Embraer Fiscal Year Financial Results ‘Below Expectations’

Embraer delivered its financial results for the year 2019 which some analysts consider to be below expectations. This will add to the fact that the joint venture with Boeing is now delayed as the European Union says it sees a risk for diminished competition in the airliner market.

Embraer delivered 35 commercial jets and 46 executive jets (20 light and 26 large) in 4Q19, and in 2019 delivered 89 commercial jets and 109 executive jets (62 light and 47 large), meeting guidance for 2019.

The company’s firm order backlog at the end of 4Q19 was $16.8 billion, an increase compared to the $16.2 billion reported at the end of 3Q19 and $16.3 billion reported at the end of 4Q18.

Revenues in 4Q19 reached $2,085.0 million and for the fiscal year 2019 were $5,462.6 million, in line with the company’s stated 2019 guidance for revenues of $5.3 – $5.7 billion; 4Q19 adjusted EBIT and adjusted EBITDA were $4.0 million and $65.8 million, respectively, yielding adjusted EBIT margin of 0.2 percent and adjusted EBITDA margin of 3.2 percent.

For 2019, adjusted EBIT and adjusted EBITDA were $5.4 million and $181.9 million, respectively. The adjusted EBIT margin for the year was -0.1 percent and the adjusted EBITDA margin was 3.3 percent.

Embraer’s adjusted EBIT margin for 2019 reached the guidance level of approximately breakeven.

The aircraft manufacturer’s 2019 adjusted net loss was $217.5 million, and adjusted loss per ADS was $1.18.

Due to the uncertainty related to the impact of the spread of COVID-19 virus, the company is suspending its 2020 guidance.

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Peter Biondi

Peter Biondi has a degree in journalism and a master’s degree in airline/airport management from Embry-Riddle Aeronautical University. He is a former professor of Airline Management, Airline Marketing, Airport Management, Aviation safety, and Introduction to the Aviation Industry. He is an IATA instructor in airline business foundation. He has worked as an aviation consultant, analyst, researcher, journalist and professor. His professional experience includes Varig – Brazilian Airlines, KLM, and British Airways. Before moving to the US, he lived in Europe and South America. He is fluent in English, Spanish, Portuguese, French and Italian.

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