MIAMI – Embraer records a growth of 110.4% for Q2 2020 with revenues reaching US$1.13bn and year-on-year results showing an increase of 65%.
With special items exclusions, the adjuted EBIT ( Earnings Before Interests and Taxes) and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood, respectively, at US$104.7m and US$160.7m.
Margins for EBIT stood at 9.3% and at 14.2% for EBITDA during Q2 2021 and at 3.9% and 9.2% respectively for the first semester of 2021. The free cash flow generated during Q2 amounted to a positive US$45.1m compared to negative figures of US$181.4m for the first half of 2021. The free cash flow has shown better results compared to the same periods in 2020.
At the end of Q2 2021, Embraer had total cash worth US$2.5bn and debts in the amount of US$1.58bn.
The adjusted net income, which excludes special items, deferred income tax, or social contributions, was reported at US$43.6m providing an earning-per-share of US$0.24, a first for Embraer since the first quarter of 2018.
At the end of Q2 2021, Embraer had a backlog for 306 aircraft out of which 141 for the E175, three for the E190, five for the E190 E2, and 157 for the E195 E2. The backlog value stands at US$15.9bn and has reached the same pre-pandemic levels. Embraer has firm orders for 1,952 aircraft of which 1,646 have been delivered
Embraer delivered 14 commercial jets in 2Q21, bringing the year-to-date deliveries to 23 commercial jets and a 250% better performance when compared to the first half of 2020 with a total of nine aircraft delivered.
Embraer has taken into consideration the uncertainty of the global market, still under the influence of the COVID-19 pandemic, which remains present even if a better rate of vaccination and less severe cases are improving confidence for people to resume travel, in particular in the short-haul leisure sector.
Based on the Q2 2021 results which are better than expectations, Embraer’s outlook for 2021 expects deliveries of 45-50 commercial aircraft, revenues in the amount of US$4-4.5bn, an adjusted EBIT margin of 3 to 4%, and EBITDA at 8.5 to 9.5%, and a free cash flow usage of US$150 to breakeven for the year, better than in 2020 thanks to improvement in revenues, profitability, and ongoing costs reductions.
Article source: Embraer Second Quarter 2021 Report
Featured image: Embraer House Colors E195E2 PR-ZIQ. Photo: Fabrizio Spicuglia/Airways