Business Context and Reporting Period
This Form 6-K filing by Embraer S.A. covers the second quarter of 2022, with data reported as of June 30, 2022. The document details operational deliveries, order backlog status, and strategic agreements announced during the quarter and at the Farnborough Airshow.
Key Financial and Operational Metrics
- Deliveries (2Q22): Total of 32 jets, comprising 11 commercial and 21 executive jets (12 light, 9 large).
- Deliveries (1H22): Total of 46 aircraft, comprising 17 commercial and 29 executive jets.
- Firm Order Backlog: US$ 17.8 billion as of June 30, 2022.
- Revenue, Profit, Cash Flow, Margins, Debt, Liquidity: The filing text does not provide specific values for these financial metrics.
Material Changes Versus Prior Period
- Backlog Growth: The firm order backlog increased by 12% compared to the US$ 15.9 billion recorded in the same period in 2021, reaching the highest level since 2Q18.
- New Sales Drivers: The backlog increase was driven by new sales of aircraft and services.
Guidance, Outlook, and Strategic Developments
- Commercial Aviation:
- Announced a sale of 20 E195-E2 jets to Porter Airlines (to be included in 3Q22 backlog).
- Confirmed a firm order from Alaska Air Group for eight additional E175 jets (already included in 2Q22 backlog) and 13 purchase rights.
- Signed a firm order to convert up to 10 E-Jets into passenger-to-freight (P2F) aircraft with an undisclosed customer, with deliveries starting in 2024.
- Welcomed Sky High (Dominican Republic) to the E-Jets operator family under the Pool Program.
- Services & Support:
- Renewed and expanded the Pool Program agreement with LOT Polish Airlines to cover 44 E-Jets.
- Announced a memorandum of understanding (MoU) with NAC for Astral Aviation to convert two E190F aircraft to P2F.
- Defense & Security:
- Delivered the last modernized AF-1 fighter jet to the Brazilian Navy.
- Established cooperation agreements with BAE Systems via two MoUs: one to promote the C-390 in Middle Eastern markets and another to create a joint venture for a defense variant of Eve's eVTOL vehicle.
- Outlook: Management notes solid positioning in the light and midsize jet segments of the business aviation market due to growing demand.
Investor Verification Checklist
- Verify the inclusion of the 20 E195-E2 jets sold to Porter Airlines in the Q3 2022 backlog figures.
- Confirm the financial impact of the 12% backlog increase on future revenue recognition.
- Monitor the execution timeline for the first firm P2F conversion contract (deliveries starting 2024).
- Assess the progress of the joint venture with BAE Systems regarding the defense eVTOL variant.