Planned Shutdown Hits Embraer’s Q1 Earnings; Company Remains Optimistic for Future

Firm-order backlog is the largest the aerospace manufacturer has seen in nearly four years.

Thursday, April 28, 2022 at 05:35 PM ET

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Embraer says the Phenom 300 continues to be the best-selling executive light jet in the past 10 years. [File photo: Adobe Stock]

Key Takeaways:

Embraer reported lower Q1 revenue due to a planned production shutdown and fewer aircraft deliveries, though it improved its net loss year-over-year and achieved its highest firm-order backlog since Q2 2018.
The Services & Support division was a strong performer, reporting 8% year-over-year revenue growth and improved gross margins, partially offsetting declines in other segments.
Despite the Q1 revenue dip, Embraer reaffirmed its full-year forecast and expressed optimism about future growth, driven by innovative investments like the Eve UAM SPAC merger and a goal to double revenues in five years.

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Embraer (NYSE: ERJ) on Thursday reported that a planned January shutdown of its production to accommodate its commercial aviation segment’s system and legal reintegration caused lower revenue in the first quarter this year.

The company took in $600.9 million in revenue during Q1. That’s a 26 percent reduction in business activity compared to the same quarter last year amid a surge in business jet travel. Even with that slowdown, the company said it ended this quarter with a $17.3 billion firm-order backlog, the highest for the company since the second quarter of 2018.