Embraer backlog highest ever in 7 years, revenues up 25%

Embraer has seen an uplift in its firm order backlog for the first quarter of the year at $21.2bn, up from $17.4bn in the first quarter of last year. It is the highest backlog amount the company has recovered over the past seven years. Notably, while last year's backlog had been driven by its executive jets and services & support developments, Embraer's first quarter backlog this year was largely bolstered by the 26% increase from the fourth quarter of 2023 in its commercial aviation backlog. Additionally, its executive aviation backlog was up 7% from the end of last year. The company delivered 25 jets in the first quarter, up from 15 in the same period last year. The deliveries in this quarter comprised of 18 executive jets and seven commercial jets. On top of its growing backlog and deliveries, the company's revenues were up 25% year-on-year (YoY) at $897 million. It said its executive aviation business was the standout driver of this growth, with this segment showing a 2.75% growth. The first quarter saw its highest revenues and deliveries for its executive aviation business in the past eight years. Its net income for the quarter had swung from a loss in the same period last year of $70.8 million to a positive $28.7 million. Meanwhile, its adjusted net income was at a loss with $12.8 million, though markedly narrowed down from its net loss of $88.9 million in last year's first quarter. Its adjusted EBIT reached $6.8 million in the first quarter, down 4.4% from the first quarter last year. Embraer's net debt, without its eVTOL division Eve Air Mobility, increased to $1bn by the end of the first quarter, up from $780.7 million at the end of last year. The negative adjusted free cash flow without Eve was a negative $346 million ""because of the preparation for higher number of deliveries in the coming quarters."" Furthermore, without Eve, the company also reduced its gross debt by $276 million in the first quarter.  Its consolidated net debt totalled $865.9 million, up from $565.5 million at the end of last year. The company said Eve's net cash position reached $182.3 million in the first quarter of the year versus $215.2 million from the end of last year as Embraer continued to invest in its eVTOL development. It has maintained its guidance for the full year and expects around 72-80 commercial aircraft to be delivered along with 125-135 executive aviation deliveries to be made. Its consolidated revenues are expected to be $6-6.4bn with a free cash flow of $220 million or higher. Its guidance does not include its Eve division.