Business Context and Reporting Period
This Form 6-K filing by Embraer S.A. covers the month of January 2019. The report details a significant commercial aviation contract signed on January 31, 2019, between Embraer and SkyWest, Inc.
Key Financial Metrics
The filing does not provide comprehensive financial statements, revenue, profit, cash flow, margins, debt, or liquidity metrics for the period. The only specific financial figure disclosed relates to a new firm order:
- New Order Value: USD 422 million (based on current list prices).
- Order Quantity: Nine E175 jets.
- Backlog Status: The order was already included in Embraer's 2018 fourth-quarter backlog.
Material Changes
There are no material changes to financial performance reported in this filing. The primary event is the formalization of a contract for nine E175 aircraft with SkyWest, Inc., with deliveries expected to begin in 2019. The aircraft will feature a 76-seat configuration.
Guidance, Outlook, and Management Commentary
Management commentary highlights the strategic importance of the E175 in the North American regional market:
- Market Position: Since January 2013, Embraer has sold more than 565 E175s to North American airlines, capturing over 80% of orders in the 70-76-seat jet segment.
- Customer Relationship: SkyWest has purchased a total of 158 E175s since 2013 to expand its fleet.
- Program Status: The E-Jets family has received more than 1,800 orders with over 1,500 aircraft delivered to 70 customers in 50 countries.
The filing does not contain specific forward-looking guidance on revenue, earnings, or production rates beyond the delivery timeline for this specific order.
Investor Verification Checklist
- Verify the impact of the USD 422 million order on the total backlog reported in the 2018 fourth-quarter earnings release.
- Confirm the delivery schedule for the nine E175 jets to SkyWest, Inc. starting in 2019.
- Review the 2018 annual report (Form 20-F) for full financial metrics, as this 6-K does not contain them.
- Assess the concentration risk regarding the E175 program, which accounts for a significant portion of North American regional jet sales.