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Embraer announces 19% y/y revenue increase

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Embraer announces 19% y/y revenue increase

Brazilian aircraft maker Embraer reported $717 million revenues in the first quarter of 2023, 19% up on 2022 and "in line" with what it had forecast.

The company reported "cash consumption" of $399 million, which it said was "due to seasonality and in preparation for higher deliveries in the coming quarters".

Revenue growth was driven by defence and security, which was up 56% y-o-y, while services and support saw 20% increase and a gross margin "27.1% higher than 26.5% reported in 1Q22 due to enterprise efficiency and MRO [maintenance, repair, overhaul] performance".

The commercial aviation section reported revenue growth of 17.5% to $198.8 million due in part to "more deliveries of E2 and less deliveries of the smaller 175E1".

"Reported gross margin of 0.1% versus 11.3% reported in 1Q22 shows a decrease due to one-time benefits occurred in 1Q22 and product mix, including learning curve and new configurations development," Embraer reported. Executive jet revenue came $87.1 million, 3% lower year-on-year.

As reported recently, the manufacturer delivered 15 jets in Q1 2022, of which seven were commercial aircraft and with the remainder executive, leaving it with a backlog valued at $17.4bn.

Embraer ended the quarter with net debt of $1.4bn, up by more than $300 million quarter-on-quarter but down around $30 million year-on-year.

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