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Embraer reports consolidated revenue of $929 million in Q32022

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Embraer reports consolidated revenue of $929 million in Q32022

Embraer delivered 10 commercial jets and 23 executive jets (15 light / 8 mid/super-midsize jets) in the third quarter (Q3) of 2022, bringing the total deliveries so far this year to 27 commercial jets and 52 executive jets (33 light /19 mid/super-midsize jets).

Embraer reported a negative cash flow in Q3 with $109.4 million, due to a working capital increase due to higher deliveries in 4Q22 which will reverse to a positive trend. The company finished the quarter with net debt of $1.275bn in line with the strategy to reduce interest expenses. Embraer also signed a revolving credit facility of up to $650 million with 14 financial institutions to increase liquidity and improve our capital structure.

The manufacturer reported consolidated revenue of $929 million with commercial aviation reporting a revenue of $253.3 million and executive aviation revenue was 6% higher than last year at $271.7 million.

Embraer ended 3Q with a net debt of $1.3 bn, compared to $1.8 bn same time last year. The decrease in the company’s net debt position is a result of cash generation during the last four quarters and Embraer’s liability management strategy to reduce the gross debt and the interest expenses.

To ensure company liquidity, Embraer obtained a revolving credit facility line in October 2022, in the amount of up to US$650 million, and a credit transaction guarantee of US$100 million by JPMorgan/UKEF to finance suppliers. Also, BNDES approved the renewal for financing the production and export of manufactured commercial aircraft, in the amount of US$400 million to 2027.

Embraer’s total backlog reached $17.8 bn in 3Q, representing an increase of 6% and flat compared to 3Q21 and 3Q22, respectively.  Embraer also signed new firm orders of 20 E195-E2 from Porter and of six E195-E2 from Salam Air.

In 3Q22, Embraer delivered 10 commercial jets, nine Embraer 175s to SkyWest and one 195-E2 to Aircastle. In 3Q22, Republic and Embraer agreed on a reduction of 31 E175s, which was partially offset by a firm order of 20 E195-E2 passenger jets by Porter Airlines, adding to the airline's existing 30 firm orders. SalamAir signed a firm order for six E195-E2s. Nordic Aviation Capital (NAC) signed a contract for up to 10 conversion slots for the E190F/E195F, with deliveries starting in 2024.

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