Business Jet Performance Boosts Embraer 2Q Results

 - August 4, 2022, 12:33 PM
Orders and deliveries of business aircraft such as its Praetor 600, helped Embraer's executive jets division provide a financial boost to the Brazilian OEM in the second quarter of the year. (Photo: David McIntosh/AIN)

Strong sales and deliveries of Embraer business jets helped boost the Brazilian aircraft manufacturer’s overall financial results in the second quarter of 2022 (2Q22) versus 2Q21.

During a conference call this morning, the airframer noted that 2Q22 revenues for its executive jet division were 0.2 percent higher than a year earlier, and reported 2Q22 gross margin was 22.1 percent higher than the 17.5 percent reported in 2Q21. The company delivered 21 business jets in 2Q22 consisting of 12 light Phenoms and 9 midsize Praetors "according to our schedule," said CFO Antonio Garcia. "Sales continued strong in the quarter with orders exceeding prior-year levels. He added that its book-to-bill ratio remains above 2.5:1, "the highest in the industry."

Embraer’s overall revenues of $1,018.9 million in 2Q22 represent a decrease of 9.9 percent and the adjusted net profit decreased more than 9.5 percent from a year earlier, driven mostly by lower deliveries in its commercial, defense, and security units.

Chief executive Francisco Neto acknowledged that "supply chain issues continue to be one of the main challenges" to maintaining delivery schedules but confirmed the company remains on track to meet its 2022 financial and deliveries guidance. The company is forecasting full-year revenues reaching between $4.5 billion and $5 billion and deliveries projected at 100 to 110 business jets and 60 to 70 commercial jets.