Embraer’s Q3 Revenue Dips Alongside Defense Demand

Despite delivering more commercial and executive jets this third quarter, aircraft manufacturer Embraer said less business in its defense sector and supply chain woes hurt its earnings.

Michael Wildes

Monday, November 14, 2022 at 04:54 PM ET

Verified

Embraer said that the strong demand for executive jets made its third-quarter earnings the second-best in the last decade. [Courtesy: Embraer]

Key Takeaways:

Embraer's third-quarter revenue dipped 3% to $929 million, primarily due to a slowdown in defense orders, despite increased commercial and executive jet deliveries and strong demand in these segments.
Strong demand for executive jets contributed to Embraer's second-best third-quarter earnings in a decade, with commercial and executive revenue up 4% and 6% respectively year-over-year.
Persistent global supply chain challenges are impacting production and spare parts availability, leading the CEO to project executive jet deliveries will be at the lower end of the 2022 guidance.
Despite revenue challenges, Embraer's Q3 operating profit increased to $50 million, and its firm order backlog grew 6% year-over-year to $17.8 billion.

See a mistake? Contact us.

Aircraft manufacturer Embraer (NYSE: ERJ) reported $929 million in third-quarter revenue Monday, a 3 percent dip compared to the same period in 2021 due to a slow down in its defense orders, according to the company.

FLYING reported last week that Embraer delivered 10 commercial jets and 23 executive jets in the third quarter, 10 percent more than it did in the same period the previous year. The commercial and executive revenue contributed $253.3 million and $271.7 million, respectively, and was up 4 and 6 percent year over year.