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 due to a significant slowdown in its Defense & Security segment, which saw a 38% year-to-date revenue reduction.
Despite the overall revenue dip, commercial and executive jet deliveries increased by 10% in Q3, with strong demand for executive jets contributing to the segment's second-best earnings in a decade.
Persistent global supply chain challenges are hindering output, spare parts availability, and repair times, causing the CEO to anticipate missing the 2022 executive jet delivery target.
Embraer reported an increased operating profit and a 6% year-over-year growth in its firm order backlog to $17.8 billion, with strategic steps underway to improve production efficiency.

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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.