacts on the aviation industry, Embraer has decided to not publish 2021 financial and delivery guidance at this point.

Embraer results – at a glance 


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