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Embraer reports positive Third Quarter Earnings

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Embraer reported its third quarter earnings this morning, with several positives that beat expectations.  The company reported a net profit of $178.8 million US, or 97 cents per share.  Adjusted for non-recurring costs, EPS were $1.20, surpassing expectations.

Quarterly revenues were $1.69 billion, which grew 32% year-over-year during a record third quarter. Recurring margins, excluding the Boeing arbitration gains, were strong, with EBIT of 8.7% and EBITDA margin of 12.2% both above street expectations.  Free cash flow was $240 million US, reflecting the positive quarter.  The company now expects FCF of $300 million, up from the earlier target of $220 million.

Defense and Security and Executive Aviation both outperformed year-over-year, with deliveries of business jets meeting exceeding guidance.  Executive Aviation EBIT margin reached 16.3%, a record level for the third quarter. Backlog has grown to $US 22.7 billion, the highest level in 9 years, and two C-390 aircraft

were delivered to Brazil and Hungary. Commercial aircraft revised its guidance slightly downward for deliveries during the year, from 72-80 to 70-73, but the mix of aircraft favors higher margin E2-195 models. 

Embraer reported its third quarter earnings this morning, with several positives that beat expectations.  The company reported a net profit of $178.8 million US, or 97 cents per share.  Adjusted for non-recurring costs, EPS were $1.20, surpassing expectations.

Quarterly revenues were $1.69 billion, which grew 32% year-over-year during a record third quarter. Recurring margins, excluding the Boeing arbitration gains, were strong, with EBIT of 8.7% and EBITDA margin of 12.2% both above street expectations.  Free cash flow was $240 million US, reflecting the positive quarter.  The company now expects FCF of $300 million, up from the earlier target of $220 million.