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Embraer’s backlog climbs for second consecutive quarter
November 8th 2021
Brazilian aircraft manufacturer, Embraer, recorded an adjusted net loss of US$33.9 million in its third quarter, but said its order backlog reached levels not seen for two years. Read More » Embraer chief financial officer, Antonio Garcia, told analysts the OEM will end the quarter with a backlog of US$16.8 billion. “This is up 20% in six months and is the second consecutive quarter over quarter increase this year,’’ he said. “Looking at each segment, we have a good sales activity in our commercial aviation business, with another 16 firm orders from SkyWest, bringing total firm orders this year to 64 commercial jets. In executive aviation, a strong backlog continues across the entire portfolio, with record third quarter sales and a book-to-bill ratio in excess of two to one. [The] backlog in services and support grew from the level of the prior quarter.” Embraer delivered nine commercial jets and 21 executive jets —14 light and seven large — in the third quarter to bring year-to-date deliveries to 32 commercial jets and 54 executive jets. Third quarter revenue was US$958.1 million, representing year-over-year growth of 26.3%, with double-digit growth in all segments. Year-to-date revenue was up 50% to US$2.9 billion. The manufacturer increased its 2021 free cash flow guidance to positive US$100 million or better. Embraer CEO, Francisco Neto, said the results reinforced management’s confidence in its strategy. ”In a year of recovery on top of sales and deliveries, the efficiency gains projects have proved to be a key element in improving the company's performance,’’ he said. “The updated guidance with a positive free cash flow for the full year shows not only the good momentum of the company, but the combined focus on the top line and higher profitability.” The company reiterated it expected to deliver 45-50 commercial aircraft in 2021 and 90 to 95 executive jets. Consolidated revenue is forecast in the range of US$4 billion to US$4.5 billion.
