Embraer has released its fourth-quarter and full-year 2021 results.
Embraer delivered 55 jets in the fourth quarter, of which 16 were commercial aircraft and 39 executive jets (26 light and 13 mid-size). In 2021, a total of 141 jets were delivered comprised of 48 commercial aircraft and 93 executive jets (62 light and 31 mid-size).
Firm order backlog at the end of the fourth quarter was US$17.0 billion. This is the highest quarter backlog since 2Q18, driven by solid order activity, particularly in the Executive & Commercial segments. Book to bill in excess 2:1 for Commercial and Executive.
Revenues reached US$1.3 billion in the quarter and US$4.2 billion in 2021, in line with the company guidance for revenues of US$4.0 – US$4.5 billion.
Adjusted EBIT and EBITDA margins for 2021 reached guidance of 3.0% – 4.0% and 8.5% – 9.5%, respectively driven by enterprise efficiencies, better prices and mix volumes from Commercial, Executive and Services & Support segments.
Significant improvement in free cash flow (FCF) in the fourth-quarter 2021, with cash generation of US$452.6 million, leading to full-year FCF of US$292.4 million in 2021, surpassing FCF guidance of US$100 million or better.
Net Debt/EBITDA ratio decreased from 5.6x in 2019 to 3.5x in 2021, with strong FCF and EBITDA recovery.
Guidance for 2022 (without Eve): commercial jet deliveries of 60-70 aircraft, executive jet deliveries of 100-110 aircraft, revenues in a range of US$4.5 to US$5.0 billion, Adjusted EBIT margin of 3.5% to 4.5%, Adjusted EBITDA margin of 8.0% to 9.0%, and free cash flow of US$50 million or better for the year. (£1.00 = US$1.31 at time of publication).
