Embraer has reported consolidated revenues of US$1,018.9 million at the end of the second quarter of 2022 (2Q22) representing a decrease of 9.9% over the year mostly driven by lower deliveries in Commercial and Defense & Security and partially offset by higher revenues in Services & Support. Net profit attributable to Embraer shareholders and earnings per ADS for 2Q22 were US$ 74.2 million and US$ 0.40, respectively, compared to US$ 87.9 million in net income attributable to Embraer shareholders and US$ 0.48 in Earnings per ADS in 2Q21.
Commercial Aviation reported revenue reduction of 23% y-o-y of US$ 299.9 million due to lower aircraft deliveries in the quarter. Reported 2Q22 consolidated gross margin from Commercial Aviation of 13.2% higher than 4.5 % reported in 2Q21.
Executive Aviation 2Q22 revenues were US$ 266.7 million, which is 0.2% higher y-o-y. Reported 2Q22 gross margin from Executive Aviation of 22.1% higher than 17.5% reported in 2Q21 due to higher y-o-y prices.
Embraer has a firm order backlog at US$ 17.8 billion (+US$0.5 billion versus 1Q22). This is the highest quarter backlog post pandemic, driven by solid order activity. Recent announcement of 20 E195-E2 firm order of Porter will be included in 3Q22 backlog.
Embraer finished the quarter with net debt of US$ 1.198 billion, or US$ 0.255 billion less than 1Q22 in line with the strategy to improve our capital structure and liability management.
Services & Support reported revenues of US$ 320.1 million, representing y-o-y growth of 7.4%. It continues to show solid recovery as airlines and executive jets operators’ flight activities are recovering from the pandemic peak in 2020. Reported 2Q22 gross margin from Service & Support of 31.8% higher than 28.3% reported in 2Q21.
Embraer ended 2Q22 with a net debt position of US$ 1.2 billion, compared to US$ 1.5 billion q-o-q and US$ 1.8 billion y-o-y. The decrease in the company’s net debt position is a result of cash usage and payment of all 2022 balance of Embraer’s bond and repurchase of 2025, 2027 and 2028 bonds.
The manufacturer’s’ liquidity position decreased to US$ 1.96 billion, from the US$ 2.10 billion in 1Q22, with payment of US$ 396.8 million of short and long-term debt.
In 2Q22, Embraer delivered 11 commercial jets. Embraer delivered 8 Embraer 175 to SkyWest and 3 Embraer 195-E2 to Aircastle and ICBC. In the 2Q22, NAC was announced as the E-Jets Freighter launch lessor, after signing an LOI of up to 10 P2F conversions and additional undisclosed customer signed a firm order of up to 10 P2F conversions. Embraer and Pratt & Whitney successfully tested a GTF-powered E195-E2 aircraft on 100% SAF, the first step in the certification process to maximize emission reduction with the use of Sustainable Aviation Fuels.
Executive Aviation delivered 21 aircraft (12 light and 9 mid-size jets) in the second quarter 2022. Deliveries were higher than 2Q21 and sales continued strong in the quarter with sales orders exceeding prior year levels. The book-to-bill ratio remains above 2.5 to 1, the highest in the industry.
Growth in the light and mid-sized business jet segments continues. Embraer Executive Aviation is well positioned to capitalize on this growth, with strong product performance and increased customer demand.