In its fourth-quarter and full-year earnings call Thursday, Embraer (NYSE: ERJ) said its 2021 revenue of $4.2 billion was 11 percent more than its 2020 figure.
For the fourth quarter, the company said revenues reached $1.3 billion or $0.31 per share, which beat projections of $0.11 per share. However, its Q4 revenue number represents a 30 percent drop from the company’s $1.84 billion in earnings during the fourth quarter of 2020.
On the call, Embraer president and CEO Francisco Neto offered “solidarity with the Ukrainian people impacted by the war” and said his company expected no short-term disruption to its supply chain due to the conflict.
Embraer delivered 55 jets in the fourth quarter: 16 commercial and 39 executive. In 2021, the company delivered 141 jets, including 48 commercial aircraft and 93 executive jets.
The E-Jets E2 family, especially the E195 E2, accounted for 44 percent of deliveries in 2021, compared to 25 percent of total deliveries in 2020.
The company ended the year with a $17 billion backlog, the highest since the second quarter of 2018. The demand centered around its executive and commercial segment, with a 2:1 book to bill ratio.
Expectations for 2022
In the current year, Embraer is expecting to deliver up to 70 commercial jets and close to 110 executive jets. In terms of revenue, the company projects between $4.5 billion and $5 billion. It attributes this estimate to a decline in its defense and security segment. CFO Antonio Carlos Garcia said budget cuts by the Brazilian government will impact revenue.
He said defense is one area that’s concerning the company right now. “We closed 2021 with [a] 3.8 percent [loss in the defense segment], and we will suffer a little bit in 2022. That’s one of the headwinds we have in our guidance.”
At the time of reporting, Embraer’s share price was down as much as 15 percent to $11.