EMBRAER S.A. releases its Third Quarter 2019 Earnings Results

posted on 12th November 2019 by Eddie Saunders
EMBRAER S.A. releases its Third Quarter 2019 Earnings Results

EMBRAER S.A. releases its Third Quarter 2019 Earnings Results.


In 3Q19, Embraer delivered 17 commercial and 27 executive (15 light and 12 large) jets, compared to 15 commercial jets and 24 executive (17 light and 7 large) jets in 3Q18;

The Company’s firm order backlog at the end of 3Q19 was US$ 16.2 billion;

EBIT and EBITDA in 3Q19 were US$ (20.8) million and US$ 18.2 million, respectively, yielding EBIT margin of -1.8% and EBITDA margin of 1.5%. The quarterly results were impacted by separation costs of US$ 34.8 million related to the carve out of Embraer’s Commercial Aviation business. In the first nine months of 2019 the Company’s EBIT was US$ (9.3) million (EBIT margin of -0.3%) and EBITDA was US$ 116.2 million (EBITDA margin of 3.4%). In the same period separation costs represented US$ 66.6 million;

3Q19 Net loss attributable to Embraer shareholders and Loss per ADS were US$ (77.2) million and US$ (0.42), respectively. Adjusted net loss (excluding deferred income tax and social contribution) for 3Q19 was US$ (48.4) million, with Adjusted loss per ADS of US$ (0.26). Embraer reported adjusted net loss in 3Q18 of US$ (16.5) million, for an adjusted loss per ADS of US$ (0.09) in the quarter;

Embraer reported 3Q19 Free cash flow of US$ (257.4) million, versus free cash flow of US$ (162.6) million reported in 3Q18;

Embraer updates its 2019 and 2020 guidance. For 2019, Embraer reaffirms deliveries of 85 – 95 commercial jets, 90 – 110 executive jets, two KC-390 aircraft, and now expects five Super Tucano deliveries. The Company reaffirms guidance for 2019 revenues of US$ 5.3 – US$ 5.7 billion and breakeven EBIT margin, while removing the estimates related to the consummation of the strategic partnership with Boeing by the end of the year. Embraer also introduces 2019 Free Cash Flow guidance for a use of US$ (300) – US$ (100) million for the year;

For 2020, Embraer reaffirms revenues of US$ 2.5 – US$ 2.8 billion, EBIT margin of 2 – 5%, and breakeven Free Cash Flow, and now expects a special dividend of between US$ 1.3 billion and US$ 1.6 billion to be paid in 2020.