Business Context and Reporting Period
This Form 6-K filing by Embraer S.A. covers operational results for the second quarter of 2018 (2Q18), ending June 30, 2018. The report details aircraft deliveries, order backlog status, and significant commercial agreements announced during the quarter.
Key Financial and Operational Metrics
- Total Deliveries (2Q18): 48 aircraft (28 Commercial, 20 Executive).
- Total Deliveries (YTD 2018): 73 aircraft (42 Commercial, 31 Executive).
- Firm Order Backlog (as of June 30, 2018): USD 17.4 billion.
- Commercial Aviation Deliveries (2Q18): 28 units (20 E175, 3 E190-E2, 2 E190, 2 E195, 1 E170).
- Executive Aviation Deliveries (2Q18): 20 units (15 Light Jets, 5 Large Jets).
- Revenue, Profit, and Cash Flow: The filing text does not provide specific values for revenue, net income, operating margins, cash flow, or debt levels.
Material Changes and Backlog Adjustments
- Backlog Reduction: Air Costa's order for 50 E-Jets E2 was removed from the backlog as of the end of 2Q18. Management stated this adjustment has no impact on the E2 production or delivery schedule for 2018 or 2019.
- New Commercial Orders:
- American Airlines: 15 E175 jets (USD 705 million list price), deliveries in 2019.
- Mauritania Airlines: 2 E175 jets (USD 93.8 million list price), included in 2Q18 backlog, deliveries in 2019.
- United Airlines: 25 E175 jets (announced Farnborough, to be included in 3Q18 backlog).
- Wataniya Airways: 10 E195-E2 jets (announced Farnborough, to be included in 3Q18 backlog).
- New Executive Orders: Air Hamburg ordered 4 Legacy 650E business jets.
Management Commentary and Milestones
- E190-E2 Launch: Widerøe (Norway) took delivery of the first production E190-E2 in early April 2018 and commenced scheduled passenger service shortly thereafter.
- Phenom 300E: The quarter marked the beginning of deliveries for the new Phenom 300E model.
- Services & Support:
- Belavia (Belarus) signed a fleet support agreement for E-Jets.
- CommutAir selected Embraer Aircraft Maintenance Services (EAMS) in Nashville as the exclusive heavy maintenance provider for up to 61 ERJ-145 aircraft.
- The Sorocaba Service Center received ANAC and EASA certification to maintain the E190-E2.
Investor Verification Checklist
- Verify the financial impact of the Air Costa order removal on future revenue recognition.
- Confirm the timing of backlog inclusion for Farnborough announcements (United Airlines and Wataniya Airways) in the 3Q18 report.
- Monitor the production ramp-up and delivery schedule for the E190-E2 following the first commercial entry into service.
- Review the full Q2 2018 earnings release for specific revenue, profit, and cash flow figures not included in this operational summary.