Embraer has posted consolidated revenue of US$ 717 million for the first quarter of 2023 (1Q23) represented growth of 19% y-o-y due to better commercial mix, strong growth in Defence & Security (+56% y-o-y) and Services & Support (+20% y-o-y). The company's total revenue closed the quarter as planned.
Commercial Aviation reported revenue growth of 17.5% y-o-y to US$ 198.8 million due to one additional delivery in 1Q23 and more deliveries of E2 and fewer deliveries of the smaller 175E1 aircraft. Commercial Aviation gross margin of 0.1% versus 11.3% reported in 1Q22 shows a decrease due to one-time benefits occurred in 1Q22 and product mix, including learning curve and new configurations development.
Executive Jets' revenues was US$ 87.1 million, 3% lower than the same period last year due to changes in the mix of light-jet deliveries. First-quarter Gross Margin was -0.5% compared to 18.7% in the first-quarter of 2022 due to aircraft mix and non-recurrence of one-time benefits from last year.
Defence & Security revenue of US$ 97.7 million was 56.3% higher y-o-y due to better C-390 revenue recognition in 1Q23. Reported gross margin of 24.8% versus 12.1% reported in 1Q22 was due to better commercial agreements replacing old ones.
Services & Support reported revenues of US$ 326.2 million represent a y-o-y growth of 20.3% due to an increase in sales within Company growth plans. Reported gross margin of 27.1% was higher than 26.5% reported in 1Q22 due to enterprise efficiency and MRO performance.
Excluding special items, 1Q23 Adjusted EBIT was US$ (31.6) million and the period's Adjusted EBIT margin was -4.4%, flat in comparison with 1Q22.
NET INCOME (Loss) attributable to Embraer shareholders and income (loss) per ADS for 1Q23 were US$ (70.8) million and US$ (0.3855) per share, respectively, compared to US$ (31.7) million in net loss attributable to Embraer shareholders and US$ (0.1726) in income per ADS in 1Q22. (£1.00 = US$1.25 at time of publication).
