Embraer, the Brazilian manufacturer of military and business jets, has restored its guidance after returning to profit in the second quarter of 2021. Additionally, the company anticipates delivery of between 45 and 50 aircraft plus the handing over of between 90 and 95 business jets. Consolidated revenue is estimated to lie between US$4 billion and US$4.5 billion.
Second-quarter deliveries of 14 commercial and 20 executive jets took the first half year’s total to 23 and 33, respectively. 4 commercial and 13 executive jets were delivered in the second quarter of 2020. Revenue reached US$1.13 billion. Additionally, Embraer is to take further forward steps in the development of a turboprop aircraft, the first in decades. That type of aircraft is seen as being more fuel-efficient on short-haul flights, an attraction during periods of high oil prices. The initial designs indicate the plane will be designed with rear-mounted as opposed to the more traditional wing-mounted engines as Embraer looks to compete against ATR, the European manufacturer of 50-to-70-seat aircraft. Embraer had hoped to develop a new turboprop aircraft in partnership with Boeing, but that fell through when the American planemaker decided not to invest in Embraer in the early development stages of the pandemic.
According to Reuters news agency, Chief Financial Officer Antonio Carlos Garcia said on a call with analysts that Embraer is poised to post a stronger performance next year, and he is “very optimistic” about finding a partner for the turboprop. Revenue, which more than doubled in the second quarter to US$5.922 billion, is likely to be between US$4 billion and US$4.5 billion, with an adjusted EBITDA margin of 8.5% to 9.5%. Free cash flow should be at breakeven, with a cash burn of up to US$150 million seen this year.
