Embraer extended a first-quarter net loss year over year but said results were within company expectations for a seasonally weaker period. The company also confirmed all of its financial and aircraft delivery forecasts for the year.
The airplane maker reported a quarterly adjusted net loss of $88.9 million on Thursday, up from a loss of $75.3 million a year ago, saying it also burned through more cash in the period as it prepares to increase deliveries in the coming quarters.
Embraer had already reported first-quarter deliveries of 15 aircraft, up 7% year-on-year, but well below the 80 jets delivered in the fourth quarter, which tends to be the busiest for the company.
The company said earlier this year that it expects its commercial aircraft unit to deliver 65 to 70 jets this year, up from 57 in 2022, while deliveries of business jets are expected to rise 27.5% a year. a level between 120 and 130. units.
The company reiterated that forecast on Thursday, while also keeping its full-year financial outlook unchanged, which includes top-line growth of 27% from $5.2 billion to $5.7 billion and free cash flow. of 150 million euros or more.
In comments to reporters, Embraer CEO Francisco Gomes Neto said the company was actively working on several sales campaigns and that he sees “excellent” prospects for aircraft orders from all of Embraer’s business units.
The Brazilian company reported a cash burn of $399 million in the first quarter, up from $65.9 million a year earlier, “due to seasonality and in preparation for higher deliveries in the coming quarters.”
Last year was characterized by deliveries concentrated in the fourth quarter and disruptions in the supply chain, which the company expects to improve throughout 2023. A full normalization should only take place next year, according to Embraer.
Source: Terra
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